DJ MMC Norilsk Nickel: NORILSK NICKEL ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 1Q 2019
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MMC Norilsk Nickel (MNOD)
MMC Norilsk Nickel: NORILSK NICKEL ANNOUNCES PRELIMINARY CONSOLIDATED
PRODUCTION RESULTS FOR 1Q 2019
25-Apr-2019 / 13:00 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
25 April 2019
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
2019
Moscow - PJSC MMC Norilsk Nickel, the world's largest refined nickel and
palladium producer, announces today preliminary consolidated production
results for the first quarter 2019.
First Vice-President - Chief Operating Officer, Sergey Dyachenko commented
on the 1Q19 production results:
«In 1Q 2019, we increased the output of all key metals, of which the most
significant growth was delivered in PGMs and copper. The increase in PGMs'
production was due to a release of accumulated work-in-progress inventory at
Krasnoyarsk Precious Metals Refinery. The increase in copper was driven by
an accelerated processing of concentrate purchased from Rostec [1] and the
ramp up of Bystrinsky Project. We reiterate our metal production guidance
from own Russian feed, including Bystrinsky Project, for FY2019».
NORILSK NICKEL GROUP
Nickel
In 1Q19, consolidated nickel production was up 3.4% year-on-year (y-o-y) to
56 kt. Nickel output from the Company's own Russian feed increased 2.8%
y-o-y to 55 kt. The growth was mainly attributed to the higher processed
volumes of nickel matte shipped from Polar division to Kola MMC as well as a
higher output of metal produced from third party feed at Norilsk Nickel
Harjavalta.
Copper
In 1Q19, consolidated copper output was up 13% y-o-y to 127 kt, almost all
of which were produced from the Company's own Russian feed. The growth was
driven by the ramp-up of Bystrinsky (Chita Copper) Project, increased mined
ore volumes with higher copper grades and processing of concentrate
purchased from Rostec.
Platinum Group Metals
In 1Q19, almost all of palladium and platinum were produced from the
Company's own Russian feed, with their output amounting to 770 koz (+32%
y-o-y) and 204 koz (+48% y-o-y), respectively. The increase of PGM output
was attributed to a seasonal release of work-in-progress inventory and
additional volumes of nickel matte with high PGM content processed at
Norilsk Nickel Harjavalta in addition to concentrates.
RUSSIAN OPERATIONS
In 1Q19, all saleable metals produced by the Company's Russian operations
came from their own feed.
Nickel
In 1Q19, nickel output at Kola MMC increased 4% y-o-y to 39 kt. The growth
of nickel output was attributed to increase of carbonyl nickel production at
Kola MMC to 1,1 kt (+84% y-o-y) as part of strategic diversification of
sales into premium products)) and higher processed volumes of nickel matte
shipped from Polar division to Kola MMC.
Copper
In 1Q19, copper output at the Company's operations in Russia increased 14%
y-o-y to 122 kt. The growth was attributed to an increase in processed
volumes of ore with higher metal grades at Polar Division and higher metal
output from concentrate purchased from Rostec. Bystrinsky Project was
ramping up on schedule, increasing 14 -fold y-o-y to 10 kt of copper in
copper concentrate.
Platinum Group Metals
In 1Q19, palladium and platinum output in Russia increased 31% y-o-y to 748
koz and 47% y-o-y to 199 koz, respectively. The PGM production volumes
increased primarily owing to seasonal processing of accumulated
work-in-progress inventory with a high degree of completion.
NORILSK NICKEL HARJAVALTA (FINLAND)
Nickel
In 1Q19, nickel production at Norilsk Nickel Harjavalta increased 2% y-o-y
to 17 kt. The increase was attributed to processing of nickel feed supplied
by Boliden, which entered into a three-year contract with Nornickel enabling
it the most efficient utilization of Harjavalta refining capacity.
Copper
In 1Q19, copper output at Norilsk Nickel Harjavalta decreased 3% q-o-q to 4
kt. The decrease was attributed to lower copper content in processed Russian
feed.
Platinum Group Metals
In 1Q19, output of saleable palladium and platinum (both contained in copper
cake) amounted to 22 koz (up 79% y-o-y) and 5 koz (up 131% y-o-y),
respectively. The increase in PGM output was attributed to higher metal
content in processed Russian feed related to shipments of high-grade matte
from Kola MMC.
