London, UK, 12 January 2015: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile") is pleased to provide an operational update on the fourth quarter of 2014 ("Q4 2014"). 

 

Highlights 

Strong Q4 2014 operational performance with production of 31,025 tonnes of rutile and 10,574 tonnes of ilmenite: 

- Third highest quarter of rutile production ever; 

- 14.5% increase in rutile production from Q3 2014; and 

- Annualized Q4 production higher than any full-year production to date. 

 

Despite a strong Q4 2014, full-year 2014 production was 114,163 tonnes of rutile, compared to guidance of 120,000 tonnes, largely resulting from ongoing Ebola-related challenges. 

 

Continued strong cost performance: 

- Total Operating Cash Cost1 of US$646/t for 2014, a 5% reduction on 2013; and 

- All-in Operating Cash Cost 2 of US$683/t for 2014, a 10% reduction on 2013. 

 

Record full-year rutile sales volumes, despite difficult market conditions. 

 

2015 production and operating cost guidance: 

- Full-year 2015 production: 

Rutile production: 120,000-130,000 tonnes 

Ilmenite production: 30,000-35,000 tonnes 

- Full-year 2015 operating costs: 

Direct operating cash cost: US$520-530/ tonne3 

Total operating cash cost: US$595-615/ tonne 

All-in operating cash cost: US$650-670/ tonne