29 Jan 2016 11:20
MMC Norilsk Nickel / MiscellaneousMMC Norilsk Nickel: OPERATING RESULTS ARE IN LINE WITH STRATEGIC PRODUCTIONGUIDANCE 29-Jan-2016 / 12:19 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- OPERATING RESULTS ARE IN LINE WITH STRATEGIC PRODUCTION GUIDANCE Moscow, January 29, 2016 - PJSC MMC Norilsk Nickel (hereinafter - 'NorilskNickel', 'the Company' or 'the Group'), the world's largest nickel andpalladium producer, announces preliminary consolidated production resultsfor the fourth quarter and full year of 2015 as well as its productionoutlook for full year 2016. Nickel 4Q15 consolidated nickel production amounted to 73 kt increasing 16%quarter-on-quarter (q-o-q). Nickel output from the Company's own Russianfeed reached 59 kt, up 7% q-o-q. The increase was mainly attributed to theprocessing of work-in-progress material. 2015 consolidated nickel production amounted to 266 kt, down 3%year-on-year (y-o-y). Nickel output from the Company's own Russian feedreached 220 kt (in line with 220-225 kt production target), down 1% y-o-y.The decrease was driven mostly by the ongoing reconfiguration of productionfacilities at Polar division, reduction of low-margin tolling operations atKola MMC as well as the deconsolidation of Tati Nickel owing to itsdivestiture in 2Q 2015. Copper 4Q15 consolidated copper production amounted to 95 kt increasing 4% q-o-qmostly owing to higher copper content in mined ore and processing ofwork-in-progress material in reported quarter. Copper output from theCompany's own Russian feed reached 91 kt, up 5% q-o-q. 2015 consolidated copper production stayed almost flat y-o-y atapproximately 369 kt. Copper output from the Company's own Russian feedreached 353 kt (marginally below 360-368 kt production target) increasing2% y-o-y. Platinum Group Metals 4Q15 consolidated palladium and platinum output amounted to 618 koz (down13% q-o-q) and 144 koz (down 17% q-o-q), respectively. The decline wasscheduled as production volumes in the prior months of 2015 were aboveproduction targets. 2015 palladium and platinum output amounted to 2,689 koz (down 2% y-o-y)and 656 koz (down 1% y-o-y), respectively. Palladium output from theCompany's own Russian feed stayed almost flat y-o-y at 2,575 koz(practically in line with 2,580 - 2,610 koz production target), while theproduction of platinum amounted to 610 koz (in line with 590-615 kozproduction target) increasing 2% y-o-y. The decrease in overall productionwas mainly attributed to the ongoing reconfiguration of productionfacilities at Polar division and reduction of low-margin tolling operationsat Kola MMC. Russian operations In 4Q15, Polar and Kola divisions combined nickel output increased 7% q-o-qamounting to 59 kt. 2015 nickel production in Russia decreased 3% y-o-y to222 kt owing to the ongoing reconfiguration of production facilities at thePolar division and the reduction of low-margin tolling operations at Koladivision. In 4Q15, copper output in Russia amounted to approximately 92 kt, up 4%q-o-q. 2015 consolidated copper production stayed almost flat y-o-y atapproximately 356 kt. In 4Q15, in Russia the output of palladium decreased 13% q-o-q to 600 kozand the production of platinum decreased 18% q-o-q to 135 koz. Thereduction of PGM volumes was scheduled in 4Q 2015 as production volumes inthe prior months of 2015 were above production targets. Overall, in 2015the Company's Russian operations produced 2,606 koz of palladium (down 2%y-o-y) and 622 koz of platinum (down 1% y-o-y). Norilsk Nickel Finland In 4Q15, Norilsk Nickel Harjavalta produced approximately 14kt of nickel,up 82% q-o-q. The increase was from a low base in 3Q 2015 as the refinerywas undergoing scheduled repairs. 