Production update
27.10.2010 | Globenewswire Europe
STOCK EXCHANGE RELEASE27 October 2010
Production update
Talvivaara Mining Company Plc ("Talvivaara" or the "Company") announces a
production update for the third quarter 2010:
· Nickel production in Q3 2010 amounted to 3,211 tonnes, up 18% from Q2 2010
· Zinc production in Q3 2010 amounted to 7,557 tonnes, up 36% from Q2 2010
The ramp-up of production at the Sotkamo mine has been making progress since the
end of June 2010. However, the rate of ramp-up during the third quarter was
hindered by technical issues relating to the commissioning of the second
production line at the metals recovery plant. In particular, installation faults
discovered at the second hydrogen sulphide generator resulted initially in
insufficient output and later in down time during repairs.
Although the production output did not meet the targets set for the third
quarter, the Company benefitted from higher than anticipated nickel prices.
Consequently, the financial result for the period will be substantially better
than that for the previous quarter. Talvivaara also maintains its assumption of
turning cash flow positive before the year end.
The average daily nickel production currently exceeds 50 tonnes and further
uplifts in production are expected in the coming weeks as a result of section
four of the primary heap coming on stream and the second hydrogen plant being
commissioned. It is also anticipated that some metals can be recovered from
secondary leaching in December. By the year end, Talvivaara anticipates reaching
the production rate of
80-85 tonnes of nickel per day required for an annualised production rate of
30,000 tonnes.
By the end of September, cumulative production for the year had reached 6,550
tonnes for nickel and 16,092 tonnes for zinc. Further guidance on the expected
full year production will be given in connection with the third quarter interim
results, to be announced on 10 November 2010.
ENQUIRIES
Talvivaara Mining Company Plc Tel: +358 20 712 9800
Pekka Perä, CEO
Saila Miettinen-Lähde, CFO
Merlin PR Tel: +44 207 726 8400
David Simonson
Anca Spiridon
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 sufficient to support anticipated production for at least 46 years.
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.
[HUG#1455347]
Production update:
http://hugin.info/136227/R/1455347/395390.pdf
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Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE
Unternehmen: Talvivaaran Kaivososakeyhtiö Oyj - ISIN: FI0009014716