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

ST did you buy in ?

no

Smiler (apologies for my previous brief answer!!) I think this looks good, but am fully invested elsewhere at present.

Talvivaara Mining Company Ltd
04 June 2007


Application has been made to The UK Listing Authority and the London Stock
Exchange for block listings totalling 48,811,050 Ordinary shares of npv each to
trade on the London Stock Exchange and to be admitted to the Official List upon
issuance. The shares shall rank equally with the existing issued shares of the
Company.



The Block listings consist of 28,451,690 shares to be issued upon the conversion
of Convertible Loan Notes issued in 2006 and 20,359,360 shares upon the
conversion of Convertible Capital Loan issued in 2005.

ST , well you should be doing well on TMC !!

Smiler, I actually dumped my TMC about ten days ago at 355p for a 17% profit within a couple of weeks, which is probably a good thing as it has been lower meanwhile and I would only have panicked.

I had bought the whole lot on on credit/T+25 anyway, so would have been obliged to sell at some point. I may get back in though when I've finished my flirtation with Haike and Landore.

Yes, I do wish I had kept the original lot of TMC I bought last year, but had my eye off the ball in between whiles.

Wel St , I Have two big holdings GPN & GCM if they come off will be well pleased !! :)

FTSE 250 mining company, Talvivarra Mining (LSE: TALV) firmed this morning after the company announced that it had delivered its first shipment of nickel to Norilsk Nickel's Harjavalta refinery under a 10 year year off take agreement for the entire output of its mine. Talvivarra said it had shipped approximately 100 tonnes of nickel.


"Today's first shipment of nickel to Norilsk, our off-take agreement partner, is a fundamental step forward for Talvivaara as we progress towards full production and becoming one of the world's leading nickel mining companies.

Talvivaara Mining Company annual accounts review for year ended 31 December 2008

Transforming a project into a mine


Highlights of 2008

Commercial scale mining commenced with a first blast on 1 April 2008

Talvivaara placed an offering of EUR 84.9 million of convertible bonds on 14 May 2008

Production scale materials handling processes, including crushing, stacking and bioheapleaching of ore, commenced during the month of July 2008

USD 320 million project finance facility was drawn down starting 3 September 2008

First metal sulphides from the Talvivaara mine were precipitated on 1 October 2008

A 42% increase in measured and indicated mineral resources to 642 million tonnes was announced on 4 December 2008

Operating loss for the year was EUR (4.3) million (2007: profit of EUR 2.3 million)

Capital expenditure for the year was EUR 429 million (2007: EUR 134 million)

Cash at year end EUR 82.7 million (2007: EUR 153.5 million)

This is very stinky...

Note from SEB:
"We believe the guidance and financials will include the same information as last year: production guidance (we estimate 23,750tpy in nickel volumes in 2012, 55,338t in zinc, 1,820t in copper and 1,390t in cobalt), capex guidance (we forecast EUR 50m in 2012) and opex guidance. We expect combined material & services, employee benefit expenses and other operating expenses of EUR 237m in 2012. Our cash cost estimate (net costs per nickel tonne) is USD 5.0/lb for 2012. In addition to 2012 guidance, we are keen to hear Talvivaaras response to the allegations of high chemical emissions into nearby lakes and the likelihood of the company getting the permit for 50,000tpy nickel production once the environmental impact assessment is processed.
We see more value in Talvivaara, but environmental issues are a concern.
Our DCF, which uses a USD 20,000/t long-term nickel price and a volume of around 50,000tpy, suggests a fair value of EUR 4.5 for Talvivaara. We see more value in the shares than the current price indicates, but our concern is whether Talvivaara will eventually even get the permit for 50,000tpy nickel. We maintain our Hold rating.

Talvivaara Mining Company Plc

18 January 2012

Uranium Permitting Update

European Commission confirms positive opinion on Talvivaara's uranium recovery process under the Euratom Treaty

Talvivaara Mining Company Plc ("Talvivaara") announces that it has received a positive opinion on its uranium recovery process from the European Commission under the Euratom Treaty ("Treaty"). One of the main objectives of the Treaty is to improve the supply security of nuclear fuel in the European Union. In its opinion, the European Commission considers that uranium recovery at the Talvivaara mine complies with the goals set by the Treaty and may improve the supply security of nuclear fuel in the European Union.

This opinion is the second step in the uranium permitting process and follows European Commission approval in November 2011 for Talvivaara's uranium off-take agreement with Cameco Corporation. Both steps are a requirement under the Finnish government licensing procedure.

The start of uranium production is further subject to Environmental Permit and license from the Finnish Government to extract uranium as a by-product. The Environmental Permit application for uranium extraction was submitted to the Regional Environmental Permitting Agency in March 2011 and the decision on the permit is expected during Q2 2012. In April 2010, Talvivaara applied to the Ministry of Employment and Economy for a license to extract uranium as a by-product, in accordance with the Nuclear Energy Act. Approval by the Finnish Government is expected during Q1 2012.

Extremely disappointing update

Environment Minister Ville Niinistö says that the Talvivaara mine in Sotkamo, eastern Finland must rein in its emissions by the end of this year, or else its operations may be suspended.

Penalty payments or a suspension of operations will be considered if Talvivaara fails to control its emissions by the end of 2012, according to the ministry.

He points out that it is unfair to area residents that they have had to put up with high concentrations of sulphates for many years. The environment has also suffered, Niinistö says.

“Finland has existing legal processes to make sure that nobody can pollute the environment without being held accountable,” the minister explains.

Toxic substances in dead birds

Meanwhile signs of poisoning have been discovered in dead birds found last weekend near the Talvivaara nickel and cobalt mine. A closer microscopic and chemical analysis of the birds is to be carried out. The carcasses showed no external signs of violence. According to Finland’s food safety watchdog Evira, there were indications that the birds had breathed and swallowed dangerous substances.

In March high levels of hydrogen sulphide were apparently responsible for the death of a worker at the mine. The incident led to a temporary closure of the facility.

Talviaara Mining has disappointed investors this morning, posting a significantly wider pre-tax loss for the first half of 2012 (€-42.5m vs. €6.5m profit in H1 2011) on account of nickel production (-55% YoY) considerably missing earlier guidance on account of weather and maintenance issues/stoppages and weaker Nickel price (-25% during H1).

The company's 2012 full year guidance for nickel production has now been slashed from 25-30K tonnes just to 17K, but Talviaara suggests it can regain its original guidance run-rate of 25K p/a in the latter part of the year.

A production miss had been flagged up in the Q2 operational report in early July, and the shares had traded down since, however, the magnitude of the production and financial miss may mean consensus forecasts still require trimming. This could leave the shares under continued pressure in an already unfavorable macro environment especially if weak growth data from the likes of China persist.

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).