TIDMSRX
RNS Number : 1078N
Sierra Rutile Limited
21 October 2016
Sierra Rutile Limited
Sierra Rutile Provides Q3 2016 Operational Update
London, UK, 21 October 2016: Sierra Rutile Limited (AIM: SRX)
("Sierra Rutile") is pleased to provide an operational update for
the third quarter of 2016 ("Q3 2016").
Highlights
-- Strong quarterly production with 43,081 tonnes of rutile:
- 24% increase in rutile production from Q2 2016;
- 27% increase in rutile production from Q3 2015.
-- Gangama Dry Mine continuing to perform above plan:
- 17% ahead of its planned rutile production as a result of
higher throughput and utilisation.
-- Reiteration of production guidance of between 135,000 and
145,000 tonnes of rutile for the full year:
- Year to end of Q3 2016 rutile production at 104,489
tonnes.
Commenting on Q3 2016 performance, Chief Executive Officer, John
Sisay said:
"We are delighted with the excellent production performance for
the quarter, demonstrating the strength of our operations. In
particular, the Gangama Dry Mine continues to perform ahead of our
expectations. We anticipate a strong final quarter and we remain on
track to meet our production guidance for the full year."
Production
Sierra Rutile produced 43,081 tonnes of rutile in Q3 2016, 27%
higher than Q3 2015 (Q3 2015: 33,960 tonnes of rutile).
Q3 Q2 % Q3 %
2016 2016 Change 2015 Change
========== ======= ======= ======== ====== =======
Rutile
(t) 43,081 34,629 24% 33,960 27%
========== ======= ======= ======== ====== =======
Ilmenite
(t) 7,143 5,025 42% 10,229 (30%)
========== ======= ======= ======== ====== =======
Zircon
(t)(1) 358 394 (9%) 446 (20%)
========== ======= ======= ======== ====== =======
1 Zircon Concentrate is a semi-finished zircon product grading
40-55% ZrO2.
Rutile production for Q3 2016 was Sierra Rutile's highest
quarter of rutile production since the restart of operations in
2006. The strong results demonstrate the benefits from improvements
to plant utilisation and availability undertaken during 2015 and
early 2016, as well as the successful commissioning of the Gangama
Dry Mine in May 2016. Production in Q3 2016 benefited from three
months of production from the Gangama Dry Mine versus only one
month in the preceding quarter.
Rutile production was supported by strong increases in tonnes of
ore fed and heavy mineral concentrate production across the
operation. Ramp up for the Gangama Dry Mine continued during the
quarter, with the plant contributing 20,198 tonnes of rutile, 17%
ahead of its target as a result of higher plant throughput and
utilisation rates. Steady state production is expected by the end
of the year.
Sierra Rutile continues to produce ilmenite in line with
customer demand.
During the quarter, Sierra Rutile also successfully commissioned
an upgrade to its mineral separation plant.
Sierra Rutile reiterates that it expects full year rutile
production to be between 135,000 and 145,000 tonnes. Cash cost
guidance remains as set out in the interim results for the period
ended 30 June 2016, as announced on 30 September 2016.
Projects
The status of Sierra Rutile's growth projects remains as set out
in the interim results for the period ended 30 June 2016, as
announced on 30 September 2016.
Sales and Marketing
For the remainder of the year, all of Sierra Rutile's expected
rutile production is committed. Improved customer demand has
generated additional sales which are being met by increased
production.
ENDS
For Further Information:
Sierra Rutile Limited
Matthew Hird, Chief Financial
Officer
John Nagulendran, Company +44 (0)20
Secretary 7074 1800
Investec Bank
Nominated Adviser and
Joint Corporate Broker
Chris Sim / George Price +44 (0)20
/ Jeremy Ellis 7597 4000
RBC Capital Markets
Joint Corporate Broker +44 (0)20
Jonny Hardy 7653 4000
Numis Securities Limited
Joint Corporate Broker
John Prior / James Black +44 (0)20
/ Paul Gillam 7260 1000
Kreab
Christina Clark / Anna +44 (0)20
Gustafsson 7074 1800
About Sierra Rutile Limited
Sierra Rutile is a leading, multi-mine mineral sands company,
operating world-class assets and developing a portfolio of growth
projects in the south west of Sierra Leone, with its primary
commodity mined being natural rutile, a titanium feedstock. The
Company has an established operating history spanning approximately
50 years and a resource mine life of another 50 years with one of
largest natural rutile deposits in the world and a JORC-Compliant
Mineral Resource for measured, indicated and inferred resources for
the Sierra Rutile mine of over 867 million tonnes (as at 30
September 2015). Sierra Rutile expects to be the world's largest
primary producer of natural rutile in 2016 and its market-led,
long-term mine plan has the flexibility to adapt to customer
demand.
www.sierra-rutile.com
Forward-Looking Information
This document may contain forward-looking statements. These
forward-looking statements are made as of the date of this
announcement and Sierra Rutile Limited (the "Company") does not
intend, and does not assume any obligation, to update these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required under applicable
securities legislation.
Forward-looking statements relate to future events or future
performance and reflect Company management's expectations or
beliefs regarding future events and future performance and include,
but are not limited to, statements with respect to the estimation
of mineral reserves and resources, the realization of mineral
reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, success of
mining operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims and limitations on insurance
coverage. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved" or the
negative of these terms or comparable terminology. By their very
nature forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward looking
statements. Such factors include, among others, risks related to
actual results of current exploration activities; changes in
project parameters as plans continue to be refined; future prices
of mineral resources; possible variations in ore reserves, grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities; as well as those factors detailed from time to time in
the Company's interim and annual reports. These risks,
uncertainties, assumptions and other factors could adversely affect
the outcome and financial effects of the plans and events described
herein.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward- looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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October 21, 2016 02:00 ET (06:00 GMT)
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