DJ MMC Norilsk Nickel: NORILSK NICKEL GROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 2st QUARTHER AND 1st HALF 2017
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MMC Norilsk Nickel / Miscellaneous - High Priority
MMC Norilsk Nickel: NORILSK NICKEL GROUP ANNOUNCES PRELIMINARY CONSOLIDATED
PRODUCTION RESULTS FOR 2st QUARTHER AND 1st HALF 2017
31-Jul-2017 / 10:30 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS,
LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
July 31, 2017
Public Joint Stock Company "Mining and Metallurgical Company "NORILSK
NICKEL" (PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company")
NORILSK NICKEL GROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS
FOR 2st QUARTHER AND 1st HALF 2017
Moscow - PJSC MMC Norilsk Nickel, the largest refined nickel and palladium
producer in the world, announces preliminary consolidated production results
for the second quarter and the first half of 2017.
First Vice-President - Chief Operating Officer, Sergey Dyachenko commented
on the 1H17 production results:
«In 2Q17 our platinum group metals (PGMs) production increased substantially
owing to the processing of built-up work-in-progress material which enabled
us to offset the previous quarter decline. A minor reduction in nickel
production volumes was due to scheduled annual repair works at Harjavalta
nickel refinery in Finland. In addition, in 2Q17 we significantly decreased
low-margin processing of third party nickel feed at Harjavalta.
In May 2017, Talnakh Concentrator reached its design parameters in terms of
nickel and copper recovery rates into collective concentrates as well as the
metal content in nickel-pyrrhotite and copper concentrates.
At the same time, we were still experiencing certain issues with lifting and
processing previously stored pyrrhotite concentrate and also had to run some
short-term suspensions of our smelting operations in the Polar division due
to unfavorable meteorological conditions to keep the pollutant
concentrations in Norilsk's residential area within the limits. Our
management team is doing their best to minimize the negative impact of the
above on current year production targets through more efficient ore
processing and optimization of smelting capacities utilization and we thus
confirm initial 2017 metal production guidance».
Nickel
2Q17 consolidated nickel production amounted to 49 kt decreasing 8%
quarter-on-quarter (q-o-q). Nickel output from the Company's own Russian
feed reached 48 kt, down 2% q-o-q. The reduction was driven by scheduled
annual repair works at Harjavalta refinery in Finland and termination of
processing of Nkomati concentrate.
Overall in 1H17, nickel output amounted to 103 kt decreasing 15%
year-on-year (y-o-y) driven primarily by the reduction of low-margin
processing of third parties feed. Nickel output from the Company's own
Russian feed reached 98 kt, down 1% y-o-y. The decrease was attributed to
the ongoing reconfiguration of downstream production facilities at the Polar
division, including modernization and capacity expansion at Talnakh
Concentrator [1], shut down of Nickel Plant [2] in 3Q16 and, as a result,
increase of work-in-progress material.
Copper
2Q17 consolidated copper production amounted to 101 kt, up 7% q-o-q. Copper
output from the Company's own Russian feed reached 100 kt, up 9% q-o-q.
In 1H17, copper output amounted to 195 kt, up 10% y-o-y driven mostly by the
processing of concentrate purchased from Rostec and reduced metal losses in
recovery of copper into copper concentrate as a result of modernization of
Talnakh Concentrator.
Platinum Group Metals
2Q17 consolidated palladium and platinum output amounted to 781 koz (up 41%
q-o-q) and 190 koz (up 46% q-o-q), respectively. Palladium output from the
Company's own Russian feed reached 759 koz, up 46% q-o-q and platinum output
reached 183 koz, up 55% q-o-q.
The increase of palladium and platinum output was attributed to processing
of precious metal concentrate, which was accumulated in 1Q17 as
work-in-progress material (PGMs contained in the nickel matte, which is
shipped for processing from the Polar to Kola division) and at Krasnoyarsk
Precious Metals Plant.
In 1H17, palladium and platinum output amounted to 1,334 koz (flat y-o-y)
and 320 koz (down 4% y-o-y), respectively. The decline was attributed to
lower metal content in mined ore and substitution of feed purchased from
third parties by Russian material with lower platinum content.
Russian operations
Due to the shutdown of Nickel plant in the Polar division, since 2H16
saleable nickel has been produced at two production sites: Kola MMC in
Russia and Norilsk Nickel Harjavalta in Finland. 2Q17 nickel output in
Russia amounted to 38 kt, up 3% q-o-q driven by the increase of nickel matte
volumes shipped from Nadezhda Metallurgical Plant to Kola MMC for
processing.
