Sierra Rutile paints a pretty picture in first half

published 29 August 2012

Increased production at Sierra Rutile saw the miner rocket back into the black with revenues five times as big as the year before.

Revenue came in at $98.7m in the first half of the year, a 394% increase on the £20m it made the year before.

Pre-tax profits were $56.7m, up from a loss of £14.4m in 2011, with earnings per share rising to 11c.

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The company, which operates out of Sierra Leone, put the results primarily down to higher sales volumes during the period, which were up 48% on the year before.

This was coupled with an extremely strong pricing environment, which saw a 341 % increase in average rutile prices on the first half of 2011.

The only cloud on the horizon was the impact of Sierra Rutile having to stockpile zircon during the period, compared with the 5,900 tonnes it sold the previously.

The results showed a step change in production, with a 57% increase in rutile production to 42,610 tonnes.

Rutile is predominantly used in the manufacture of white pigment for paint and plastics.

There was also a 67% increase in ilmenite production to 10,315 tonnes.

"With our continued strong production from existing assets and the introduction of our growth projects, scheduled to deliver significant production increases over the coming years, we are extremely well positioned for the future," said Chief Executive John Sisay.