Regulated Information
31 October 2017 at 07:00 CET
HIGHLIGHTS:
- Group underlying EBITDA[1] of EUR
162 million for the first nine months of 2017, an increase of 35%
on the first nine months of 2016, primarily due to a 42% increase
in the average zinc price (USD 1,955/t to USD 2,783/t), and a
substantial earnings increase in Mining, partially offset by lower
treatment charge terms, reduced production at Port Pirie and
reduced free metal price exposure due to the call option price in
the zinc price collar hedging structure
- Metals Processing underlying
EBITDA of EUR 162 million, up EUR 19 million period-on-period,
driven primarily by higher commodity prices, partially offset by
lower zinc treatment charges, reduced lead and by-product
production and unplanned product outages at Budel; and
- Substantially improved Mining
underlying EBITDA of EUR 33 million, up EUR 31 million
period-on-period, driven by higher commodity prices, lower
treatment charges, a positive contribution from the successful
restart of the Middle Tennessee Mines, partially offset by the
negative EBITDA contribution of the Myra Falls mine which commenced
re-start activities in August 2017
- Balance sheet strengthened
- Net debt excluding zinc metal
prepay and perpetual securities of EUR 1,138 million at the end of
September 2017, an increase of EUR 152 million from 30 June 2017,
predominantly due to amortisation of the silver and zinc prepays,
working capital outflow due to higher commodity prices and capex
expenditure in-line with guidance. Net debt inclusive of zinc metal
prepay and perpetual securities of EUR 1,387 million at the end of
September 2017, an increase of EUR 144 million on 30 June 2017
- Successful placement of leverage
neutral EUR 400m notes due 2024 in March 2017 and EUR 100m upsize
of SCTF facility in April 2017, further issuance of EUR 100m notes
due 2024 and tender for 2018 convertible bonds in September 2017
to enhance credit, extend maturities and improve
liquidity
- Major milestones reached at the
Port Pirie Redevelopment, in line with guidance
- successful commencement of hot
commissioning at the end of September 2017; and
- subsequent commencement of
furnace heat-up on 25 October 2017 and achievement of first feed to
the new TSL furnace on 30 October 2017
- Zinc smelting optimisation review
completed in Q3 2017 with substantial improvements in production
and operating costs identified which will be gradually
implemented
- Latin American mining operations
sales completed and divestment process now concluded with the North
American mining portfolio to be held as a core component of the
Nyrstar business and optimised; Middle Tennessee Mines ramp-up and
Myra Falls restart on schedule
- Safety improvements across the
group with four of Nyrstar's sites recordable injury free in Q3
2017
Commenting on the
third quarter 2017 interim management statement, Hilmar Rode, Chief
Executive Officer said:
"We have continued to deliver on our clear strategic priorities. A
major milestone was reached at the Port Pirie Redevelopment with
the successful start of hot commissioning at the end of September
and yesterday the first feed to the new TSL furnace, EUR 100m
upsizing of the 2024 notes issuance and completion of the zinc
smelting optimisation review. Against this backdrop and despite
some unplanned production outages during the quarter at Budel, the
production results for the zinc smelting and mining operations were
robust and in-line with guidance.
The financial performance of the
Company has been supported by the strong zinc market fundamentals,
with the zinc price average 31% higher in Q3 2017 compared to a
year ago. However, the Company has continued to be faced with
headwinds from the lower zinc benchmark treatment charge, the
translational earnings impact of the material weakening of the US
dollar against the Euro and the impact of 70% of the free metal
zinc price exposure being capped by the current collar hedge at USD
2,543/t through to the end of the year. We will continue to deliver
the transformation of the Company through the implementation of our
strategic priorities, reducing the sensitivity of the business to
these headwinds.
Substantial further earnings
uplift is expected from the North American mining operations in the
remainder of 2017 and into 2018. Given this anticipated performance
improvement, we have decided to retain the North American mines,
which are integrated, have scale and are strategically important to
Nyrstar.
As we conclude 2017 and move into
2018, the strategic priorities for the Company will be to deliver
the Port Pirie Redevelopment ramp up to design capacity; increase
production and reduce operating costs within our zinc smelter
network in-line with the full potential review completed in Q3
2017; continue to deliver a substantial earnings uplift from the
North American mining operations and maintain a strong and flexible
balance sheet."
CONFERENCE
CALL
Management will discuss this statement in a conference call with
the investment community on 31 October 2017 at 10:00am Central
European Summer Time. The presentation will be webcast live and
will also be available in archive. The webcast can be accessed via
https://edge.media-server.com/m6/p/bu5wemuz.
