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TRANSCRIPT: Tronox - 1Q 2016

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TRANSCRIPT: Tronox - 1Q 2016

May 05, 2016 - 13:33
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OAKLAND, CA, May 5, 2016 (RISI) -The transcript of Tronox’s first quarter 2016 conference call on May 5, 2016, with CEO Thomas J. Casey, is now available at Seeking Alpha.

EXCERPT:We believe the first quarter marked the turning point in the long decline in TiO2 prices that we have experienced over the last couple of years. We've said on our previous calls that we expected first quarter 2016 selling prices to decline sequentially and that did happen.

But we saw an upturn during the quarter itself with March average selling prices higher than those in February. We're seeing selling prices increase in all regions in the second quarter and we expect to see sequential price improvements for TiO2 pigment not only in the second quarter, but also in the third quarter as the increases role across our global customer base.

In addition to improvement on pricing, for the second consecutive quarter, we also saw TiO2 pigment sales volumes increase by more than 7% year-on-year in this quarter. The high volume of purchases has reduced inventories because as you recall we have curtailed, TiO2 pigment production by approximately 15% since the second quarter of last year.

Our Alkali business continues to operate in a sold-out mode benefiting from its sustaining structural cost advantage. As a result, Alkali sales every ton it produces. In the first 12 months of having Alkali in our portfolio, the business delivered free cash flow of approximately $156 million, which exceeded our expectations when we acquired it.

For the full transcript click here: Seeking Alpha: Tronox.

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