Nyrstar Nv · EURONEXT:NYR
Nyrstar Nv — Q1 2016 Earnings Presentation
20 slides from Nyrstar Nv's earnings presentation, Apr 27, 2016
Slide 1: Q1 2016 Interim Management Statement
27 APRIL 2016 Q1 2016 Interim Management Statement
Slide 2: Important Notice
Important Notice This presentation has been prepared by the management of Nyrstar NV (the "Company"). It does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any
Slide 3: Agenda
Agenda Q1 2016 Performance Review Financial Update Q2 2016 Priorities 3
Slide 4: Overview of Q1 2016
Q1 2016 Performance Review Overview of Q1 2016 Group Underlying EBITDA of EUR 37 million for Q1 2016, a decrease of EUR 31 million on Q1 2015, primarily due to lower commodity prices Net debt of EUR 639 million at 31 March 2016, a decrease of EUR 122 million on 31 December 2015 Production in Q
Slide 5: Q1 2016 Market Review
Q1 2016 Market Review Zinc prices have improved significantly during Q1’16 against Q4’15; EUR:USD volatile in Q1’16 and expected to trend lower in 2016 LME zinc price Zinc pricing 2,400 $2,080/t $2,189/t $1,847/t $1,613/t $1,679/t Market sentiment towards zinc has improved significantly during 2,2
Slide 6: Q1 2016 Safety Review
Q1 2016 Safety Review Despite significant improvements in safety performance, Nyrstar tragically had three Mining fatalities in Q1 2016 Lagging Safety Indicators Safety Preventing harm is a core value of Nyrstar 13.0 Tragically, two fatalities occurred in January 2016; 11.4 and one fatality in F
Slide 7: Port Pirie Redevelopment remains on schedule and budget
Strategic priorities Port Pirie Redevelopment remains on schedule and budget Overall capital cost to complete the project remains targeted at AUD 563 million and is fully funded As at 31 March 2016, capex incurred was AUD 422 million, with AUD 511 million committed During Q1 2016 all major eng
Slide 8: Mining divestment and cash/cost saving initiatives progressing
Strategic priorities Mining divestment and cash/cost saving initiatives progressing Formal launch of the sale process for all or the majority of the mining assets was announced on 7 January 2016 Second phase of the divestment process is under way with sites visits and more detailed due diligence
Slide 9: Continued progress on the strategic priorities announced in November 2015
Strategic priorities Continued progress on the strategic priorities announced in November 2015 Dec-15 Mar-16 Balance Sheet Completed zinc metal prepayment financing of USD 150 million Strengthening Completed Rights Offering of EUR 274 million Measures Continuing to assess and progress addition
Slide 10: Agenda
Agenda Q1 2016 Performance Review Financial Update Q2 2016 Priorities 10
Slide 11: Q1 2016 Financial Summary
Q1 2016 Financial Update Financial Summary EBITDA (EURm) 100 -10% 68 ∆ EURm Q1-15 Q1-16 ∆ 47 41 -46% % 37 Revenue 791 645 (18%) (146) Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Metals Processing 75 51 (32%) (24) Mining 4 (7) (275%) (11) Capex (EURm) -54% Other (10) (7) 30% 3 140 Group EBITDA 68 37 (46%) (31) 95
Slide 12: Group EBITDA progression year-on-year impacted by lower metal prices
Q1 2016 Financial Update Group EBITDA progression year-on-year impacted by lower metal prices (EURm) Group Macro Metals Processing Mining €68M €(37)M €(2)M €5M (42) (9) Other Planned maintenance shut at Auby; reduced output at Group Clarksville due to MTN €37M suspension and blast furnace MP 75 (33)
Slide 13: Liquidity and evolution of Net Debt since December 2015
Q1 2016 Financial Update Liquidity and evolution of Net Debt since December 2015 Q1 2016 Net Debt EURm PPR €(33)M Inventory €(91)M Perp Note +€26M Deferred income €(28)M MPGPP €(5)M (102) (761) (13) (30) 263 37 (24) (639) (9) Incl. paid in Mar-16 half-yearly coupons of - HY bond €(14.9)M - Convertib
Slide 14: Agenda
Agenda Q1 2016 Performance Review Financial Update Q2 2016 Priorities 14
Slide 15: Q2 2016 Priorities
Priorities Q2 2016 Priorities 1 Reinforcing our strong safety culture and improving safety leadership across the Company 2 Divestment of mining assets with binding agreements targeted to be announced for some or all of the mines by the end of H1 2016 3 Progress the Port Pirie Redevelopment with comm
Slide 16: Questions
Questions
Slide 17: Metals Processing
Segments Metals Processing Zinc production (kt) MP EBITDA (EURm) MP Capex (EURm) -8% 121 278 282 275 280 61 255 76 -32% 66 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 58 58 108 46 19 78 36 Lead (kt) 75 75 33 35 51 51 12 12 48 48 47 10 40 5 -2% 15 19 18 18 37 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q1-15 Q2-15 Q3-15 Q4-15 Q
Slide 18: Mining
Segments Mining Mining EBITDA (EURm) Capex (EURm) Zinc in concentrate production (kt) 28 4 2 2 23 -275% 22 2 -7 4 9 -37% 18 2 10 -68% 8 67 -22 7 -24 59 53 54 16 7 11 11 10 2 5 42 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Growth Exploration & Developmen
Slide 19: 2015 underlying EBITDA sensitivity
Appendix 2015 underlying EBITDA sensitivity 2015 2015 EBITDA impact (€m) Change Parameter average +/-10% Metals price/rate Processing Mining Group EUR:USD 1.11 -/+ 10% +111 (91) +12 (10) +123 (101) Zinc price $1,928/t -/+ 10% (36) +48 (35) +35 (70) +82 Zinc Base (37) +37 +8 (8) (30) +30 $245/dmt -/+
Slide 20: 2016 Guidance maintained
Appendix 2016 Guidance maintained Production Capex 2015 2016 2015 2016 EURm Actual Guidance Actual Guidance Metals Processing Zinc (kt) 1,115 1,000 – 1,100 Metals Processing 322 240 – 260 Sustaining 92 95 – 105 Mining - metal in concentrate Growth 54 35 – 45 Zinc (kt) 234 180 – 210 Port Pirie Redeve