Sierra Rutile, Sierra Leone’s largest mineral sands miner recorded a loss before tax of $19.8 million in the first half of 2016 compared to $2.6 million in the first half of 2015, the company stated in its unaudited financial statement. The net loss stands at $49 million compared to $35.4 million recorded in the first six months of 2015. Revenue is recorded at $47.9 million for the first two quarters of 2016 compared to $45.7 million during the same period in 2015.
Production however increased by 15 percent to 61,408 metric tonnes from 53,275 tonnes in the first half of 2015. The Gangama dry mine has been completed within budget and on time and steady-state operation will be achieved by the end of the year, the report stated.
The company has raised $21 million from what it describes as oversubscribed share placing and has negotiated new monthly repayment profile for the Government loan. The Sierra Rutile loan to Government was Le51.6 billion but repayment was deferred for 2015, according to Dr KaifalaMarah in his 2016 budget statement to parliament. DrMarah was the finance minister at the time.
Iluka Resources made a cash offer of 36 pence per share and was approved by the shareholders on September 1.The transaction is still on, subject to satisfaction or waiver of certain conditions, the report says.
“I am pleased to report a strong performance from the business in the first half of 2016 with solid production and cost outcomes. Following its successful commissioning earlier this year, I am also delighted that the Gangama dry mine continues to operate ahead of its budget. On the back of strong first half rutile production, we have raised our guidance for the full year, and indicated that costs per tonne should be towards the lower end of our previously expected range. We are also pleased that buyer confidence is returning which points towards an improvement in the overall health of the sector,”John Sisay CEO said, commenting on the first half performance.
Monday October 03, 2016