The mining company Terrafame in Finland generated an operating profit of more than three million euros in the second quarter of this year. However, cash flow was negative.
The state-owned mining company Terrafame continues to make a strong result. The company has been profitable in four quarters, reports the company's CEO Joni Lukkaroinen in the interim report.
Production of both nickel and zinc increased during the second quarter. The price of nickel has risen by 12.5 percent, while the price of zinc has fallen by 6.2 percent. These metals are the company's main products.
The company's cash flow is negative due to some major investments. Cash flow is thus corporate payments and payments over a period.
Terrafame invested EUR 21.1 million in the second quarter. 13.4 of these millions went to improve productivity and capacity.
At the same time, the company has made a major effort on a battery factory. The company plans to set up a refinery manufacturing nickel and cobalt sulfate for electric vehicle batteries. Terrafame wants the factory to run in 2020.
The battery project goes according to schedule, writes the company. At the beginning of July, the company received a building permit for the factory and now the project is next to the environmental impact assessment.
The company's turnover during the second quarter was EUR 76.7 million and operating profit was EUR 3.4 million. In the same period last year, turnover was EUR 47.2 million and operating profit was EUR -37.3 million.
Source: Terrafame
