DJ MMC Norilsk Nickel: NORILSK NICKEL GROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 3d QUARTHER AND 9 MONTHS OF 2017
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MMC Norilsk Nickel (MNOD)
MMC Norilsk Nickel: NORILSK NICKEL GROUP ANNOUNCES PRELIMINARY CONSOLIDATED
PRODUCTION RESULTS FOR 3d QUARTHER AND 9 MONTHS OF 2017
30-Oct-2017 / 09:00 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
October 30, 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 3d QUARTHER AND 9 MONTHS OF 2017
Moscow - PJSC MMC Norilsk Nickel, the largest refined nickel and palladium
producer in the world, announces preliminary consolidated production results
for the third quarter and nine months of 2017.
First Vice-President - Chief Operating Officer, Sergey Dyachenko commented
on the 9M17 production results:
«In 3Q17 our nickel production increased by 10% as Talnakh Concentrator
reached its design parameters and Norilsk Nickel Harjavalta nickel refinery
restarted its operations after annual scheduled repair works in 2Q17. Copper
production in the reported quarter decreased as a result of temporary
suspensions of our smelting operations in the Polar division due to
unfavorable weather conditions in Norilsk. The company plans to process
accumulated concentrate in 4Q17, which should fully compensate for the
reduction of copper volumes in 3Q17. We reiterate our 2017 metal production
guidance».
Nickel
In 3Q17, consolidated nickel production amounted to 54 kt increasing 10%
quarter-on-quarter (q -o-q). Nickel output from the Company's own Russian
feed reached 53 kt, up 10% q-o-q. The growth was mainly attributed to the
increase in production at Norilsk Nickel Harjavalta as the refinery was
undergoing scheduled repairs in 2Q17.
In 9M17, nickel output amounted to 157 kt decreasing 11% year-on-year
(y-o-y) driven primarily by the reduction of low-margin processing of third
parties feed as a result of reconfiguration of downstream production
facilities at the Polar division. Nickel output from the Company's own
Russian feed reached 150 kt, up 4% y-o-y, as Talnakh Concentrator reached
its design parameters.
Copper
In 3Q17, consolidated copper production amounted to 96 kt, down 4% q-o-q.
Decrease of copper production was attributed to temporary suspensions at
Copper smelter due to unfavorable meteorological conditions in Norilsk in
order to keep the pollutant concentrations in the residential area within
the limits. The Company plans to process accumulated concentrate in 4Q17,
which should compensate for the decrease of copper volumes in the reported
quarter.
In 9M17, copper output amounted to 291 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 the modernization
of Talnakh Concentrator.
Platinum Group Metals
In 3Q17, consolidated palladium and platinum output amounted to 693 koz
(down 11% q-o-q) and 174 koz (down 8% q-o-q), respectively. Palladium output
from the Company's own Russian feed reached 687 koz, down 9% q-o-q and
platinum output reached 172 koz, down 6% q-o-q. The decrease was attributed
to a high base effect of 2Q17 when the Company processed precious metal
concentrate accumulated in 1Q17 (PGMs contained in the nickel matte, which
was shipped for processing from the Polar to Kola division) and at
Krasnoyarsk Precious Metals Plant.
In 9M17, palladium and platinum output amounted to 2,026 koz (up 2% y-o-y)
and 493 koz (flat y-o-y), respectively. The increase in palladium output was
attributed to the change in metal content in mined ore.
Russian operations
Due to the shutdown of Nickel plant in the Polar division, since 2H16 all
saleable nickel has been produced at two production sites: Kola MMC in
Russia and Norilsk Nickel Harjavalta in Finland. In 3Q17, nickel output in
Russia amounted to 39 kt, up 1% q-o-q.
In 9M17, nickel output in Russia amounted to 115 kt, down 18% y-o-y. The
decrease was driven by decommissioning of Nickel Plant in 2016 and increase
in processing of Russian feed at Norilsk Nickel Harjavalta as a part of
downstream reconfiguration.
In 3Q17, copper output in Russia amounted to 92 kt, down 7% q-o-q. The
decrease of copper output was attributed to temporary suspensions of
smelting operations in the Polar division due to unfavorable meteorological
conditions. The Company plans to process the accumulated concentrate in
4Q17.
In 9M17, copper output amounted to 281 kt, up 9% y-o-y. The increase of
copper output in the reported period 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.
In 3Q17, palladium and platinum output in Russia amounted to 682 koz (down
12% q-o-q) and to 171 koz (down 9% q-o-q), respectively. The decrease of
palladium and platinum output was attributed to a high base effect of 2Q17
when the Company processed precious metal concentrate accumulated in 1Q17
(PGMs contained in the nickel matte, which was shipped for processing from
the Polar to Kola division) and at Krasnoyarsk Precious Metals Plant.
In 9M17, palladium output in Russia reached 1,988 koz (up 2% y-o-y) and
platinum output amounted to 483 koz (up 1% y-o-y). The increase was mainly
attributed to the change in metal content in mined ore.
