Terrafame reports financial losses amid slow electrification in Europe
The Finnish state-owned mining and battery materials company Terrafame reported ongoing financial losses for the July to September period. The company recorded an operating loss of €14.3 million, a slight improvement compared to €20.3 million in losses during the April to June period.
According to Terrafame’s CEO Seppo Voutilainen, the slower than expected pace of electrification of transportation in Europe has negatively impacted the demand for battery chemicals. However, Terrafame managed to achieve a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) during the July to September quarter, recovering from a negative EBITDA of €2.4 million in the previous quarter.
As part of its strategy, Terrafame is currently implementing a development program aimed at achieving annual savings of €10 million. The company produces nickel, zinc, cobalt, copper, and uranium at its Sotkamo facility.
Updates on the situation will follow.