Sierra Rutile Holdings Limited (ASX: SRX) has released its half year ended 30 June 2023 results. The company reported revenue of US$108.3M, and gross profit of US$30.5M, reflecting a focus on cost management.
Financially, the company reported revenue of US$108.3M, with gross profit of US$30.5M and an underlying NPAT of US$28.2M. The company also reported a positive operating cash flow of US$7.0M with a solid net cash position of US$32.7M as of 30 June 2023.
On the operational front, the company faced power supply disruptions in June, which resulted in rutile production of 57Kt. Rutile sales of 58Kt were achieved, despite weaker demand seen in the pigment market. The company reported a realised rutile price of US$1,457/t and net unit cash production costs of US$1,111/t, higher than the previous periods.
The Sembehun Project is expected to complete its DFS at the end of 2023, with a final investment decision targeted in Q1 2024. The company is also investigating the Mogbwemo Tailings Project to reduce operating costs at Area 1.
For FY2023, the company has provided guidance on production of 124Kt-126Kt of rutile, with net unit costs expected to be in the range of US$990-US$1,055/t.
Sierra Rutile managing director and CEO, Theuns de Bruyn, commented: “The half year 2023 was a resilient financial performance with continued positive operating cashflow generated to support ongoing capital investment. The key highlight of our first half results was the successful effort to continue generating positive operating cashflow to support the development of Sembehun, while also diversifying our customer-base. Demand for Sierra Rutile’s natural rutile is supported by its high grade and low impurity characteristics, and we will continue to leverage our established market presence.”
To read more about this news release, please visit www.sierra-rutile.com
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