PERTH (miningweekly.com) – ASX-listed Sierra Rutile Holdings has reported a 38% increase in revenue for the full year ended December, on the back of increased production and higher rutile prices.

Revenue for the full year reached $254-million while earnings before interest, taxes, depreciation and amortisation (Ebitda) reached $57.8-million and net profits after tax reached $75.6-million.

The company reported that rutile production from its operations in Sierra Leone had increased by near 9 000 t on the previous corresponding period, to 136 000 t, with rutile sales up 9% to 142 000 t.

“This was a strong year for Sierra Rutile, with consistently improved operations and demand and higher prices for rutile supporting our revenue, Ebitda and net profit after tax growth,” said Sierra Rutile MD and CEO Theuns de Bruyn.

“Despite the record rainfall at site in the third quarter of 2022, improved performance levels were achieved for Area 1 over the year, with 2022 production and operating costs in line with expectations. The Area 1 life-of-mine extension programme is steadily progressing with a revised reserve estimate due to be announced with our annual report next month.

“Sembehun continues to represent the long-term opportunity for Sierra Rutile and completion of the definitive feasibility study and EISHA in late 2023 are expected to confirm the project’s potential. We continue to carry out our ESG efforts, resulting in the successful rehabilitation of 150 ha of previously distributed land, and the deep ties in the Sierra Leone community allow us to continue to contribute to the country’s growth and employment. This is an exciting time for Sierra Rutile with the outlook for rutile demand and prices remaining promising, and we look forward to sharing our operational and development milestones in the near future.”

Looking ahead at 2023, the company has set a production target of between 140 000 t and 144 000 t, at a cash cost of production of between $165-million to $180-million.