Nyrstar Nv · EURONEXT:NYR
Nyrstar Nv — Q3 2017 Earnings Presentation
20 slides from Nyrstar Nv's earnings presentation, Oct 31, 2017
Slide 1: Q3 2017 Interim Management Statement
31 OCTOBER 2017 Q3 2017 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: Hilmar Rode, Chief Executive Officer
Hilmar Rode Chief Executive Officer 3
Slide 4: Overview of September YTD 2017
Overview of September YTD 2017 • Group Underlying EBITDA1 of EUR 162m up 35% on the first 9 months of 2016, primarily due to increase in zinc prices, partially offset by reductions in zinc treatment charge terms, reduced production at Port Pirie, some unplanned outages at the zinc smelters and reduc
Slide 5: Zinc market fundamentals remain strong
Zinc market fundamentals remain strong Zinc • Zinc outperformed the base metals complex in Q3 2017, with the price on both the LME and Shanghai Futures Exchange moving beyond $3,200/t and $3,900/t respectively by the end of September 2017. The average monthly price for zinc on the LME of $3,121/t in
Slide 6: Stable safety performance, improved zinc metal and mine production
Stable safety performance, improved zinc metal and mine production Safety, Health & Environment Lagging Safety Indicators3 • Preventing harm is a core priority of Nyrstar 9.0 8.7 • LTIR of 2.0 in first 9 months of 2017 was higher 8.2 than that achieved in first 9 months of 2016 6.9 6.2 (1.7) 5.7 5.5
Slide 7: Port Pirie Redevelopment in-line with revised schedule and budget
Port Pirie Redevelopment in-line with revised schedule and budget TSL furnace first heat-up – 25 October 2017 • Major milestones reached with: - Hot commissioning end September 2017; and - First feed to TSL furnace on 30 October 2017 • Project cost to complete of c. AUD 660 million in-line with revi
Slide 8: Full potential review of zinc smelting network completed
Full potential review of zinc smelting network completed • Zero to low-capex operational excellence initiatives identified for implementation over the coming years, focusing on: Zinc smelter asset integrity; Asset management; Metallurgical excellence; Productivity improvements • Low capex de
Slide 9: North American mines demonstrating substantial earnings uplift potential
North American mines demonstrating substantial earnings uplift potential • Latin American mining operations sold and divestment process now concluded with the North American mines to be held as a core component of the Nyrstar business and optimised • Middle Tennessee mines restart progressing well w
Slide 10: Chris Eger, Chief Financial Officer
Chris Eger Chief Financial Officer 10
Slide 11: Financial summary
Financial summary Underlying EBITDA (€’m) 57 54 51 €m 9m’164 9m’17 ∆ ∆% 54 45 Revenue 1,976 2,630 654 33% Metals Processing 63 MP U. EBITDA 143 162 19 13% Mining1 18 Mining U. EBITDA 2 33 31 1,550% 5 10 Other (11) (12) Other U. EBITDA (25) (34) (9) 36% (11) Group Underlying EBITDA 120 162 42 35% Q1’
Slide 12: Group underlying EBITDA – 9m'17 on 9m'16
Group underlying EBITDA – 9m’17 on 9m’16 (€m) Macro Metals Processing Mining +€80m €(11)m €(19)m (26) 175 6 FX 18 Other (4) (65) (32) Zinc 2 USD (6) AUD (63)TC Group 6 €162m 156 Zinc (17) 19 (2) Other (38) Group 162 (8) €120m 162 MP MP 143 Mining 2 33 Mining Other (25) (34) Other 9m’16 Metal Strateg
Slide 13: Net Debt evolution over Q3'17
Net Debt evolution over Q3’17 €m Zn Prepay & Perp Notes (1,387) Net Debt 23 (16) (1,243) (257) (249) (26) 18 (257) (54) (40) (54) 51 (47) 1138 • PPR €(41)m • Perp Note 16m (1,138) 1387 (986) • MP Growth €(15)m (1,138) (986) (257) Net Debt Group Sustaining Interest & Net Growth Working Change Proceed
Slide 14: Hilmar Rode, Chief Executive Officer
Hilmar Rode Chief Executive Officer 14
Slide 15: Strategic priorities remain consistent to transform the business
Strategic priorities remain consistent to transform the business 1 Reinforce our strong safety culture and improving visible safety leadership 2 Ramp-up the Port Pirie Redevelopment to deliver a substantial earnings uplift 3 Bring about a step change in operational performance across the zinc smelti
Slide 16: Questions
Questions
Slide 17: Debt, working capital facilities, prepays, perpetual securities overview
Debt, working capital facilities, prepays, perpetual securities overview Outstanding balances at 30 Sept 2017 (€m) Outstanding maturity / anticipated amortisation profile1 Drawing Capacity Maturity Perpertual Securities €m €m All Prepays Structural Debt KBC 2018 Convertible Bond 29 29 Sept 2018 €28m
Slide 18: Metals Processing
Metals Processing MP Capex (EURm) Zinc production (kt) MP EBITDA (EURm) 90 84 39 36 56 63 27 10 14 261 257 247 54 45 7 38 38 21 Q1’17 Q2’17 Q3’17 Q1’17 Q2’17 Q3’17 Q1’17 Q2’17 Q3’17 Port Pirie Redevelopment Sustaining Lead (kt) Growth 49 39 35 EBITDA of EUR 45m (down 18% on Q2’17), due primarily t
Slide 19: Mining
Mining Mining EBITDA (EURm) Capex (EURm) Zinc in concentrate production (kt) 16 4 11 18 0 8 34 0 5 30 8 10 3 23 5 5 6 4 Q1’17 Q2’17 Q3’17 Q1’17 Q2’17 Q3’17 Q1’17 Q2’17 Q3’17 Growth Exploration & Development Sustaining EBITDA of EUR 18m in Q3’17, up 76% on Q2’17, due to higher zinc price, operation
Slide 20: Endnotes
Endnotes 1. All references to EBITDA in the presentation are Underlying EBITDA. Underlying EBITDA is a non-IFRS measure of earnings, which is used by management to assess the underlying performance of Nyrstar’s operations and is reported by Nyrstar to provide additional understanding of the underlyi