Sierra Rutile

Yesterday Sierra Rutile announced it has successfully commissioned its second dry mine called Gangama. This is located a few miles from the Lanti dry mine and adds an additional 500 tons per hour of production capacity to the existing heavy mineral operations. It will make Sierra Rutile the largest natural rutile producer in the world, improve EBITDA margins and generate the cash its needs to fund further expansion. The company is now focused on designing and constructing two further 250tph plants while it completes its feasibility study for the larger Sembehun project. This is an exciting time
for Sierra Rutile and with rutile prices expected to increase from the start of next year, we think it’s a good time to BUY the shares. This morning we initiate coverage of Sierra Rutile with a BUY recommendation and 40p target price. – 03/06/16

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