Quarterly Interim Results for the period ending 30 September 2009
(Thomson Reuters ONE) - Talvivaara Mining Company PlcStock Exchange Release 11 November 2009 Quarterly Interim Results for the period ending 30 September 2009Talvivaara Mining Company Plc ("Talvivaara" or the "Company") todayannounces its unaudited Interim Results for the three and nine monthperiods ended 30 September 2009.Third quarter highlights* Successful installation and commissioning of the upgraded crushing circuit to increase crushing capacity to approximately 22 million tonnes per annum* Start-up of metals recovery plant in mid September in anticipation of continuous production* Placing of orders for critical long-lead items, notably the second hydrogen plant and additional mining fleet, for capacity expansion* Permitting and commissioning of the Talvivaara-Murtomäki railhead for regular transport from September* Continued good safety record at the mine site with one Lost Time Injury (LTI) to Talvivaara personnel during the third quarter* Closing of equity placing raising EUR 82.7 million in July to provide sufficient liquidity to take production target to 50,000 tonnes of nickel per annum from 2012Key figures Q3 Q3 Q1-Q3 Q1-Q3 2009 2008 2009 2008 FY 2008 EURTurnover '000 826 - 2,604 - -Operating profit EUR(loss) '000 (15,303) (4,955) (23,208) (9,576) (4,296)Profit (loss) before EURtaxes '000 (15,314) (9,001) (30,003) (13,452) (8,033)Earnings per share EUR (0.04) (0.03) (0.08) (0.05) 0.03 EURCapital expenditure '000 24,315 100,128 82,052 273,030 429,086Net interest-bearing EURdebt '000 354,130 100,131 354,130 100,131 285,467Debt-to-equity ratio 84.2 % 28.3 % 84.2 % 28.3 % 67.3 %Cash and cashequivalents at the end of the EURperiod '000 68,624 93,028 68,624 93,028 82,713Derivative financial EURinstruments '000 64,975 74,393 64,975 74,393 152,545Number of employeesat theend of the period 283 229 283 229 239Pekka Perä, CEO of Talvivaara commented: "We are pleased that ourdecision to proceed with the installation of an upgraded finecrushing circuit has enabled us to overcome the most challenginghurdles in the way of achieving full production. The end of thequarter saw all processes at the mine operating as planned. After amodification of the primary crusher at the end of October to allowcrushing rates at the level of 60,000 tonnes per day, we remainconfident that the ramp up towards production levels of approximately30,000 tonnes of nickel per annum in 2010 remains on track."."Enquiries:Talvivaara Mining Company Plc Tel. +358 20 712 9800Pekka Perä, CEOSaila Miettinen-Lähde, CFOMerlin Tel. +44 207 726 8400Tom RandellAnca SpiridonA conference call to discuss the Third Quarter 2009 Results will beheld at 12:00 UK time / 14:00 Finnish time on 11 November 2009.Details to access the conference call are as follows:UK Free Call: 0800 694 0257UK Standard International: +44 (0) 1452 555 566USA Free Call: 1866 966 9439Finland Free Call: 0800 112 363The conference ID is 40892036A replay facility will be available on the following numbers until 17November 2009:Replay Access Number: 40892036#International Dial in: +44 (0) 1452 55 0000UK Free Call Dial In: 0800 953 1533UK Local Dial In: 0845 245 5205USA Free Call Dial In: 1866 247 4222CEO StatementOur operations during the third quarter progressed as expected, withfocus for much of the period on the installation and commissioning ofthe upgraded crushing circuit. The installation took place, asanticipated, during the latter half of August, followed by start-upof the redesigned circuit in the beginning of September. The budgetedlevels of crushing at around 40,000 tonnes per day were firstachieved in October, and with all assembly work now complete we arelooking forward to progressing towards the planned full capacity of60,000 tonnes per day during the remainder of the year.We have made considerable progress in improving the materialshandling processes to a level that now allows the overall process toachieve the planned volumes of production. I am pleased to reportthat in early September we concluded that the amount of leachsolution was sufficient for continuous operation of the metalsrecovery plant. The plant was subsequently re-started on 14September, and the quality of the metal sulphide output since thenhas again been better than before and is getting close to the finaltargeted specifications. Production volumes during the fourth quarterare anticipated to be commercially significant, although somemodifications at the plant will still be necessary to allow a furtherincrease in volumes in 2010.The capacity expansion project is proceeding on target, and all majororders for new equipment have been placed following the successfulEUR 82.7 million equity placing in July. These include the secondhydrogen plant and additional mining fleet to serve the increasingmining capacity.Health and safety continues to be one of our key focus areas and I amproud to report that our safety record remains good with just oneLost Time Injury to our own personnel since we launched our WorkGroup Safety Challenge in February. We