Sierra Rutile's impressive run of form continues, with the mineral-sands miner recently announcing record monthly production of rutile and ilmenite – key components of titanium dioxide, a pricey white pigment used in paint, plastics and paper – in July from its flagship mine in Sierra Leone. This follows 57 per cent and 67 per cent production increases of these two minerals respectively, in the first half of the year compared with the same period a year earlier.
In light of these operational improvements – and despite an eightfold rise in its share price over the past 18 months coupled with a history of operating difficulties – we've decided to call time on our sell tip. The company's ambitious expansion projects remain on track, while prices of rutile and ilmenite have maintained their lofty heights in spite of the global economic slowdown thanks to limited growth in supply. According to investment bank Goldman Sachs, their prices are likely to "remain firm for an extended period". The bank's analysts add: "This is not a bubble and note that both copper and iron ore have outperformed [rutile and ilmenite] over the previous decade."
