Talvivaara Mining Company

Talvivaara Mining Company Plc. is an internationally significant base metals producer with its primary focus on nickel and zinc. Talvivaara´s main asset is the Talvivaara nickel mine in Sotkamo, Finland. The Talvivaara polymetallic deposits, Kuusilampi and Kolmisoppi, comprise one of the largest known sulphide nickel resources in Europe with 1 121 million tonnes of ore in measured and indicated categories, sufficient to support an anticipated production for several decades. Production at the mine started in October 2008 with the precipitation of the first metal sulphides. The planned annual nickel production is 50,000 tonnes and as by-products the mine will also produce aprox. 90,000 tpa of zinc, aprox.15,000 tpa of copper and c.1,800 tpa of cobalt.

The Group supplies metal intermediaries to companies with metal refining operations and has entered into a 10-year off-take agreement with Norilsk Nickel Harjavalta Oy for the entire output of the mine's nickel and cobalt production at market prices.

On the 25th of January 2010 Talvivaara entered into a long-term Zinc in concentrate streaming agreement with Nyrstar NV. Talvivaara will deliver all of its Zinc in concentrate production to Nyrstar until 1,250,000 metric tonnes has been delivered. Click here to read the Stock Exchange Release.

Talvivaara applies bioheapleaching to extract the metals from ore. The Group demonstrated the viability of this technology first on large on-site pilot trials using the Talvivaara ore and subsequently, since July 2008, in production scale heaps. The leaching process has been shown to be heat generating and therefore suitable for the sub-arctic climatic conditions of Eastern Finland.

The Talvivaara ore body is well-suited for open pit mining due to thin overburden, favourable resource geometry and a low waste to ore ratio. The ore is relatively low grade, but well-suited to bioleaching due to its high sulphide content.

Key Facts

•With a planned annual production of approximately 50,000 tonnes of nickel, Talvivaara has the potential to provide 2.3% of the world's current annual production of primary nickel by 2012.
•Talvivaara is anticipated to produce metals for a minimum of +60 years.
•First metals production in October 2008.Full scale production started in Q1 of 2009.
•First shipment of commercial grade nickel sulphide on 19 February 2009.
•Both Kuusilampi and Kolmisoppi are JORC classified deposits. The deposits have a thin overburden and a waste to ore ratio close to 1/1, making the deposits easy to mine and well-suited for open-pit operation. As such, Talvivaara expects to have lower relative capital and operational cost than a substantial proportion of other nickel mines, thereby making it less susceptible to price variations of commodities.
•Talvivaara's bioheapleaching technology is expected to enable cost effective development and exploitation of the resource. The technology will provide the Group with cost advantages, both in terms of capital and operational expenditure.
•Finland has good geological databases, good infrastructure, a progressive mining law and readily available exploration services. The Group is expected to benefit from proximity of the project to existing energy and transportation infrastructure and potential customers

STRATEGY

Talvivaara aims to become an internationally significant base metals producer with its primary focus on nickel and zinc, capable of achieving profit margins equal to or better than those achieved by comparable base metal mining companies.

The key components of Talvivaara's strategy are:
•Securing cost-effective exploitation of the Talvivaara deposits using the bioheapleaching technology.

•Capitalising on the potential for additional value creation through application of bioheapleaching technology to other nickel resources.

•Growth through exploration of additional resources in Finland.

•Leveraging the project development and operational expertise in the long-term

Production has stalled with continued leakage... keep shorting

Crisis-hit Talvivaara Mining Company says taxpayers will not have to shoulder the clean-up cost at its nickel mine in eastern Finland.

Speaking overnight to Finnish broadcaster Yle's current affairs programme A-studio, Talvivaara Chief Executive Harri Natunen promised that the gypsum pond leak at the mine would be its last and that they are fully insured for it should they not be able to pay.

Natunen reportedly did not agree that Talvivaara may have to file for bankruptcy and refused to speculate on how long the company could stay afloat with production stalled.

On November 8th it gave investors some much-needed cheer after saying that it expects its fourth-quarter production to improve over the levels seen in the third.

However, the group warned that as a result of the "challenging water balance situation" it is currently experiencing, it believes it is unlikely that its full-year 2012 production target of approximately 17,000t of nickel will be achieved.

Talvivaara reported third-quarter net sales of €44.8m compared to €60.6m in the same period in 2011. In the nine months to the end of the third quarter sales totalled €117.3m (2011: €164.7m).

Quarterly losses widened to €12.1m (Q3 2011: €3.4m) while nine month losses leapt to €44.5m (2011: €8.9m).

Expenditure in the three-month period totalled €32.5m (Q3 2011: 22.0m), the debt-to-equity ratio hit 140.6% (Q3 2011: 128.1%), while net interest bearing debt came in at €514.6m (Q3 2011: €410.2m).

i haven't previously watched this one at all, but thought share mag's view that it should be shorted (at 86.7) had logic ..... this seemed to be supported by goldman who also downgraded the stock 15/11 to SELL (target 90p) ......

curiously, sp is currently about 106 ...... which goes to confirm that we know bugger all!