also remain committed toresponsible conduct in environmental matters and strive to maintain agood record in terms of our operational impact on the surroundingareas.The commodities markets have remained surprisingly strong throughoutthe third quarter and into the fourth despite the continued lack ofindustrial demand particularly in the developed nations. We continueto expect that commodities prices will retract somewhat from theirpresent levels in the short term. However, this may at least in partbe countered by the weakness of the US dollar. Our long term viewremains very positive with the developing economies and potentialsupply-demand disparities as the key drivers.All in all, our outlook remains positive for the remainder of theyear, with the most challenging production problems now behind us.While sustained ramp-up of crushing according to plan continues to becritical, we remain confident that our 2010 production target ofapproximately 30,000 tonnes of nickel is achievable.Pekka PeräCEOFinancial reviewTalvivaara's sales during the three and nine month periods ended 30September 2009 amounted to EUR 0.8 million (Q3 2008: 0) and EUR 2.6million (Q1-Q3 2008: 0), respectively. The sales volumes remainedbelow budgeted levels due to limited crushing capacity resulting fromtechnical design issues in the crushing circuit. The crushing circuitwas redesigned in the spring, and the upgraded system was installedand commissioned during Q3 2009.The Company's other operating income, amounting to EUR 11.6 millionin Q3 2009 (Q3 2008: EUR 3.4 million) and EUR 37.2 million for Q1-Q32009 (Q1-Q3 2008: EUR 12.6 million), consisted of realised (EUR 21.1million) and unrealised (EUR 15.6 million) gains on nickel, zinc andUSD forwards. Other operating expenses, which in Q3 2009 amounted toEUR (17.0) million (Q3 2008: EUR (4.3) million) and in Q1-Q3 2009 toEUR (32.6) million (Q1-Q3 2008: EUR (12.3) million), includedunrealised fair value losses on biological assets (trees) and nickeland zinc forwards held for trading.Employee benefit expenses, including the value of employee expensesrelated to the employee share option scheme of 2007, were EUR (3.6)million in Q3 2009 (Q3 2008: EUR (3.2) million) and EUR (11.6)million for the nine months from January to September (Q1-Q3 2008:EUR (7.3) million). The increase was attributable to increased numberof personnel.Operating loss for Q3 2009 amounted to EUR (15.3) million (Q3 2008:EUR (5.0) million) and was EUR (23.2) million for the nine monthsfrom January to September (Q1-Q3 2008: EUR (9.6) million).Finance income in Q3 2009 of EUR 8.0 million (Q3 2008: EUR 0.5million) and in Q1-Q3 2009 of EUR 15.0 million (Q1-Q3 2008: EUR 2.8million) included exchange rate gains on the USD 320 million projectloan facility and on bank accounts. Finance costs of EUR (8.0)million in Q3 2009 (Q3 2008: EUR (4.6) million) and EUR (21.8)million in Q1-Q3 2009 (Q1-Q3 2008: EUR (6.7) million) related mostlyto the Company's borrowings, in particular to the project loanfacility and the EUR 85 million convertible loan, as well as exchangerate losses.Loss for the period in Q3 2009 amounted to EUR (10.7) million (Q32008: EUR (9.4) million) and totalled EUR (21.9) million for the ninemonths from January to September (Q1-Q3 2008: EUR (15.3) million).The Company's total comprehensive income in Q3 2009 was EUR (27.2)million (Q3 2008: EUR 23.0 million) and in Q1-Q3 2009 EUR (85.8)million (Q1-Q3 2008: EUR 26.8 million), reflecting primarily adecrease in hedge reserves brought about by the increase in nickelprice during 2009.On the consolidated statement of financial position as at 30September 2009, property, plant and equipment totalled EUR 615.2million (31 December 2008: EUR 552.5 million), with the increasesince the 2008 year end attributable to expenditure on andcapitalisation of mine related assets according to plan. Othernotable changes in the Company's assets include the substantialdecrease in the fair value of derivative financial instruments, inparticular nickel and zinc forward swaps. The change was caused byincrease in nickel and zinc prices during the reporting period aswell as the maturity of some of the forward contracts. As at 30September 2009, the derivative financial instruments were valued atEUR 65.0 million (31 December 2008: EUR 152.5 million).Deferred tax assets were EUR 7.4 million (31 December 2008:liabilities of EUR 23.1 million). The change was caused by thedecrease in fair value of derivative financial instruments during thereporting period and the tax losses of 2009.Inventories amounted to EUR 82.1 million (31 December 2008: EUR 31.7million), with the increase relating mostly to ore on leach pads andwork in progress, both valued at cost. Cash and cash equivalentstotalled EUR 68.6 million (31 December 2008: EUR 82.7 million).Talvivaara's cash position was improved from Q2 2009 as a result ofan equity placing with gross proceeds of EUR 82.7 million.In equity and liabilities, the invested unrestricted equity increasedfrom EUR 320.6 million on 31 December 2008 to EUR 401.3 million on 30September 2009 