- Sierra Rutile (SRX) is one of the ASX’s newest stocks after commencing trade on Wednesday, July 27
- The company demerged from Iluka Resources (ILU) to become a standalone West Africa-focused mineral sands producer and developer
- Its operations include the 205-million-tonne Area 1 mine in Sierra Leone and the Sembehun development project currently in the feasibility stage
- SRX ends its second day of trade 14 per cent in the red at 37 cents per share, the company has a market cap of $182.4 million
Sierra Rutile (SRX) is one of the ASX’s newest stocks after commencing trade on Wednesday, July 27.
The company was a subsidiary of ASX-listed Iluka Resources (ILU) who proposed a demerger earlier this year.
The demerger resulted in two independent companies with Iluka continuing to be a global supplier of critical minerals and Sierra Rutile to be a mineral sands producer and developer focused on West Africa.
Sierra Rutile’s main business activities include operating its existing Area 1 mine and progressing the development of the Sembehun project in the Moyamba district of Sierra Leone.
Large scale mining commenced at the Area 1 mine in Sierra Leone in 1967.
Since then, the mine has delivered a mineral resource estimate of 205 million tonnes at 1.04 per cent for 2.1 million tonnes of contained rutile. It also has ore reserves of 38 million tonnes at 1.42 per cent for 541,000 tonnes of contained rutile.
Sierra Rutile has begun a mine life extension at the mine to convert the indicated mineral resources to ore reserves at the Pejebu and Ndendemoia deposits. The company expects this program will be completed by mid-2023.
The Sembehun development project is in the early stages with a pre-feasibility study (PFS) complete and a definitive feasibility study underway and expected to be completed next year.
The PFS outlined a steady state average annual production of 176,000 tonnes of rutile, 98,000 tonnes of ilmenite and 13,000 tonnes of zircon for a 13-year mine life.
Sierra Rutile hopes to make a final investment decision in 2023 which would allow it to begin phase one construction in 2024. Phase two is slated to begin in right after the first phase is completed and will also take 18 to 24 months to complete.
Pre-production capital costs are expected to total US$337 million (A$481.4 million) over both phases.
The new ASX-listed materials stock is led by Chairman Greg Martin and Managing Director Theuns de Bruyn.
SRX ended its second day of trade 14 per cent in the red at 37 cents per share. The company has a market cap of $182.4 million.