Post by pling on Jan 16, 2016 10:05:40 GMT
Sierra Rutile Provides Q4 2015 Operational Update
- Record quarterly production for Q4 2015 with 38,787 tonnes of rutile and 10,484 tonnes of ilmenite
- Continued improved cost performance achieved following the implementation of cost saving initiatives and higher production volumes: All-in Operating Cash Cost of US$666/t for 2015
- As stated in Sierra Rutile's H1 2015 interim results announcement, planned rutile sales for the first half of 2015 were sold at prices consistent with average realized prices in 2014. Following some weakening in commodities markets in the later part of the year, realized prices for the full year of 2015 were achieved at just 3% below average realized prices for 2014. Given an expected shortage in premium feedstock availability over the next few years, customers continue to exhibit strong interest in Sierra Rutile's high-quality product, and agreements to purchase volumes from the Gangama Dry Mine are already contracted.
- Demand from the titanium metal industry continued to grow in 2015, and is anticipated to continue to grow in 2016. Looking at the overall end markets for rutile, although the titanium dioxide pigment market was weak in 2015, pigment demand is anticipated to make a modest recovery during 2016 and long-term demand for titanium metal is expected to be an area of continued high growth.
- Gangama Dry Mine construction remains on-schedule and on-budget for commissioning in late Q2 2016: US$21 million of project construction spending completed to-date. Expected commissioning of Gangama in late Q2 2016 will provide further dry mining production capacity to facilitate higher production volumes in 2016.
- As planned, mined grades at the dredge were moderately lower in 2015 versus 2014, an effect which was mitigated by contract mining of historic tailings. With Gangama Dry Mine coming online, average mined grades are expected to increase in 2016.
- Record quarterly production for Q4 2015 with 38,787 tonnes of rutile and 10,484 tonnes of ilmenite
- Continued improved cost performance achieved following the implementation of cost saving initiatives and higher production volumes: All-in Operating Cash Cost of US$666/t for 2015
- As stated in Sierra Rutile's H1 2015 interim results announcement, planned rutile sales for the first half of 2015 were sold at prices consistent with average realized prices in 2014. Following some weakening in commodities markets in the later part of the year, realized prices for the full year of 2015 were achieved at just 3% below average realized prices for 2014. Given an expected shortage in premium feedstock availability over the next few years, customers continue to exhibit strong interest in Sierra Rutile's high-quality product, and agreements to purchase volumes from the Gangama Dry Mine are already contracted.
- Demand from the titanium metal industry continued to grow in 2015, and is anticipated to continue to grow in 2016. Looking at the overall end markets for rutile, although the titanium dioxide pigment market was weak in 2015, pigment demand is anticipated to make a modest recovery during 2016 and long-term demand for titanium metal is expected to be an area of continued high growth.
- Gangama Dry Mine construction remains on-schedule and on-budget for commissioning in late Q2 2016: US$21 million of project construction spending completed to-date. Expected commissioning of Gangama in late Q2 2016 will provide further dry mining production capacity to facilitate higher production volumes in 2016.
- As planned, mined grades at the dredge were moderately lower in 2015 versus 2014, an effect which was mitigated by contract mining of historic tailings. With Gangama Dry Mine coming online, average mined grades are expected to increase in 2016.