KEY FIGURES
EUR million
(unless otherwise indicated)[2] |
9m
2016 |
9m
2017 |
%
Change |
|
Q3
2016 |
Q3
2017 |
%
Change |
|
|
|
|
|
|
|
|
Metals Processing
Revenue |
1,978 |
2,628 |
33% |
|
658 |
824 |
25% |
Mining Underlying
Revenue |
101 |
178 |
76% |
|
35 |
70 |
100% |
Other and Eliminations
Revenue |
(102) |
(176) |
73% |
|
(37) |
(70) |
89% |
Group Revenue |
1,976 |
2,630 |
33% |
|
656 |
824 |
26% |
|
|
|
|
|
|
|
|
Metals Processing
Underlying EBITDA |
143 |
162 |
13% |
|
39 |
45 |
15% |
Mining Underlying
EBITDA |
2 |
33 |
1550% |
|
2 |
18 |
800% |
Other and
Eliminations Underlying EBITDA |
(25) |
(34) |
36% |
|
(10) |
(12) |
20% |
Group Underlying EBITDA |
120 |
162 |
35% |
|
30 |
51 |
70% |
Underlying EBITDA
margin (%) |
6% |
6% |
0% |
|
5% |
6% |
20% |
|
|
|
|
|
|
|
|
Capex |
|
|
|
|
|
|
|
Metals Processing |
166 |
231 |
39% |
|
49 |
90 |
84% |
Mining |
10 |
35 |
250% |
|
4 |
16 |
300% |
Group Capex |
179 |
267 |
49% |
|
53 |
106 |
100% |
|
|
|
|
|
|
|
|
Metals Processing Production |
|
|
|
|
|
|
|
Zinc metal ('000
tonnes) |
752 |
766 |
2% |
|
245 |
247 |
1% |
Lead metal ('000
tonnes) |
143 |
123 |
(14%) |
|
48 |
39 |
(19%) |
|
|
|
|
|
|
|
|
Mining Production |
|
|
|
|
|
|
|
Zinc in concentrate
('000 tonnes) |
72 |
88 |
22% |
|
22 |
34 |
55% |
|
|
|
|
|
|
|
|
Market[3] |
|
|
|
|
|
|
|
Zinc price
(USD/t) |
1,955 |
2,783 |
42% |
|
2,253 |
2,962 |
31% |
Lead price
(USD/t) |
1,780 |
2,259 |
27% |
|
1,872 |
2,334 |
25% |
Silver price
(USD/t.oz) |
17.12 |
17.16 |
0% |
|
19.62 |
16.83 |
(14%) |
Gold price
(USD/t.oz) |
1,260 |
1,251 |
(1%) |
|
1,335 |
1,278 |
(4%) |
EUR/USD average
exchange rate |
1.12 |
1.11 |
(1%) |
|
1.12 |
1.17 |
4% |
EUR/AUD
average exchange rate |
1.50 |
1.45 |
(3%) |
|
1.47 |
1.49 |
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR million
(unless otherwise indicated) |
30 Sep 2016 |
30 Sep 2017 |
% Change |
|
30 Jun 2017 |
30 Sep 2017 |
% Change |
Debt
and cash |
|
|
|
|
|
|
|
Loans and borrowings,
end of the period |
913 |
1,203 |
32% |
|
1,081 |
1,203 |
11% |
Cash and cash
equivalents, end of period |
(126) |
(65) |
(48%) |
|
(95) |
(65) |
(32%) |
Net
Debt Exclusive of Zinc Prepay
and Perpetual Securities |
787 |
1,138 |
45% |
|
986 |
1,138 |
15% |
|
|
|
|
|
|
|
|
Zinc Prepay |
152 |
95 |
(38%) |
|
118 |
95 |
(19%) |
Perpetual
Securities |
86 |
154 |
79% |
|
139 |
154 |
11% |
Net Debt Inclusive of Zinc Prepay
and Perpetual Securities |
1,025 |
1,387 |
35% |
|
1,243 |
1,387 |
12% |
GROUP FINANCIAL OVERVIEW
Revenue for
the first nine months 2017 of EUR 2,628 million was up 33% on 9
months 2016, driven by higher zinc and lead prices which were up
42% and 27% respectively, benefit of a marginally stronger US
dollar against Euro in 9 months 2017 versus 9 months 2016 and
increased production volumes in zinc smelting and mining.
Group underlying
EBITDA (continuing operations) of EUR 162 million in 9 months
2017, an increase of 35% on 9 months 2016, due to higher commodity
prices and stronger US dollar, partially offset by lower treatment
charges, lower production from Port Pirie and Budel and the
opportunity cost of the strategic zinc price hedge which reduced
free metal price exposure.
Capital
expenditure (continuing operations) was EUR 267 million in 9
months 2017, representing an increase of 49% period-on-period
driven by a EUR 65 million increase in Metals Processing due to the
large planned maintenance shuts in the first nine months of 2017 at
Budel, Balen and Hobart and EUR 25 million capex increase in Mining
with the restart of the Middle Tennessee mines and Myra Falls mine.
The total capex remains in-line with full year guidance provided
for FY 2017 (EUR 275 - EUR 340 million).
