31 Oct 2016 08:22
MMC Norilsk Nickel / 3rd Quarter ResultsMMC Norilsk Nickel: «NORILSK NICKEL» GROUP ANNOUNCES PRELIMINARYCONSOLIDATED PRODUCTION RESULTS FOR 3d QUARTER AND 9 MONTHS OF 2016 31-Oct-2016 / 10:22 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. --------------------------------------------------------------------------- PRESS RELEASE «NORILSK NICKEL» GROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTIONRESULTS FOR 3d QUARTER AND 9 MONTHS OF 2016 Moscow, October 31, 2016 - PJSC MMC Norilsk Nickel (hereinafter -Nornickel, the Company or the Group), the world's largest nickel andpalladium producer, announces preliminary consolidated production resultsfor the third quarter and the nine months of 2016. Nickel 3Q16 consolidated nickel production amounted to 56 kt decreasing 4%quarter-on-quarter (q-o-q). Nickel output from the Company's own Russianfeed reached 45 kt, down 4% q-o-q. The reduction was driven bydecommissioning of Nickel Plant as put of ongoing reconfiguration ofdownstream production facilities and resulting increase of work-in-progressmaterial in transit. Overall during 9M16, nickel output amounted to 177 kt decreasing 8% year-on-year (y-o-y) driven mostly by larger volumes of nickel concentrateshipped to Norilsk Nickel Harjavalta for processing as result ofreconfiguration of downstream production facilities. Copper 3Q16 consolidated copper production amounted to 87 kt decreasing 4% q-o-q.Copper output from the Company's own Russian feed reached 82 kt, down 5% q-o-q. The decrease was attributed to lower copper content in mined ore andindustrial testing of the upgraded Talnakh Concentrator. Overall during 9M16, copper output amounted to 264 kt decreasing 4% y-o-ydriven mostly by industrial testing of upgraded Talnakh Concentrator andlower copper content in mined ore. Platinum Group Metals 3Q16 consolidated palladium and platinum output amounted to 649 koz (down6% q-o-q) and 156 koz (down 4% q-o-q), respectively. Palladium output fromthe Company's own Russian feed reached 616 koz, down 9% q-o-q and platinumoutput reached 144 koz, down 9% q-o-q. The decrease of palladium andplatinum output was attributed to the increase of work-in-progress materialin transit as result of reconfiguration of downstream productionfacilities. Overall during 9M16, palladium and platinum output amounted to 1,980 koz(down 4% y-o-y) and 489 koz (down 5% y-o-y), respectively. The decline wasdriven mostly by lower metal content in mined ore.. Russian operations In 3Q16, the Company's Russian assets produced 41 kt of nickel, down 13% q-o-q. During 9M16, total nickel output by the Pola and Kola divisionsdecreased 14% y-o-y to 140 kt. The reduction was attributed to the shutdownof Nickel Plant in 3Q 2016 and to the increase of concentrate shipments forfurther processing at Norilsk Nickel Harjavalta as a part ofreconfiguration of downstream assets. In 3Q16, copper output in Russia amounted to 84 kt, down 5% q-o-q. Thedecrease was driven by lower copper content in mined ore and industrialtesting of upgraded Talnakh Concentrator. In 9M16, copper output amountedto 258 kt, down 2% y-o-y. The reduction was attributed to the pre-commissioning works at upgraded Talnakh Concentrator and lower coppercontent in mined ore. In 3Q16, in Russia the output of palladium decreased 7% y-o-y to 631 kozand the production of platinum decreased 6% y-o-y to 150 koz, driven by thechange in metal content in mined ore and the increase of work-in-progressmaterial. Overall in 9M16, palladium output in Russia reached 1,941 koz(down 3% y-o-y) and platinum output amounted to 475 koz (down 3% y-o-y).The decrease of PGM production volumes was attributed to lower metalcontent in mined ore. Norilsk Nickel Finland In 3Q16, Norilsk Nickel Harjavalta produced approximately 15 kt of nickel,up 40% q-o-q. Nickel output from the Company's own Russian feed increasedalmost 7-fold q-o-q to 5 kt. The increase was attributed to higherprocessing volumes of Russian concentrate as a part of the ongoing assetsreconfiguration. In 9M16, nickel output amounted to 37 kt increasing 25% y-o-y. The growth was attributed to the increase in processing of Russianfeed and additional processing volumes of concentrate purchased from thirdparties. In 3Q16, output of copper increased 60% q-o-q to 3 kt, which was attributedto higher copper content in supplied feed. In 9M16, copper output reached 6kt down 32% y-o-y. The decrease of output was driven by shipment of coppercake for processing to Kola MMC. In 3Q16, Norilsk Nickel Harjavalta increased the production of palladiumand platinum (in copper cake) by 50% q-o-q to 18 koz and 6 kt respectively.The increase of PGM volumes was attributed to low base effect as there werescheduled capital repairs in 2Q16. In 9M16, output of palladium andplatinum reached 39 koz (down 36% y-o-y) and 14 koz (down 42% y-o-y)respectively. The decrease of PGM output was driven by shipment of coppercake for processing to Kola MMC. 2016 Production guidance from