On Friday, Sierra Rutile published 1H16 results in line with our expectations. Revenues were based on a strong (indeed record) first half production performance and improving but still weakish rutile prices, especially since the rutile sales price on many 1H deliveries was agreed in 2015. There were two lumpy exceptional non-cash costs in the P&L; but otherwise no surprises. The outlook was positive and full year production guidance increased to 135-145kt. We have updated our FY16 numbers although the changes are modest as we had already assumed 140kt of FY16 rutile production. RE the transaction: assuming Iluka remains committed, the final decision of the German Antitrust Authority and actions of the Sierra Leone government will,determine the outcome. Neither can be predicted with any certainty and so we keep our recommendation Under Review – 03/10/2016
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