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Timminco would seem to be reeling from missing UMG-Si production and quality levels as well as shipment targets as some unidentified customers have now terminated contracts, which could lead to the company returning unused cash deposits. Major supply deals were struck last year with Q-Cells, CaliSolar and Solar Power Industries amongst others.
Timminco, which had limited liquidity before the announced order cancellations is now attempting to raise USD$15 million by way of a private placement, with Advanced Metallurgical Group N.V.(AMG) subscribing for a minimum of 50%, and potentially up to 100%, of the common shares that may be issued. AMG has a controlling shareholding in Timminco.
The company also said that it had shipped 131MT UMG-Si in the first quarter of 2009, down significantly from 424MT in the fourth quarter of 2008. The average selling price in the quarter was US$58 per kg.
The company claimed that the challenging economic environment and market conditions affecting the solar industry had impacted customer demand and therefore sales. Timminco had previously stated that it would better match supply and demand for UMG-Si going forward.
