26 Apr 2016 07:00
Sierra Rutile Limited
Operational Update
Completion of Gangama project construction and recommencement of rutile sales to titanium metal customers
London, UK, 26 April 2016: Sierra Rutile Limited (AIM:SRX) ("Sierra Rutile" or the "Company") is pleased to provide the following corporate update:
Highlights:
· Completion of construction phase of Gangama project and the commencement of plant commissioning; and
· The re-commencement of rutile sales into the titanium metal market.
Completion of construction of the Gangama Dry Mine Project
On 25 April 2016 the Gangama project reached a significant milestone with the completion of plant construction activities and will shortly enter the final phases of commissioning. The Gangama project continues to progress towards the planned start of commercial production during Q2 2016, and remains both on time and on budget.
Re-commencement of rutile sales into the titanium metals market
Sierra Rutile has restarted sales into the titanium metals market. After several years of subdued demand as stockpiles were depleted, the Company views this initial order as an encouraging sign that the demand for high-grade titanium feedstocks is continuing to strengthen.
Titanium metal is a key growth market for high-grade titanium feedstocks. Titanium metal production, for use in aviation, automotive, medical and technological applications, requires a high-grade premium rutile product, and Sierra Rutile has historically been a key supplier to this end market. Titanium metal is valued for its light weight, chemical inertness and durability, providing unmatched performance and durability.
John Sisay, CEO of the Company, said: "The completion of the construction phase of Gangama represents a significant de-risking step as the project nears commercial production. Whilst the re-commencement of sales into the titanium metal market marks the re-emergence of a key end market for Sierra Rutile's premium product. We are very pleased to announce these two significant milestones, as they further demonstrate Sierra Rutile's continued track record of delivering on its stated goals. "
ENDS
For further information
Sierra Rutile Limited John Sisay, Chief Executive Officer Matthew Hird, Chief Financial Officer
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+44 (0)20 7074 1800
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Investec Bank Nominated Adviser and Joint Corporate Broker Chris Sim / George Price / Jeremy Ellis
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+44 (0)20 7597 4000 |
Numis Securities Limited Joint Corporate Broker John Prior / James Black / Paul Gillam
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+44 (0)20 7260 1000 |
RBC Capital Markets Joint Corporate Broker Jonny Hardy / Elliot Thomas
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+44 (0)20 7653 4000 |
Kreab Marc Cohen / Christina Clark |
+44 (0)20 7074 1800
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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 866 million tonnes (as at 30 September 2015). Sierra Rutile expects to be the world's largest primary producer of natural rutile in 2016.
www.sierra-rutile.com