20 Nov 2013 07:00
Sierra Rutile Limited
Sierra Rutile Signs 50,000 Tonne Sales Contract and
Updates Rutile Production Forecast
London, UK, 20 November 2013: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile") is pleased to announce that it has entered into a 50,000 tonne rutile sales contract with a major pigment producer. The contract will be fulfilled through a number of shipments which will take place before 31 March 2014, with volume split evenly between Q4 2013 and Q1 2014. Sierra Rutile will complete the 2013 fiscal year holding a rutile inventory in line with historic levels and has contracted over 75% of its production for Q1 2014.
Throughout 2013, Sierra Rutile has focused on maintaining cost discipline across its business. The company has executed a series of cost saving initiatives in order to optimize capital and operating cost efficiency and maximize its cash flow generation. Sierra Rutile has also re-assessed its production targets, in light of existing market conditions, and is planning a slight decrease in its rutile production for 2013 to 120,000 tonnes of rutile (vs. 125,000 tonnes), a 4% reduction on previous guidance.
Commenting on the recent events, CEO John Sisay said: "We are very pleased to announce a sales contract of this significance. Despite the current market softness, rutile sales through 2013 will show significant growth over 2012 sales as the company continues to see strong demand for its premium rutile product. Whilst we have slightly reduced our production target for 2014 due to market conditions, I am pleased with the company's operating performance as we near the end of the year which positions the company well for continued production growth in 2014, as the Lanti Dry Mining makes its first full-year contribution to production. Our renewed focus on cost-efficiency is yielding significant results and I am confident that further cost savings will also be realized during 2014."
ENDS
For Further Information:
Sierra Rutile Limited Yves Ilunga Chief Financial Officer
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+44 (0)20 7074 1800 |
RBC Capital Markets Nominated Adviser and Joint Corporate Broker Stephen Foss / Jonny Hardy
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+44 (0)20 7653 4000 |
Mirabaud Securities Joint Corporate Broker Peter Krens
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+44 (0)20 7321 2508 |
Kreab Gavin Anderson Marc Cohen / Christina Clark |
+44 (0)20 7074 1800 |
Notes to Editors
About Sierra Rutile Limited
Sierra Rutile produces titanium feedstock industrial minerals (primarily rutile, with some associated ilmenite), as well as smaller quantities of zircon. Sierra Rutile's mine, located in the south west of Sierra Leone, is one of the largest natural rutile deposits in the world, with a JORC-Compliant Mineral Resource for measured, indicated and inferred resources for the Sierra Rutile mine of over 800 million tonnes (as at 31 August 2012).
www.sierra-rutile.com