tronox ltd-cl a (TROX) Snapshot

Tronox Limited has reached collective bargaining agreements with the National Union of Mineworkers and Solidarity. The one-year agreement is effective July 1, 2013. It covers all bargaining unit union-represented employees working in Tronox's mineral sands operations in Namakwa, on the west coast of South Africa, and in KwaZula-Natal, on the country's east coast.

Tronox Limited announced that is has reached a settlement agreement on the pending Supreme Court Application by the Mtunzini Conservancy against Tronox KZN Sands, regarding the early works program at the Fairbreeze mine project in northern KwaZulu-Natal, South Africa. Under this settlement, the conservancy will not pursue its appeal on a ruling by the Durban High Court that denied an injunction to halt early-phase construction at the mining site. In turn, the company will not seek the court costs from the conservancy, as awarded in the High Court decision.

Tronox Limited reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, net sales were $470 million, up 8% versus the $434 million in the prior year quarter. Adjusted EBITDA was $73 million compared to $151 million a year ago. Adjusted net loss was $51 million or $0.45 per diluted share compared to the adjusted net income of $98 million or $1.25 per diluted share in the year-ago quarter. Capital expenditures in the first quarter were $45 million compared to $21 million a year ago. Cash used in operating activities was $1 million compared to $26 million a year ago. Loss from operations was $19 million compared to income from operations of $113 million a year ago. Loss before income taxes was $44 million compared to income before income taxes of $104 million a year ago. Net loss attributable to the shareholders of the company was $57 million or $0.50 per diluted share compared to net income attributable to the shareholders of the company of $86 million or $1.10 per diluted share a year ago. Adjusted loss from operations was $23 million compared to adjusted income from operations of $125 million a year ago. Adjusted loss before income taxes was $48 million compared to adjusted income before income taxes of $116 million a year ago. The company continues to expect that annual depreciation, depletion and amortization for 2013 will be in the range of $290 million to $310 million. The company estimates that capital spending for the full year 2013 will be in the range of $200 million to $250 million and similar range for 2014 and 2015. This is comprised of $100 million to $120 million for maintenance capital, plus $100 million to $130 million each year for the Fairbreeze mine development. The company is reaffirming that its estimated effective tax rate for 2013 should be in the range of 8% to 10% and for 2014 and thereafter, in the 15% to 20% range.