Talvivaara Mining Co., a Finnish nickel miner, slid the most in two months in Helsinki trading after it said efforts to resume ore production, halted since September by excess water, were still proving “challenging.”
Talvivaara dropped 6.6 percent, the steepest decline since Nov. 12, to 1.20 euros by the close in the city.
The company said it’s in talks to idle as many as 230 workers for as long as 90 days because of the production halt. Talvivaara, which produced 2,317 metric tons of nickel in the fourth quarter and 12,916 tons in 2012, wants to resume operations at its Sotkamo mine in eastern Finland by June.
It’s also seeking to raise funds to secure financial flexibility and liquidity through options including debt, convertible bonds, royalty streams or equity.
“We remain cautious given the uncertainty around the level of financing and operational issues,” Ben Davis, an analyst at Liberum Capital Ltd. in London, said in a note.
Talvivaara, based in Espoo, on Nov. 28 cut its fourth-quarter nickel production target by 38 percent to 2,500 tons and its full-year projection by 24 percent to 13,000 tons after heavy rains damaged its metal heap. It also halted metal production from Nov. 4 and Nov. 21 to stem a waste-water leak that contaminated nearby waters with nickel, zinc and uranium.
The leak cost the company about 13 million euros ($17 million) in the fourth quarter, it said. The company saved 20 million euros in operating costs last year and estimated further savings of 30 million euros this year from the production halt.