MMC Norilsk Nickel
MMC Norilsk Nickel: NORILSK NICKEL ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 2nd QUARTER AND 1st HALF 2016
MMC Norilsk Nickel / Miscellaneous – High Priority
NORILSK NICKEL ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 2nd QUARTER AND 1st HALF 2016 Moscow, July 29, 2016 – PJSC MMC Norilsk Nickel (hereinafter – Nornickel or the Company), the world’s largest nickel and palladium producer, announces preliminary consolidated production results for the second quarter and the first half of 2016. Nickel 2Q16 consolidated nickel production amounted to 58 kt decreasing 9% quarter-on-quarter (q-o-q). Nickel output from the Company’s own Russian feed reached 47 kt, down 9% q-o-q. The reduction was driven by the increase of work-in-progress material in transit due to shut down of smelting and roasting capacities of Nickel Plant and lower metal content in mined ore. Overall in 1H16, nickel output amounted to 122 kt decreasing 7% year-on-year (y-o-y) driven mostly by one-off increase of work-in-progress material in transit due to the ongoing reconfiguration of downstream production facilities at Polar division and lower metal content in mined ore. Copper 2Q16 consolidated copper production amounted to 90 kt increasing 3% q-o-q. Copper output from the Company’s own Russian feed reached 86 kt, up 1% q-o-q. The increase was attributed to higher copper content in mined ore. Overall in 1H16, copper output amounted to 177 kt decreasing 3% y-o-y driven mostly by the increase of work-in-progress material in transit. Platinum Group Metals 2Q16 consolidated palladium and platinum output amounted to 688 koz (up 7% q-o-q) and 162 koz (down 5% q-o-q), respectively. Palladium output from the Company’s own Russian feed reached 678 koz, up 8% q-o-q and platinum output reached 159 koz, down 3% q-o-q. The growth of palladium and decrease of platinum output was mainly attributed to a respective change of metal content in mined ore. Overall in 1H16, palladium and platinum output amounted to 1,330 koz (down 2% y-o-y) and 333 koz (down 2% y-o-y), respectively. The decline was driven mostly by the ongoing reconfiguration of downstream production facilities at Polar division and increase of work-in-progress material in transit. Russian operations In 2Q16, Russian assets produced 47 kt of nickel, down 8% q-o-q. In 1H16, total nickel output by the Pola and Kola divisions decreased 8% y-o-y to 99 kt. The reduction was attributed to lower processing volumes of rich ore due to the pre-commissioning activities as a part of the second phase of Talnakh Concentrator upgrade and the increase of production from Russian feed at Norilsk Nickel Harjavalta in line with the reconfiguration program. In 2Q16, copper output in Russia amounted to 88 kt, up 3% q-o-q. The growth was attributed to an increase of cuprous ores mined and processed by the Polar division. In 1H16, copper output amounted to 174 kt, down 1% y-o-y. The slight reduction was attributed to the start of concentrate production for further processing at Norilsk Nickel Harjavalta and a respective increase of work-in-progress material in transit. In reported periods, Kola copper production from third parties surged due to the increase of processing of copper cake received from Norilsk Nickel Harjavalta. In 2Q16, palladium output in Russia reached 678 koz (up 7% q-o-q) and platinum output from Company’s Russian operations amounted to 159 koz (down 5% q-o-q). Overall in 1H16, palladium output in Russia stayed almost flat y-o-y at 1,311 koz and platinum output from Company’s Russian operations amounted to 326 koz (up 1% y-o-y). The growth of palladium and decrease of platinum output was mainly attributed to the change in metal content in mined ore. Norilsk Nickel Finland In 2Q16, Norilsk Nickel Harjavalta produced approximately 11 kt of nickel, down 12% q-o-q. The decrease was driven by scheduled repairs at the refinery. Nickel output from the Company’s own Russian feed reached 0.8 kt, up 50% q-o-q, which was mainly attributed to the processing of Russian concentrate as part of the reconfiguration program. In 1H16, nickel output amounted to 22 kt increasing 2% y-o-y. The growth was attributed to the increased processing volumes of Russian feed and materials purchased from third parties. In 2Q16, output of copper increased 14% q-o-q to 2 kt, which was attributed to higher copper content in supplied ore. In 1H16, copper output decreased almost two-fold y-o-y to 3 kt. The reduction of output was driven by shipment of copper cake for processing to Kola MMC. In 2Q16, Norilsk Nickel Harjavalta increased the production of palladium (in copper cake) by 12% q-o-q to 10 koz and the production of platinum (in copper cake) stayed almost flat q-o-q at 4 koz. In 1H16, output of palladium and platinum reached 19 koz (down 54% y-o-y) and 8 koz (down 53% y-o-y) respectively. The decrease of PGM output was driven by shipment of copper cake for processing to Kola MMC. Nornickel confirms that it is on track to meet its 2016 metal production guidance from Russian feed: 2016 Production Guidance (from Russian feed):
Notes: ABOUT THE COMPANY Nornickel 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 Nornickel 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. Nornickel shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges. Nornickel 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
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Language: | English | |
Company: | MMC Norilsk Nickel | |
1 st Krasnogvardeysky av., 15 | ||
123100 Moscow | ||
Russia | ||
Internet: | www.nornik.ru | |
ISIN: | US55315J1025 | |
WKN: | A140M9 | |
Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart; Open Market in Frankfurt ; London, Nasdaq | |
Category Code: | MSCH | |
TIDM: | MNOD | |
Sequence Number: | 3278 | |
Time of Receipt: | 29-Jul-2016 / 13:00 CET/CEST | |
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