NKOMATI (SOUTH AFRICA)*
In 1Q19, Nkomati (50% - owned by Norilsk Nickel) produced 2 kt of nickel (up
29% y-o-y), 1 kt of copper (up 48% y-o-y), 11 koz of palladium (up 78%
y-o-y) and 4 koz of platinum (up 119% y-o-y). The increase in metals
production was attributed to higher volumes of mined ore with higher metal
content.
Note: Nkomati production results are not consolidated in the Group's total
operating results.
2019 Production Guidance from Russian feedstock:
Metals Volume
Norilsk Nickel Group (excluding Chita)
Ni, kt 220-225
Cu, kt 430-450
Pd, koz 2,770-2,800
Pt, koz 646-670
Bystrinsky (Chita) Copper Project *
Cu, kt 40-46
Au, koz 192-212
Note: Norilsk Nickel owns 50.01% of Bystrinsky (Chita Copper) Project.
Production results are shown on a 100% basis and are fully consolidated in
the Company's financial and operating results. The hot commissioning of the
project started on October 31, 2017.
NORILSK NICKEL GROUP SALEABLE METALS Unit 1Q 1Q Y-o-Y
PRODUCTION 1 2019 2018
Total nickel t 55,915 54,062 3%
including from own Russian feed t 54,832 53,320 3%
Total copper t 126,765 112,290 13%
including from own Russian feed t 126,651 112,207 13%
Total palladium koz 770 582 32%
including from own Russian feed koz 769 582 32%
Total platinum koz 204 138 48%
including from own Russian feed koz 203 138 47%
Polar division and Kola MMC (Russia)
Nickel t 39,265 37,666 4%
Kola MMC, including t 39,265 37,666 4%
refined Ni from own Russian feed t 38,983 37,081 5%
Ni in saleable concentrate from own t 282 99 185%
Russian feed
from 3d parties feed t 0 486 -
Copper t 112,307 107,012 5%
Polar division t 90,569 87,713 3%
Kola MMC, including t 21,738 19,299 13%
Cu cathodes from own Russian feed t 17,648 17,671 0%
Cu in saleable concentrate from own t 4,090 1,545 165%
Russian feed
from 3d parties feed t 0 83 -
Palladium koz 748 570 31%
Polar division koz 186 152 23%
Kola MMC, including koz 562 418 34%
from own Russian feed koz 562 418 34%
from 3d parties feed koz 0 0 -
Platinum koz 199 136 47%
Polar division koz 44 40 10%
Kola MMC, including koz 155 96 62%
from own Russian feed koz 155 96 62%
from 3d parties feed koz 0 0 -
GRK Bystrinskoye (Russia, Zabaykaisky
Krai) 2
Copper t 10,030 692 1349%
Gold koz 43 2 2050%
Iron ore concentrate kt 162 0 -
Norilsk Nickel Harjavalta (Finland)
Nickel, including t 16,650 16,396 2%
from own Russian feed t 15,567 16,140 -4%
from 3d parties feed t 1,082 256 323%
Copper, including t 4,428 4,586 -3%
from own Russian feed t 4,314 4,586 -6%
from 3d parties feed t 114 0 -
Palladium, including koz 22 12 79%
from own Russian feed koz 21 12 69%
from 3d parties feed koz 1 0 -
Platinum, including koz 5 2 131%
from own Russian feed koz 4 2 89%
from 3d parties feed koz 1 0 -
Nkomati (South Africa) 3
Nickel t 2,245 1,736 29%
Copper t 989 667 48%
Palladium koz 11 6 78%
Platinum koz 4 2 119%
Notes:
1) Total amounts may vary from the sum of numbers due to arithmetical
rounding. The production results of Nkomati are not included in the total
amounts of the Group.
(MORE TO FOLLOW) Dow Jones Newswires
April 25, 2019 06:00 ET (10:00 GMT)
2) Norilsk Nickel Group owns 50.01% of Bystrinsky GOK (Chita Copper
Project). Production results are reported as metal contained in saleable
concentrate on a 100% basis and are fully consolidated in the Group's
total operating results. The hot commissioning of the project started on
October 31, 2017.
3) Norilsk Nickel Group owns 50% of Nkomati. Production results are
reported as metal contained in saleable concentrate on a 50% basis and are
not consolidated in the Group's total operating results.
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 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.
Media Relations: 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.: 8333
EQS News ID: 803377
End of Announcement EQS News Service
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April 25, 2019 06:00 ET (10:00 GMT)
