Talvivaara Mining May Fail To Raise New Debt

Bloomberg reported Talvivaara Mining Co. (LSE:TALV) may fail to raise new debt to repay a bond maturing next year on failing production targets.

As quoted in the market news:

Instead, the company whose debt exceeds its equity by 64 percent, may seek funding by selling new shares, leaving its existing owners worse off.

Talvivaara’s funding dilemma has been exacerbated by falling profits and reduced cash flow after nickel prices plunged to the lowest in three years. Heavy rains have also hampered production.

Click here to read the full Bloomberg report.