Norilsk Nickel Harjavalta (Finland)
In 3Q17, nickel production at Norilsk Nickel Harjavalta amounted to 15 kt,
up 40% q-o-q, with the most of the nickel output being produced from the
Company's own Russian feed (up 50% q-o-q) except for 0,5 kt, which were
produced from third parties feed. The increase was from a low base of 2Q17
when the refinery was undergoing scheduled repairs.
In 9M17, nickel output amounted to 42 kt, up 15% y-o-y, with nickel output
from the Company's own Russian feed amounting to 38 kt (increased 6-fold
y-o-y). The increase was attributed to higher processing volumes of Russian
concentrate as a part of the downstream assets reconfiguration.
In 3Q17, output of copper at Norilsk Nickel Harjavalta amounted to 4 kt
(increased 2-fold q-o-q), almost all of which was produced from own Russian
feed. The increase was from a low base of 2Q17 when the refinery was
undergoing scheduled repairs.
In 9M17, copper output amounted to 9 kt (up 48% y-o-y), with copper output
from the Company's own Russian feed amounting to 8,3 kt. The increase was
attributed to higher processing volumes of Russian concentrate as a part of
the downstream assets reconfiguration.
In 3Q17, output of saleable palladium and platinum (in copper cake) amounted
to 11 koz (up 38% q-o-q) and 3 koz (up 50% q-o-q), respectively. The
increase was from a low base of 2Q17 when the refinery was undergoing
scheduled repairs.
In 9M17, output of palladium and platinum reached 38 koz (down 5% y-o-y) and
10 koz (down 32% y-o-y), respectively. The decline was attributed to the
substitution of purchased feed from third parties by the Russian feed with a
lower PGMs 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 3Q 2Q Q-o-Q, 9M 9M Y-o-Y,
GROUP SALEABLE 2017 2017 % 2017 2016 %
METALS PRODUCTION
TOTAL METAL
PRODUCTION 1
Nickel, t 54,175 49,418 10% 157,101 177,356 -11%
thereof from own 52,940 48,081 10% 150,406 144,064 4%
Russian feed
Copper, t 95,949 100,804 -5% 290,874 264,043 10%
thereof from own 95,800 100,200 -4% 287,565 253,250 14%
Russian feed
Palladium, koz 693 781 -11% 2,026 1,981 2%
thereof from own 687 759 -9% 1,966 1,919 2%
Russian feed
Platinum, koz 174 190 -8% 493 491 0%
thereof from own 172 183 -6% 471 467 1%
Russian feed
Polar division and
Kola MMC (Russia)
Nickel, t 38,782 38,430 1% 114,635 140,326 -18%
Polar division 0 0 - 0 50,860 -100%
Kola MMC 38,782 38,430 1% 114,635 89,466 28%
thereof from own 38,043 38,141 0% 112,349 86,600 30%
Russian feed
thereof from 3d 739 289 156% 2,286 2,866 -20%
parties feed
Copper, t 91,720 98,823 -7% 281,425 257,638 9%
Polar division 71,555 79,344 -10% 222,059 211,042 5%
Kola MMC 20,165 19,479 4% 59,366 46,596 27%
thereof from own 20,087 18,922 6% 57,170 42,208 35%
Russian feed
thereof from 3d 78 557 -86% 2,196 4,388 -50%
parties feed
Palladium, koz 682 773 -12% 1,988 1,941 2%
Polar division 264 263 0% 696 1,335 -48%
Kola MMC 418 510 -18% 1,292 607 113%
thereof from own 412 492 -16% 1,247 585 113%
Russian feed
thereof from 3d 6 18 -67% 45 22 105%
parties feed
(MORE TO FOLLOW) Dow Jones Newswires
October 30, 2017 04:01 ET (08:01 GMT)
Platinum, koz 171 188 -9% 483 476 1%
Polar division 77 69 12% 190 352 -46%
Kola MMC 94 119 -21% 293 124 136%
thereof from own 92 113 -19% 277 115 141%
Russian feed
thereof from 3d 2 6 -67% 16 9 78%
parties feed
Norilsk Nickel
Harjavalta
(Finland) 2
Nickel, t 15,393 10,988 40% 42,466 37,030 15%
thereof from own 14,897 9,940 50% 38,057 6,604 476%
Russian feed
Copper, t 4,229 1,981 113% 9,449 6,405 48%
thereof from own 4,158 1,934 115% 8,336 0 -
Russian feed
Palladium, koz 11 8 38% 38 40 -5%
thereof from own 11 4 175% 23 0 -
Russian feed
Platinum, koz 3 2 50% 10 15 -32%
thereof from own 3 1 200% 4 0 -
Russian feed
Nkomati (South
Africa) 3
Nickel, t 1,891 2,255 -16% 6,531 6,599 -1%
Copper, t 1,228 1,153 7% 3,490 3,138 11%
Palladium, koz 13 12 8% 37 31 19%
Platinum, koz 5 5 0% 15 12 25%
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
ISIN: US55315J1025
Category Code: MSCH
TIDM: MNOD
Sequence No.: 4790
End of Announcement EQS News Service
623611 30-Oct-2017
(END) Dow Jones Newswires
October 30, 2017 04:01 ET (08:01 GMT)
