Australian ASX-listed mineral sands producer Sierra Rutile, which operates in Sierra Leone, has reduced its 2023 rutile production guidance again because of power generation problems at its plant.
The firm has cut its production guidance to around 124,000-126,000t. It had issued a 2023 production guidance of 140,000-144,000t in February, but said in June that it no longer expects to produce more than the 136,000t achieved in 2022.
The company's rutile output fell by 31pc from a year earlier to 25,000t during April-June, while heavy mineral concentrate production declined by 17pc to 2.5mn t over the same period, as a result of its mineral separation plant being off line in June owing to reduced power availability and weaker market conditions.
Sierra's Gangama and Lanti-Gbeni mines had stockpiled around 1.8mn t of ore by the end of June, compared to 0.2mn t a year earlier, in preparation for the wet season. This stockpiling is likely to lead to substantially reduced mining costs during July-September.
Heavy mineral concentrate inventories rose at the end of June because of the temporary halt in mineral separation plant operations during the month.
Sierra expects sales volumes and prices in the July-September quarter to be lower from April-June, the company said.
