Rain falls on the Sierra Rutile parade
PERTH (miningweekly.com) – Africa-focused Sierra Rutile has flagged lower production from its Sierra Leone operations for the September quarter, ahead of its results announcement later this month.
The ASX-listed company said on Monday that operations during the three months to September were hampered by unusually heavy rainfall in August and September which resulted in reduced mining and production.
It was the highest quarterly rainfall recorded at site and a 39% increase over the third quarter of 2021.
The adverse weather conditions resulted in reduced ore being mined and processed, with quarterly production of rutile of 28 000 t, down 22% as against both the previous quarter and the third quarter of 2021. Combined with increased costs, primarily owing to the high rainfall, but also impacted by higher fuel costs and an expected absence of material by-product sales revenue, the lower production resulted in unit operating costs for the quarter ended September being materially higher than those experienced in the first half or projected for the full year.
Subject to final review, unit costs for the quarter are expected to be $1 490/t of rutile production.
The company told shareholders that the heavy rainfalls have now subsided and production levels have normalised. At this stage, Sierra Rutile expects that production in the remaining months of the year will return to normal levels, and combined with further by-product sales, unit costs are anticipated to be significantly lower in the fourth quarter of 2022.
The September quarter would be Sierra Rutile's first under its own banner, after the company was demerged from ASX-listed Iluka earlier this year.
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