Talvivaara sees €491,000 operating loss for six months ended June 30

By Caroline Salls

Pittsburgh, Aug. 27 – Talvivaara Mining Co. plc reported a €491,000 operating loss for the six months ended June 30 on €3.44 million in “other operating income,” according to a news release.

In comparison, the company posted a €1.33 million operating profit for the six months ended June 30, 2014 on €7.13 million in other operating income.

Talvivaara had €4.43 million in cash and cash equivalents at June 30, up from €384,000 at June 30, 2014.

“When the unsecured creditors approved the draft restructuring program, an important milestone was achieved,” chief executive officer Pekka Pera said in the release. “Although there are still significant challenges ahead, it was a major tick in the box in this prolonged restructuring process.

“As we have received continuous support from the shareholders and the creditors, the weakness in the commodities market is still effecting on the mining finance space as a whole. A good sign is that some investors are getting active with the view that the bottom has been found in the base metals market.”

Pera said it showed an operating loss for the first half of 2015 as expected.

“As the restructuring costs will decrease, it is expected that the cash position will remain roughly on the same as level as at the end of the period for the next months to come or until a solution for the company’s future has been found,” the CEO said in the release.

As previously reported, the company’s draft restructuring program was supported by 97.5% of unsecured creditors voting in May. Talvivaara said in Thursday’s release that the confirmation and completion of the restructuring program still requires satisfaction of other conditions.

Following the bankruptcy of operating subsidiary Talvivaara Sotkamo Ltd. in November 2014, trading of Talvivaara’s shares on the Helsinki Stock Exchange was suspended. The company said the trading suspension continued as of Thursday.

Helsinki-based Talvivaara Mining is a base metals producer with its primary focus on nickel and zinc.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.