Nyrstar: Response to comments made by South Australian Government
17 Mai 2018 - 7:00PM
17 May 2018 at 19.00PM CEST
Nyrstar NV ("Nyrstar" or the
"Company") notes the comments made by the Treasurer of South
Australia, the Hon. Rob Lucas
MLC, to the Legislative Council of the South Australian
Parliament on Thursday, 17 May 2018 in relation to the timing of
the payment of the Perpetual Securities for the Port Pirie
Redevelopment (the "Project").
In line with the funding agreement
with the South Australian Government, Nyrstar has full discretion
to defer payment of the Perpetual Securities. The Perpetual
Securities are directly linked to the progress of the Project and
are structured as equity-like funding. As previously communicated,
the Project construction was delayed by 18 months and was also
subject to significant cost overruns that were funded entirely by
Nyrstar. The delay in the start of the ramp-up is impacting the
realisation of cash flows from the Project relative to the timeline
contemplated at the time the financing arrangements were finalised
in 2014. Therefore, Nyrstar has elected to defer payment of the
Perpetual Securities.
Nyrstar has not breached any
agreements by delaying the payment and is in full compliance with
its contractual obligations relating to the financing
arrangements.
As communicated during the Q1 2018
Interim Management Statement, Nyrstar is making pleasing progress
with the Project ramp-up with operating time, tonnes of feed to the
TSL furnace and tonnes of slag product all at new monthly highs for
April 2018. There is no change in the expected earnings uplift as
guided by management in the latest quarterly results
presentation.
The Port Pirie operation directly
employs more than 700 people and Nyrstar has invested approximately
AUD 660 million in the Project since 2014 which will ensure the
long term sustainability of the operation for the people of South
Australia. In addition, Nyrstar has consistently invested in
community development programmes and is committed to working with
the South Australian government and our community to deliver the
programmes to create positive change in Port Pirie.
Notes to
editors:
Perpetual Securities
- The Perpetual Securities, an
equity accounted instrument, is one part of the funding package for
the Port Pirie Redevelopment Project.
- Nyrstar Port Pirie issued the
Perpetual Securities for a total of AUD 291 million to a special
purpose vehicle which then raised funds from third party financiers
benefiting from a guarantee from EFIC, Australia's export credit
agency, supported by a back-to-back indemnity from the South
Australian Government.
- The terms of the Perpetual
Securities resemble those for equity securities (e.g.,
discretionary amortisation), but include various covenants and
undertakings, including a prohibition on dividends from Nyrstar
Port Pirie or its subsidiaries while the Perpetual Securities are
outstanding.
- The coupon on these Perpetual
Securities is variable and linked to the six-month bank bill swap
rate.
Liquidity
position
- Nyrstar has a robust balance sheet with
substantial liquidity.
- At the end of Q1 2018, Nyrstar had a cash balance
of EUR 199m with liquidity of EUR 479m.
- Nyrstar remains in compliance with all its
financing arrangements.
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 six smelters, one fumer and four mining operations,
located in Europe, Australia and North America, and employs
approximately 4,100 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 E: anthony.simms@nyrstar.com
Franziska Morroni Head of
Communications T:
+41 44 745 8295 M: +41 79 719 2342 E:
franziska.morroni@nyrstar.com
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
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