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MMC Norilsk Nickel (MNOD)
MMC Norilsk Nickel: NORILSK NICKEL ANNOUNCES PRELIMINARY CONSOLIDATED
PRODUCTION RESULTS FOR 1Q 2018
26-Apr-2018 / 11:00 MSK
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
26 April 2018
Public Joint Stock Company "Mining and Metallurgical Company "NORILSK
NICKEL"
(PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company")
NORILSK NICKEL ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 1Q
2018
Moscow - PJSC MMC Norilsk Nickel, the largest palladium and refined nickel
producer in the world, announces today preliminary consolidated production
results for the first quarter 2018.
First Vice-President, Chief Operating Officer, Sergey Dyachenko commented on
the 1Q18 production results: "As the main phase of our downstream
reconfiguration program was completed last year and thus work-in-progress
inventory levels got normalized, the Company increased production of all key
metals in the first quarter of this year. In addition, the Company also
actively processed copper concentrate purchased from Rostec. As a result,
metal production from the Company's own Russian feed increased in the first
quarter by 8-22% year-on-year. Furthermore, Norilsk Nickel Harjavalta was
almost 100% loaded by the Company's Russian feed. In April 2018, the first
batch of copper concentrate, produced during the hot commissioning stage
aiming at reaching the project's target parameters at Bystrinsky GOK (Chita
Copper Project), was shipped to Chinese customers. We have however reduced
the 2018 production targets for the Chita project due to the ramp-up issues
at the FLS and Outotec supplied equipment, which we plan to sort out in this
quarter. This year, Kola MMC's nickel refining capacity is scheduled for
intensive modernization and transition to a new chlorine leaching
technology. Overall, we confirm our 2018 targets for metal production from
our own Russian feed."
Nickel
In 1Q18, consolidated nickel production amounted to 54 kt increasing 1%
year-on-year (y-o-y). Nickel output from the Company's own Russian feed
increased 8% y-o-y to 53 kt. The growth was mainly attributed to the
increase in processing volumes of nickel matte shipped from Polar division
to Kola MMC and Norilsk Nickel Harjavalta as result of downstream
reconfiguration.
Copper
In 1Q18, consolidated copper production increased 18% y-o-y to 112 kt.
Copper output from the Company's own Russian feed increased 22% y-o-y to 112
kt mainly owing to an increase in processing of metals' concentrate
purchased from Rostec [1].
Platinum Group Metals
In 1Q18, palladium and platinum were produced solely from the Company's own
Russian feed, with their volumes increasing 6% y-o-y to 583 koz and 138 koz,
respectively. The increase of PGM output was mostly due to the lower base
effect of the 1Q17, when PGMs work-in-progress inventory was building up. At
the same time, in the reported quarter, the output of palladium and platinum
from the Company's own Russian feed increased 12% and 17% y-o-y,
respectively. In 1Q18, production of PGMs from third party feed was stopped
due to the practical suspension of third party feed processing at Norilsk
Nickel Harjavalta.
RUSSIAN OPERATIONS
In 1Q18, nickel output at Kola MMC increased by a minor 1% y-o-y to 38 kt,
which was driven mostly by the processing of additional volumes of nickel
matte shipped from Polar division.
In 1Q18, copper output at the Company's operations in Russia increased 18%
y-o-y to 107 kt mainly owing to an increase in processing volumes of metals'
concentrate purchased from Rostec.
In 1Q18, palladium output in Russia increased 7% y-o-y to 571 koz, while
platinum output was up 8% y-o-y to 136 koz. The increase of PGM production
volumes owed mostly to the lower base effect of the 1Q17, when PGMs
work-in-progress inventory was building up.
In 1Q18, almost all saleable metals produced by the Company in Russia were
from its own feed.
NORILSK NICKEL HARJAVALTA (FINLAND)
In 1Q18, nickel production at Norilsk Nickel Harjavalta increased 2% y-o-y
to 16 kt, almost all of which were produced from the Company's own Russian
feed (16 kt, +21% y-o-y). The small growth was attributed to the increase in
processing of Russian feed as result of downstream reconfiguration.
In 1Q18, all of the copper produced at Norilsk Nickel Harjavalta was from
the Company's own Russian feed and increased 39% y-o-y to 5 kt. The growth
was attributed to the increase in processing of Russian feed as result of
downstream reconfiguration.
In 1Q18, output of saleable palladium (palladium in copper cake) reduced 18%
y-o-y to 12 koz, while output of saleable platinum (platinum in copper cake)
reduced 52% y-o-y to 2 koz. The decrease of PGM output at Harjavalta owed to
the substitution of purchased feed from third parties by the Company's own
Russian feed with a lower PGM content.
NORILSK NICKEL NKOMATI (SOUTH AFRICA)
In 1Q18, output at Nkomati (50% Norilsk Nickel owned) reduced - amounted to
2 kt of nickel, 0.7 kt of copper, 6 koz of palladium and 2 koz of platinum.
The decrease from the same period of last year was attributed to a lower ore
output and lower metal grades.
Production guidance from the Company's own Russian feed for 2018:
Metals Volume
Norilsk Nickel Group (excluding Chita project)
Ni, kt 210-215
Cu, kt 400-420
Pd, koz 2,630-2,725
Pt, koz 600-650
Bystrinsky (Chita) Copper Project (1)
Cu, kt 25-31
Au, koz 90-110
Note: 1.Norilsk Nickel owns 50.1% of Bystrinsky (Chita Copper) Project.
Production results shown on 100% basis and fully consolidated in Company's
financial and operational results.
NORILSK NICKEL GROUP SALEABLE METALS 1Q 2018 1Q 2017 Y-o-Y, %
PRODUCTION
TOTAL METAL PRODUCTION¹
Nickel, t 54,063 53,487 1%
thereof from own Russian feed 53,322 49,454 8%
Copper, t 111,598 94,192 18%
thereof from own Russian feed 111,515 91,739 22%
Palladium, koz 583 549 6%
thereof from own Russian feed 583 521 12%
Platinum, koz 138 130 6%
thereof from own Russian feed 138 118 17%
Polar division and Kola MMC (Russia)
Nickel, t 37,667 37,423 1%
Kola division 37,667 37,423 1%
thereof from Russian feed 37,182 36,165 3%
thereof from 3d parties feed 485 1,258 -61%
Copper, t 107,012 90,882 18%
Polar division 87,713 71,160 23%
Kola division 19,299 19,722 -2%
thereof from Russian feed 19,216 18,161 6%
thereof from 3d parties feed 83 1,561 -95%
Palladium, koz 571 534 7%
Polar division 152 169 -11%
Kola division 419 365 15%
thereof from Russian feed 419 343 22%
thereof from 3d parties feed 0 21 -100%
Platinum, koz 136 125 8%
Polar division 40 44 -10%
Kola division 96 81 19%
thereof from Russian feed 96 73 32%
thereof from 3d parties feed 0 8 -100%
Norilsk Nickel Harjavalta (Finland)2
Nickel, t 16,396 16,064 2%
thereof from Russian feed 16,140 13,289 21%
Copper, t 4,586 3,310 39%
thereof from Russian feed 4,586 2,418 90%
Palladium, koz 12 15 -18%
thereof from Russian feed 12 8 54%
Platinum, koz 2 5 -52%
thereof from Russian feed 2 1 140%
Nkomati (South Africa)3
Nickel, t 1,736 2,384 -27%
Copper, t 667 1,109 -40%
Palladium, koz 6 12 -50%
Platinum, koz 2 5 -60%
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.
Nkomati's performance is reflected in financial results using
proportional consolidation according to our stake and not
reflected in other 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
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