Sierra Rutile Holdings (SRX) Sierra Rutile 121 New York Conference Presentation summary

Company overview

• World's largest natural rutile producer with over 50 years of operations in Sierra Leone, supplying more than 20% of global high-quality rutile.

• Australian-headquartered, with established Area 1 operations and significant growth potential from the Sembehun project.

• Major employer in Sierra Leone, with a strong record of community engagement and environmental rehabilitation.

• Long-standing customer relationships, especially in the US, and a focus on premium natural rutile markets.

Strategic developments and recent events

• Subject to an unsolicited takeover offer from PRM Services at A$0.095/share, which the Board recommends shareholders reject.

• Area 1 operations were suspended in March 2024 due to fiscal uncertainty and weak market conditions, but have since resumed following government direction.

• Workforce reduced by 25% to lower costs; new power supply contract and infrastructure upgrades underway.

• Ongoing negotiations with the Government of Sierra Leone regarding fiscal arrangements for Area 1.

Sembehun project and DFS highlights

• Sembehun DFS confirms a 14-year mine life, 175ktpa rutile production, and a post-tax NPV of US$408M with a 27.8% IRR.

• Project capex reduced by 11% to US$301M; expected payback within 55 months.

• Life-of-mine ore treated: 173.8Mt at 1.45% grade, with total rutile production of 2,155kt.

• DFS demonstrates Sembehun as the major contributor to Sierra Rutile's strategic value, leveraging existing infrastructure.