Slide 1: Nyrstar Full Year 2010 Results
Nyrstar Full Year 2010 Results 24 February 2011
Slide 2: Important Notice
2 Important Notice This presentation has been prepared by 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 member of its gro
Slide 3: Full Year 2010 Results
3 Full Year 2010 Results Roland Junck, Chief Executive Officer > Highlights Financial Results Operating Results Outlook & Summary
Slide 4: 2010 Highlights – A Year of Delivery
4 2010 Highlights – A Year of Delivery Strong Financial Performance Underlying EBITDA of €207 million, more than double 2009 (€93 million) First contribution from mining segment (€24 million) Completed a number of important financing initiatives Proposed distribution of €0.15 per share via a share c
Slide 5: Full Year 2010 Results – Financial Results
5 Full Year 2010 Results Heinz Eigner, Chief Financial Officer Highlights > Financial Results Operating Results Outlook & Summary
Slide 6: Zinc Price Volatile But Trending Upwards
6 Zinc Price Volatile But Trending Upwards LME Zinc Price 3,000 US$1,659 US$2,159 2,500 2,000 1,500 1,000 500 0 Dec-2008 Dec-2009 Dec-2010 Zinc Price EUR Zinc Price (US$/tonne) Average LME zinc price* was US$2,159/tonne in 2010, up 30% on 2009 Price peaked in January at US$2,635/tonne and then fell
Slide 7: Strong Financial Performance
7 Strong Financial Performance Strong EBITDA result supported by record zinc metal production, zinc price, cost control and contribution from new mines 2010 EBITDA of €207 million more than double compared to 2009 EBITDA¹ (€ million) € million1 2009 2010 % Var 207 Revenue 1,664 2,696 62% Gross Profi
Slide 8: Strong Financial Position
8 Strong Financial Position Gearing¹ 30% Completed syndication of €400 million credit facility in March 2010 26% – More than twice oversubscribed due to high demand 20% Subsequently exercised accordion feature increasing facility to €500 million in November 2010 Completed offering of bonds for total
Slide 9: Full Year 2010 Results – Operating Results
9 Full Year 2010 Results Greg McMillan, Chief Operating Officer Highlights Financial Results > Operating Results Outlook & Summary
Slide 10: Record Smelter Production
10 Record Smelter Production Smelting Production 2010 1,400 Lead 300 1,200 240 198 Zinc 250 1,000 227 200 800 kt 281 150 600 264 247 179 1,032 1,076 809 100 400 163 120 200 50 32 19 0 0 2008 2009 2010 Auby Balen/ Budel Clarksville Hobart Port Pirie Other Overpelt Record zinc production in 2010, up 3
Slide 11: Focusing on Smelting Operating Costs
11 Focusing on Smelting Operating Costs Smelting Cost per Tonne¹ 2010 800 699 700 600 553 501 476 478 500 470 466 439 385 400 300 200 100 0 2008 2009 2010 Auby Balen/ Budel Clarksville Hobart Port Pirie Overpelt Smelting cost per tonne increased (in Euro terms) as a result of the weaker Euro and tem
Slide 12: Ramping-up Mines
12 Ramping-up Mines Mining Production 2010 H1 H2 84 63 Zinc kt 50 34 18 2 1 H1 2010 H2 2010 2010 Tennessee Talvivaara Contonga & Coricancha Pucarrajo East Tennessee, Contonga¹ and Coricancha mines operating at full production at the end of 2010 Mid Tennessee at 35% of capacity with the successful co
Slide 13: Safety, Health and Environment
13 Safety, Health and Environment Recordable Environmental LTR1 RIR1 Incidents2 28 6.1 17.8 24 4.5 12.4 2009 2010 2009 2010 2009 2010 Safety – Lost Time Injury Rate reduced 26% and Recordable Injury Rate (RIR) reduced 31% in 2010 compared to 2009 – Despite a strong focus on safety, an employee was f
Slide 14: Full Year 2010 Results – Outlook & Summary
14 Full Year 2010 Results Roland Junck, Chief Executive Officer Highlights Financial Results Operating Results > Outlook & Summary
Slide 15: Actively Pursuing Our Strategy
