The price of the lead and zinc recycler’s shares on Euronext Paris had ramped up by more than 40%, rising between July 5 and July 8 to €5.2 ($5.8) per share from €3.7 per share.
In January, the company’s German subsidiary, Weser-Metall GmbH, which operates the group’s lead smelter in Nordenham, carried out an expected maintenance shutdown due to advanced wear of the furnace. This had resulted from a change of operating mode since its connection to a new reduction furnace and consequent technical difficulties.
In the first quarter of 2019, the lead and zinc recycler reported sales revenue of €75.8 million ($85.05 million), a fall of 20% year-on-year due to major maintenance shutdowns and falling prices for both metals.
Additionally, in May, the smelter was granted a reprieve from debtors regarding repayments of loans taken out by Weser-Metall when repairs and replacements for the lead smelter created the need for additional cash.
But it was told that it must pay a fine of €26.7 million, initially imposed in 2017, for its role in colluding with other European lead recyclers to keep the price they paid for scrap batteries artificially low.
In a message to shareholders on June 27, Sebastian Rudow, chairman and chief executive officer of Recylex SA, said: “We have been recently confronted with a market situation that has deteriorated considerably, but above all the production levels of our German sub-group remain unsatisfactory.”
The terms and conditions necessary for a resumed listing of Recylex shares will be specified in the company’s next press release.
Trading in the shares of European zinc and lead producer Recylex was suspended on Monday July 8 at the company’s own request, following an “unexplained rally” during the previous two days.