Business Finland has granted Tulikivi Corporation a EUR 1.6 million R&D loan to finance the ‘Carbon Neutral Talc Mine and Process’ project. The project is part of an overall effort by Tulikivi and its wholly owned subsidiary Nordic Talc Oy to convert the Suomussalmi soapstone plant into a talc production facility and ensure the industrial exploitation of the talc deposits, either by the company itself or by a third party. The project will run until the end of 2025 and will be led by Erkki Kuronen, Managing Director of Nordic Talc Oy.
The goal of the ‘Carbon Neutral Talc Mine and Process’ project is to develop a quarrying and beneficiation process that will enable carbon neutral production. In addition, the project will investigate the variation in the product properties of the talc and develop energy-efficient fine grinding techniques for talc products suitable for various applications. Talc products are subjected to the verification and product testing required by users. As part of the project, opportunities for exploiting production by-products will also be explored.
The goal of the project is to develop a future talc production plant that will meet the requirements of the 2030s. Tulikivi aims to be a pioneer in supporting customers’ sustainability goals in the future by offering carbon neutral, traceable and high-quality talc products. The R&D loan will allow Tulikivi to boost its investment in the development effort to achieve these objectives and promote the project.
TULIKIVI CORPORATION
Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)207 636 555
Distribution: Key media
Strong growth continued
– The Tulikivi Group’s net sales were EUR 13.8 million (EUR 9.4 million, 10–12/2021) in the fourth quarter and EUR 44.3 million (EUR 33.5 million, 1–12/2021) in the review period. – The Tulikivi Group’s operating profit was EUR 1.5 (0.6) million in the fourth quarter and EUR 4.7 (2.7) million in the review period. – The Tulikivi Group’s profit before taxes was EUR 1.5 million (0.5 million) in the fourth quarter and EUR 4.1 (2.1) million in the review period. – Net cash flow from operating activities was EUR 2.9 (1.2) million in the fourth quarter and EUR 6.4 (3.0) million in 2022. – Order books strengthened significantly in the fourth quarter and stood at EUR 17.2 (6.3) million at the end of the review period. – Future outlook: Net sales are expected to increase in 2023, and the comparable operating profit is expected to improve on 2022.
Key financial ratios
Comments by Heikki Vauhkonen, Managing Director:
In the fourth quarter, the company’s order intake increased 51 per cent year-on-year and totalled EUR 14.3 (9.5) million. Demand was exceptionally strong in Central Europe and Scandinavia. In addition to fireplaces, the order intake for heater lining stones was at a high level. In the autumn the strong rise in heating energy prices and the increased uncertainty surrounding the availability of energy and homes’ security of supply increased consumers’ interest in purchasing alternative heating systems, such as fireplaces. The strong growth in sales was also attributable to systematic long-term work to renew the product portfolio, development of online sales and the streamlining of distribution channels in export markets. Thanks to strong order intake order books increased and amounted to EUR 17.2 (6.3) million at the end of the review period.
Despite the continued steep rises in prices of steel and purchased components during the review period, profitability improved thanks to higher net sales, price increases and successful productivity measures. The company’s profitability is also supported by the fact that its operations are to a substantial degree based on the utilisation of its own soapstone reserves in Finland.
The new ceramic collections, which meet the Ecodesign requirements that came into force on 1 January 2022, have strengthened Tulikivi’s market position in Finland and have expanded the potential customer base in the export markets. In the second half of the year, the Kermansavi collection was complemented by affordable models especially suited to the needs of the building industry.
Erkki Kuronen was appointed Managing Director of Nordic Talc Oy, a part of the Tulikivi Group, in the final quarter of 2022. He has focused on advancing the technical design and environmental impact assessment process for the talc project and on the project’s financing.
Board of Directors
Distribution: Nasdaq Helsinki Key media www.tulikivi.com
Additional information: Heikki Vauhkonen, Managing Director, tel. +358 (0) 207 636 555
Attachment: Tulikivi Corporation´s Financial Statements Release Jan-Dec 2022
Published 18.11.2022
Tulikivi Corporation has received the following notification on 17 November 2022.
