Right after the subscription period for a massive stock issue has expired, Talvivaara Mining plc (OMXH: TLV1V, LON: TALV) has to again admit to a major gypsum pond leakage at its mining site in Sotkamo, Finland. Earlier the company said the situation is under control. Currently officials estimate that the entire pond with nearly half a million cubic metres of liquid will be emptying. The company says that safety capacity in the Southern water treatment unit of 1 million cubic metres is sufficient but it does admit that other nearby ponds might be at a greater risk due to this event that may be related to the leakage last autumn.
The share issue wasn’t exactly a big hit among insiders but Finnish government as well as local pension funds coupled with Finnish retail investors have increased their exposure considerably. Arbitrage opportunities have been present as well. As calculated by newspaper Kauppalehti, company founder Pekka Perä will no longer be the largest shareholder as he was unable to find sufficient finances to do so leaving government’s investment arm Solidium as well as pension fund Varma with larger holdings. The stock has shed another 15% in today’s session.
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