Terrafame reports €20.3 million loss amid production halts in Finland

Sotkamo-based multi-metal company Terrafame reported a loss of €20.3 million for the April to June period, a significant deterioration from a loss of nearly €33 million during the same period last year. The company attributed this poor performance to a production halt at its battery chemicals plant in April, followed by a planned maintenance shutdown. Operations at the battery chemicals facility resumed in June.

CEO Seppo Voutilainen noted that political strikes in Finland hindered the company’s ability to export its battery chemicals, leading to a build-up of inventory. Despite the losses, Terrafame’s revenue increased by approximately 21% compared to the previous year, reaching €116 million for the quarter. In the metals segment, revenue rose to around €87 million, supported by sustained high production and delivery levels, up from just over €59 million in the same quarter last year.

Improved cost efficiency and robust production and delivery figures in the metals sector positively influenced operating results. Conversely, the battery chemicals segment saw a decline in revenue to just over €29 million, down from approximately €32 million the previous year, primarily due to lower production and delivery volumes as well as a decrease in the market price for nickel sulfate.

In June, Terrafame commenced the recovery of natural uranium, with investments for this initiative totaling around €20 million. The company estimates that uranium recovery will add approximately €30 to €40 million annually to its revenue following the ramp-up phase. Terrafame’s industrial area employs around 1,900 people, with 935 employees on board as of the end of June, including about 120 seasonal workers.