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 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.


Russian operations

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.


Norilsk Nickel Harjavalta (Finland)

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:

Metals

Volumes

Ni, kt

206-211

Cu, kt

377-387

Pd, koz

2,636-2,732

Pt, koz

581-645

 

NORILSK NICKEL GROUP SALEABLE METALS PRODUCTION

3Q
2017

2Q
2017

Q-o-Q,
%

9M
2017

9M
2016

Y-o-Y,
%

TOTAL METAL PRODUCTION 1

 

 

 

 

 

 

Nickel, t

54,175

49,418

10%

157,101

177,356

-11%

thereof from own Russian feed

52,940

48,081

10%

150,406

144,064

4%

Copper, t

95,949

100,804

-5%

290,874

264,043

10%

thereof from own Russian feed

95,800

100,200

-4%

287,565

253,250

14%

Palladium, koz

693

781

-11%

2,026

1,981

2%

thereof from own Russian feed

687

759

-9%

1,966

1,919

2%

Platinum, koz

174

190

-8%

493

491

0%

thereof from own Russian feed

172

183

-6%

471

467

1%

Polar division and Kola MMC (Russia)

 

 

 

 

 

 

Nickel, t

38,782

38,430

1%

114,635

140,326

-18%

Polardivision

0

0

-

0

50,860

-100%

Kola MMC

38,782

38,430

1%

114,635

89,466

28%

 thereof from own Russian feed

38,043

38,141

0%

112,349

86,600

30%

thereof from 3d parties feed

739

289

156%

2,286

2,866

-20%

Copper, t

91,720

98,823

-7%

281,425

257,638

9%

Polardivision

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 Russian feed

20,087

18,922

6%

57,170

42,208

35%

thereof from 3d parties feed

78

557

-86%

2,196

4,388

-50%

Palladium, koz

682

773

-12%

1,988

1,941

2%

Polardivision

264

263

0%

696

1,335

-48%

Kola MMC

418

510

-18%

1,292

607

113%

 thereof from own Russian feed

412

492

-16%

1,247

585

113%

thereof from 3d parties feed

6

18

-67%

45

22

105%

Platinum, koz

171

188

-9%

483

476

1%

Polardivision

77

69

12%

190

352

-46%

Kola MMC

94

119

-21%

293

124

136%

 thereof from own Russian feed

92

113

-19%

277

115

141%

thereof from 3d parties feed

2

6

-67%

16

9

78%

NorilskNickelHarjavalta (Finland) 2

 

 

 

 

 

 

Nickel, t

15,393

10,988

40%

42,466

37,030

15%

 thereof from own Russian feed

14,897

9,940

50%

38,057

6,604

476%

Copper, t

4,229

1,981

113%

9,449

6,405

48%

 thereof from own Russian feed

4,158

1,934

115%

8,336

0

-

Palladium, koz

11

8

38%

38

40

-5%

 thereof from own Russian feed

11

4

175%

23

0

-

Platinum, koz

3

2

50%

10

15

-32%

 thereof from own Russian feed

3

1

200%

4

0

-

Nkomati (SouthAfrica) 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:

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.

 


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 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

 



ISIN: US55315J1025
Category Code: MSCH
TIDM: MNOD
Sequence No.: 4790

 
End of Announcement EQS News Service

623611  30-Oct-2017 

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