Slide 1: Half Year Results 2012
Half Year Results 2012 27 JULY 2012 Half Year Results 2012
Slide 2: Half Year Results 2012 presenters
Half Year Results 2012 Half Year Results 2012 Roland Junck Greg McMillan Heinz Eigner Chief Executive Officer Chief Operating Officer Chief Financial Officer 2
Slide 3: Highlights
Half Year Results 2012 > Highlights Operating Results Financial Results Outlook & Summary Roland Junck Chief Executive Officer 3
Slide 4: H1 2012 Highlights - Operations
Half Year Results 2012 H1 2012 Highlights - Operations Solid operating performance with full year production guidance for all metals maintained Mining - Mining production of 151kt of zinc in concentrate, up 18% (23kt) - Own mine production of 135kt, up 25% (27kt) - Langlois ramp up completed in line
Slide 5: H1 2012 Highlights - Financial
Half Year Results 2012 H1 2012 Highlights - Financial Contribution from mining segment continuing to grow in line with strategy; group underlying EBITDA and PAT adversely impacted by macro-economic conditions Group underlying EBITDA of EUR 111 million, down 22% - Mining EUR 56 million, up 22%, in li
Slide 6: Operating Results
Half Year Results 2012 Highlights Financial Results > Operating Results Outlook & Summary Greg McMillan Chief Operating Officer 6
Slide 7: Nyrstar mine production continues to increase and guidance maintained
Half Year Results 2012 Nyrstar mine production continues to increase and guidance for all metals maintained Zinc in Concentrate Production¹ Other Metal in Concentrate Production2 Talvivaara deliveries H2 2011 H1 2012 H2 2012G3 Nyrstar mine production 58-68 6.1-9.1 Nyrstar total guidance 2.8-3.3 4.0-
Slide 8: Nyrstar mining production
Half Year Results 2012 Nyrstar mining production Langlois ‒ Successfully completed its ramp-up during Q2 2012, in line with previous guidance ‒ Production of all metals is expected to continue to increase during H2 2012 Coricancha ‒ Received suspension order at end of Q1 2012 from Peruvian mining au
Slide 9: Nyrstar mining production
Half Year Results 2012 Nyrstar mining production Campo Morado ‒ Amended mine plan to defer targeting of higher grade gold ore to optimise production on a full year basis ‒ Installation of heavy media separator in H1 2012 and currently commissioning gold gravity flotation circuit to improve the gold
Slide 10: Talvivaara deliveries
Half Year Results 2012 Talvivaara deliveries ‒ Deliveries under the zinc streaming agreement declined 20% (4kt) to 16kt in H1 2012 ‒ Performance in Q2 2012 was impacted by dilution of leach solutions due to spring flooding and excessive rain, scheduled maintenance and a fatality related stoppage in
Slide 11: C1 cash costs impacted by production mix and lower by-product prices
Half Year Results 2012 C1 cash costs impacted by production mix and lower by-product prices Average Zinc mine1,2 ‒ Average zinc C1 cash cost for in H1 2012 was USD1,255/t2 in 2011, compared to USD1,095/t in H2 2011 ‒ Increase in cash cost driven by: ‒ Lower gold, silver, lead and copper prices, ther
Slide 12: Smelting production in line with management expectations
Half Year Results 2012 Smelting production in line with management expectations Smelting production 2012 quarterly production ‒ The smelters delivered a strong production performance in Q2 2012, following some operational issues during Q1 2012, with overall H1 2012 production in line with management
Slide 13: Increase in smelting operating cost per tonne
Half Year Results 2012 Increase in smelting operating cost per tonne Smelting Cost (EUR/tonne)1 H1 2012 (EUR/tonne) − Smelting cost per tonne increased in Euro terms as a result of a stronger Australian dollar, lower lead production at Port Pirie (maintenance shut) and slightly lower production at B
Slide 14: Safety, Health and Environment
Half Year Results 2012 WCP: World class Safety, Health and Environment performance2 Recordable Environmental LTR1 RIR1 Incidents Safety – The Lost Time Injury Rate (LTR) and Recordable Injury Rate (RIR) both significantly decreased in H1 2012, by 40% and 22% respectively. – Smelters maintained recor
Slide 15: Financial Results
Half Year Results 2012 Highlights Operating Results > Financial Results Outlook & Summary Heinz Eigner Chief Financial Officer 15
Slide 16: Deteriorating macro-economic environment during H1 2012
Half Year Results 2012 Deteriorating macro-economic environment during H1 2012 LME Zinc Price USD2,155 USD2,163 USD2,323 USD2,063 USD1,977 EUR1,626 EUR1,632 EUR1,659 EUR1,463 EUR1,524 ‒ Zinc price, as well as prices for the other metals in the Nyrstar’s multi-metals footprint, remained volatile and
Slide 17: Group underlying EBITDA and PAT