Net
debt at the end of September 2017, excluding the zinc
metal prepay and perpetual securities, was 15% higher compared to
the end of H1 2017 at EUR 1,138 million (EUR 986 million at the end
of H1 2017), predominantly due to amortisation of the silver
prepays, working capital outflow due to higher commodity prices and
capex expenditure in-line with guidance. The net debt inclusive of
the zinc metal prepay and perpetual securities at the end of
September 2017 was EUR 1,387 million, up 12% compared to the end of
H1 2017. Cash balance at the end of September 2017 was EUR 65
million compared to EUR 95 million at the end of H1 2017 with
proforma liquidity at the end of September 2017 of EUR 600
million.
SAFETY, HEALTH AND
ENVIRONMENT
"Prevent Harm" is a core priority
of Nyrstar. The Company is committed to maintaining safe operations
and to proactively managing risks including with respect to people
and the environment. At Nyrstar, we work together to create a
workplace where all risks are effectively identified and controlled
and everyone goes home safe and healthy each day of their working
life.
The lost time injury rate (LTIR)
for the Company in the first 9 months of 2017 was 2, higher than
the rate of 1.7 in the first 9 months of 2016. The frequency rate
of cases with time lost or under restricted duties (DART) and the
frequency rate of cases requiring at least a medical treatment
(RIR) declined significantly by 27% and 6% respectively in the
first 9 months of 2017 compared to the first 9 months of 2016.
During Q3 2017, Nyrstar achieved a
record performance in terms of injury rates. The third quarter is
traditionally a quarter of high injury rates due to the summer
vacation period in Europe and North America and the increase of
casual workers across these sites. In addition to the construction
and commissioning activities at the Port Pirie Redevelopment, this
year we completed two roaster turnarounds at our smelters in Auby
and Balen. In total, four of the eleven Nyrstar sites were
recordable injury free in Q3 2017.
No environmental events with
material business consequences or long-term environmental impacts
occurred during the first 9 months of 2017.
OPERATIONS REVIEW: METALS
PROCESSING
EUR
million |
9m |
9m |
% |
|
Q3 |
Q3 |
% |
(unless otherwise indicated) |
2016 |
2017 |
Change |
|
2016 |
2017 |
Change |
|
|
|
|
|
|
|
|
Revenue |
1,978 |
2,628 |
33% |
|
658 |
824 |
25% |
|
|
|
|
|
|
|
|
Underlying EBITDA |
143 |
162 |
13% |
|
39 |
45 |
15% |
|
|
|
|
|
|
|
|
Sustaining |
62 |
97 |
56% |
|
20 |
38 |
90% |
Growth |
19 |
31 |
63% |
|
8 |
14 |
75% |
Port Pirie
Redevelopment |
85 |
103 |
21% |
|
21 |
39 |
86% |
Metal Processing Capex |
166 |
231 |
39% |
|
49 |
90 |
84% |
Metals Processing delivered an
underlying EBITDA result of EUR 162 million in 9 months 2017, an
increase of 13% over 9 months 2016 due to higher commodity
prices and a marginally stronger USD, partially offset by lower
zinc treatment charges, reduced lead and by-product production from
Port Pirie and unplanned outages at Budel.
Sustaining capital spend in 9
months 2017 increased by 56% on 9 months 2016, in-line with the
higher sustaining capital expenditure guidance provided for 2017
(EUR 100 million to EUR 135 million) compared to 2016 (EUR 97
million).
|
9m |
9m |
% |
|
Q3 |
Q3 |
% |
|
2016 |
2017 |
Change |
|
2016 |
2017 |
Change |
|
|
|
|
|
|
|
|
Zinc
metal ('000 tonnes) |
|
|
|
|
|
|
|
Auby |
107 |
123 |
15% |
|
38 |
41 |
8% |
Balen/Overpelt |
175 |
181 |
3% |
|
51 |
64 |
25% |
Budel |
212 |
197 |
(7%) |
|
71 |
57 |
(20%) |
Clarksville |
81 |
85 |
5% |
|
25 |
26 |
4% |
Hobart |
177 |
181 |
2% |
|
60 |
60 |
0% |
Total |
752 |
766 |
2% |
|
245 |
247 |
1% |
|
|
|
|
|
|
|
|
Lead
metal ('000 tonnes) |
|
|
|
|
|
|
|
Port Pirie |
143 |
123 |
(14%) |
|
48 |
39 |
(19%) |
|
|
|
|
|
|
|
|
Other
products |
|
|
|
|
|
|
|
Copper cathode ('000
tonnes) |
3.6 |
3.1 |
(14%) |
|
1.2 |
1.1 |
(8%) |
Silver (million troy
ounces) |
12.3 |
9.5 |
(23%) |
|
3.6 |
3.1 |
(14%) |
Gold ('000 troy
ounces) |
39.8 |
48.9 |
23% |
|
7.9 |
13.7 |
73% |
Indium metal
(tonnes) |
- |
16.5 |
100% |
|
- |
7 |
100% |
Sulphuric acid ('000
tonnes) |
1,018 |
945 |
(7%) |
|
327 |
293 |
(10%) |
Metals Processing produced
approximately 766,000 tonnes of zinc metal in 9 months 2017,
in-line with full year 2017 guidance (1.0 to 1.1 million tonnes),
representing a 2% increase on 9 months 2016. The increase in zinc
metal production year-over-year was despite the planned maintenance
shuts at Balen and Budel in Q2 2017 which negatively impacted
production by approximately 11,000 tonnes and 6,500 tonnes of zinc
metal respectively; the planned maintenance shuts at Hobart and
Clarksville in Q3 2017; and the unplanned outages experienced in
Budel in Q3 2017. During Q3 2017, production at Budel was down by
19% compared to the same period in 2016, predominantly due to three
roaster defluidisations during August with a production impact of
approximately 16,000 tonnes of zinc metal. In October 2017, Budel
experienced a further unplanned production outage of approximately
15 days due to a hydrogen explosion in a leaching department
vessel. This outage has resulted in lost production of
approximately 11,500 tonnes of zinc metal.
