Titanium Feedstock Producers Comparative Cost Study 2013 – A study of 2012 costs

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TZ Minerals International (TZMI) is pleased to announce the release of the Titanium Feedstock Producers Comparative Cost Study 2013.

Titanium Feedstock Producers Comparative Cost Study 2013

Due to the unusual circumstances in 2012 of record feedstock prices and high inventory build-up, TZMI has included an additional analysis to compare the competitiveness of the sector.

TZ Minerals International(TZMI) is pleased to announce the release of the Titanium Feedstock Producers Comparative Cost Study 2013.

As with last year, TZMI has reformatted the annual Titanium Feedstock Producers Comparative Cost Study to include never before released information and analysis on comparative operating costs in the global titanium feedstock industry. The presentation style Cost Study contains valuable insight and TZMI’s expertise in this essential reference for the feedstock industry.

This year the study covers in depth analysis of operating costs at 30 titanium feedstock operations throughout the world, with an updated industry cost curve. This is five more operations than in 2012 and also takes into account operations in China and Vietnam. This represents an invaluable tool for evaluating and benchmarking both existing operations and potential new projects in terms of comparative costs.

The market dynamics of the global titanium feedstock sector changed considerably in 2012, influenced by de-stocking at the pigment producers’ end, resulting in lower offtake for feedstocks. Feedstock prices started out high at the beginning of 2012, but fell substantially in the second half. For most operations, the reported weighted average prices achieved for 2012 were still relatively high as most sales were transacted in the early part of the year when prices were still high. Due to the unusual circumstances in 2012 of record feedstock prices and high inventory build-up, TZMI has included an additional analysis to compare the competitiveness of the sector.

This special analysis uses the operations’ sales revenue in evaluating the R/C ratio, as opposed to TZMI’s usual methodology of using the value of total production in estimating revenue. The main objective is to reflect the true profitability of the sector in an environment of reduced offtake. The Cost Study provides a comprehensive summary of overall cost competitive trends within the industry in recent years and highlights factors that influenced these trends.

Included in the Study is TZMI’s methodology in developing the cost study; fundamentals of the titanium feedstock and zircon markets; industry cost competitiveness; and cost developments within the industry in the 2012 calendar year.

The cost and profitability curves are subject to thorough discussion and analysis and cover:

  •     Mineral production operations
  •     Mineral production costs
  •     Ilmenite beneficiation costs
  •     Total cash costs of production

This analysis and insight is applied to the 30 operations included in this year’s Titanium Feedstock Producers Comparative Cost Study.

TZMI first published the Titanium Feedstock Producers Comparative Cost Study in 2001, using 16 operations as the basis for comparison.

The aim of the original study was to provide an industry cost curve that could be used in benchmarking analysis for both existing and new projects. That aim has not changed during the years, but what has changed is the development of more sophisticated data and detailed examination of the information related to operating costs.

This study is suitable for anyone wanting to understand operating costs in the titanium feedstock sector and maintain an up to date perspective of all elements of the industry, including:

  •     New and established mineral sands producers
  •     TiO2 pigment producers
  •     New or potential entrants to the industry
  •     Financial industry (fund managers, hedge funds, investors and potential investors)

Orders for Titanium Feedstock Producers Comparative Cost Study 2013 are now being taken. For more information please visit http://www.tzmi.com or call +61 8 9359 6000.

About TZMI

TZ Minerals International(TZMI) is aglobal, independent consulting and publishing company with offices in Australia, China, the US and Africa. The strength of TZMI’s consulting services stems from extensive practical experience in the mineral sands, titanium dioxide and coatings industries and from a comprehensive database, which has been built up over many years.

TZMI has proven expertise gained from our consultants having many years of direct operating experience in the industry in chief executive, senior operational, analytical and marketing roles.

TZMI’s publications and data services support the consulting activities and ensure up-to-date, high quality and comprehensive data, analysis and information across the mineral sands, zircon and TiO2 pigment industries.

TZMI provides operational and technical expert advice on many areas including:

  •     Mergers and Acquisitions
  •     Market Assessments and industry analysis
  •     Due diligence
  •     Pre-feasibility studies including preliminary capital and operating cost estimation
  •     Competitive cost analysis and benchmarking
  •     Technical reviews and audits
  •     Resource assessments
  •     Physical separation test work
  •     Flowsheet development
  •     Customised data analysis and reporting

Further Information
Tracey Kelly – Business Development and Marketing Manager
TZ Minerals International E: tracey.kelly(at)tzmi(dot)com P: +61 8 9359 6000

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Tracey Kelly
TZ Minerals International
+61 893596011
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