Sierra Rutile 2023 Half Year Results Presentation
Outlook for Fundamentally Undersupplied Rutile Market
Global rutile deficit supports Sembehun development
Sierra Rutile
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Price falls have been seen since 30 June with western pigment producers
experiencing TiO2 sales down nearly 30% YoY and operating production facilities
at reduced rates. Sierra Rutile has reduced its 2023 production guidance to 124-
126kt rutile accordingly.
Longer term global supply deficit anticipated as growing demand outstrips
depleting global resources.
Demand for Sierra Rutile's natural rutile supported by its high grade and low
impurity characteristics.
Chloride feedstock consumption for pigment anticipated to grow at CAGR of
4.4% from 2022 to 2025, compared to a -2.8% CAGR for sulphate feedstocks
over the same period.
Sierra Rutile will seek to leverage market presence and long and established
relationships with all primary chloride-based titanium pigment manufacturers,
and the world's largest producers of high-specification aircraft-quality
(aerospace) titanium sponge.
'000 Ti02 units
Natural Rutile Supply Outlook¹
Global Rutile Supply
800
700
600
500
400
300
200
100
0
2016
2017 2018 2019 2020 2021 2022f 2023f 2024f 2025f 2026f
Note: (1) Source = TZMI/SRL estimates
Sierra Rutile 2023 Half Year Results Presentation | ASX: SRXView entire presentation