Casey continued: "All of our 2012 forecast mineral sands sales other than zircon, where we are seeing sales volume reductions of 25-40 percent, are committed at prices that are above expectations and at volumes that are 4 percent higher than our original 2012 budget. We think that pigment producers, as we acknowledged in our press release
Tronox's primary mineral sands operations include:
Synthetic Rutile — With the combination Tronox and Exxaro Minerals Sands, Tronox now uses nearly 100 percent of it synthetic rutile production as feedstock for its pigment operations. This high quality, low-cost ore, sourced from our mineral sands business, enables Tronox to produce pigments at a lower cost relative to pigment producers who purchase synthetic rutile from mineral sands suppliers. We are not as dependent as others on third-party purchases of our synthetic rutile product.
Titanium Slag — Demand for our titanium slag is up as some pigment producers are substituting slag for higher purity, higher cost rutile and synthetic rutile. Despite shortfalls in zircon sales our total mineral sands sales for 2012 is 4 percent higher than our expectation set at the start of the year.
Zircon — Demand for zircon continues to be soft relative to a year ago but is not deteriorating sequentially.
Casey concluded, "We continue to view our stock as significantly undervalued and believe the repurchase of our shares presents a compelling and optimal way to return capital to shareholders. As we said in our most recent press release, we expect to be significant purchasers of our shares for as long as and in amounts that we determine will be value creating for our shareholders. We are committed to repurchasing up to
Tronox is a global leader in the production and marketing of titanium products. Through the integration of its pigment and mineral sands business, the company provides its customers a dependable supply of brightening solutions for a variety of end uses. For more information, visit http://www.tronox.com.
FORWARD LOOKING STATEMENTS
Statements in this release that are not historical are forward-looking statements. These forward-looking statements are based upon management's current beliefs and expectations and are subject to uncertainty and changes in circumstances. The forward-looking statements involve risks that may affect the company's operations, markets, products, services, prices and other risk factors as discussed in the company's financial statements published on our website and in our filings with the
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