Nyrstar Nv · EURONEXT:NYR
Nyrstar Nv — Q3 2015 Earnings Presentation
24 slides from Nyrstar Nv's earnings presentation, Oct 22, 2015
Slide 1: Q3 2015 Interim Management Statement
22 OCTOBER 2015 Q3 2015 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 Performance Review and CEO Update Financial Update Metals Processing Review Mining Performance Review 3
Slide 4: Highlights
Performance Review and CEO Update Highlights Group safety and health performance continued to improve in Q3, with zero fatalities and a reduction in YTD LTIR to 2.4 Decline in zinc prices in Q3 2015 partially offset by a strong US dollar, medium and long term outlook for zinc remains positive Q3 201
Slide 5: Group Safety, Health and Environment performance continues to improve
Performance Review and CEO Update Group Safety, Health and Environment performance continues to improve Safety Lagging Safety Indicators Prevent harm is a core value of Nyrstar 2015 September YTD: 13.0 The number of cases with days lost or under 11.4 restricted duties (DART) and cases requirin
Slide 6: Metals Prices a significant headwind
Performance Review and CEO Update Metals Prices a significant headwind LME zinc price Sensitivity: +/- 10% H1-2015 zinc price EUR +71 / (94) million 9m 2014 $2,140 9m 2015 $2,035 2,550 €1,585 €1,826 2,400 Q3 2015 $1,847 2,250 €1,662 2,100 1,950 1,800 1,650 1,500 0 01.01.14 01.04.14 01.07.14 01.10.14
Slide 7: Forex remains favourable
Performance Review and CEO Update Forex remains favourable EUR: USD Exchange Rate Sensitivity: +/- 10% H1-2015 EUR:USD 9m 2014 USD 1.35 EUR (140) / +115 million 9m 2015 USD 1.11 1.40 1.35 Q3 2015 USD 1.11 1.30 1.25 1.20 1.15 1.10 0.00 01.01.2014 01.04.2014 01.07.2014 01.10.2014 01.01.2015 01.04.2015
Slide 8: Key focus areas – capital discipline and lifting the bar on performance
Performance Review and CEO Update Key focus areas – capital discipline and lifting the bar on performance Port Pirie Redevelopment • A significant strategic investment • Remains on schedule for H2 2016 start up • Capital cost increase of 10% to AUD 563 million Mining performance • Loss making and FC
Slide 9: Agenda
Agenda Performance Review and CEO Update Financial Update Metals Processing Review Mining Performance Review 9
Slide 10: Financial summary
Financial Update Financial summary Q3 EBITDA (EURm) Q3 Capex (EURm) 9m EBITDA (EURm) 9m Capex (EURm) 47 101 215 278 46 +2% +38% 156 +59 +79% 63 61 161 41 75 155 258 23 149 43 16 -11 40 39 42 113 117 -22 -35 -17 -6 -26 Q3-14 Q3-15 Q3-14 Q3-15 9m-14 9m-15 9m-14 9m-15 Metals Mining Other Growth Non-gro
Slide 11: Balance Sheet and 2016 Maturity
Financial Update Balance Sheet and 2016 Maturity Net Debt & Net Debt / EBITDA 4.5 Financial position 3.1 Net debt of EUR 841M – EUR 174M increase from June due to 2.5 2.3 2.0 2.5 1.6 planned growth capex spend, cash negative mining and lower utilisation of customer prepayments 929 841 Net Debt /
Slide 12: Agenda
Agenda Performance Review and CEO Update Financial Update Metals Processing Review Mining Performance Review 12
Slide 13: Safety, Health and Environment – Metals Processing
Metals Processing Review Safety, Health and Environment – Metals Processing Lagging Safety Indicators Safety September 2015 YTD: Number of cases of days lost or under restricted 10.5 duties (DART) and number of cases requiring 10.2 10.3 medical treatment (RIR) reduced by 19% and 17% respectively
Slide 14: Metals processing production & capex
Metals Processing Review Metals processing production & capex Zinc production (kt) Lead production (kt) Silver production (m toz) EBITDA (EURm) 821 835 147 10.7 258 +2% 10.4 133 -10% -3% 269 275 3.6 75 54 3.7 48 +73% 149 272 282 43 3.7 3.0 41 108 37 70 280 278 49 48 3.5 3.7 75 39 9m 2014 9m 2015 9m
Slide 15: Port Pirie Redevelopment progressing on schedule, capital cost AUD 563 million
Metals Processing Review Port Pirie Redevelopment progressing on schedule, capital cost for the project forecast at AUD 563 million Key Q3 2015 milestones achieved Major engineering design works are complete with minor engineering works being closed out progressively Major equipment supply items
Slide 16: Port Pirie Redevelopment visible progress on site - TSL
Metals Processing Review Port Pirie Redevelopment visible progress on site - TSL Arrival from China of the first module of the Top Submerged Lance Furnace (TSL) Redevelopment progress – 31 March 2015 720 cubic metre concrete pour at the southern end of the TSL foundation. Setting up of the TSL Furna
Slide 17: Port Pirie Redevelopment visible progress on site – Acid Plant
Metals Processing Review Port Pirie Redevelopment visible progress on site – Acid Plant Work continues on the HPDE liner which stops acid entering the ground and underlying aquifers from leaks or spills. Redevelopment progress – 31 March 2015 Assembly of the 2600 tonne heavy lift crane commences. Li
Slide 18: Metals Processing Growth Pipeline
Metals Processing Review Metals Processing Growth Pipeline Work progresses across the broader growth pipeline, with a focus on: Deconstraining – Post-Century projects at Budel and Hobart and Port Pirie Redevelopment related projects Fuming – Hoyanger ramp-up Minor Metals – Auby Indium expansio
Slide 19: Agenda
Agenda Performance Review and CEO Update Financial Update Metals Processing Review Mining Performance Review 19
Slide 20: Safety, Health and Environment – Mining
Mining Performance Review Safety, Health and Environment – Mining Safety Lagging Safety Indicators Zero fatality in Q3 2015; one – in Q2 2015 16.1 September 2015 YTD: Number of cases of days lost or under restricted duties (DART) and number of cases requiring 12.4 12.5 medical treatment (RIR)
Slide 21: Mining production & capex
Mining Performance Review Mining production & capex Production of metals in concentrates Zinc (kt) Lead (kt) Silver (m toz) EBITDA (EURm) 210 12.5 3.9 42 179 -15% -18% 10.3 16 70 4.6 1.4 -46% 53 2.0 2.1 16 2.3 67 1.2 -140% 59 3.8 0.5 10 2 4 0.6 6.0 73 67 4.1 1.3 -22 0.9 -17 9m 2014 9m 2015 9m 2014 9
Slide 22: Mining Segment Cash Preservation
Mining Performance Review Mining Segment Cash Preservation We believe a number of mining assets have potential which will require exploration and development funds that will only be available in a higher price environment Proactive steps to be implemented as part of the ongoing review of the Min
Slide 23: Recap
Recap Recap We remain very positive on the medium to long term outlook for zinc as a supply challenged essential commodity Recent decline in zinc prices, partially offset by forex gains, is a significant headwind for the mining business Company needs a step change in capital discipline and opera
Slide 24: Questions
Q3 2015 Interim Management Statement Questions Questions 24