Hobart commenced its planned
maintenance shut of its roasting and acid departments at the end of
June 2017. The Hobart planned maintenance shut was completed by the
end of July 2017, having been extended from a 28 day to a 41 day
shut to allow repairs to the upper vertical wall of the number 6
roaster, with a production impact of approximately 5,500 tonnes of
zinc metal.
Zinc metal production at Auby was
up 15% in the first 9 months of 2017 as a result of a planned
cellhouse maintenance shutdown in Q1 2016; Balen was up 5% despite
a planned 21 day cellhouse shutdown in May 2017 which improved
production rates; and Clarksville was up 5% primarily due to a
higher proportion of feed being sourced from the East Tennessee
mines. The Auby smelter successfully completed its planned roaster
maintenance shutdown in September 2017.
Lead market metal production at
Port Pirie of 123kt was 14% lower compared to 9 months 2016 due to
two unplanned blast furnace stops to repair damaged water cooled
jackets, heat exchanger failures in the old acid plant and
operational issues in the sinter plant that have negatively
affected sinter quality. These issues have now been largely
resolved in Q3 2017 with the selective use of concentrates based on
rankings, replacement of the acid plant cold heat exchanger and
addressing some significant mechanical issues in the old sinter
plant. Copper and silver production was lower in 9 months 2017 by
14% and 23% respectively whilst gold production was up 23%. The
variance in the production of copper, silver and gold is mainly due
to a different feed mix consumed with lower copper and silver and
higher gold contained.
OPERATIONS REVIEW: MINING
EUR
million |
9m |
9m |
% |
|
Q3 |
Q3 |
% |
(unless otherwise indicated) |
2016[4] |
2017 |
Change |
|
2016 |
2017 |
Change |
|
|
|
|
|
|
|
|
Revenue |
101 |
178 |
76% |
|
35 |
70 |
100% |
|
|
|
|
|
|
|
|
Underlying EBITDA |
2 |
33 |
1550% |
|
2 |
18 |
800% |
|
|
|
|
|
|
|
|
Sustaining |
5 |
16 |
220% |
|
2 |
8 |
300% |
Exploration and
development |
5 |
15 |
200% |
|
2 |
4 |
100% |
Growth |
- |
4 |
100% |
|
- |
4 |
100% |
Mining Capex |
10 |
35 |
250% |
|
4 |
16 |
300% |
Mining underlying EBITDA of EUR 33
million in the first nine months of 2017 was exponentially higher
than in the first nine months of 2016 due to the higher zinc price,
lower zinc treatment charge terms, operational improvements and the
successful restart of the Middle Tennessee Mines. As the Middle
Tennessee Mines has continued to ramp-up in 2017, the
quarterly EBITDA contribution has improved, with negative EUR
4.4 million, negative EUR 0.5 million and positive EUR 3.4 million
contributed in Q1 2017, Q2 2017 and Q3 2017 respectively. Mining
segment EBITDA was constrained during Q3 2017 with 70% of free
metal (i.e. payable metal) limited to a price level of USD 2,543
due to the zinc price hedging collars in place for Q2 to Q4 2017.
The Mining result excludes the underlying EBITDA impact of the
Latin American mines which have been eliminated as discontinued
operations due to their announced divestment. Myra Falls being on
re-start since August 2017, contributed EBITDA of negative EUR 3.4
million in Q3 2017.
Mining capital expenditure in the
first nine months of 2017 was EUR 35 million, up EUR 25 million
year-on-year, due primarily to the re-start of the Middle Tennessee
mines and Myra Falls mine which commenced in December 2016 and
August 2017 respectively. Mining capex excludes the Latin American
mining operations which have been eliminated from the results as
discontinued mining operations.
