Bloomberg News

Talvivaara Rises Most in 3 Years After Meeting Nickel Target

January 04, 2012

(Updates with closing share price in second paragraph.)

Jan. 3 (Bloomberg) -- Talvivaara Mining Co., a Finnish nickel miner, rose the most in more than three years in London trading after meeting its 2011 output target.

The stock surged 28 percent, the most since Nov. 26, 2008, to close at 255.3 pence. The company produced 16,087 metric tons of nickel last year, compared with a forecast of 16,000 tons, it said today in a statement. Zinc output totaled 31,815 tons.

Production last year was curtailed by extended maintenance in April and May at Talvivaara’s plant in Sotkamo, eastern Finland. On Oct. 7, the company lowered its 2011 output target to 16,000 tons from an April estimate of 22,000 to 28,000 tons and Chief Executive Officer Pekka Pera announced he would quit.

Talvivaara reached a production record of 4,769 tons of nickel and 10,524 tons of zinc in the fourth quarter, it said in today’s statement.

“The availability of the metals recovery plant improved significantly during the quarter and after both production lines were brought back online in mid-October, was effectively at the level required to meet the 2012 production targets,” it said.

Talvivaara plans to produce 25,000 tons to 30,000 tons of nickel this year, the Espoo-based company said on Nov. 17. It’s targeting zinc volumes of 50,000 tons to 60,000 tons.

--Editors: Ana Monteiro, Amanda Jordan

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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