Sierra Rutile recorded loss before tax of $9.4 million in 2015 compared to $8.9 million registered in 2014, the company stated in a release on its Audited financial results for the year ended 31 December 2015 issued in London on March 31and emailed to Awoko. Revenue fell by 10 percent to $105.8 million in 2015 compared to $117.8million in 2014.
The company produced a total of 126,021 tonnes of rutile meeting the top end of its guidance in 2015 which represent a 10 percent increase compared to the previous year and the highest annual production since production restarted. But revenue dropped due to lower prices and lower sales volumes, according to the release.
Despite the fall in revenue, Sierra Rutile claims its Gangama dry mining project is on track and expects to commission the project in June this year.
With the release of the company’s financial report, shares of Sierra Rutile fell to 18.00 pence down 4.6 percent in the morning of March 31 on the London Stock Exchange.
Rutile production in the first quarter of 2016 (that is January to March) is projected to be around 26,000 tonnes, 11 percent higher than quarter one of 2015 and 33 percent lower than quarter 4 (that is October to December) of 2015. Production guidance for 2016 is the same as 2015, 120,000 to 135,000 tonnes.
“We are confident that a broad based pick-up in rutile prices is on the horizon and the business is well placed to capitalize on any improvement,” John Sisay, Chief Executive Officer of Sierra Rutile Ltd said.
“I remain extremely positive on Sierra Rutile’s near-term outlook and long-term future. The Company has already shown that it can operate effectively in this challenging commodity-price environment, whilst continuing to grow and progress,” Robert Edwards, Non-Executive Chairman of Sierra Rutile said.