Person subject to the notification requirement
Name: Jaakko Aspara
Position: Member of the Board
Issuer: Tulikivi Oyj
LEI: 743700GSL41H2DXZY963
Notification type: INITIAL NOTIFICATION
Reference number: 21277/4/4
____________________________________________
Transaction date: 2022-11-17
Venue: NASDAQ HELSINKI LTD (XHEL)
Instrument type: SHARE
ISIN: FI0009900583
Nature of the transaction: ACQUISITION
Transaction details
(1): Volume: 791 Unit price: 0.626 EUR
(2): Volume: 960 Unit price: 0.626 EUR
(3): Volume: 397 Unit price: 0.627 EUR
(4): Volume: 213 Unit price: 0.629 EUR
(5): Volume: 19639 Unit price: 0.629 EUR
Aggregated transactions
(5): Volume: 22000 Volume weighted average price: 0.62873 EUR
Further information: Heikki Vauhkonen, Managing Director, Tulikivi Corporation Tel. +358 (0)207 636 555, heikki.vauhkonen@tulikivi.fi
Distribution: Nasdaq Helsinki
Key media
www.tulikivi.com
Published 17.11.2022
Tulikivi Corporation will publish its 2022 Financial Statements Release on 3 March 2023. The Annual Report will be published on the company’s website during the week starting on 27 March 2023. The Annual General Meeting will be held on 27 April 2023.
The following reports will be published in 2023:
– Interim Report for January–March 5 May 2023
– Half Year Financial Report for January–June 18 August 2023
– Interim Report for January–September 3 November 2023
Tulikivi is focusing and revising its guidance for 2022 upward: Net sales are expected to be EUR 42 to 45 million and comparable operating profit is expected to be EUR 4.0 to 5.0 million.
Tulikivi is revising its earlier estimate of the 2022 net sales and operating profit. The net sales in 2021 were EUR 33.5 million and the comparable operating profit was EUR 2.7 million. According to the new estimate, net sales in 2022 are expected to be EUR 42 to 45 million and the comparable operating profit is expected to be EUR 4.0 to 5.0 million. The improved outlook is based on strong order intake from abroad and Finland.
Previous guidance for 2022 (published on 17 August 2022): Net sales in 2022 are expected to be EUR 38 to 42 million and the comparable operating profit is expected to improve substantially on 2021.
Tulikivi has carried out additional drilling and surveys and updated the JORC mineral resource estimate for the Haaponen talc deposit in the mining district of its Suomussalmi plant.
According to the report, the indicated mineral resources of the Haaponen deposit are 22.3 million tonnes and their average talc content is 44.4 per cent. The update of the mineral resources takes into account the results from the new drilling, the test pits made for extracting samples for beneficiation tests and the analyses carried out on these. The new drill holes penetrate adjoining rock and the deep extension of the ore contacts and confirm that the deposit extends deeper than previously estimated. Based on the samples, the sulphur content of the adjoining rock in the deposit is very low, which significantly reduces the environmental impact of mining operations. The rock mechanical properties were also determined from the samples. The information will be used for risk management in the quarrying plan.
The mineral resources were previously estimated at 12.3 million tonnes. According to the Geological Survey of Finland (GTK), the Kivikangas, Sivusuvanto and Kivisuvanto deposits, which are located in the same mining district, have a total mineral resource potential in excess of 10 million tonnes. Beneficiation tests carried out by GTK show that the talc is suitable for most commercial products.
The mineral resource estimate was prepared by Markku Meriläinen, MAusIMM JORC (2012), and Pekka Loven, MAusIMM (CP) JORC (2012), as the Competent Persons.