due to the equity placing in July. The hedge reserverelated to nickel cash flow hedges decreased from EUR 72.3 million on31 December 2008 to EUR 21.3 million on 30 September 2009 due to theincrease in the market price of nickel. Borrowings increased from EUR368.2 million to EUR 422.8 million, reflecting drawdown of the EUR 45million investment and working capital loan from Finnvera Plc.Total equity and liabilities as at 30 September 2009 amounted to EUR879.9 million (31 December 2008: EUR 874.0 million).Currency and commodity hedges and hedge accountingAs at 30 September 2009, the Company had 13,547 tonnes of nickel and33,579 tonnes of zinc forward swaps remaining of its commodity hedgeprogramme executed in 2007 and 2008 and extending through 2011. Thevolume weighted average prices of the outstanding positions are USD23,452 per tonne for nickel and USD 1,949 per tonne for zinc.Talvivaara applies hedge accounting to nickel hedges maturing in Q12010 - Q4 2011.The Company has entered into a currency hedging programme comprisingUSD forwards for seven quarters from Q2 2009 through Q4 2010. Thehedged amount is EUR 175 million in total, with EUR 25 millionmaturing each quarter. The forwards were executed in April 2009 atEUR/USD rates ranging from 1.26 to 1.28. The realized gain from thesehedges was EUR 4.4 million during the reporting period.In addition, the company has outstanding currency option contractsamounting to USD 64 million. The EUR/USD rate of the option contractsis 1.60. The options will mature during Q4 2009.FinancingIn July, the Company successfully closed an equity placing of22,280,000 shares, representing approximately 10 per cent of thenumber of the existing shares, to institutional investors. Theplacing was conducted through an accelerated book-building processand priced at EUR 3.70 (GBP 3.20) per share, raising gross proceedsof EUR 82.7 million (GBP 71.3 million). The share issue was approvedby the shareholders of the Company in the Extraordinary GeneralMeeting on 6 July 2009.In August, Talvivaara entered into an agreement with a Finnishfinancial institution for the factoring of sales receivables from theCompany's nickel and cobalt products.During Q2, Talvivaara drew down EUR 45 million of a EUR 50 millioninvestment and working capital loan granted by Finnvera Plc. Theremaining EUR 5 million of the total commitment is used forcapitalisation of interest. The loan carries an interest of EURIBOR 6months + 3.00% and is due to be repaid over a five-year period of2013 to 2018.In June, the Company received a EUR 5 million reimbursement from theFinnish Government for infrastructure investments relating to powersupply and electrification. The subsidy was part of the overalldecision by the Finnish Parliament in 2007 to grant EUR 52 million tosupport the construction of necessary infrastructure for theTalvivaara mine.Production summaryThe key task in production during the third quarter was theinstallation and commissioning of the upgraded crushing circuit toenable a significant increase in production volumes going forward.While corrective measures to alleviate the crushing problems werebeing taken, all other processes continued to perform well.The mining department blasted 2.0 million tonnes of ore and excavated1.0 million tonnes of waste during the third quarter, while thecorresponding figures for the first nine months were 7.3 milliontonnes and 2.9 million tonnes. The period was uneventful for themining department and optimisation of the operating procedurescontinued. Running of the operations at full capacity remaineduntested due to the bottleneck in crushing. Ore hauling capacity alsocontinued to limit the throughput for the time being, but Talvivaarais confident the upgraded target for the mining volumes can beachieved following the commissioning of additional mobile geartowards the end of 2009 and early 2010.The third quarter performance in materials handling reflected firstlythe limited capacity of the old crushing circuit in July and earlyAugust and secondly the production stoppage for the installation ofthe upgraded system from 12 August until the end of the month. Theredesigned circuit started operation, as planned, in the beginning ofSeptember, after which production volumes have been graduallyincreased. The volume of ore crushed and stacked in Q3 2009 amountedto 1.4 million tonnes, while the corresponding figure for the firstnine months of the year was 5.5 million tonnes.The Company's primary crusher also continued to experience technicalproblems and performed at less than budgeted capacity during thethird quarter. Further modifications to improve the crusher'sperformance were agreed with the supplier, but delivery andinstallation of new components could only be arranged for October.Problems in primary crushing are not a rate-limiting factor foroverall production, as contractor capacity is readily available andwas used to complement Talvivaara's own capacity throughout thereporting period.In bioheapleaching, heat generation throughout the summer months washigh. In such circumstances, some of