'000
tonnes |
9m |
9m |
% |
|
Q3 |
Q3 |
% |
unless otherwise indicated |
2016[5] |
2017 |
Change |
|
2016 |
2017 |
Change |
|
|
|
|
|
|
|
|
Total
ore milled[6] |
1,687 |
2,262 |
34% |
|
506 |
896 |
77% |
|
|
|
|
|
|
|
|
Zinc
in Concentrate |
|
|
|
|
|
|
|
Langlois |
25 |
26 |
4% |
|
7 |
9 |
29% |
East Tennessee |
46 |
49 |
7% |
|
15 |
17 |
13% |
Middle
Tennessee |
- |
13 |
100% |
|
- |
8 |
100% |
Total |
72 |
88 |
22% |
|
22 |
34 |
55% |
|
|
|
|
|
|
|
|
Other
metals |
|
|
|
|
|
|
|
Copper in
concentrate |
1.6 |
1.4 |
(13%) |
|
0.5 |
0.6 |
20% |
Silver ('000 troy
oz) |
417 |
405 |
(3%) |
|
110 |
134 |
22% |
Gold ('000 troy
oz) |
1.4 |
1.3 |
(7%) |
|
0.4 |
0.5 |
25% |
The Middle Tennessee mines were
placed on care and maintenance throughout 2016 and were re-started
in December 2016 with first mill production achieved in Q2 2017.
Production of 13kt of zinc in concentrate from the Middle Tennessee
mines in the period of May to September 2017 is in-line with
management's expectations. The Middle Tennessee mines are expected
to ramp-up to an operating level of approximately 50kt per annum of
zinc in concentrate by the end of the year. The East Tennessee
Mines have performed well over the first 9 months 2017, with
production of 49kt of zinc in concentrate being an improvement of
7% comparted to the same period in 2016. Production improvements at
East Tennessee are due to increased development work to provide
access to more mining areas and improved underground equipment
availability, in part due to the replacement of some of the older
units.
OTHER DEVELOPMENTS
Mining Divestment
Process
The mine divestment that process that commenced in January 2016 has
now been formally concluded. Over the course of the divestment
process, Nyrstar sold all five of its mining assets in Latin
America with a total cash consideration of USD 72 million (USD 40
million upfront and USD 32 million in contingent milestone
payments).
The remaining North American
mining portfolio has undergone a full potential review and Nyrstar
is rolling out optimisation plans for all four of the mining
assets. These optimisation plans together with more favourable
macros means the North American mines are now considered a core
part of the Nyrstar business and are positioned to ramp-up to 200kt
per annum of zinc in concentrate production and deliver continued
improvements in operating costs. At the end of October 2017, the
Middle Tennessee mines ramp-up and the restart of the Myra Falls
mine are both progressing well and are on-schedule.
Port Pirie
Redevelopment
As at 30 September 2017, capex incurred at Port Pirie was AUD 632
million, AUD 242 million drawn under the perpetual securities and
AUD 50 million remaining to be drawn.
As communicated by the Company on
9 February 2017, a comprehensive review of the Port Pirie
Redevelopment project has been undertaken and completed to ensure
that the scope, flow sheet and commissioning will provide Port
Pirie with industry leading performance. The review confirmed that
the Port Pirie Redevelopment is the right strategy for the Company
as it will have a significant positive long-term effect on
Nyrstar's operations and deliver a substantial earnings uplift.
However, the review also identified that rework was required to the
fabrication of key module components, which delayed the start of
hot commissioning to the end of September 2017 as previously
reported.
In the first 9 months of 2017, the
Port Pirie Redevelopment focused on completing the rework referred
to above and enhancing the slag tapping arrangements on the TSL
furnace whilst completing the modular construction and progressing
the commissioning of the new infrastructure and related control
systems. In addition, training of Nyrstar personnel at the Kazzinc
lead smelting operations in Kazakhstan was concluded. The lime
plant commissioning and the piling for the relocation of the slag
caster was completed during Q2 2017 and by the end of Q3 2017, the
hot commissioning of the TSL plant had commenced. At the end of
October 2017, a further substantial milestone was achieved at the
Port Pirie Redevelopment with the first feed to the TSL furnace and
the production of molten metal.
Nyrstar reaffirms that the
incremental EBITDA uplift from the redevelopment, using 2016 as a
basis, will increase from the previous full ramp-up guidance of EUR
80 million per annum and is expected to be in the region of EUR 40
million in 2018, EUR 100 million in 2019 and EUR 130 million per
annum from 2020. The expected project cost to complete the
redevelopment is also reaffirmed as approximately AUD 660
million.
Strategic hedges
During the implementation of the transformation and turnaround
strategy, Nyrstar has taken prudent measures to mitigate downside
risk on zinc prices and key currencies by placing zero cost hedging
collars whereby Nyrstar buys put options and sells call options on
zinc price and sells put options and buys call options on foreign
exchange.