Russian feedstock: Metals Saleable MetalsNi, kt 195-200*Cu, kt 342-352Pd, koz 2,296-2,392Pt, koz 542-586 \* The decrease of nickel production forecast from prior guidance of 206-212kt owes to industrial testing of upgraded Talnakh Concentrator. «NORILSK NICKEL» 3Q 2016 2Q 2016 Q-o-Q, 9M 2016 9M 2015 Y-o-Y,GROUP SALEABLE % %METALS PRODUCTIONTOTAL METALPRODUCTION¹Nickel, t 55,782 57,943 -4% 177,357 193,754 -8%thereof from own 45,213 46,903 -4% 143,981 161,492 -11%Russian feedCopper, tonnes 86,587 90,222 -4% 264,047 273,990 -4%thereof from own 81,677 86,316 -5% 253,250 261,480 -3%Russian feedPalladium, koz 649 689 -6% 1,980 2,072 -4%thereof from own 616 677 -9% 1,916 1,980 -3%Russian feedPlatinum, koz 156 163 -4% 489 513 -5%thereof from own 144 159 -9% 465 477 -3%Russian feedPolar division andKola MMC (Russia)Nickel, t 41,106 47,456 -13% 140,326 163,230 -14%Polar division 6,510 20,700 -69% 50,860 71,936 -29%Kola division 34,596 26,756 29% 89,466 91,294 -2%thereof from 33,441 25,467 31% 86,600 89,556 -3%Russian feedthereof from 3d 1,115 1,289 -10% 2,866 1,738 65%parties feedCopper, t 83,614 88,364 -5% 257,638 263,857 -2%Polar division 64,356 73,923 -13% 211,042 217,529 -3%Kola division 19,258 14,441 33% 46,596 46,328 1%thereof from 17,321 12,393 40% 42,208 43,951 -4%Russian feedthereof from 3d 1,937 2,048 -5% 4,388 2,377 85%parties feedPalladium, koz 631 677 -7% 1,941 2,006 -3%Polar division 435 495 -12% 1,335 1,502 -11%Kola division 196 182 8% 606 504 20%thereof from 181 182 -1% 581 478 22%Russian feedthereof from 3d 15 0 - 25 26 -4%parties feedPlatinum, koz 150 159 -6% 475 488 -3%Polar division 108 125 -14% 352 387 -9%Kola division 42 34 24% 123 101 22%thereof from 36 34 6% 113 90 26%Russian feedthereof from 3d 6 0 - 10 11 -9%parties feedNickel concentrate(work-in-progressmaterial) forNorilsk NickelFinland 2Nickel, t 9,247 4,044 129% 13,290 0 -Copper, t 1,696 598 184% 2,293 0 -Palladium, koz 5 1 400% 6 0 -Platinum, koz 26 6 333% 32 0 -Norilsk NickelFinland (Finland)3Nickel, t 14,676 10,487 40% 37,031 29,613 25%thereof from 5,262 736 615% 6,521 0 -Russian feedCopper, t 2,973 1,858 60% 6,409 9,462 -32%Palladium, koz 18 12 50% 39 61 -36%Platinum, koz 6 4 50% 14 24 -42%Norilsk NickelAfrica (SouthAfrica andBotswanaTati Nickel 0 0 - 0 1,822 -100%nickel, t 4thereof Tati 0 0 - 0 911 -100%Nickel nickel to3d partiesthereof Tati 0 0 - - 911 -100%Nickel nickelprocessed in theCompanyNkomati (50%) 1,529 2,170 -30% 6,599 8,370 -21%nickel processedin the Company, tTati Nickel 0 0 - 0 1,342 -100%copper, t 4thereof Tati 0 0 - 0 671 -100%Nickel copper to3d partiesthereof Tati 0 0 - 0 671 -100%Nickel copperprocessed in theCompanyNkomati (50%) 793 1,006 -21% 3,138 3,810 -18%copper processedin the Company, tTati Nickel 0 0 - 0 10 -100%palladium, koz 4thereof Tati 0 0 - 0 5 -100%Nickel palladiumto 3d partiesthereof Tati 0 0 - 0 5 -100%Nickel palladiumprocessed in theCompanyNkomati (50%) 8 10 -20% 31 38 -18%palladiumprocessed in theCompany, kozTati Nickel 0 0 - 0 2 -100%platinum, koz 4thereof Tati 0 0 - 0 1 -100%Nickel platinum to3d partiesthereof Tati 0 0 - 0 1 -100%Nickel platinumprocessed in theCompanyNkomati (50%) 3 4 -25% 12 15 -20%platinum processedin the Company,koz Notes: ¹Totals may value from sum of numbers as a result of rounding²Production results are not included in totals as all concentrate isshipped to NN Harjavalta3 Production results include processing of nickel concentrate from Nkomatiand purchased materials4 The assets was sold in Q2 2015 This announcement contains inside information in accordance with Article 7of EU Regulation 596/2014 of 16 April 2014. Full name and position of person making the announcement - Vladimir Zhukov,Vice - president, Investor Relations ABOUT THE COMPANY PJSC 'MMC NORILSK NICKEL' is a diversified mining and metallurgicalcompany, the world's largest producer of refined nickel and palladium and aleading producer of platinum, cobalt, copper and rhodium. The company alsoproduces gold, silver, iridium, selenium, ruthenium and tellurium. The production units of 'NORILSK NICKEL' Group include Polar Division,located at the Norilsk Industrial District on Taimyr Peninsula, and KolaMining and Metallurgical Company located on the Kola Peninsula in Russia aswell as Harjavalta nickel refinery in Finland. PJSC 'MMC 'NORILSK NICKEL' shares are listed on the Moscow and on theSaint-Petersburg Stock Exchanges. PJSC 'MMC 'NORILSK NICKEL' ADRs tradeover the counter in the US and on the London and Berlin Stock Exchanges. Media Relations: Investor Relations: Phone: +7 (495) 785 58 00 Phone: +7 (495) 786 83 20 Email: pr@nornik.ru Email: ir@nornik.ru --------------------------------------------------------------------------- The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.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: QRT TIDM: MNOD Sequence Number: 3538 Time of Receipt: 31-Oct-2016 / 10:22 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 515837 31-Oct-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.