651 20 15 Terrafame 9.1 employees 682 10 8.1 7.2 5 0 - - PowerPoint PPT Presentation

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651 20 15 Terrafame 9.1 employees 682 10 8.1 7.2 5 0 - - PowerPoint PPT Presentation

Sep 16, 2022 423 likes •628 views

January March 2019 Joni Lukkaroinen CEO 26 April 2019 1 January March in brief Net sales EUR 81.0 million. EBITDA EUR 11.3 million. Operating profit EUR 2.8 million. Nickel production 7,288 tonnes. Zinc

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SLIDE 1 1

»January–March 2019

Joni Lukkaroinen CEO 26 April 2019

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SLIDE 2

»January–March in brief

  • Net sales EUR 81.0 million.
  • EBITDA EUR 11.3 million.
  • Operating profit EUR 2.8 million.
  • Nickel production 7,288 tonnes.
  • Zinc production 14,343 tonnes.
  • Construction works for the solvent extraction building

at the battery chemicals plant were started.

  • Safety culture development continued with Don’t get hurt -

campaign and manager training.

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SLIDE 3

»Price developments

  • f nickel and zinc

brightened up

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SLIDE 4

6,000 8,000 10,000 12,000 14,000 16,000 18,000 1.1.16 31.3.16 29.6.16 27.9.16 26.12.16 26.3.17 24.6.17 22.9.17 21.12.17 21.3.18 19.6.18 17.9.18 16.12.18 16.3.19

»Nickel price development began to rise in early 2019

  • In Q1, average price was 12,369 USD/t

which was 7.4% higher than in Q4.

  • Compared with 2018 Q1, average price

was 6.8% lower.

  • The combined stock levels of LME and

SHFE decreased by over 28,000t and were appr. 193,000t at the end of March (Q1 2018: 368,000t). This equals to four weeks’ demand (Q1 2018: 8 weeks).

Data source: Metal Bulletin LME = London Metal Exchange, SHFE = Shanghai Futures Exchange

Day price for nickel on the London Metal Exchange (USD/t) Day price for nickel on the London Metal Exchange (USD/t), 90 day average

Nickel price development (USD/t) 1 Jan 2016–31 Mar 2019

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SLIDE 5

1,000 1,500 2,000 2,500 3,000 3,500 4,000 1.1.16 31.3.16 29.6.16 27.9.16 26.12.16 26.3.17 24.6.17 22.9.17 21.12.17 21.3.18 19.6.18 17.9.18 16.12.18 16.3.19

»Zinc price continued to increase in January–March

  • In Q1, average price was 2,702 USD/t

which was 2.7% higher than in Q4.

  • Compared with 2018 Q1, average price

was 21.0% lower.

  • The combined stock levels of LME and

SHFE increased by over 11,000t and were appr. 164,000t (Q1 2018: 362,000t) at the end of March. This equals to under one week’s demand (Q1 2018: 1 week). Zinc price development (USD/t) 1 Jan 2016–31 Mar 2019

Data source: Metal Bulletin LME = London Metal Exchange, SHFE = Shanghai Futures Exchange

Day price for zinc on the London Metal Exchange (USD/t) Day price for zinc on the London Metal Exchange (USD/t), 90 day average

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SLIDE 6

»Nickel production

continued over the level

  • f 7,000 tonnes
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SLIDE 7

»Nickel and zinc production remained at good level

in January–March

,0 5,000 10,000 15,000 20,000 25,000 30,000

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Nickel production, rolling 12-month (t)

,0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Zinc production, rolling 12-month (t)

Q1 2019 Q1 2019

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SLIDE 8

6.5.2019 Dokumentin nimi

8

» Liikevaihto kehittyi xxx » Liikevaihto kaksinkertaistui

edellisvuoteen verrattuna

Kuva vaihdettava

» Liikevaihto kehittyi

erittäin hyvin

VAIHDA laivakuva

» Liikevaihto

kehittyi hyvin

päivitettävä

»Turvallisuus on

avainasioitamme

Päivitä kuva ja otsikko

»Työturvallisuus

suurennuslasin alla

»Työturvallisuus

suurennuslasin alla

PÄIVITETTÄVÄ

»Järjestelmällinen työ- ja

ympäristöturvallisuuden kehittäminen jatkuu

Kuva

»Systematical work for

safety development

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SLIDE 9

»Employee safety is one of the cornerstones of Terrafame

Lost-time injury frequency (LTIFR) = number of injuries per one million person-hours worked.

9.1 8.1 7.2

5 10 15 20 25 30

2015 2016 2017 2018 2019

Terrafame Combined Partner companies

Lost-time injury frequency, rolling 12-month Cooperation partners

651

employees Terrafame

682

employees

2019

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SLIDE 10

Kuva: Juhani Viitanen

Joni Lukkaroinen toimitusjohtaja 25.10.2018

»Positive operating profit

in the first quarter

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SLIDE 11

»Net sales increased approximately 5 percent from

the last quarter of 2018

81.0 77.4 86.0 76.7 85.7

20 40 60 80 100 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018

Net sales (EUR million)

Full year 2018: EUR 325.8 million

11.3

  • 1.0

12.9 11.1 9.8

  • 10

10 20 30 40 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018

EBITDA (EUR million)

Full year 2018: EUR 32.8 million Q1 2019 Q1 2019

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SLIDE 12

»Operating profit EUR 2.8 million

2.8

  • 7.5

4.7 3.4 2.4

  • 10
  • 5

5 10 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018

Operating profit (EUR million)

Full year 2018: EUR 3.0 million Q1 2019

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SLIDE 13

»In Q1 2019, EUR 17.5 million was allocated to improving

productivity and capacity

Key capital expenditures in Q1:

  • Design, equipment purchases and

the initiation of construction work of the battery chemicals plant

  • Construction work of the new

gypsum pond

10.6 17.5 4.9 2.8

10 20 30 2018 2019

Capital expenditure (EUR million)

Sustaining capex Improving productivity and capacity 2019

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SLIDE 14

349 366 310 305 301

100 200 300 400 500 600 700 31.3.2019 31.12.2018 30.9.2018 30.6.2018 31.3.2018

Equity and liabilities (EUR million)

31.3.2019

685

Equity Liabilities

»Terrafame’s solidity is at good level

613 682 617 616

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SLIDE 15

»Akkukemikaalitehtaa

sta

»Construction of battery

chemicals plant proceeds as planned

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SLIDE 16

»Strongly growing production of electric vehicles

accelerates demand of nickel

  • In 2018, demand of electric vehicles increased 63 percent

compared to 2017.

  • After commissioning, Terrafame’s new factory will

produce nickel and cobalt sulphates suitable for electric vehicle battery manufacturing and ammonium sulphate – a new by-product – which is used as fertiliser.

  • Construction works for the solvent extraction building

at the battery chemicals plant were started.

  • The plant will employ appr. 150 persons after

commissioning.

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SLIDE 17

»Terrafame’s impact on the Kainuu and Finnish economy

Terrafame’s regional economic impact with the battery chemicals plant. Source: Ramboll

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SLIDE 18

»Events following the reporting period

  • Stacking of new ore started on 20 April.
  • Liner structures of the primary leaching area were

repaired 18 March–20 April.

  • Repairs of the structures decreased ore mining and

stacking volumes but did not affect production in the metals production plant.

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SLIDE 19

»Short-term outlook

  • Terrafame will continue to develop production and

improve cost efficiency.

  • In 2019, the Government is expected to issue a

decision on the application for a uranium recovery permit.

  • Construction of the battery chemicals plant is ongoing.
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SLIDE 20

www.terrafame.fi