the nickel precipitated backinto the heap. However, the re-precipitated nickel in the heap is inreadily soluble form and can be returned to circulation by flushingthe heap with water. It has also been seen that despite continuousbleeding of more than 15% of the circulating solution to metalsrecovery and/or storage ponds since mid September, nickel grades inthe solution have continued to increase. As the long term plannedbleeding rate, as based on earlier experience from the pilot heap, isonly 10%, this indicates promising development in the leachingprocess. Some further increase in leach solution metal grades isstill expected and will be important in order to reach the targetedfull scale production levels in mid 2011 and beyond, but until thenthe existing reactor capacity is sufficient to treat even lower gradesolutions.The metals recovery process was re-started in mid September, once thevolume of leach solution was estimated to be sufficient to supportcontinuous production. Due to the short operating time in the thirdquarter, the production volumes remained limited, at 101 tonnes ofcontained nickel and 114 tonnes of contained zinc in sulphideconcentrate. The quality of the products was again good andapproached target specifications set for steady state operation.Similarly to the first half of 2009, the operating cost of materialshandling relative to metals recovery continued to bedisproportionately high during the third quarter. Hence, the unitcost of production during the period was not representative of theestimated production costs in steady state operation.Production key figures 2008 - Q3 2009 Q3 2009 Q1-Q3 2009 2008-2009MiningBlasted ore million tonnes 2.0 7.3 10.3Excavated waste million tonnes 1.0 2.9 4.2Materials handlingStacked ore million tonnes 1.4 5.5 8.0BioheapleachingOre in primary heapat end of period million tonnes 8.0 8.0 8.0Metals recoveryNickel sulphide dry metricproduction tonnes 208 668 668Nickel metal content tonnes 101 325 325 dry metricZinc sulphide production tonnes 190 1,444 1,444Zinc metal content tonnes 114 820 820Research and developmentTalvivaara continued active studies relating to manganese recoveryfrom the leach solution. Other ongoing research and developmentprojects related to optimisation of the bioheapleaching technology,and chemical and biological iron removal from leach solution.Environment, health and safetyThe Company continued its environmental management and monitoringprogramme in accordance with the requirements set out in itsEnvironmental Permit. Some temporarily decreased pH levels andincreases in suspended solids and metal contents in downstream watershave been detected and such deviations have been reported to theenvironmental authorities. Any deviations have been followed byincreased level of monitoring until all parameters have returned topermitted levels.Dust emissions from the mining area have also occasionally exceededpermitted levels. Since the discontinuation of contractor finecrushing at the end of March the dust emissions have substantiallydecreased, but the Company continues to focus on decreasing the dustlevels.Talvivaara is preparing its environmental processes to meet the ISO14001 environmental standard. Audit of the environmental system istargeted for Q4 2010.No environmental compensation was paid during the reporting period.The environmental security placed for future rehabilitation of thearea amounted to EUR 13.8 million on 30 September 2009. Of the total,EUR 9 million was covered by bank guarantees and guarantee insurance,and EUR 4.8 million was deposited in escrow accounts.Occupational safety is one of Talvivaara's key focus areas. Thesafety record remained good during the reporting period with threerelatively minor Lost Time Injuries (LTI's) reported among theCompany's personnel in January and one in September. The overallsafety rating at the end of the period was 11 LTI's per million manhours.Legal and permitting mattersTalvivaara Infrastructure Oy, a wholly-owned subsidiary of theCompany constructing the new railhead connecting the mine site withthe national railway grid, received the operating permits from theFinnish Rail Agency on 15 September 2009. Regular train trafficstarted on 16 September with limestone deliveries from the Kokkolaport located in the west coast of Finland.PersonnelTalvivaara employed an average of 266 employees during the first ninemonths of 2009 (Q1-Q3 2008: 158). At the end of September 2009 thenumber of employees was 283, while the corresponding number was 239at the end of 2008 and 229 at the end of September 2008. Wages andsalaries paid during the period totalled EUR 9.9 million (Q1-Q3 2008:EUR 6.2 million).Shares and shareholdersThe issued share capital of the Company on 30 September 2009 was245,176,718 and (assuming share issues in relation to the convertiblebond of May 2008 and option scheme of 2007) the fully diluted issuedshare capital of the Company was 263,669,291.As at 30 September 2009, the shareholders who held more than 5% ofthe shares and votes of the Company were Pekka Perä (23.3%), VarmaMutual