Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Well nothing really new. Bankruptcy are always painful, it is just giving a bit more clarity where the pain will be and what the options to continue are. this is interesting- "The Administrator has also stated that he is evaluating the possibility of allowing conversion of the reorganisation debt into the Company's equity." and "Talvivaara continues, together with the Administrator, negotiations targeted at finding a solution whereby the Company could secure participation in a consortium that would acquire the Sotkamo mining operations from the Talvivaara Sotkamo bankruptcy estate. Financing for Talvivaara's potential participation in such an arrangement could come e.g. through a share and/or a bond issue involving amongst others current shareholders and bondholders. The Company can give no assurance of the success to completion of the ongoing negotiations or of the possible launch of any financing transactions related to such contemplated arrangements."
Nyrstar Chief leaves, most likely related to Sotkamo bankruptcy. http://www.bloomberg.com/news/2014-11-26/nyrstar-chief-leaves-three-weeks-after-trafigura-raises-stake.html
Anyone else here?
I didn't realise the estimates for Nickel production were so high, in 2010-2013 Pera estimated consistently 50,000 Tonnes and delivered about 15,000 Jan-June 2014 production was 6257, so around 12,500 T per year. Should be economically viable when reorganised. http://www.kauppalehti.fi/etusivu/talvivaara+-+lupausten+tonava/201411709171?ext=rss
As far as I am aware it is only the mine operating company Sotkamo which is bankrupt. The parent company Talvivaara is still going but is looking pretty weak, and all parties involved are working with the administrator Jaatinen ? to satisfy all. It wlll be a few more weeks, probably the New year untillwe find out the final outcome, although there will be news and speculation practically every day.
I appreciate your updates and I sympathise, with you however there is nothing to say, you could go crazy following every in and out of the process, and the opinions of all involved and the end-result will still be the same.
what is the source for this story ?
I am not sure what our shares will be worth either. It is a complicated re-org. The administrator outlined a plan in which Sotkamo and the parent company would be wound up and a NewCo formed from the remains with a new investor. It looks like Sotkamo is wound up, which means that it's assets are up for grabs but there are many creditors and new investors circling so it is not at all clear how much of the NewCo, if any the TALV shareholders will get. We are not privvy to any of the negotiations so we we only find out when all the deals are done. At least now we can see that some deal will be done, not just a long drawn out bankruptcy. The good point is that the politicians are now involved and they should be mostly on our side.
Well the politicians don't have to go there in person, and they wouldn't want there name to be associated with a disaster, and it is human nature to want to deliver good news in person, and bad news at a distance, so here's hoping!
Me too. Not going to read any news for the weekend
Sorry I don't quite understand this can you re-phrase the question?
I am still in and I believe it will recover in 2015, The presentation's the administrator presented showed the equity just being diluted forming a new company, not being wiped out. It is a tricky time now with low nickel price, and not much will happen on the ground in the winter so it is looking less attractive than it did in the summer.
Nyrstar has dropped back again, better brace yourselves the news flow will pick up in the next few weeks and some of it is not going to be pretty!
Nyrstar SP has come back up so someone else obviously has realised it its a no-brainer to help save TALV.
That is interesting, It is worded strangely, I believe Nyrstar were paying just with a smallish cash advance, not quite as they went along so there is no loss to Nyrstar.
Thanks, I don't know that much, just what I have been forced to learn here, new situation for me also.
That is just financial stress making the subsidiary unviable.
No still quite a bit of hope. The re-org is ongoing, at a glacial pace due to the large numbers of interested parties. There are some key dates at the end of November when any share dilution is announced. We only lose everything if no investor can be found by end November, which in my view is unlikely, given that the largest shareholder is the Finnish government and the amount of new capital required is about equal to that at risk for them. In the re-org 97-99% of debt will be written off, however the equity will just be diluted by an, today unknown, amount (it is already about 97% down from the peak) . The current SP is low now because of the risk of failure and if success then no-one can say what the dilution will be and what the value of the new company will be (the positive bit is that the new company will have almost no debt), so I think the dilution will in the end be positive from where we are now.
more woe http://www.kauppalehti.fi/etusivu/talvivaaran+avainjohtaja+lahtee/201410705758