Overview
- H1 2015 production was constrained by 57 days of storm related grid power outages in Q1 and sporadic power outages in Q2, as a result of remedial work to the power line and usage exceeding capacity on the northern power grid
- Ilmenite production in H1 decreased 27% to 324,100 tonnes compared to H1 2014, zircon production in H1 increased 11% to 23,800 tonnes
- Total shipments of finished products in H1 increased 3% to 412,000 tonnes
- Revenues of US$73.9 million (H1 2014: US$81.2 million), as a result of lower average prices
- Cost control measures succeeding and achieving significant cost savings; total cash operating costs decreased by 17% from H1 2014
- EBITDA of negative US$10.6 million (H1 2014: positive US$2.3 million)
- Net loss of US$27.9 million (H1 2014: US$31.8 million)
- Net reported debt (after deducting loan amendment fees) of US$317.0 million (H1 2014: US$312.4 million)
- Project Loan Amendment dated 29 April, 2015 now effective; first Super Senior Facility disbursement of US$10 million made; in discussions with Lenders in relation to waivers and planned further disbursements
- Grid power stability expected to improve significantly following the installation of new power infrastructure in Q3 2015
Michael Carvill, Managing Director, said:
"Production in H1 2015 was severely impacted by weather related power outages in Q1, remedial work in Q2 and unofficial industrial action in June - significantly reducing operating hours for the plant during the period. Average daily ilmenite production in Q3 to date is up 50% when compared with H1 2015 as a result of increased power stability. The outlook for the rest of the year will be further supported as the national power utility commissions equipment that will increase grid power capacity and stability. We are pleased to have reached agreement with our lender group, which has reduced our fixed loan payments and provided us with additional headroom and are in constructive dialogue regarding further loan disbursements."