Pension Insurance Company (8.6%) and Capital Research andManagement (5.0%).Risks and uncertaintiesTalvivaara carries out an ongoing process endorsed by the Board ofDirectors to identify risks, measure their impact against certainassumptions and implement the necessary proactive steps to managethese risks. The Company's operations are affected by various riskscommon to the mining industry, such as risks relating to thedevelopment of Talvivaara's mineral deposits, and volatility ofcommodities prices and currency exchange ratios.In the short term, Talvivaara's operational risks relate to theongoing ramp-up of operations. Because of uncertainties relating tothe materials handling processes, Talvivaara has previously withdrawnits production targets for the current year and continues to takemeasures to secure 2010 production at the targeted level ofapproximately 30,000 tonnes of nickel.The market price of nickel has remained relatively stable at USD17,000-19,000 per tonne since early August. In light of therelatively modest industrial demand of nickel in the Westerneconomies for the time being, there may in the Company's view stillbe downward pressure on the prices in the short term. Talvivaara hasexecuted significant hedges against low nickel and zinc prices in theshort to medium term. In the long term, Talvivaara believes itsoperations to also be profitable at substantially lower nickel pricesthan the present market prices.Talvivaara's revenues are almost entirely in US dollars, whilst themajority of the Company's costs are incurred in Euro. Potentialstrengthening of the Euro against the US dollar could thus have amaterial adverse effect on the business and financial condition ofthe Company. Talvivaara's existing currency hedges have been executedto partly mitigate this through the end of 2010 and the Companyanticipates hedging against currency exchange volatility also goingforward.Events after the reporting periodCommissioning of the upgraded crushing circuitThe redesigned and upgraded crushing circuit has been in operationsince the beginning of September, and its overall production rate ona weekly basis has reached an average of over 40,000 tonnes per dayin October. Volumes in excess of 50,000 tonnes per day have beenreached on individual days. The achieved volumes have recentlyexceeded the budgeted volumes so that the year-to-date actual vs.budgeted ratio of 47% following the production stoppage in August hasincreased to 53% by early November. While further optimisation andcapacity testing of the process remains to be done, the productionvolumes achieved so far indicate the circuit to be capable of thetargeted production rate of 60,000 tonnes per day, corresponding to22 million tonnes per annum.Technical modification of the primary crusherIn late October, the Company's primary crusher was fitted with a newmantle reducing the crusher's nib angle from 23° to 19°. Currentperformance of the primary crusher is satisfactory with rates ofapproximately 60,000 tonnes per day being achieved. This has alloweddiscontinuation of contractor crushing. However, formal capacitytests are yet to be carried out.Production stoppage for relining of reactors at the metals recoveryplantMechanical failure in certain parts of the metals plant reactors wasdetected in mid October and the plant was subsequently turned offwhile the reactors were relined and the plant equipment was inspectedto rule out any other potential damage. The failure appears to havebeen caused by human error during commissioning and is not believedto be an inherent problem in the process or the reactor linings.Production at the plant has since resumed and it is not anticipatedthat the Company will incur any material loss from the incident,which was covered by insurance.Short-term outlookFollowing the commissioning of the expanded crushing circuit andrestart of the metals precipitation processes in September,Talvivaara expects to continue its production ramp-up targeted ateventually achieving up to 50,000 tonnes in annual nickel productionin 2012. Since the re-start, stepwise increases in metalsprecipitation volumes have already commenced in line with theincreasing size of the heap and the trend is anticipated to continueduring the remainder of the year and into 2010. While sustainedramp-up of crushing according to plan also continues to be a criticalprerequisite for next year's production, the Company remainsconfident that its 2010 production target of approximately 30,000tonnes of nickel is achievable.The Company does not anticipate its production plans to be affectedby commodity prices. Following the successful closing of its equityplacing in July, Talvivaara believes it has sufficient liquidity tocover the cost of capacity expansion, expected to be incurred mostlyin 2009 and 2010.CONSOLIDATED INCOME STATEMENT Unaudited Unaudited Unaudited Unaudited Audited three three nine nine twelve months to months to months to months to months to(all amounts in EUR'000) 30 Sep 09 30 Sep 08 30 Sep 09 30 Sep 08 31 Dec 08Turnover 826 - 2,604 - -Other operatingincome 11,599 3,402 