Sierra Rutile lowers full year production guidance by four per cent

20th Nov 2013 08:41

Sierra Rutile said Wednesday that in light of existing market conditions, it has re-assessed its production targets and is planning a 'slight decrease' in its rutile production for 2013 to 120,000 tonnes of rutile, a four per cent reduction on the previous 125,000 tonne guidance.The reduction was announced as the group, which produces titanium feedstock industrial minerals, revealed it has entered into a 50,000 tonne rutile sales contract with a major pigment producer. The group will fulfill the contract through a number of shipments which will take place before the end of March next year, with volume split evenly between the fourth quarter of 2013 and the first of 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 the first quarter of 2014, it said. Chief Executive Officer 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 realised during 2014."NR