REC Silicon slides on Q2 miss, Moses Lake plant uncertainty

Rec Silicon ASA

08/08/2024 09:10

** Shares in REC Silicon  RECSI.OL  fall 6.6% after the
Norway-based advanced silicon material producer posted a wider
Q2 core loss
    ** It reports Q2 EBITDA loss of $38.2 million vs a loss of
$8.5 million a year earlier
    ** Sparebank 1 Markets Jonas Fremming says the Q2 results
are below expectations, hit by ramp-up costs in the Moses Lake
production facility in the U.S.
    ** He also points to the lack of news on silane gas offtake
agreement from Moses Lake, and says the timing of volumes at the
plant is uncertain
    ** REC Silicon has a silane gas capacity of 2,400 MT at
Moses Lake, far above Sparebank 1's current assumptions for
sales volumes of 1,150-2,000 MT for 2025-2026, Fremming says
    ** He expects to lower the 2024 EBITDA estimate following
the report, citing insufficient liquidity position with need for
additional financing

 (Reporting by Anna Chaberska)
 ((Anna.chaberska@thomsonreuters.com))