TALV Talvivaara

 
TIDMTALV 
 
Stock Exchange Release 
Talvivaara Mining Company Plc 
19 April 2012 
 
 
                          Talvivaara Production Update 
 
 First quarter 2012 production impacted by environmental process modifications 
            and unscheduled improvement measures in metals recovery 
 
           Full-year guidance maintained at 25,000-30,000t of nickel 
 
 
Talvivaara  Mining Company Plc ("Talvivaara" or the "Company") announces that it 
produced  3,374 tonnes of nickel in the first quarter of 2012. Production output 
was  adversely impacted by downtime at the metals recovery plant, resulting from 
environmental   investments   and   unscheduled   occupational  safety  -related 
improvements. 
 
In  January, Talvivaara commissioned  a new water  recycling system reducing raw 
water intake by approximately 65-75%. The system marks another proactive step in 
executing  the  Company's  sustainability  strategy,  but  at  the same time the 
installation  caused downtime at the metals  recovery plant and thereby impacted 
first quarter production volumes. As part of the undertaken process changes, the 
Company  has  also  temporarily  maintained  excess water in circulation thereby 
somewhat diluting metal grades in solution, which has further impacted output of 
the  metals recovery plant.  Solution grades are  expected to develop positively 
during  the spring as the mine's water balance improves, solution in circulation 
warms up and the new primary heap section 2 is taken into production. 
 
Further  reduction in production followed from the regrettable fatal incident at 
the  Sotkamo mine site in mid-March.  Following the incident, Talvivaara lowered 
solution flow into metals recovery and also started an unscheduled stoppage with 
focus   on   preventative   occupational   safety   -related  modifications  and 
improvements.  Occupational safety remains a top priority for Talvivaara and the 
Company  is focusing its  efforts on making  the workplace, both technically and 
operationally, as safe as possible. 
 
The  first quarter production volumes and  the negative nickel price development 
during  the period also had an adverse impact on Talvivaara's financial results. 
The  nickel price rallied to above USD 21,000 per tonne at the start of 2012 but 
subsequently  retreated  to  USD  17,000-18,000 per  tonne in February and March 
primarily  due to prevailing economic conditions.  The Company will consequently 
report an operating loss for the quarter. 
 
Talvivaara  maintains its  full-year 2012 production  guidance at 25,000-30,000 
tonnes  of nickel. However, following the  first quarter production volumes, the 
Company  has less  flexibility within  the guidance  range and expects full-year 
production to be closer to the lower end of the range. 
 
Regardless  of the short-term shortage in metals recovery output, the underlying 
development  in  the  Company's  operations  has  continued  positively.  Recent 
analysis of ore samples taken from heap section 3 indicates nickel recoveries of 
up  to  85% in  less  than  two  years  of leaching, which exceeds the Company's 
expectations. Run-rate crushing and primary heap reclaiming performance has also 
improved allowing the Company to accelerate the stacking of new ore. Progress in 
bioheapleaching  and  crushing  puts  Talvivaara  in  the position to offset the 
recent  issues  and  to  achieve  the  2012 guidance  and  ramp  up towards full 
capacity. 
 
 
ENQUIRIES 
 
Talvivaara Mining Company Plc. Tel: +358 20 7129 800 
Lassi Lammassaari, COO 
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  NV. Talvivaara is  listed on the London Stock 
Exchange  Main Market and NASDAQ  OMX Helsinki and is  included in the FTSE 250 
index. Further information can be found at www.talvivaara.com. 
 
 
 
 
 
 
Talvivaara Production Update 19.4.2012: 
http://hugin.info/136227/R/1603948/507304.pdf 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE 
[HUG#1603948] 
 

Talvivaara (LSE:TALV)
Historical Stock Chart
From May 2024 to Jun 2024

Talvivaara (LSE:TALV)
Historical Stock Chart
From Jun 2023 to Jun 2024