2015 output of nickel amounted to 43 ktincreasing 2% y-o-y owing to increased processing of own Russian feed andalso matte from third parties. In 4Q15, output of copper (copper in copper cake saleable to third parties)increased 5% q-o-q to 4 kt. 2015 copper output increased 23% y-o-y to 13 ktdriven mostly by higher sales volumes of copper cake to third parties. In 4Q15, Norilsk Nickel Harjavalta decreased the production of saleablepalladium (palladium in copper cake) by 5% y-o-y to 18 koz and increasedthe production of saleable platinum (platinum in copper cake) by 13% y-o-yto 9 koz. The decrease in palladium production volumes was attributed tochanges in metal grades of the feed. 2015 palladium and platinum outputincreased to 78 koz (up 5% y-o-y) and to 33 koz (up 6% y-o-y),respectively, due to higher sales volumes of PGMs in copper cake to thirdparties. Norilsk Nickel Africa Tati Nickel. In April, 2015 Norilsk Nickel announced the completion of thesale transaction of its 85% stake in Tati Nickel to BCL Limited. Nkomati JV. In 4Q15, the production of nickel in concentrate (reported on a50%-basis) amounted to 3 kt (down 2% q-o-q). 2015 production of nickel inconcentrate by Nkomati amounted to over 11 kt, down 1% y-o-y. The decreasein production was driven by lower nickel content in processed ore and lowermetal extraction given the structural features of the ore body. Production targets for FY2016 In 2016, Norilsk Nickel expects that the production of saleable productsfrom Russian feed (including the processing of Russian feed at NorilskNickel Harjavalta in Finland) will decrease relative to 2015.Work-in-progress materials in transit will increase due to the ongoingdownstream reconfiguration at the Polar division. After the scheduledclosure of Nickel Plant in 2016 all high-grade nickel matte from theNadezhda Metallurgical Plant will be shipped for further processing to Koladivision and Norilsk Nickel Harjavalta in Finland. In 2015, only 50% ofnickel matte produced at the Polar division was transferred to Koladivision for further processing. The increase of work-in-progress materialsin transit in 2016 is a one-off event. Taking into account the increase of work-in-progress materials in transit,nickel production targets in 2016 will be in line with the guidanceannounced at the Strategy Day held in May 2015, while copper productionwill be small down with PGM output up relative to the previous targets. 2016 Production Guidance: METALS SALEABLE METALS INCREASE OF WORK-IN-PROGRESS MATERIALS IN TRANSITNi, kt 206-212 15-19Cu, kt 342-352 4-6Pd, kt 2,296-2,392 231-243Pt, kt 542-586 55-59 NORILSK NICKEL SALEABLE 2015 4Q 2015 3Q 2015 2Q 2015 1Q 2015METALS PRODUCTIONTOTAL METAL PRODUCTION¹Nickel, tonnes 266,406 72,653 62,463 63,853 67,437from Russian feed 220,251 58,759 54,798 52,336 54,358Copper, tonnes 369,426 95,436 91,908 92,55 89,532from Russian feed 352,766 91,287 87,009 88,416 86,054Palladium, koz 2,689 618 712 726 633from Russian feed 2,575 595 688 697 596Platinum, koz 656 144 173 175 164from Russian feed 610 133 163 163 151NORILSK NICKEL POLAR ANDKOLA DIVISIONS (RUSSIA)Nickel, tonnes 222,016 58,787 54,857 53,294 55,078Polar division 96,916 24,98 24,1 22,947 24,889Kola division 125,1 33,807 30,757 30,347 30,189from Russian feed 123,335 33,779 30,698 29,389 29,469from 3d parties feed 1,765 28 59 958 720Copper, tonnes 355,707 91,85 88,506 89,005 86,346Polar division 292,632 75,103 72,035 73,621 71,873Kola division 63,075 16,747 16,471 15,384 14,473from Russian feed 60,134 16,184 14,974 14,795 14,181from 3d parties feed 2,941 563 1,497 589 292Palladium, koz 2,606 600 693 703 610Polar division 1,935 433 519 522 461Kola division 671 167 174 181 149from Russian feed 640 162 169 175 135from 3d parties feed 31 5 5 6 15Platinum, koz 622 135 165 166 156Polar division 488 101 130 132 124Kola division 134 34 35 33 32from Russian feed 122 32 33 31 26from 3d parties feed 12 2 2 3 6Norilsk Nickel Finland²Nickel, tonnes 43,479 13,866 7,606 10,559 11,448Copper, tonnes 13,048 3,586 3,402 3,545 2,515Palladium, koz 78 18 19 23 18Platinum, koz 33 9 8 9 7Norilsk Nickel AfricaTati Nickel nickel, tonnes 1,822 0 0 0 1,822thereof Tati Nickel 911 0 0 0 911nickel to 3d partiesthereof Tati Nickel 911 0 0 0 911nickel processed in theCompanyNkomati (50%) nickel 11,286 2,916 2,988 2,843 2,539processed in the Company,tonnesTati Nickel copper, tonnes 1,342 0 0 0 1 342thereof Tati Nickel 671 0 0 0 671copper to 3d partiesthereof Tati Nickel 671 0 0 0 671copper processed in theCompanyNkomati (50%) copper 5,24 