In Q1 2017, Nyrstar had in place
zinc price collar hedges to protect 70% of total free metal
produced at the zinc smelters and North American mines within a
price range of USD 2,127 and USD 2,496 with full upside from USD
2,800; and for Q2 2017 to Q4 2017, a collar of USD 2,172 to USD
2,543. At the end of Q2 2017, protective hedges were put in place
for 70% of the total free metal produced by Nyrstar's zinc smelters
(8,300 tonnes of zinc metal per month) and mines (7,500 tonnes per
month of the payable zinc metal produced in concentrate) for H1
2018. These hedges result in full exposure to the zinc price for
100% of the production volume in H1 2018 between a floating zinc
price of USD 2,300/t and USD 3,094/t. Above and below
these prices, Nyrstar's exposure is limited to 30% of the total
free metal produced. During the entirety of 2017, the zinc
production at Langlois has been hedged with a fixed forward
position of USD 2,280 per tonne on a payable volume of 2,000 tonnes
per month.
In Q3 2017, Nyrstar has placed
additional zinc collar hedges to protect approximately 15% of total
free metal produced across the zinc smelters and mines (3,250
tonnes per month) in H2 2018 within a price range of USD 2,600 and
USD 3,545. These hedges result in full exposure to the zinc
price for 100% of the production volume in H2 2018 between a
floating zinc price of USD 2,600/t and USD 3,545/t. Above
and below these prices, Nyrstar's exposure is reduced to 85% of the
total free metal produced. Nyrstar has also placed fixed forward
hedges to protect the profitability of the Myra Falls mine during
its restart and ramp-up. The Myra Falls fixed forward commodity
price hedging has been placed at USD 2,760 and USD 2,685 per tonne
for zinc in 2018 and 2019 respectively; USD 1,281 and USD 1,296 per
troy ounce in 2018 and 2019 respectively; USD 6,461 and USD 6,415
per tonne for copper in 2018 and 2019 respectively; and USD 17.41
per troy ounce for silver in both 2018 and 2019.
Since H1 2016, Nyrstar has entered
into a series of foreign exchange options to hedge the Company's
monthly exposure related to the direct operating costs denominated
in Australian dollars (AUD), Canadian Dollars (CAD) and in Euro
(EUR) utilising put and call collar structures. For the EUR/USD
transactional exposure, various collars have been executed
resulting in a weighted average collar of 1.05 to 1.14 for
approximately 100% of the total transactional expenses for H1 2017;
and a weighted average collar of 1.00 to 1.10 for approximately
100% of the total transactional expenses for H2 2017. For the
AUD/USD transactional exposure, various collars have been executed
resulting in a weighted average collar of 0.62 to 0.81 for
approximately 100% of the total transactional expenses for H1 2017;
a weighted average collar of 0.68 to 0.81 for approximately 100% of
H2 2017; and a weighted average collar of 0.68 to 0.80 for
approximately 33% of 2018. For the CAD/USD transactional exposure
on Langlois, various collars have been executed resulting in a
weighted average collar of 1.28 to 1.35 for approximately 70% of
2017 and a weighted average collar of 1.32 to 1.36 for
approximately 100% of 2018. In Q3 2017, Nyrstar did not undertake
any further currency hedging and is continuing to review options to
place further EUR/USD hedges to provide transactional
protection.
FORWARD-LOOKING
STATEMENTS
This release includes
forward-looking statements that reflect Nyrstar's intentions,
beliefs or current expectations concerning, among other things:
Nyrstar's results of operations, financial condition, liquidity,
performance, prospects, growth, strategies and the industry in
which Nyrstar operates. These forward-looking statements are
subject to risks, uncertainties and assumptions and other factors
that could cause Nyrstar's actual results of operations, financial
condition, liquidity, performance, prospects or opportunities, as
well as those of the markets it serves or intends to serve, to
differ materially from those expressed in, or suggested by, these
forward-looking statements. Nyrstar cautions you that
forward-looking statements are not guarantees of future performance
and that its actual results of operations, financial condition and
liquidity and the development of the industry in which Nyrstar
operates may differ materially from those made in or suggested by
the forward-looking statements contained in this news release. In
addition, even if Nyrstar's results of operations, financial
condition, liquidity and growth and the development of the industry
in which Nyrstar operates are consistent with the forward-looking
statements contained in this news release, those results or
developments may not be indicative of results or developments in
future periods. Nyrstar and each of its directors, officers and
employees expressly disclaim any obligation or undertaking to
review, update or release any update of or revisions to any
forward-looking statements in this report or any change in
Nyrstar's expectations or any change in events, conditions or
circumstances on which these forward-looking statements are based,
except as required by applicable law or regulation.
About
Nyrstar
Nyrstar is a global multi-metals business, with a market leading
position in zinc and lead, and growing positions in other base and
precious metals, which are essential resources that are fuelling
the rapid urbanisation and industrialisation of our changing world.
Nyrstar has mining, smelting and other operations located in
Europe, the Americas and Australia and employs approximately 4,300
people. Nyrstar is incorporated in Belgium and has its corporate
office in Switzerland. Nyrstar is listed on Euronext Brussels under
the symbol NYR. For further information please visit the Nyrstar
website: www.nyrstar.com.