37,152 12,568 29,810Changes ininventories offinished goods andwork in progress 15,100 3,773 47,177 3,773 24,006Materials andservices (12,763) (4,389) (40,267) (5,910) (20,407)Employee benefitexpenses (3,566) (3,159) (11,631) (7,286) (8,910)Depreciation,amortization,depletion andimpairment charges (9,458) (265) (25,677) (462) (5,756)Other operatingexpenses (17,041) (4,317) (32,566) (12,259) (23,039)Operating profit(loss) (15,303) (4,955) (23,208) (9,576) (4,296)Finance income 8,026 514 15,039 2,799 9,219Finance cost (8,037) (4,560) (21,834) (6,675) (12,956)Finance cost (net) (11) (4,046) (6,795) (3,876) (3,737)Loss before incometax (15,314) (9,001) (30,003) (13,452) (8,033)Income tax expense 4,565 (363) 8,056 (1,895) 13,865Profit (loss) forthe period (10,749) (9,364) (21,947) (15,347) 5,832Attributable to:Equity holders ofthe Company (9,310) (7,013) (18,415) (10,975) 7,042Minority interest (1,439) (2,351) (3,532) (4,372) (1,210) (10,749) (9,364) (21,947) (15,347) 5,832Earnings per sharefor profit (loss)attributable to theequity holders ofthe Company(expressed in ? pershare)Basic and diluted (0.04) (0.03) (0.08) 0.05) 0.03CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Unaudited Unaudited Audited three three nine nine twelve months months to months to months to months to to(all amounts in EUR 31 Dec'000) 30 Sep 09 30 Sep 08 30 Sep 09 30 Sep 08 08Profit (loss) for theperiod (10,749) (9,364) (21,947) (15,347) 5,832Other comprehensiveincome,items net of taxAvailable-for-salefinancial assets - - - (451) (451)Cash flow hedges (16,461) 32,331 (63,828) 42,637 90,414Other comprehensiveincome, net of tax (16,461) 32,331 (63,828) 42,186 89,963Total comprehensiveincome (27,210) 22,967 (85,775) 26,839 95,795Attributable to:Equity holders of theCompany (22,479) 18,853 (69,478) 22,685 78,922Minority interest (4,731) 4,114 (16,297) 4,154 16,873 (27,210) 22,967 (85,775) 26,839 95,795CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Audited Unaudited (all amounts in EUR '000) 30 Sep 09 31 Dec 08 30 Sep 08ASSETSNon-current assetsProperty, plant and equipment 615,195 552,459 401,794Biological assets 6,368 8,152 8,249Intangible assets 7,609 7,774 7,164Deferred tax assets 7,412 -Derivative financial instruments 39,391 116,004 61,355Other receivables 11,227 9,635 10,119 687,202 694,024 488,681Current assetsInventories 82,080 31,691 4,803Trade receivables 981 - -Other receivables 10,609 24,721 19,500Derivative financial instruments 30,413 40,805 13,700Cash and cash equivalent 68,624 82,713 93,028 192,707 179,930 131,031Total assets 879,909 873,954 619,712EQUITY AND LIABILITIESEquity attributable to equity holdersof the parentShare capital 80 80 80Share premium 8,086 8,086 8,086Other reserves 416,554 334,019 333,533Hedge reserve 21,269 72,332 34,111Retained earnings (44,516) (26,101) (44,119) 401,473 388,416 331,691Minority interest in equity 19,119 35,470 22,745Total equity 420,592 423,886 354,436Non-current liabilitiesBorrowings 412,852 367,955 193,135Derivative financial instruments 3,487 1,985 662Deferred tax liabilities - 23,070 22,044Provisions 1,018 944 423 417,357 393,954 216,264Current liabilitiesBorrowings 9,912 224 25Trade payables 19,401 45,283 41,819Other payables 11,305 8,294 7,134Derivative financial instruments 1,342 2,279 -Provisions - 34 34 41,960 56,114 49,012Total liabilities 459,317 450,068 265,276Total equity and liabilities 879,909 873,954 619,712CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited Unaudited Unaudited Unaudited Audited three three nine nine twelve months to months to months to months to months to(all amounts in EUR 30 Sep 09 30 Sep 08 30 Sep 09 30 Sep 08 31 Dec 08'000)Cash flows fromoperating activitiesProfit (loss) for theperiod (10,749) (9,364) (21,947) (15,347) 5,832Adjustments for Tax (4,565) 363 (8,056) 1,895 (13,865) Depreciation and amortization 9,458 265 25,677 462 5,756 Other non-cash income and expenses 603 922 3,327 2,430 4,780 Interest income (8,026) (514) (15,039) (2,799) (9,219) Fair value gains on financial assets at fair value through profit or loss 10,996 (3,003) 2,806 (7,604) (24,796) Interest expense 8,037 4,560 21,834 6,675 12,956 5,754 (6,771) 8,602 (14,288) (18,556)Change in workingcapitalDecrease(+)/increase(-)in other receivables 2,533 9,239 9,314 12,537 4,552Decrease (+)/increase(-) in inventories (16,404) (4,803) (51,122) (4,803) (30,661)Decrease(-)/increase(+)in trade and otherpayables 1,783 2,154 (24,072) 18,670 23,773Change in workingcapital (12,088) 6,590 (65,880) 26,404 (2,336) (6,334) (181) (57,278) 12,116 (20,892)Interest and otherfinance cost paid (4,578) (1,169) (16,132) (4,855) (7,468)Interest income 52 501 3,430 956 9,581Net cash used inoperating activities (10,860) (849) (69,980) 8,217 (18,779)Cash flows frominvesting activitiesAcquisition ofsubsidiary, net of cashacquired (54) - (54) - -Purchases of property,plant and equipment (24,182) (100,045) (81,842) (271,802) (427,187)Purchases of biologicalassets - - (35) (26) (26)Purchases of intangibleassets (133) (83) (175) (1,202) (1,873)Proceeds from sale ofproperty, plant andequipment - - 