“The modelling demonstrates that the Haaponen talc deposit is of very uniform quality and has a clear shape. Together with the significantly larger mineral resource, this forms a strong foundation for developing the deposit for responsible and energy and cost-efficient use. I’m very pleased with the good work that has been done. We are in a good position to proceed,” says Erkki Kuronen, who will soon start as Managing Director of Nordic Talc.
It is too early to evaluate whether the project will be carried out or to estimate its financial impacts.
Tulikivi Corporation has received the following notification on 13 September 2022.
Name: Martti Purtola
Position: Other senior manager
Reference number: 18714/4/7
Transaction date: 2022-08-23
Nature of the transaction: DISPOSAL
(1): Volume: 2406 Unit price: 0.73 EUR
(2): Volume: 700 Unit price: 0.73 EUR
(3): Volume: 1 Unit price: 0.73 EUR
(4): Volume: 1 Unit price: 0.73 EUR
(5): Volume: 300 Unit price: 0.73 EUR
(6): Volume: 6592 Unit price: 0.73 EUR
(6): Volume: 10000 Volume weighted average price: 0.73 EUR
– The Tulikivi Group’s net sales were EUR 12.2 million (EUR 9.3 million, 4–6/2021) in the second quarter and EUR 20.6 million (EUR 15.8 million, 1–6/2021) in the review period. – The Tulikivi Group’s operating profit was EUR 1.7 (1.1) million in the second quarter and EUR 2.0 (1.1) million in the review period. – The Tulikivi Group’s profit before taxes was EUR 1.4 million (1.0 million) in the second quarter and EUR 1.5 (0.8) million in the review period. – Net cash flow from operating activities was EUR 1.6 (1.1) million in the second quarter and EUR 2.2 (1.2) million in the review period. – Order books stood at EUR 11.3 (4.7) million at the end of the review period. – The feasibility study related to Tulikivi’s talc project in Suomussalmi is progressing. – Future outlook: Net sales in 2022 are expected to be EUR 38 to 42 million and the comparable operating profit is expected to improve substantially on 2021.
The company’s order intake grew by 48 per cent during the first half of the year and was EUR 26.6 (18.0) million. Demand for Tulikivi fireplaces was exceptionally strong in Central Europe. The strong rise in heating energy prices and the uncertainty surrounding the availability of energy and home security of supply increased consumers’ interest in purchasing alternative heating systems, such as a fireplace.
The growth in sales was also attributable to systematic long-term work to renew the product portfolio, development of online sales and the streamlining of distribution channels in export markets. Tulikivi’s order books grew and amounted to EUR 11.3 (4.7) million at the end of the review period.
Profitability improved despite the continued steep rises in the prices of steel, purchased components and energy over the first half of the year, thanks to higher net sales, price increases and successful productivity measures. The company’s profitability is also supported by the fact that its operations are to a substantial degree based on the utilisation of its own soapstone reserves in Finland.
The ceramic colour options introduced in the Karelia collection late last year, as well as the Kermansavi collection based on 80 per cent recycled material, have been well received on the market. The new ceramic designs, which meet the Ecodesign requirements that came into force on 1 January 2022, strengthen Tulikivi’s market position in Finland and expand the potential customer base in the export markets. The cooperation agreement concluded in June with the German cooperative Hagos eG, which focuses on fireplaces and their accessories, enables Tulikivi to increase its market share in Germany in the coming years.
In the first quarter, Tulikivi made progress in its feasibility study of the Suomussalmi talc project, the purpose of which is to further specify the project’s profitability, environmental and mining plans for industrial operations. In the second quarter, a more detailed research project was launched with Metso Outotec related to the economic exploitation of talc and the planning of the talc enrichment plant. Surveys were also carried out to improve the accuracy of the ore study on the Haaponen deposit and to facilitate the EIA (environmental impact assessment) process.
Distribution: NASDAQ OMX Helsinki Key media www.tulikivi.com
Additional information: Heikki Vauhkonen, Managing Director, tel. +358 207 636 555
ATTACHEMENT: Interim Report 1-6/2022