For further information
contact:
Anthony Simms Head of
Investor Relations T: +41 44 745
8157 M: +41 79 722
2152
anthony.simms@nyrstar.com
Franziska Morroni Head of Corporate
Communications T: +41 44 745 8295 M: +41 79 719 2342
franziska.morroni@nyrstar.com
MINING PRODUCTION ANNEX
PE-
RIOD |
Produc-
tion
KPI
by
Site
|
Ore
mill-
ed
('000
tonn-
es)
|
Mill
head
grade |
Recovery |
Concen-
trate |
Metal
in
concen-
trate |
Zi-
nc
(%) |
Le-
ad (%) |
Co-
pp-
er (%) |
Go-
ld (g/t) |
Sil-
ver (g/t) |
Zi-
nc
(%) |
Le-
ad (%) |
Co-
pp-
er-
(%) |
Go-
ld
(%) |
Sil-
ver (%) |
Zi-
nc
(kt) |
Le-
ad
(kt) |
Co-
pp-
er
(kt) |
Zi-
nc
(kt) |
Le-
ad
(kt) |
Co-
pp-
er
(kt) |
Go-
ld
(k'toz) |
Sil-
ver
(m'toz) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTI-
NUING
OPERA-
TIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9m
2016 |
Lang-
lois |
309 |
8.63
% |
- |
0.74
% |
0.18 |
50.54 |
95.0
% |
- |
70.5
% |
78.4
% |
82.9
% |
48 |
- |
6.4 |
25.4 |
- |
1.6 |
1.4 |
417 |
East
Tenne-
ssee |
1,378 |
3.57
% |
- |
- |
- |
- |
93.8
% |
- |
- |
- |
- |
75 |
- |
- |
46.2 |
- |
- |
- |
- |
Middle Tenne-
ssee |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Mining-
Total |
1,687 |
4.50
% |
- |
0.74
% |
0.18 |
50.54 |
94.0
% |
- |
70.5
% |
78.4
% |
82.9
% |
123 |
- |
6.4 |
71.6 |
- |
1.6 |
1.4 |
417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9m
2017 |
Lang-
lois |
337 |
7.98
% |
- |
0.55
% |
0.16 |
44.29 |
95.0
% |
- |
76.7
% |
78.5
% |
84.3
% |
48 |
- |
6.0 |
25.5 |
- |
1.4 |
1.3 |
405 |
East
Tenne-
ssee |
1,477 |
3.50
% |
- |
- |
- |
- |
95.3
% |
- |
- |
- |
- |
80 |
- |
- |
49.2 |
- |
- |
- |
- |
Middle Tenne-
ssee |
447 |
3.12
% |
- |
- |
- |
- |
91.2
% |
- |
- |
- |
- |
20 |
- |
- |
12.7 |
- |
- |
- |
- |
Mining-
Total |
2,262 |
4.09
% |
0.00
% |
0.55
% |
0.16
|
44.29
|
94.5
% |
0.0
% |
76.7
% |
78.5
% |
84.3
% |
147
|
0.0
|
6.0
|
87.5
|
0.0
|
1.4
|
1.3
|
405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change |
Lang-
lois |
9% |
(8)
% |
- |
(26)
% |
(11)
% |
(12)
% |
- |
- |
9
% |
0
% |
2
% |
- |
- |
- |
4
% |
- |
(50)
% |
- |
(3)
% |
East
Tenne-
ssee |
7% |
(2)
% |
- |
- |
- |
- |
2
% |
- |
- |
- |
- |
7
% |
- |
- |
7
% |
- |
- |
- |
- |
Middle Tenne-
ssee |
100
% |
100
% |
- |
- |
- |
- |
100
% |
- |
- |
- |
- |
100
% |
- |
- |
100
% |
- |
- |
- |
- |
Mining-
Total |
34
% |
(9)
% |
- |
(26)
% |
(11)
% |
(12)
% |
1
% |
- |
9
% |
0
% |
2
% |
20
% |
- |
- |
22
% |
- |
(50)
% |
- |
(3)
% |
PE-
RIOD |
Produc-
tion
KPI
by
Site |
Ore mill-
ed
('000 tonn-
es) |
Mill
head
grade |
Recovery |
Concen-
trate |
Metal
in
concen-
trate |
Zi-
nc
(%) |
Le-
ad (%) |
Co-
pp-
er (%) |
Go-
ld (g/t) |
Sil-
ver (g/t) |
Zi-
nc
(%) |
Le-
ad (%) |
Co-
pp-
er (%) |
Go-
ld (%) |
Sil-
ver (%) |
Zi-
nc
(kt) |
Le-
ad
(kt) |
Co-
pp-
er
(kt) |
Zi-
nc
(kt) |
Le-
ad
(kt) |
Co-
pp-
er
(kt) |
Go-
ld
(k'toz) |
Sil-
ver
(m'toz) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTI-
NUING OPERA-
TIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
2016 |
Lang-
lois |
88 |
8.00
% |
- |
0.80
% |
0.18 |
53.71 |
94.5
% |
- |
69.4
% |
78.0
% |
72.6
% |
12 |
- |
1.9 |
6.6 |
- |
0.5 |
0.4 |
110 |
East
Tenne-
ssee |
419 |
3.75
% |
- |
- |
- |
- |
95.5
% |
- |
- |
- |
- |
25 |
- |
- |
15.0 |
- |
- |
- |
- |
Middle Tenne-
ssee |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Mining-
Total |
506 |
4.49
% |
- |
0.80
% |
0.18 |
53.71 |
95.3
% |
- |
69.4
% |
78.0
% |
72.6
% |
37 |
- |
1.9 |
21.6 |
- |
0.5 |
