Sierra Rutile Ltd Monday said that its first quarter production for 2014 was up strongly, according to Alliance News in London.
The titanium feedstock minerals company said it increased rutile production 12% to 28,218 tonnes from 25,087 tonnes and increased its ilmenite production 23% to 6,868 tonnes from 5,567 tonnes compared to the first quarter of 2012.
The company also said production of its zircon concentrate increased 36% to 877 tonnes from 643 tonnes.
Sierra Rutile said its sales volumes in the first quarter of 2014, were slightly higher than production during the quarter, resulting in a reduction in inventory, as it continued to see structural improvements in the sector as pigment plant capacity utilisation rates improved and reported titanium oxide pigment inventory levels approached historical averages for the season.
The company said it saw a 33% reduction in its operating cash costs to US$ 539 per tonne as compared to its first-half 2013 rate.
Sierra Rutile said through its on-going, company-wide cost reduction programme, it had seen a steady decline in operating cash costs and expected to see further cost reductions during 2014.
The news came weeks after the company had announced that its pre-tax profit fell significantly in its full-year 2013 as revenues fell and costs increased despite a jump in production during the year.
The company said at the time that its revenues fell due to weaker pricing obtaining, including a 49% fall in the average price of rutile in 2013 of US$ 1,044 per tonne from US$ 2,041 per tonne in 2012.
Sierra Rutile shares were up 15.1% to 61.00 pence, putting it in the top ten AIM risers on Monday.
(C) Politico 08/04/14
