SRX 3.70% 13.0¢ sierra rutile holdings limited

I think the restart to the mine has more to do with rising...

  1. 261 Posts.
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    I think the restart to the mine has more to do with rising rutile demand and price than any fear of govSL.

    the big indicator is their willingness to spend on a new power generator. You would only do this if a) Area 1 mining would repay the expenditure with earnings (moderately likely), or b) the generator would get further use when Sembehun mine starts producing.

    option b looks more likely with the new shareholders on the register now holding nearly 50% of the company.

    the power outages were also one of the main reasons production costs were so high and the mines economics came into question. SRX also has not stipulated how much they are going to produce once the mine restarts. They could still use a go slow mine activity to leverage the govSL into coming to the table on fiscal landscape (although manno mining would not be keen on this!)
 
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