Goldman Sachs says 'sell'


Investors’ holdings in Talvivaara almost halved in value last year after a string of setbacks that included a leak of toxic waste water at the nickel producer’s mine in Finland which halted production. The tough times look likely to continue, according to analysts at Goldman Sachs.

Shares in the company, which is listed on the FTSE 250, fell 8 to 89½p on the London market after a downbeat appraisal of the group’s prospects from the broker.

Analysts at the US bank cut their recommendation on Talvivaara to “sell” from “neutral”, arguing that the beleaguered company is likely to need additional funding to help it repay debt due in May.

“Ongoing production issues and questionable commerciality of the entire operation limit the company’s potential funding options,” the broker said. “The most likely scenario is an equity issuance, but this would be dilutive to existing shareholders on our estimates. We also believe some form of bail-out or non-commercial financing is possible.”

Talvivaara stopped ore production in September and Goldman added that there is “significant risk of further issues in production”.

The company today said 184 workers would be temporarily laid off between February 18 and June 30 because of the production suspension. The group previously said up to 230 employees would stop work. Analysts have spoken before of a share sale, but the pessimistic message from Goldman put further pressure on the shares.

Talvivaara Mining downgraded by JP Morgan


As part of a wider metals & mining note issued to clients today, JP Morgan Cazenove has downgraded its recommendation on Talvivaara Mining to ‘underweight’ from ‘neutral’ citing its concerns over the company’s ability to avoid equity driven / dilutive fundraising.

According to JPM the “Winners in our view will be those companies best able to demonstrate standalone value and self-funded growth, with both hard to find in a crowded and relatively expensive sub-sector.”

“We downgrade Talvivaara to underweight as we think the company’s ability to avoid a dilutive fundraising is rapidly diminishing.”

Given its concerns over the sourcing of additional funds the US bank has also pegged back its target price by 33 per cent to 88 pence (from 134 pence).

it was rated as a SELL in MAM at this sort of level a couple of months back, at which point, it chugged north to about 115 :-)

35p... is it cheap to buy?

bloody hell ...... i looked at this very vaguely last week, but only out of idle curiosity

read reuters on this rights issue and general opinion ...... i wouldn't buy except perhaps as a very quick trade, but there surely have to be better bets

news due this Thursday - good opportunity at these levels.......................

use and lose your own money :-)

on the other hand, RIO (quality!) has proved a good little investment since i bought in on 24/10

lol cynic :-0
well 36p boa talv broker target here for what that is worth

rio - yep but they have had their share of problems - remember that around 8000p or so

house broker targets are worthless!

as for RIO, like i said, i bought in only 10 days ago and am a pretty happy bunny ...... with world economies picking up, so will commodity consumption, especially in china ..... it follows that one should follow the quality which will be the main beneficiaries from this

fully agree ref house broker or even broker targets in general - usually take no note of them

I think you did well with rio now and agree on your global consumption reasoning
gl

another rio http://www.youtube.com/watch?v=dKWJiTaWltM

level 2 going mad - take a look

buyers coming in heavily despite risk must be the 50% reduction bringing them in

gla

gone crazy on good news - serious buying - onwards and upwards would not be surprised to see + 200% today

Talvivaara Mining Co
Corporate reorganisation of Talvivaara Mining C...
Stock exchange release
Talvivaara Mining Company Plc
29 November 2013

Corporate reorganisation of Talvivaara Mining Company Plc commences

Talvivaara Sotkamo Ltd granted time until 18 December 2013 to supplement its application for corporate reorganisation

Talvivaara Mining Company Plc and Talvivaara Sotkamo Ltd applied for a corporate reorganization on 15 November 2013 by filing related applications with the district court of Espoo, Finland. Today, the district court has taken the decision to commence a corporate reorganization process in respect of Talvivaara Mining Company Plc. Following the withdrawal of its support to the application for corporate reorganization of Talvivaara Sotkamo Ltd by Nyrstar Sales & Marketing AG, it seems possible that the requisite support from the creditors will not be considered reached. Therefore, Talvivaara Sotkamo Ltd has applied and has been granted time until 18 December 2013 to supplement its application for corporate reorganisation for the purposes of providing an auditor's statement.

The district court of Espoo has appointed Mr. Pekka Jaatinen, Attorney-at-Law, from Castrèn & Snellman Attorneys to act as the administrator in respect of the corporate reorganisation of Talvivaara Mining Company Plc and as the interim administrator in respect of the applied corporate reorganisation of Talvivaara Sotkamo Ltd.

http://www.ft.com/cms/s/0/d643e66e-7b71-11e3-a2da-00144feabdc0.html


Talvivaara should get a major boost from this news :-) and nickel prices could further
boost the long-term recovery here.Looks very good value indeed under 10p !