Half Year Results 2012 Group underlying EBITDA and PAT: - adversely impacted by macro conditions and one-off impairments - mining segment continues to grow ‒ Group underlying EBITDA of EUR 111 million, down 22% on H2 2011 ‒ mining EBITDA up 22%, in line with strong production growth ‒ smelting EBITD
Slide 18: Mining underlying EBITDA grows, smelting under pressure
Half Year Results 2012 Mining underlying EBITDA continues to grow, whilst smelting underlying EBITDA under pressure 18
Slide 19: Continued increase in mining underlying EBITDA per tonne
Half Year Results 2012 Continued increase in mining underlying EBITDA per tonne in deteriorating macro-economic environment - Group underlying EBITDA/t1 declined 21% to EUR161/t (EUR205/t in H2 2011) - Mining underlying EBITDA/t2 EUR371, up 4% on H2 2011 (EUR357) - Driven by strong production growth
Slide 20: Mining gross profit by metal
Half Year Results 2012 Mining gross profit by metal H2 2011 H1 2012 EUR228 million 1 EUR250 million 1 Gold Gold EUR33m EUR32m Silver2 EUR42m Silver2 EUR48m Copper Copper Zinc EUR30m Zinc EUR20m EUR118m EUR136m Lead Lead EUR8m EUR10m − Gross profit growth of 10% in H1 2012 compared to H2 2011, despit
Slide 21: Smelting gross profit by metal
Half Year Results 2012 Smelting gross profit by metal H2 2011 H1 2012 EUR465 million * EUR433 million * Sulphuric Acid EUR39m Lead EUR39m Sulphuric Acid EUR46m Lead EUR31m Zinc EUR329m Zinc EUR316m − Smelting by-product income declined by 7% due to reduced benchmark zinc TCs, lower commodity prices
Slide 22: Strong financial position with high quality portfolio of long-term debt
Half Year Results 2012 Strong financial position with high quality portfolio of long-term debt Net Debt Gearing¹ Net debt reduced by EUR100m… … with focus on working capital management Quality of debt Type Due Financial Covenants EUR120m Convertible 2014 None − Conservative debt financing well Bonds
Slide 23: Outlook & Summary
Half Year Results 2012 Highlights Operating Results Financial Results > Outlook & Summary Roland Junck Chief Executive Officer 23
Slide 24: Outlook
Half Year Results 2012 Outlook Executing our strategy ‒ Growth in mining segment with focus on continuing to improve margins and volumes, with full year production guidance maintained for all metals ‒ Develop value accretive opportunities to protect and grow smelting segment by unlocking untapped va
Slide 25: Questions
Half Year Results 2012 Questions 25
Slide 26: Appendix
Half Year Results 2012 Appendix 26
Slide 27: Executing on our Strategy
Half Year Results 2012 Executing on our Strategy During H1 2012 Nyrstar continued to execute on its strategy, Nyrstar2020, supported by Strategy into Action, a disciplined approach to taking the strategy into every part of the business, and engaging the entire workforce to achieve Nyrstar’s vision o
Slide 28: Group gross profit
Half Year Results 2012 Group gross profit H2 2011 H1 2012 EUR694 million 1 EUR684 million 1 By-Products Treatment Treatment By-Products EUR286m Charge Charge EUR221m EUR137m EUR130m Premiums EUR57m Premiums Payable and Payable and EUR59m Free Metal Free Metal EUR294m EUR320m − Gross profit slightly
Slide 29: Operating expenses
Half Year Results 2012 Operating expenses Underlying operating costs up 3%, impacted by stronger Australian dollar Employee Expenses ‒ 10% increase due to a full half year contribution from the former Breakwater mines (acquired in August 2011) Energy Expenses ‒ Increased slightly, 3%, with increased
Slide 30: Capital expenditure
Half Year Results 2012 Capital expenditure Capital Expenditure decreased by 32% ‒ EUR 68 million for mining, including sustaining and growth spend ‒ EUR 46 million for smelters ‒ EUR 39 million for sustaining and shutdown spend ‒ EUR 7 million for growth spend ‒ EUR 3 million invested at other opera
Slide 31: H1 2012 mining cash costs
Half Year Results 2012 H1 2012 mining cash costs 1 2 1 C1 cash costs are the net direct cash costs incurred from mining through to refined metal (including operating costs, treatment charges, concentrate freight costs), less by-products credits. For Coricancha the cash cost is based on gold producti
Slide 32: EBITDA reconciliation
Half Year Results 2012 EBITDA reconciliation EUR million H2 2011 H1 2012 EBITDA 137 127 Add back Underlying adjustments: Restructuring expenses (0) 2 Transaction related expenses 11 1 Net loss / (gain) on disposal of subsidiaries - (27) Net loss / (gain) on Hobart Smelter embedded derivatives (6) 8
Slide 33: EBITDA Sensitivities
Half Year Results 2012 EBITDA Sensitivities Estimated annual Parameter Variable EBITDA impact EUR million H1 2012 Zinc price +/- USD100/t +36 / -34 Lead price +/- USD100/t +2 / -2 Copper price +/- USD500/t +6 / -6 Silver Price +/- USD1/troy ounce +4 / -4 Gold Price +/- USD100/troy ounce +6 / -6 USD
Slide 34: Important Notice
Half Year Results 2012 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 securitie