Mining Journal > Finance > Stockpile: Talvivaara heads London miners

A deal to repurchase total ownership of its main operating subsidiary has helped Talvivaara Mining Company plc to be the leading resource-stock mover on the London market this week.

As the Finnish base-metals miner celebrated its fourth anniversary of listing on the LSE, the company announced that it would pay €300 million (US$433 million) for the 20% its does not own of Talvivaara Sotkamo Ltd from steel-maker Outokumpu Oyj.

The news, which Liberum regarded as a "good piece of business" for Talvivaara, pushed the company 4% higher in what was mainly a steady week for miners.

Liberum said: "This acquisition allows Talvivaara to take outright ownership of a high growth and largely de-risked asset."

Aquarius Platinum Ltd was another noteworthy stock on the move, with a 2% advance after releasing details of its planned expansion of the Everest mine in South Africa.

The company intends to spend about US$125 million combining the Everest and the recently acquired Booysendal South properties to lift production by 25% from 2017.

Aquarius has also announced that its Blue Ridge project has been placed on care and maintenance, and that it has acquired a further 42% of Platmile Resources for US$17 million.

African Barrick Gold plc added 1.5% despite allegations of sexual assault surfacing from its North Mara mine in Tanzania.

Last month, the company also had to contend with an incident at the mine that left seven intruders dead after local police opened fire on 800 people who illegally attempted to enter the site to steal ore.

The major miners failed to make any ground this week, with Anglo American plc little changed, making it the best performer amongst the heavyweights.

Rio Tinto, BHP Billiton and Xstrata all fell around 2%, while recent addition, Glencore International plc, was 2.5% lower.

The major fallers of the week were New World Resources NV and Namakwa Diamonds Ltd, which dropped 6.5% and 6%, respectively.

New World's only news was that its major shareholder may put its stake up for sale, while Namakwa did not make an announcement.

On AIM, Toledo Mining Corp and European Nickel plc held last week's gains as the plans to reopen the Berong nickel joint venture in the Philippines continued to feed through the market. The mine would be re-opened and ramp-up to full production by the middle of next month.

On Friday, an announcement from Australian-listed Galaxy Resources Ltd boosted the stock of its largest shareholder, Creat Resources Holdings Ltd.

Production at Galaxy's Mt Cattlin spodumene mine is running ahead of schedule and the second shipment to the lithium carbonate project in China is set to take place a month earlier than expected. Overall, Creat gained 20% in the week.

Firestone Diamonds plc shares gained almost 22% after the company released a positive progress update on its various projects.

The company has secured a US$6 million credit facility with Standard Chartered which will go towards its BK11 operation. In Lesotho, the first phase of the Liqhobong mine, acquired last year, is operating at full capacity. Grades are also better than expected.

Of the fallers, Vatukoula Gold Mines plc shed about 19% in the week. The Fiji gold miner placed £6 million worth of shares in the week to fund development of the 18 level decline at the Philip shaft and towards a biomass power project.