Sembehun Project Feasibility and Market Dynamics
Appendix D: Balance Sheet & Rehabilitation Support
Sierra Rutile Limited
Sierra Rutile has a strong balance sheet and sufficient liquidity to maximise the value of its existing Area 1 mining operations and continue to progress
and invest in its flagship development project, Sembehun.
Pro-forma Balance Sheet
US$m
Cash and cash equivalents
Rehabilitation Trust deposit/ asset
Trade receivables
Inventories
Well Capitalised with Rehabilitation Support
Year ended 31 December
2021
Iluka has ensured that Sierra Rutile is established with a robust balance sheet and appropriate
capital structure to implement strategies to maximise value for shareholders.
9.4
0.7
43.4
Sierra Rutile has a robust financial position from implementation of the Demerger, with a
positive cash balance of $20.7m (at 31 May 2022) and no debt.
40.5
Total current assets
94.0
Rehabilitation Trust deposit/ asset
44.3
PPE & Other
27.0
Total non-current assets
Total assets
71.3
165.3
22.8
Trade and other payables
Borrowings
Other
Total current liabilities
Non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Note: Please refer to Section 3.24 of the Demerger Booklet for more information.
8.1
30.8
53.9
53.9
84.7
80.6
In relation to existing rehabilitation obligations, lluka will establish a US$45 million
rehabilitation trust cash funded on a one-off basis, to support Sierra Rutile's estimated
rehabilitation obligations as at 31 December 2021.
The trust deed for the rehabilitation trust will specify the mechanism by which Sierra Rutile can
draw down on the trust funds for rehabilitation purposes.
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