9 - -Proceeds from sale ofintangible assets - - 49 - -Proceeds from sale ofbiological assets 104 124 104 251 707Proceeds fromgovernment grantrelated to tangibleassets - - 5,000 - -Proceeds fromgovernment grantrelated to intangibleassets - 204 13 204 203Proceeds from sale ofavailable for salefinancial assets - - - 26,356 26,356Purchases of derivativefinancial instruments - - (1,371) (1,371)Proceeds from sale ofderivative financialinstruments - - - - -Proceeds from sale offinancial assets atfair value throughprofit or loss - - - 1,440 1,440Net cash used ininvesting activities (24,265) (99,800) (76,931) (246,150) (401,751)Cash flows fromfinancing activitiesProceeds from shareissue net oftransaction costs 80,644 - 80,644 - -Proceeds frominterest-bearingliabilities - 119,560 53,357 204,460 396,734Payment ofinterest-bearingliabilities (1,154) - (1,179) - (20,000)Capital investment byminority shareholders - - - - 8Net cash generated infinancing activities 79,490 119,560 132,822 204,460 376,742Net (decrease)/increasein cash and bankoverdrafts 44,365 18,911 (14,089) (33,473) (43,788)Cash and bankoverdrafts at beginningof the period 24,259 74,117 82,713 126,501 126,501Cash and bankoverdrafts at end ofthe period 68,624 93,028 68,624 93,028 82,713CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYA. Share CapitalB. Share PremiumC. Invested unrestricted equityD. Other ReservesE. Hedge ReservesF. Retained EarningsG. TotalH. Minority interestI. Total Equity A B C D E F G H IBalance at 1January 2008 16 8,086 320,671 1,106 - (33,423) 296,456 18,591 315,047Totalcomprehensiveincome for1-9/2008 - - - (451) 34,111 (10,975) 22,685 4,154 26,839Transferswithinequity,change of thecorporateform 64 - (64) - - - - - -Employeeshare optionscheme- value ofemployeeservices - - - 1,377 - - 1,377 - 1,377Convertiblebond,equitycomponent - - - 10,894 - - 10,894 - 10,894Restatementto capitalexpenditure,whichrelates toprevious year - - - - - 278 278 - 278Minorityinterestarisingfromsubsidiary - - - - - 1 1 - 1Balance at 30September2008 80 8,086 320,607 12,926 34,111 (44,119) 331,691 22,745 354,436Balance at 31December 2008 80 8,086 320,607 13,412 72,332 (26,101) 388,416 35,470 423,886Balance at 1January 2009 80 8,086 320,607 13,412 72,332 (26,101) 388,416 35,470 423,886Totalcomprehensiveincome for (51 (69 (16 (851-9/2009 - - - - 063) (18 415) 478) 297) 775)Share issue,net oftransactioncosts - - 82,691 - - - 82,691 - 82,691ExternalcostsdirectlyattributabletoThe issue ofnew shares - - (2,047) - - - (2,047) - (2,047)Acquisitionofsubsidiary,HyenaHolding AB - - - - - - - (54) (54)Employeeshareoption scheme- value ofemployeeservices - - - 1,891 - - 1,891 - 1,891Balance at 30September2009 80 8,086 401,251 15,303 21,269 (44,516) 401,473 19,119 420,592NOTESInventories(all amounts in EUR '000) Unaudited Audited 30 September 31 December 2009 2008Raw materials and consumables 8 819 6 655Ore on leach pads 43 911 22 965Work in progress 26 225 1 041Finished products 1 047 -Advance payments 2 078 1 030Inventories total 82 080 31 691Derivative financial instrumentsFair values of the derivativefinancial instruments(all amounts in EUR '000) Unaudited Audited 30 September 31 December 2009 2008 Assets Liabilities Assets LiabilitiesNickel forwards - cashflow hedges 46,418 - 135,355 -Nickel forwards - held fortrading 7,621 - 3,301 -Zinc forwards - held fortrading 122 940 18,153 -Interest rate swaps - heldfor trading - 3,100 - 2,279Currency forwards - heldfor trading 15,643 - - -Currency options - heldfor trading - 789 - 1,985Total 69,804 4,829 156,809 4,264 Unaudited Audited 30 September 31 December 2009 2008 Assets Liabilities Assets LiabilitiesDerivative financialinstruments 69,804 4,829 156,809 4,264Total 69,804 4,829 156,809 4,264Less non-current portionNickel forwards - cashflow hedges 29,860 - 101,797 -Nickel forwards - held fortrading - - - -Zinc forwards - held fortrading 9 387 14,207 -Interest rate swaps - heldfor trading - 3,100 - 1,985Currency forwards - heldfor trading 9,522 - - -Current portion 30,413 1,342 40,805 2,279Quantities of the derivativefinancial instruments Unaudited Audited 30 Sep 2009 Total 31 Dec 2008 Total Current Non-current Current Non-currentNickelforwards -cash flowhedges, intonnes 2,971 8,813 11,784 3,429 12,128 15,557Nickelforwards -held fortrading, intonnes 1,763 - 1,763 404 - 404Zincforwards -held fortrading, intonnes 13,652 19,927, 33,579 7,458 30,559 38,017Interestrate swaps- held fortrading, inEUR'000 - 36,636 36,636 - 36,636 36,636Currencyforwards -held fortrading, inUSD '000 127,625 32,062 159,687 - - -Currencyoptions -held fortrading, inUSD'000 64,000 - 64,000 209,800 - 209,800Borrowings(allamounts inEUR '000) Carrying amount Fair value Unaudited Audited Unaudited Audited 30 Sep 31 Dec 30 Sep 31 DecNon-current 2009 2008 2009 2008Capitalloans 1,405 1,405 1,405 1,405ProjectTerm LoanFacility 209,656 229,935 209,656 229,935SeniorUnsecuredConvertibleBonds 74,813 72,842 74,813 72,842RailwayTerm LoanFacility 30,347 25,461 30,347 25,461Workingcapitalloan 44,403 - 44,403 -Financeleaseliabilities 13,734 1,694 13,734 1,694InterestSubsidyLoans 