Tronox Inc. (TROX)

[titaniuminvestor]

Newtech, just to add to my other comment to put this into perspective:

If you assume the annual capacity of Tronox that is exposed to the contribution of price increases, this would be roughly 380,000 metric tonnes, which excludes Savannah and Uerdingen.

Hamilton = 230,000mt per year
Botlek = 90,000mt per year
Tiwest contribution = 50% of 120,000mt per year = 60,000mt

Total = 380,000mt per year, maybe a bit less.

So, for every $100 per metric tonne increase, the contribution to the revenue line over a year would be $38,000,000, much of which goes to the bottom line.

However, price movement since the first quarter of this year and into the end of this year alone will far exceed $200 per tonne! I think price increases on average this year alone will easily move up at least $300 per tonne over the year. In some markets well over $500 per tonne.

It is also important to realize that the actual implemented price increases are usually less than the announced amounts. But in tight markets like these, the announcements and percentage of successs on implementation become higher.

But to your point, a $54 million market cap for Tronox is just silly.