24th Mar 2014 13:50
LONDON (Alliance News) - Talvivaara Mining Co PLC Monday said it has applied for an exemption to defer the publication of its financial statements for its full-year 2013 until April 30 as funding problems continue.
The base metals producer with operations in Finland had previously announced that it would publish the financial information on March 27 but due to difficulties achieving necessary funding it is applying to hold the information back.
The company said it has been able to continue operations for the time being after adding certain cash generated from nickel and cobalt sales to its EUR5.9 million cash position at December 31 and completing certain cost cutting initiatives made by restricting operations.
However, Talvivaara said that with the absence of funding its liquidity situation remains critical but it continues to actively discuss short-term bridge funding and long-term financing solutions with certain parties.
The company noted that there exists a material uncertainty that casts significant doubt upon the company's ability to continue as a going concern and that, therefore, Talvivaara may be unable to realise its assets and discharge its liabilities in the normal course of business.
Talvivaara said it aims to clarify the uncertainties relating funding and its financial positions when the results are eventually released.
The company announced in January plans to reorganise its operations to save cash after the company got into financial difficulty after a sharp decline in the price of nickel early in 2013 and its lenders declined to finance a restructuring on its own.
Talvivaara shares were down 0.3% to 3.47 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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