TORONTO (miningweekly.com) – Canadian silicon producer Timminco continues to negotiate with customers in the solar industry, some of which have terminated their contracts due to “noncompliance”, and want to have their deposits repaid, the firm said on Monday.

Discussions with the company's customers “have focused on alternatives to the existing contractual commitments, in the context of maintaining long-term relationships with customers in light of the challenging economic environment and market conditions affecting the solar industry,” Timminco said.

The companies, which have terminated contracts, had paid deposits upfornt, to be credited against future deliveries of solar-grade silicon under the contracts.

In the event of an early termination or completion of a supply contract without full use of the deposit amount, Timminco must repay any remaining balance on the deposit within a specified time period.

Timminco, which also revealed on Monday that it is talking to its controlling shareholder, AMG, about a potential equity offering to raise C$15-million in a private placement, said that it shipped 131 t of solar-grade silicon in the first quarter of this year.

The average selling price was $58/kg, and gross revenue for solar-grade silicon was C$7,6-million for  the three months.

AMG, which owns 50,7% of Timminco, would likely subscribe for between 50% and 100% of the shares offered in the private placement.

Timminco also announced it has appointed John Fenger, who is currently president of the light metals division, to the positions of president and COO.

Last month, the firm posted a C$1,3-million loss for the fourth quarter, and said that it would cut silicon production because of weak demand.

Shares in the company tumbled 34,2% on Monday, to C$2,50 apiece by 14:05 in Toronto.

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