15 Actively Pursuing Our Strategy Continued strong progress with implementation of strategy Acquired 1.25 million tonnes of zinc in concentrate from Talvivaara in February, remaining 15% of Coricancha mine and Contonga and Pucarrajo mines in July Subsequently acquired Farallon Mining Ltd, owner of t
Slide 16: Well Positioned to Leverage Strong Zinc Market Fundamentals
16 Well Positioned to Leverage Strong Zinc Market Fundamentals Projected Tightness in Concentrate Market in Observations Medium Term 18 Global Zinc consumption forecast to increase to 14.9Mt p.a. by 2015 Supply constraints will increase in the medium term and 16 impact prices Requirement for future
Slide 17: Strategy to Expand into Mining
17 Strategy to Expand into Mining Share of Recovered Zinc Value in Concentrate 100% Mining is structurally more profitable per tonne than smelting 90% Smelter: Average 40% 80% - Brook Hunt estimates that producing one tonne % share or recovered zinc value 70% of zinc in concentrate is on average mor
Slide 18: 2010 Summary & Outlook
18 2010 Summary & Outlook Strong Financial and Operating Performance Strong growth in Underlying EBITDA with €207 million, more than double 2009 Record annual zinc metal production, smelting costs per tonne contained despite euro depreciation First contribution from mining segment (€24 million) Deli
Slide 19: Questions
19 Questions
Slide 20: Appendix
20 Appendix
Slide 21: Gross Profit
21 Gross Profit 2009 2010 €594 million €925 million Treatment By-Products By-Products Charge €92 €124 €403 15% 12% Premiums Premiums €86 €105 10% 14% 41% 46% 25% Treatment 37% Charge Free €292 Metal Free Metal €159 €378 Gross profit increased 56% primarily due to increased production volumes and hig
Slide 22: Smelting By-products
22 Smelting By-products 2009 2010 €92 million €115 million Other¹ Other¹ Gold €6m €15m €5m Gold 7% €4m 5% 16% Sulphuric Acid Silver 8% Sulphuric Acid Silver €37m €5m 10% 31% €39m 16% 40% €15m 16% 14% Copper 17% Copper 14% €13m €19m Leach Products Leach Products €16m €33m Increased by-product contrib
Slide 23: Operating Expenses
23 Operating Expenses Underlying operating costs up 42% Employee Expenses 26% due to ramp-up of new mines and increased production profile Energy Expenses Up 35% due to smelters returning to full production in 2010 and weaker Euro against the Australian and US dollar Other Expenses Up 85% due to ram
Slide 24: Capital Expenditure
24 Capital Expenditure Capital Expenditure increased to €147 million for 2010 - €81 million for smelters (maintenance and growth); and - €60 million for mining (including approximately €24 million for ramp-up of mines) - €6 million was invested at other operations and corporate offices
Slide 25: Mining Summary
25 Mining Summary Kt Zinc C1 Cash Costs² US$ / payable tonne zinc Annual Other metal Capacity at Year ended At full by-products Full 31 December production Production 2010 (estimate) 8kt Cu, 7kt Pb, Campo 717 <500 3m oz Ag, 35k 70Kt Zn Morado oz Au Contonga & 4kt Pb, 1kt Cu, 2,915 <1,000 40kt Zn Puc
Slide 26: EBITDA Reconciliation
26 EBITDA Reconciliation € million 2009 2010 EBITDA 71 183 Underlying adjustments Add back: Restructuring expenses 24 11 Impairment losses / (reversals) (2) 1 Net loss / (gain) on disposal of subsidiaries (6) - Net loss / (gain) on Hobart Smelter embedded derivatives 5 13 Underlying EBITDA 93 207
Slide 27: EBITDA Sensitivities
27 EBITDA Sensitivities 2010 Estimated annual EBITDA impact in Parameter Variable € million Zinc Price +/- US$100/t +/-25 Lead Price +/- US$100/t +/- 1 US$/€ +/- €0.01 +/- 10 A$/€ +/- €0.01 -/+ 4 Zinc TC +/- US$25/dmt +/- 32 Lead TC +/- US$25/dmt +/- 5 Calculated by modelling Nyrstar’s 2010 underlyi