REC Silicon hits Oct 2020 lows amid liquidity, financing woes

Rec Silicon ASA

07/11/2024 09:21

** Shares in REC Silicon  RECSI.OL  fall 23% after the
Norwegian silicon material producer published its quarterly
report and flagged liquidity issues
    ** Pareto Securities analyst Gard A. Aarvik notes sales and
earnings decline but points out the key negative is the news of
continued delays and ramp-up of its Moses Lake facility, while
increasingly tight liquidity position raises questions on
financing
        ** As qualification test for REC Silicon's product has
been delayed, the prepayment for the first delivery and cash
inflows from sales will be pushed out in time, impacting
short-term liquidity and financial position, the company said
  
        ** It added that the Moses Lake facility has been turned
down to save on operating costs
  
        ** REC Silicon posted EBITDA loss widening to $42.7 mln
in the quarter from loss of $17.8 mln a year ago
  
    ** The stock, on track for its worst day since nearly four
years, is at its lowest since October 2019

 (Reporting by Agnieszka Olenska)
 ((Agnieszka.Olenska@thomsonreuters.com;))