Tim Runs Up Huge BEFORE Announcement- Insiders benefit!

Timminco lands silicon supply deal


Monday, May 25, 2009

TORONTO — Solar-panel silicon-producer Timminco Ltd. said Monday it has reached a supply agreement with German solar cell producer Q-Cells SE that contemplates delivery of 100 tonnes for 2009 with more to come up until 2013.

Stock in the Toronto-based company soared ahead of the announcement, gaining 46 per cent before being halted on the Toronto stock market. After the halt, the shares remained up, gaining 56 cents each to $1.79.

Under the supply agreement, which replaces an earlier five-year agreement signed in 2008, Timminco will negotiate by the end of this year further volumes, pricing and other terms for deliveries between 2010 and 2013 “in the context of prevailing solar industry market conditions.”

“Q-Cells is a valued customer of Timminco.” said Ren� Boisvert, president of Becancour Silicon, Timminco's subsidiary.

“We look forward to continuing to build a long term relationship with Q-Cells based upon application of our UMG-Si technology.”

Timminco will also return an outstanding deposit of about €8.9-million ($14-million) to Q-Cells. The companies agreed to a repayment schedule that will begin in the first quarter of 2010 and be completed by the end of 2010.

Last week, Timminco confirmed it will defend itself against a proposed class-action lawsuit alleging the company and its chief executive officer misled investors.

The action, filed last week in Ontario Superior Court, seeks $520-million on behalf of investors who bought Timminco stock between March and November last year.

It contends that the company, chairman and CEO Heinz Schimmelbusch and others provided misleading information about the profit potential of its process to produce high-grade silicon for use in solar cells.

Timminco shares, which rocketed from penny-stock levels in April, 2007, to a peak of $35.69 each last June, closed Friday at $1.30, down 96 per cent from their high.

Mr. Schimmelbusch told the company's annual meeting that Timminco's problems “are primarily market-driven,” caused by a slump in the solar energy industry related to a lack of financing and fewer government subsidies.

Timminco has cut production, spun off assets and delayed expansion, and reported a first-quarter loss of $22.3-million as sales fell 20 per cent from a year earlier to $37.7-million.