Timminco soars on deal to supply solar grade silicon to Q-Cells AG
Thu Mar 27, 5:57 PM
The Canadian Press
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By The Canadian Press
TORONTO - Stock in specialty metals producer Timminco Ltd. (TSX: TIM.TO) soared to new record high Thursday after it signed a deal to supply solar grade silicon to Q-Cells AG, the world's largest manufacturer of solar cells.
Timminco shares gained more than 26 per cent at one point to trade as high as $26.50 but gave up some of the gains later in the day. At the close, the shares were at $25.70, up $4.81 or 23 per cent - down from the peak but still above the previous all-time high of $23.31.
About 10.9 million shares traded hands.
The deal with Timminco subsidiary Becancour Silicon Inc., financial details of which were not released, means the company will supply Q-Cells with 410 tonnes of silicon in 2008 and 3,000 tonnes in 2009 at fixed prices.
A further contract on the delivery of up to 6,000 tonnes per year between 2010 to 2013 will also be negotiated, based upon market conditions.
With this contract Q-Cells will become Becancour Silicon's largest customer for solar grade silicon in 2009.
The deal comes just over a month after Timminco announced it was expanding Becancour's solar grade silicon capacity to 14,400 tonnes per year.
The company's silicon metal, magnesium extrusions and other specialty metals are used in the aluminum, chemical, pharmaceutical, electronics and automotive industries.
Its metallurgical grade silicon is used in the production of solar cells.
Timminco, which traded at just 70 cents a share last year, now has a stock market value approaching $2.7 billion. |