0.4 |
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
2017 |
Lang-
lois |
135 |
7.32
% |
- |
0.54
% |
0.16 |
38.87 |
95.2
% |
- |
77.4
% |
78.4
% |
79.4
% |
18 |
- |
2.5 |
9.4 |
- |
0.6 |
0.5 |
134 |
East
Tenne-
ssee |
514 |
3.52
% |
- |
- |
- |
- |
94.9
% |
- |
- |
- |
- |
28 |
- |
- |
17.2 |
- |
- |
- |
- |
Middle Tenne-
ssee |
247 |
3.37
% |
- |
- |
- |
- |
91.3
% |
- |
- |
- |
- |
12 |
- |
- |
7.6 |
- |
- |
- |
- |
Mining-
Total |
896 |
4.05
% |
- |
0.54
% |
0.16 |
38.87 |
94.0
% |
- |
77.4
% |
78.4
% |
79.4
% |
58 |
- |
2.5 |
34.1 |
- |
0.6 |
0.5 |
134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change |
Lang-
lois |
53
% |
(9)
% |
- |
(33)
% |
(11)
% |
(28)
% |
1
% |
- |
12
% |
1
% |
9
% |
50
% |
- |
- |
29
% |
- |
- |
- |
22
% |
East
Tenne-
ssee |
23
% |
(6)
% |
- |
- |
- |
- |
(1)
% |
- |
- |
- |
- |
12
% |
- |
- |
13
% |
- |
- |
- |
- |
Middle Tenne-
ssee |
100
% |
100
% |
- |
- |
- |
- |
100
% |
- |
- |
- |
- |
100
% |
- |
- |
100
% |
- |
- |
- |
- |
Mining-
Total |
77
% |
(10)
% |
- |
(33)
% |
(11)
% |
(28)
% |
(1)
% |
- |
12
% |
1
% |
9
% |
57
% |
- |
- |
55
% |
- |
- |
- |
22
% |
[1] Underlying EBITDA is a non-IFRS measure of
earnings, which is used by management to assess the underlying
performance of Nyrstar's operations and is reported by Nyrstar to
provide additional understanding of the underlying business
performance of its operations. Nyrstar defines "Underlying EBITDA"
as profit or loss for the period adjusted to exclude loss from
discontinued operations (net of income tax), income tax
(expense)/benefit, share of loss of equity-accounted investees,
gain on the disposal of equity-accounted investees, net finance
expense, impairment losses and reversals, restructuring expense,
M&A related transaction expenses, depreciation, depletion and
amortization, income or expenses arising from embedded derivatives
recognised under IAS 39 "Financial Instruments: Recognition and
Measurement" and other items arising from events or transactions
clearly distinct from the ordinary activities of Nyrstar. For a
definition of other terms used in this press release, please see
Nyrstar's glossary of key terms available at:
http://www.nyrstar.com/investors/en/Pages/investorsmaterials.aspx
[2] 9 months 2016, 9m 2017 and Q3 2016 numbers were adjusted
to exclude El Toqui, El Mochito, Campo Morado, Contonga and
Coricancha as the mines are sold or reclassified as discontinued
operation
[3] Zinc, lead and copper prices are averages of LME daily cash
settlement prices. Silver/Gold price is average of LBMA daily
fixing / daily PM fixing, respectiv
[4] 9m 2016 and Q3 2016 numbers were adjusted to exclude Campo
Morado, El Toqui, El Mochito, Contango and Coricancha as the mines
are sold or reclassified as discontinued operations
[5] 9m 2016 and Q3 2016 numbers were adjusted to exclude Campo
Morado, El Toqui, El Mochito, Contango and Coricancha as the mines
are sold or reclassified as discontinued operations
[6] Mining production for both years was adjusted to exclude
Contonga production volumes as it has been reclassified as a
discontinued operation.
The full press release can be downloaded from the
following link:
Press Release (English)
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Nyrstar via Globenewswire
Nyrstar NV (EU:NYR)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024
Nyrstar NV (EU:NYR)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024