MMC Norilsk Nickel (MNOD) PRESS RELEASE October 30, 2017 Public Joint Stock Company "Mining and Metallurgical Company "NORILSK NICKEL" (PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company") NORILSK NICKELGROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 3d QUARTHERAND 9MONTHS OF2017 Moscow - PJSC MMC Norilsk Nickel,the largest refined nickel and palladium producer in the world, announces preliminary consolidated production results for thethirdquarter and nine months of 2017. First Vice-President - Chief Operating Officer, Sergey Dyachenko commented on the 9M17production 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 shouldfully compensate for the reduction ofcopper volumes in 3Q17.We reiterate our2017 metal production guidance». Nickel In 3Q17,consolidated nickel production amounted to 54kt increasing 10% quarter-on-quarter (q-o-q). Nickel output from the Company's own Russian feed reached 53kt, up10% q-o-q. Thegrowthwasmainly attributedtothe increaseinproduction at Norilsk Nickel Harjavaltaas the refinery was undergoing scheduled repairs in 2Q17. In 9M17, nickel output amounted to 157kt decreasing 11% year-on-year (y-o-y) drivenprimarily 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, up4% y-o-y,as Talnakh Concentrator reached its design parameters. Copper In 3Q17, consolidated copper production amounted to 96kt, down4% 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 concentratein 4Q17, which should compensate for the decrease ofcopper volumes in the reported quarter. In 9M17, copper output amounted to 291kt, up 10% y-o-y driven mostly by the processing of concentrate purchased from Rostecand reducedmetal 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 693koz (down11% q-o-q) and 174koz (down 8% q-o-q), respectively. Palladium output from the Company's own Russian feed reached 687koz, down 9% q-o-q and platinum output reached 172koz, down 6% q-o-q. The decrease was attributedto a high base effect of 2Q17 when the Company processed precious metal concentrate accumulated in 1Q17 (PGMs contained in the nickel matte, which wasshipped for processing from the Polar to Kola division) and at Krasnoyarsk Precious Metals Plant. In 9M17, palladium and platinum output amounted to 2,026koz (up 2% y-o-y) and 493koz (flat y-o-y), respectively. The increase in palladium output was attributed to the changeinmetal content in mined ore.
Due tothe shutdownof Nickel plant in the Polar division, since2H16 allsaleable nickel has been producedat 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 115kt, down18% 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 92kt, 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 TalnakhConcentrator. In 3Q17, palladium and platinum output in Russia amounted to 682 koz (down 12% q-o-q) and to 171koz (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 wasshipped 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.
In 3Q17, nickel production at Norilsk Nickel Harjavaltaamounted to 15kt,up40% q-o-q, withthe 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 2Q17when the refinery was undergoing scheduled repairs. In 9M17, nickel output amounted to 42kt,up15% 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 downstreamassets reconfiguration. In 3Q17, output of copper at Norilsk Nickel Harjavalta amounted to 4kt(increased2-fold q-o-q), almost all of which was produced from own Russian feed. The increase was from a low base of 2Q17 whenthe 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 downstreamassets reconfiguration. In 3Q17, output of saleable palladium and platinum (in copper cake) amounted to 11koz (up 38% q-o-q) and 3koz (up 50% q-o-q),respectively.The increase was from a low base of2Q17 when the refinery was undergoing scheduled repairs. In 9M17, output of palladium and platinum reached 38koz (down 5% y-o-y) and 10koz (down32% y-o-y), respectively. The declinewas 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:
Notes: ¹Totals may vary from the sum of numbers as a result of rounding. ²Production results include processing of nickel concentrate fromRussian feed and purchased materials. 3Metal in concentrate for sale assuming 50% ownership. The numbers are not consolidated in the Group totals.
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 NICKELGroup 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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ISIN: | US55315J1025 |
Category Code: | MSCH |
TIDM: | MNOD |
Sequence No.: | 4790 |
End of Announcement | EQS News Service |
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