directors talk-vsa capital -68p 12 Jan 2015 10:21
68p broker price target?
Sierra Rutile has achieved a 14.5% increase in QoQ rutile production to 31,025t, augmented by 10,574t ilmenite, in spite of the Ebola virus.
The company continues to report no mine-site impacts from the outbreak although it has had some issues with incidental items and local suppliers as a result of the reduced international flights into the country. C1 cash costs for the year 2014 came in at US$646/t, while C3 costs came in at US$683/t
The company has offered 2015 guidance for annual production of 120-130Kt of rutile and 30-35Kt ilmenite, representing an increase of roughly 10% YoY, while anticipating a fall of 5-8% in C1 costs to US$595-US$615/t and a 5% improvement in C3 costs to US$650-US$670/t.
We are encouraged by the continued improvements in the performance of SRX’s operations in the face of weak mineral sand markets and the Ebola outbreak. The company remains a top world supplier on a Tier 1 asset in our view. We retain our BUY recommendation and 68p price target.
gldyoR etc