In 1H17, nickel output in Russia amounted to 76 kt, down 24% y-o-y. The
decrease was driven by decommissioning of Nickel Plant in 2016, increase of
work-in-progress material and increase in processing of Russian feed at
Norilsk Nickel Harjavalta as a part of ongoing downstream
reconfiguration[1]. At the same time, nickel production from third party
feed at Kola MMC decreased due to termination of processing of copper cake
from Norilsk Nickel Harjavalta and Nkomati nickel concentrate.
2Q17 copper output in Russia amounted to 99 kt, up 9% q-o-q. In 1H17, copper
output amounted to 190 kt, up 9% y-o-y. The increase of copper output in
reported periods was attributed to the launch of processing of concentrate
purchased from Rostec and reduction of metal losses in recovery of copper
into copper concentrate as a result of modernization of Talnakh
Concentrator.
2Q17 palladium and platinum output in Russia amounted to 773 koz (up 45%
q-o-q) and to 188 koz (up 50% q-o-q), respectively. The increase of PGM
output was due to processing of concentrate accumulated in 1Q17 as
work-in-progress material in transit from the Polar to Kola division and at
Krasnoyarsk Precious Metals Plant.
In 1H17, palladium output in Russia was unchanged y-o-y at 1,307 koz, while
platinum output amounted to 313 koz (down 4% y-o-y). The decrease of
platinum output was mainly attributed to the change in metal content in
mined ore.
Norilsk Nickel Harjavalta (Finland)
2Q17 nickel production at Norilsk Nickel Harjavalta amounted to 11 kt, down
32% q-o-q, with nickel output from the Company's own Russian feed amounting
to 10 kt, down 25% q-o-q. The decrease was attributed to scheduled annual
repair works at the Harjavalta refinery.
In 1H17, nickel output amounted to 27 kt, up 21% y-o-y. The increase was
attributed to higher processing volumes of Russian feed as a result of the
downstream assets reconfiguration.
2Q17 output of copper at Norilsk Nickel Harjavalta amounted to 2 kt (down
41% q-o-q). Copper output from the Company's own Russian feed reached 2 kt
(down 23% q-o-q). The decrease was attributed to scheduled annual repair
works at the Harjavalta refinery.
In 1H17, copper output almost doubled y-o-y to 5 kt. The increase was
attributed to higher processing volumes of Russian feed as a result of the
downstream assets reconfiguration.
2Q17 output of saleable palladium and platinum (in copper cake) amounted to
8 koz (-58% q-o-q) and 2 koz (-60% q-o-q), respectively. The decrease was
attributed to scheduled annual repair works at the Harjavalta refinery.
In 1H17, output of palladium and platinum reached 27 koz (up 29% y-o-y) and
7 koz (down 8% y-o-y), respectively. The decline of platinum was attributed
to the substitution of purchased feed from third parties by Russian feed
with lower platinum content.
2017 Production guidance from Russian feedstock:
Metals Volumes
Ni, kt 206-211
Cu, kt 377-387
Pd, koz 2,636-2,732
Pt, koz 581-645
NORILSK NICKEL 2Q 1Q Q-o-Q, 1H 1H Y-o-Y,
GROUP SALEABLE 2017 2017 % 2017 2016 %
METALS PRODUCTION
TOTAL METAL
PRODUCTION 1
Nickel, t 49,418 53,487 -8% 102,905 121,574 -15%
thereof from own 48,343 49,504 -2% 97,847 98,772 -1%
Russian feed
Copper, t 100,804 94,238 7% 195,042 177,475 10%
thereof from own 100,228 91,825 9% 192,053 171,573 12%
Russian feed
Palladium, koz 781 553 41% 1,334 1,331 0%
thereof from own 759 521 46% 1,280 1,303 -2%
Russian feed
Platinum, koz 190 130 46% 320 334 -4%
thereof from own 183 118 55% 301 323 -7%
Russian feed
Polar division and
Kola MMC (Russia)
Nickel, t 38,430 37,423 3% 75,853 99,220 -24%
Polar division 0 0 - 0 44,350 -100%
Kola MMC 38,430 37,423 3% 75,853 54,870 38%
thereof from own 38,403 36,165 6% 74,568 53,159 40%
Russian feed
