The ability to now produce chloride slag at the Tyssedal...

The ability to now produce chloride slag at the Tyssedal smelter, the improvement in chloride slag prices in January and the 15% increase in production capacity could benefit MDL by about an extra $28m in revenue in 2016. Chloride slag now has a 35% price premium over sulphate slag.

A further deterioration in sulphate ilmenite prices in recent months will also greatly disadvantage competitors.

Improved zircon recovery this year at Grand Cote has the potential to add an extra $25 million a year to revenue and should now be the focus of board and management attention. The future of this stock looks very promising and it will make money at the bottom of the mineral sands market cycle. Profitability should improve substantially this year.