Titanium Resources Group
Preliminary Results
March 23, 2010: Titanium Resources Group (“TRG” or “the Company”) announces preliminary results for the year ended 31 December, 2009.
Highlights
- Sales of US$36.8 million in the year (2008: US$39.4 million[1]).
- EBITDA pre exceptional items of US$6.0 million (2008: loss US$22.6 million).
- Cash costs reduced by 56% in the year to US$28.7 million (2008: $64.7 million).
- US$2 million cash generated from operating activities (2008: cash consumed $25 million).
- Construction of Dredge D3 progressing on budget and expected to be commissioned in Q1 2011.
- Versi Dredge successfully commissioned and now fully operational.
- All 2010 rutile production sold with an average 5% price increase achieved over 2009 contracted prices for standard grade rutile.
- Titanium feedstock market fundamentals suggest pricing will improve significantly in 2011.
1Excluding US$10 million of Bauxite sales in 2008. Total sales for 2008 were US$49.4 million
Commenting on the results, TRG Chief Executive John Sisay said:
“Following a busy year, TRG has made significant progress on a number of fronts in 2009 and is now in a strong position to grow and deliver value to shareholders. The successful capital raise, significant reductions in operating costs, achievement of operating profitability, a positive EBITDA before exceptionals and a robust operating performance should provide the basis for a sustainable improvement in the Company’s performance. Furthermore, titanium feedstock market fundamentals suggest pricing will further improve significantly in 2011, at the same time as the Company’s sales contracts expire.
“In November 2009 we successfully raised US$25 million from new and existing shareholders to expand production at the Sierra Rutile mine, through the completion of the construction of Dredge D3, the upgrading of Dredge D1’s Wet Plant and upgrades at the Company’s Land Plant. These projects are expected to be fully commissioned within the next 12 months and Dredge D3 is expected to add rutile production of 30,000 tonnes in its first full year of operation.
“The positive outlook for titanium markets and TRG’s ability to significantly increase production means we are well positioned to benefit from future price increases. Our key focus for 2010, therefore, is on ensuring that Dredge D3 and our other growth projects are delivered successfully.”
For further information
Titanium Resources Group
John Sisay, Chief Executive
Walter Kansteiner, Non-executive Chairman
Telephone: +44 (0) 207 321 0000
Arbuthnot Securities
Nominated Adviser & Broker
John Prior/Ed Burbidge
Telephone: +44 (0) 20 7012 2000
Aura Financial
Michael Oke / Andy Mills
Telephone: +44 (0) 207 321 0000
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