thereof from 3d 27 1,258 -98% 1,285 1,711 -25%
parties feed
Copper, t 98,823 90,882 9% 189,705 174,024 9%
Polar division 79,344 71,160 12% 150,504 146,686 3%
Kola MMC 19,479 19,722 -1% 39,201 27,338 43%
thereof from own 18,950 18,161 4% 37,111 24,887 49%
Russian feed
thereof from 3d 529 1,561 -66% 2,090 2,451 -15%
parties feed
(MORE TO FOLLOW) Dow Jones Newswires
July 31, 2017 04:30 ET (08:30 GMT)
Palladium, koz 773 534 45% 1,307 1,310 0%
Polar division 263 169 55% 432 900 -52%
Kola MMC 510 365 40% 875 411 113%
thereof from own 492 343 43% 835 404 107%
Russian feed
thereof from 3d 18 21 -15% 39 7 460%
parties feed
Platinum, koz 188 125 50% 313 326 -4%
Polar division 69 44 55% 113 244 -54%
Kola MMC 119 81 47% 200 82 144%
thereof from own 113 73 56% 186 79 135%
Russian feed
thereof from 3d 6 8 -26% 14 3 370%
parties feed
Norilsk Nickel
Harjavalta
(Finland) 2
Nickel, t 10,988 16,064 -32% 27,052 22,354 21%
thereof from own 9,940 13,339 -25% 23,279 1,263 1743%
Russian feed
Copper, t 1,981 3,356 -41% 5,337 3,451 55%
thereof from own 1,934 2,504 -23% 4,438 0 -
Russian feed
Palladium, koz 8 19 -58% 27 21 29%
thereof from own 4 8 -50% 12 0 -
Russian feed
Platinum, koz 2 5 -60% 7 8 -8%
thereof from own 1 1 0% 2 0 -
Russian feed
Nkomati (South
Africa) 3
Nickel, t 2,255 2,384 -5% 4,639 5,070 -9%
Copper, t 1,153 1,109 4% 2,262 2,345 -4%
Palladium, koz 12 12 0% 24 23 4%
Platinum, koz 5 5 0% 10 9 11%
Notes:
¹ Totals may vary from the sum of numbers as a result of rounding.
² Production results include processing of nickel concentrate from Russian
feed and purchased materials.
3 Metal in concentrate for sale assuming 50% ownership. The numbers are not
consolidated in the Group totals.
This announcement contains inside information in accordance with Article 7
of EU Regulation 596/2014 of 16 April 2014.
Full name and position of person making the announcement - Vladimir Zhukov,
Vice - president, Investor Relations
ABOUT THE COMPANY
PJSC MMC NORILSK NICKEL is a diversified mining and metallurgical company,
the world's largest producer of refined nickel and palladium and a leading
producer of platinum, cobalt, copper and rhodium. The company also produces
gold, silver, iridium, selenium, ruthenium and tellurium.
The production units of NORILSK NICKEL Group include the Polar Division,
located at the Norilsk Industrial District on Taimyr Peninsula, and Kola
Mining and Metallurgical Company located on the Kola Peninsula in Russia as
well as Harjavalta nickel refinery in Finland.
PJSC MMC NORILSK NICKEL shares are listed on the Moscow and on the
Saint-Petersburg Stock Exchanges. PJSC MMC NORILSK NICKEL ADRs trade over
the counter in the US and on the London and Berlin Stock Exchanges.
Contacts for media relations: Contacts for investor relations:
Phone: +7 (495) 785 58 00 Phone: +7 (495) 786 83 20
Email: pr@nornik.ru Email: ir@nornik.ru
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[1] Starting from the 4Q16 all nickel matte produced at Nadezhda
Metallurgical Plant is shipped for processing to the Kola MMC where its
material amounts refined at Severonickel Plant and the rest in form of
nickel concentrate is shipped to Norilsk Nickel Harjavalta Finland for
refinery.
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Language: English
Company: MMC Norilsk Nickel
1 st Krasnogvardeysky av., 15
123100 Moscow
Russia
Internet: www.nornik.ru
ISIN: US55315J1025
WKN: A140M9
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Munich,
Stuttgart; Open Market in Frankfurt; London, Nasdaq
Category Code: MSCH
TIDM: MNOD
Sequence No.: 4479
End of Announcement EquityStory.RS, LLC News Service
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July 31, 2017 04:30 ET (08:30 GMT)
