Outokumpu divests rights to royalties from Forrestania resources
22 December 2011 at 9.00 am EET
Outokumpu has sold the Group's rights to royalties from Forrestania nickel and precious metals resources to the Australian company Western Areas NL for EUR 23 million (USD 30 million). As these royalties were valued at zero on the Outokumpu balance sheet, non-recurring operating income of approximately EUR 23 million will be booked in the Group's fourth quarter 2011 operating results. The transaction will have a positive impact of EUR 11.5 million on Outokumpu's cash flow in the fourth quarter of 2011 and a positive impact of EUR 11.5 million on cash flow in the fourth quarter of 2012.
The Group's Forrestania royalty assets have had only a marginal positive impact on Outokumpu's operating profit in recent years. As a result of this divestment, the Group will no longer receive any payments in connection with these royalty rights.
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