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Sierra Rutile Limited (SRX.L), a producer of titanium feedstock industrial minerals, said that it produced 27,842 tonnes of rutile in the second-quarter of 2014, up 3% from 26,898 tonnes of rutile last year.

But, quarterly ilmenite production declined 12% to 8,410 tonnes from 9,395 tonnes last year.

Zircon Concentrate production for the quarter also decreased 37% to 488 tonnes from 670 tonnes in the prior year quarter.

During the quarter rutile production sourced from tailings was lower than planned due to higher than expected non-valuable heavy minerals in the tailings concentrate. This resulted in a modest underperformance against planned rutile volumes in first-half of 2014. Production for the second-half of 2014 is expected to be higher than first-half of 2014, as mining operations transition to higher grade zones, concentrate blend ratios are optimised and recoveries improve following the completion of the planned upgrade of the mineral separation plant, and the company expects to meet full-year forecasts.

Through the on-going, company-wide cost reduction programme and increased production in the second-half 2014, Sierra Rutile expects to see continued reduction in unit costs through the remainder of the year.

• [Editor:Mango]