4,186 4,182 4,186 4,182Other 34,308 32,436 34,308 32,436 412,852 367,955 412,852 367,955CurrentFinanceleaseliabilities 1,034 199 1,034 199ProjectTerm LoanFacility 8,878 - 8,878 -Other - 25 - 25 9,912 224 9,912 224Totalborrowings 422,764 368,179 422,764 368,179 Three Nine Nine TwelveEmployee-related key Three months months months monthsfigures months to to to to to 30 Sep 30 Sep 30 Sep 30 Sep 31 Dec 2009 2008 2009 2008 2008Wages andsalaries EUR '000 3,062 2,722 9,912 6,247 5,756Average numberofemployees 277 210 266 158 178Number ofemployeesat the end oftheperiod 283 229 283 229 239 Three Three Nine Nine Twelve months to months to months to months to months to 30 Sep 30 Sep 30 Sep 30 Sep 31 DecOther figures 2009 2008 2009 2008 2008Share optionsoutstanding at theendof the period 4,334,500 2,285,000 4,334,500 2,285,000 4,442,500Number of shares tobe issued againstthe outstandingshareoptions 4,334,500 2,285,000 4,334,500 2,285,000 4,442,500Rights to vote ofshares to be issuedagainstthe outstandingshareoptions 1.7% 1.0% 1.7% 1.0% 2.0%KEY FIGURES Three Three Nine Nine Twelve months months months months months to to to to to 30 Sep 30 Sep 30 Sep 09 08 30 Sep 09 08 31 Dec 08Operatingprofit EUR(loss) '000 (15,303) (4,955) (23,208) (9,576) (4,296)Return onequity (2.7%) (2.7%) (5.2%) (4.6%) 1.6%Equity-toassets ratio 48% 57.2% 48% 57.2% 48.5%Net interest EURbearing debt '000 354,130 100,131 354,130 100,131 285,467Debt-toequityratio 84.2% 28.3% 84.2% 28.3% 67.3%Capital EURexpenditure '000 24,315 100,128 82,052 273,030 429,086Research &development EURexpenditure '000 - - - - 181Property,plant and EURequipment '000 615,194 401,794 615,194 401,794 552,458Derivativefinancial EURinstruments '000 64,975 74,393 64,975 74,393 152,545 EURBorrowings '000 422,764 193,160 422,764 193,160 368,179Cash andcashequivalentsat the end EURof the period '000 68,624 93,028 68,624 93,028 82,713 Three Three Nine Nine Twelve months months months months months to to to to toShare-related 30 Sep 30 Sepkey figures 30 Sep 09 09 30 Sep 09 08 31 Dec 08Earnings pershare EUR (0.04) (0.03) (0.08) (0.05) 0.03Equity pershare EUR 1.75 1.49 1.75 1.49 1.74Developmentof shareprice atLondonStockExchangeAveragetradingprice1 EUR 4.27 3.60 3.39 4.27 3.64 GBP 3.72 2.86 3.00 3.34 2.90Lowesttradingprice1 EUR 3.70 2.96 1.45 3.01 1.22 GBP 3.23 2.35 1.29 2.35 0.98Highesttradingprice1 EUR 4.78 4.45 4.71 5.74 5.64 GBP 4.17 3.54 4.17 4.49 4.49Tradingprice atthe end ofthe period2 EUR 4.18 2.97 4.18 2.97 1.25 GBP 3.80 2.35 3.80 2.35 1.19Changeduring theperiod 11.7% (36.4%) 219.1% (21.7%) (60.3%)Marketcapitalizationat the endof the EURperiod3 '000 1,023,794 662,796 1,023,794 662,796 278,475 GBP '000 930,936 523,807 930,936 523,807 265,247Developmentin tradingvolumeTrading 1000volume shares 35,736 24,694 119,239 63,463 84,780In relation toweightedaveragenumber ofshares 15.5% 11.1% 51.9% 28.5% 38.0%Developmentof shareprice at OMXHelsinkiAveragetrading price EUR 4.38 4.19Lowesttrading price EUR 3.75 3.05Highesttrading price EUR 4.86 4.86Trading priceat theend of theperiod EUR 4.18 4.18Changeduringthe period 3.2% 33.5%Marketcapitalizationat the end of EURthe period '000 931,708 931,708Developmentin tradingvolumeTrading 1000volume shares 45,054 86.452In relation toweightedaveragenumber ofshares 19.6% 37.6%Adjustedaveragenumber of 222 896 222 896 222 896 222 896 222 896shares 718 718 718 718 718Number ofshares atthe end of 222 896 222 896 222 896 222 896 222 896the period 718 718 718 718 7181) Trading price is calculated on the average of EUR/GBP exchangerates published by the European Central Bank during the period2) Trading price is calculated on the EUR/GBP exchange rate publishedby the European Central Bank at the end of the period3) Market capitalization is calculated on the EUR/GBP exchange ratepublished by the European Central Bank at the end of the periodKey financial figures of the GroupReturn on equity Profit (loss) for the period/ (Total equity at the beginning of period + Total equity at the end of period)/2Equity-to-assets ratio Total equity/ Total assets Interest-bearing debt - Cash and cashNet interest-bearing debt equivalentDebt-to-equity ratio Net interest-bearing debt/ Total equityShare-related key figures Profit (loss) attributable to equityEarnings per share holders of the Company/ Adjusted average number of shares Equity attributable to equity holders ofEquity per share the Company/ Adjusted average number of shares Number of shares at the end of theMarket capitalization at the period * trading priceend of the period at the end of the periodThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 11.11.2009 - 08:02 Uhr
Sprache: Deutsch
News-ID 8204
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London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 418 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Quarterly Interim Results for the period ending 30 September 2009"
steht unter der journalistisch-redaktionellen Verantwortung von
Talvivaaran Kaivososakeyhtiö Oyj (Nachricht senden)
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