Interesting stuff given the peer comparison, part of Iluka's...

Interesting stuff given the peer comparison, part of Iluka's ongoing battle to get productivity and investment security out of a corrupt African country. Since they bought Sierra rutile in 2016 they have struggled with productivity and corruption to the point they virtually gave away 10% to the World Bank's IFC corporation. Part of the reason Sembuhun was sent back for a new PFS rather than developed two years ago. African corruption, community and productivity issues, all tarred by the same brush to some extent.

Sierra Rutile is a major employer and export industry, imo Iluka will divest enough to IFC and connected SL businessmen that the mine will continue and Sembuhun will be developed. Much like how things have gone in Sth Africa etc, ownership structure needs to incentivise the right people to ensure smooth running. If SR is permanently closed then this is great news for SVM, but that outcome won't be known for a long time, well before SVM makes their own FID on Kasiya.

Implications taking out 120kt Rt production into an already short market is are def big for current rutile producers. I'm a glass half-empty non-holder at these prices, so unsurprisingly I see this news as a two edge sword for SVM. The prospect of reduced LT rutile production out of SR is a plus, the reminder of production, community and corruption risk investing in very poor African countries is a negative.