Timminco Announces Second Solar Grade Silicon Supply Agreement With Solar Power Industries, Inc.

Timminco Announces Second Solar Grade Silicon Supply Agreement With Solar Power Industries, Inc.

15:08 EDT Thursday, May 08, 2008
TORONTO, ONTARIO--(Marketwire - May 8, 2008) - Timminco Limited ("Timminco") (TSX:TIM) today announced that its wholly-owned subsidiary, Becancour Silicon Inc. ("BSI"), has signed a second agreement to supply solar grade silicon to Solar Power Industries, Inc. based in Belle Vernon near Pittsburgh, Pennsylvania. ("SPI"). SPI was BSI's first long-term solar grade silicon customer, having entered into its initial supply agreement with BSI in March 2007. SPI was BSI's largest customer in 2007.
The initial supply agreement anticipated shipments of solar grade silicon in excess of 4,000 metric tons over its initial period of 5 years. Under this second supply agreement, SPI has committed to purchase an additional 3,000 metric tons per year from 2010 to 2015.
"We are very happy to have SPI as a strategic partner in the development of our solar silicon business and this second contract with SPI further corroborates the value proposition we bring to our customers." said Mr. Rene Boisvert, President and CEO of BSI. "SPI has had extensive experience with our solar grade silicon, having shipped their products using our material for over one year."
ABOUT TIMMINCO
Timminco is a leader in the production and marketing of lightweight metals, specializing in solar grade silicon for the rapidly growing solar photovoltaic energy industry. Using its proprietary technology, Timminco processes metallurgical grade silicon into low cost solar grade silicon for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.
CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation, concerning Timminco's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". In this news release, such information includes statements regarding agreements and commitments to supply solar grade silicon. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Timminco operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Timminco cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Timminco's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to, limited history with the solar grade silicon business; expansion of the solar grade silicon business generally; production capacity expansion at the Becancour facilities; protection of intellectual property rights; increasing and maintaining the purity of solar grade silicon; long-term contracts for supplying solar grade silicon; selling prices for solar grade silicon; price volatility for silicon metal; pricing and availability of raw materials for the silicon businesses; dependence upon power supply for silicon metal production; the cost of solar grade silicon production; price volatility for magnesium metal; magnesium supply chain interruptions; dependence upon key customers of magnesium extruded products; manufacturing cost reduction initiatives; financing requirements for capital expenditures; limitations under existing credit facilities; foreign currency exchange; dependence upon key executives and employees; customer concentration; completion and integration of potential acquisitions, partnerships or joint ventures; risks with foreign operations and suppliers; environmental, health and safety laws and liabilities; equipment failures; transportation disruptions; conflicts of interest; intellectual property infringement claims; new regulatory requirements; labour disputes; and changes in tax laws. These factors are discussed in greater detail in Timminco's Annual Information Form for the year ended December 31, 2007, which is available via the SEDAR website at www.sedar.com. Although Timminco has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this news release is made as of the date of this news release and Timminco disclaims any intention or obligation to update or revise such information, except as required by applicable law.
Sedar Filer Profile #00000838
FOR FURTHER INFORMATION PLEASE CONTACT:Timminco Limited
Robert J. Dietrich
Executive Vice President - Finance and CFO
(416) 364-5171
(416) 364-3451 (FAX)
Email: rdietrich@timminco.com
or Becancour Silicon Inc.
Rene Boisvert
President and CEO
(819) 294-6000
(819) 294-9001 (FAX)
Email: rboisvert@silbec.com

Contract upgrade, report boost Timminco shares

Contract upgrade, report boost Timminco shares

ANDY HOFFMAN
00:00 EDT Friday, May 09, 2008
Timminco Ltd., which has faced skepticism about the viability of its process to produce solar-grade silicon, hit back at critics yesterday, announcing a contract upgrade and a report it had commissioned suggesting its method has the potential to transform the solar industry.
The Toronto-based company's shares rose nearly 5 per cent yesterday and have jumped 21 per cent in the past week. The stock had previously been battered by mounting concerns it may not be able to deliver solar-grade silicon to customers at cost projections and also on reports of timely option grants and stock buying by company insiders.
Timminco yesterday said Pittsburgh's Solar Power Industries Inc. (SPI) has committed to purchase an additional 3,000 tonnes of solar grade silicon from Timminco a year from 2010 to 2015. The initial deal, announced March 15, 2007, to supply 4,000 tonnes of silicon over five years, was Timminco's first contract announcement. At the time, SPI was not identified as the buyer.
That first contract was the early catalyst sending Timminco shares rocketing higher in 2007, from 40 cents to nearly $22 at the end of the year.
Timminco claims it has developed a "breakthrough" process to upgrade metallurgical silicon for use in solar cells at much lower costs than competitors.
Critics and short sellers have questioned whether Timminco can economically produce large amounts of solar-grade silicon, when rivals such as Elkem AS are spending more than twice as much to produce less material.
Yesterday, Timminco said it had commissioned a report by Photon Consulting to review its process. "Operations and process have potential for massive growth and, possibly, for reshaping the silicon industry," Photon's managing director Michael Rogol said in a statement.
Mr. Rogol and other Photon officials were given a one-day tour of Timminco facilities in Bécancour, Que., in early May. "The equipment is very impressive, very low-cost," Mr. Rogol added. Officials from Photon and Mr. Rogol's firm Rogol Energy Consulting declined further comment.
David Dunnison, the head of business development at Mississauga's 6N Silicon Inc., which is also developing a process to upgrade metallurgical silicon for use in solar cells, said Mr. Rogol is the solar industry's top analyst and is both highly respected and exceedingly bullish on the sector's growth potential.
However, "when it comes to technology and process specifics, no offence, he probably wouldn't be my first choice. He tells you what is going on the market. He doesn't talk technology," Mr. Dunnison said.
On a conference call, Timminco CEO Heinz Schimmelbusch said the company chose Photon to audit its process instead of an established engineering firm in order to safeguard the company's proprietary process.
"We felt that the integrity and the reputation of Photon would shield us against the outflow of competitive information while giving us a comfortable statement here," Mr. Schimmelbusch said.
Timminco also yesterday reported a first-quarter loss of $556,000 or 1 cent per share compared to a $3.1-million loss or 4 cents last year. Revenue was $47.6-million, up 11 per cent from last year.
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