LONDON (Alliance News) - Sierra Rutile Ltd on Friday said full-year production is now expected to be at the top-end of its guidance range after the mineral sands producer achieved record production during the first half of 2016.
The miner said production hit its highest ever level during the first half to June 30 with 61,408 tonnes of rutile being extracted from its operations in Sierra Leone, 15% higher than the 53,275 tonnes produced a year earlier as production increased in the second quarter compared to the first.
The miner also produces two other commodities. Ilmenite production was down 51% year-on-year whilst zircon production was 6.0% higher.
Although there is still a substantial amount of time left in the current year, Sierra Rutile believes it can hit the top end of its production guidance for the year after receiving very strong demand from its customer base and amid the ongoing ramp-up of production at the new Gangama dry mine.
Rutile production should now be at the upper end of the 120,000 to 135,000 tonne mark in 2016. That can be compared to the 126,021 tonnes produced in 2015.
Sierra Rutile said it has already contracted 96% of the maximum amount of targeted sales for this year, boosted by the recommencement of sales into the titanium metal market and by strong demand from pigment and welding customers in Europe and North America.
The Gangama mine is performing ahead of expectations since being completed on schedule and on budget at the end of May. The operation is now producing "high quality natural rutile" and feed rates and utilisation has exceeded the design criteria.
The miner said Gangama should reach "steady-state" in the third quarter of 2016.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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