Stock Exchange Release
Talvivaara Mining Company Plc
6 August 2014
Talvivaara's January - June 2014 interim results to be announced on 27 August
Metals production continued steady through the second quarter
Announcement of January - June 2014 interim results
Talvivaara Mining Company Plc ("Talvivaara" or the "Company") will publish its
January - June 2014 interim results on 27 August 2014 at approximately 9 a.m.
EET. The announcement is postponed from the previously given date of 14 August
2014 due to the Company's ongoing financing negotiations.
January - June 2014 production
In Q2 2014 Talvivaara produced 3,189t of nickel (Q1 2014: 3,068t) and 5,836t of
zinc (Q1 2014: 5,725t). For January - June 2014, production amounted to 6,257t
of nickel and 11,562t of zinc (H1 2013: 4,508t of nickel and 7,593t of zinc).
Talvivaara's metals production was mainly supported by the good performance of
primary heaps 1 and 4, which were taken to production during the second half of
2013. However, as no new ore has been mined for leaching since November 2013,
the production has been sustained by bleeding solution from the currently
operating heaps at higher than designed rates. As a result, the nickel grade in
solution pumped to the metals plant has decreased and was at the level of 1.0
g/l at the end of June.
The average feed flow to the metals recovery plant during Q2 was 1,349 m3/h
including all stoppages, but reached the running rate of 1,600 m3/h regularly.
The cost efficiency of production at the metals plant remained satisfactory
despite the declining metal grades in solution.
Talvivaara's ore production has been suspended since November 2013. Reclamation
of the old primary heaps was commenced on trial basis in May, but suspended
again in mid-June due to the Company's prevailing liquidity situation. In
addition, the use of a surface miner for reclaiming was tested in June, yielding
promising results. The Company now continues evaluating relevant equipment
requirements for capacity increase and cost savings for the reclaiming function
Treatment and discharge of excess waters from the mine area continued throughout
the second quarter, but discharge was minimized in June to avoid exceeding the
permitted discharge quotas for sulphate and zinc. Treatment of contaminated
waters within the mining area has, however, continued despite the limited
discharge rate. Furthermore, emergency volumes in the water storage areas around
the mine site are at the moment historically large and sufficient for any
unexpected leakage situations. Excess free water from the gypsum ponds has been
removed down to a level required by normal operations.
Talvivaara's metals production in the third quarter is anticipated to be
somewhat lower than that achieved in the second quarter due to the lack of new
ore under leaching and the continued depletion of the metals inventory in the
currently operating heaps. Development of the production output through the
year-end 2014 and in longer term remains subject to the success to completion,
timing and extent of the financing transactions that are currently being
Steady production performance in the second quarter together with the positive
development in nickel price and the up to EUR 20 million loan facility being
drawn down from Nyrstar have provided Talvivaara with sufficient liquidity to
continue the corporate reorganisation and its operations in the short term.
However, the Company's liquidity situation remains critical and to secure the
Group's long term viability, Talvivaara continues exploring the options for a
sustainable financial solution for the Group.
Talvivaara Mining Company Plc Tel +358 20 7129 800
Pekka Perä, CEO
Saila Miettinen-Lähde, Deputy CEO and CFO
Talvivaara Mining Company Plc
Talvivaara Mining Company is an internationally significant base metals producer
with its primary focus on nickel and zinc using a technology known as
bioheapleaching to extract metals out of ore. Bioheapleaching makes extraction
of metals from low grade ore economically viable. The Talvivaara deposits
comprise one of the largest known sulphide nickel resources in Europe. The ore
body is estimated to support anticipated production for several decades.
Talvivaara has secured a 10-year off-take agreement for 100 per cent of its main
output of nickel and cobalt to Norilsk Nickel and entered into a long-term zinc
streaming agreement with Nyrstar. Talvivaara is listed on NASDAQ OMX Helsinki.
Further information can be found at www.talvivaara.com.
Reporting Schedule and Operational Update:
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Source: Talvivaaran Kaivososakeyhtiö Oyj via GlobeNewswire