1,428 1,279 1,273 1,26processed in the Company,tonnesTati Nickel palladium, koz 10 0 0 0 10thereof Tati Nickel 5 0 0 0 5palladium to 3d partiesthereof Tati Nickel 5 0 0 0 5palladium processed inthe CompanyNkomati (50%) palladium 54 15 13 13 13processed in the Company,kozTati Nickel platinum, koz 2 0 0 0 2thereof Tati Nickel 1 0 0 0 1platinum to 3d partiesthereof Tati Nickel 1 0 0 0 1platinum processed in theCompanyNkomati (50%) platinum 21 6 5 5 5processed in the Company,koz NORILSK NICKEL SALEABLE METALS PRODUCTION 2014 4Q/3Q 2015 / 2014TOTAL METAL PRODUCTION¹Nickel, tonnes 274,248 16% -3%from Russian feed 223,224 7% -1%Copper, tonnes 368,009 4% 0%from Russian feed 345,897 5% 2%Palladium, koz 2,752 -13% -2%from Russian feed 2,582 -14% 0%Platinum, koz 662 -17% -1%from Russian feed 595 -18% 2%NORILSK NICKEL POLAR AND KOLA DIVISIONS(RUSSIA)Nickel, tonnes 228,438 7% -3%Polar division 122,39 4% -21%Kola division 106,048 10% 18%from Russian feed 100,834 10% 22%from 3d parties feed 5,214 -53% -66%Copper, tonnes 354,944 4% 0%Polar division 297,552 4% -2%Kola division 57,392 2% 10%from Russian feed 34,538 8% 74%from 3d parties feed 7,73 -62% -62%Palladium, koz 2,66 -13% -2%Polar division 2,065 -17% -6%Kola division 595 -4% 13%from Russian feed 517 -4% 24%from 3d parties feed 78 0% -60%Platinum, koz 627 -18% -1%Polar division 500 -22% -2%Kola division 127 -3% 6%from Russian feed 95 -3% 28%from 3d parties feed 32 0% -61%Norilsk Nickel Finland²Nickel, tonnes 42,603 82% 2%Copper, tonnes 10,629 5% 23%Palladium, koz 74 -5% 5%Platinum, koz 31 13% 6%Norilsk Nickel AfricaTati Nickel nickel, tonnes 6,414 0% -72%thereof Tati Nickel nickel to 3d parties 3,207 0% -72%thereof Tati Nickel nickel processed in the 3,207 0% -72%CompanyNkomati (50%) nickel processed in the 11,359 -2% -1%Company, tonnesTati Nickel copper, tonnes 4 872 0% 0%thereof Tati Nickel copper to 3d parties 2 436 0% -72%thereof Tati Nickel copper processed in the 2 436 0% -72%CompanyNkomati (50%) copper processed in the 4,938 12% 6%Company, tonnesTati Nickel palladium, koz 36 0% -73%thereof Tati Nickel palladium to 3d parties 18 0% -72%thereof Tati Nickel palladium processed in 18 0% -73%the CompanyNkomati (50%) palladium processed in the 49 15% 10%Company, kozTati Nickel platinum, koz 8 0% -75%thereof Tati Nickel platinum to 3d parties 4 0% -75%thereof Tati Nickel platinum processed in 4 0% -75%the CompanyNkomati (50%) platinum processed in the 19 20% 11%Company, koz Notes: ¹Totals may vary from the sum of numbers due to arithmetical rounding ²Production results include processing of nickel concentrate from Nkomatiand purchased materials For further information, please, contact: Media Relations: Investor Relations: Phone: +7 (495) 797 82 94 Phone: +7 (495) 786 83 20 Email: pr@nornik.ru Email: ir@nornik.ru ABOUT NORILSK NICKEL: Public Joint-Stock Company Mining and Metallurgical Company Norilsk Nickelis a diversified mining and metallurgical company, the world's largestproducer of nickel and palladium and a leading producer of platinum,cobalt, copper and rhodium. In addition, the Company produces gold, silver,iridium, selenium, ruthenium and tellurium. The production units of Norilsk Nickel are located in Russia at the NorilskIndustrial District and on the Kola Peninsula, as well as in Finland. Norilsk Nickel's shares are listed on the Moscow and on theSaint-Petersburg Stock Exchanges. Norilsk Nickel ADRs trade over thecounter in the US and on the London and Berlin stock exchanges. --------------------------------------------------------------------------- 29-Jan-2016 The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Media archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: MMC Norilsk Nickel 1 st Krasnogvardeysky av., 15 123100 Moscow Russia Internet: www.nornik.ru ISIN: US55315J1025 WKN: A140M9 Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart; Open Market in Frankfurt ; London, Nasdaq Category Code: MSC TIDM: MNOD Sequence Number: 2978 Time of Receipt: 29-Jan-2016 / 12:19 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 433079 29-Jan-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.