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MMC Norilsk Nickel / Miscellaneous - High Priority MMC Norilsk Nickel: «NORILSK NICKEL» GROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 4th QUARTER AND FULL 2016, AND PRODUCTION OUTLOOK FOR 2017 31-Jan-2017 / 15:20 CET/CEST Dissemination 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

31 January 2017

Public Joint Stock Company 'Mining and Metallurgical Company 'NORILSK NICKEL' (PJSC 'MMC 'Norilsk Nickel', 'Nornickel' or the 'Company')

«NORILSK NICKEL» GROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 4th QUARTER AND FULL 2016, AND PRODUCTION OUTLOOK FOR 2017

Moscow - PJSC MMC Norilsk Nickel, the world's largest producer of refined nickel and palladium, announces preliminary consolidated production results for the fourth quarter and full year of 2016 as well as its production outlook for full year 2017.

Nickel

4Q16 consolidated nickel production amounted to 58 kt increasing 5% quarter-on-quarter (q-o-q). Nickel output from the Company's own Russian feed reached 53 kt, up 16% q-o-q. The increase was mainly attributed to scheduled ramp up of the upgraded Talnakh Concentrator and higher volumes of Nkomati concentrate processed at Kola MMC.

2016 consolidated nickel production amounted to 236 kt, down 12% year-on-year (y-o-y). The decrease was driven by decommissioning of Nickel Plant and increase of work-in-progress material in transit as a part of ongoing reconfiguration of downstream production facilities. Nickel output from the Company's own Russian feed reached 197 kt in line with 195-220 kt production target.

Copper

4Q16 consolidated copper production amounted to 96 kt increasing 11% q-o-q. Copper output from the Company's own Russian feed reached 91 kt, up 12% q-o-q. The increase was attributed to the lower base of the third quarter driven by pre-commissioning works at the upgraded Talnakh Concentrator.

2016 consolidated copper production amounted to 360 kt decreasing 2% y-o-y. The decrease was attributed to calibration of upgraded Talnakh Concentrator and lower copper content in mined ore. Copper output from the Company's own Russian feed reached 344 kt in line with 342-352 kt production target.

Platinum Group Metals

4Q16 consolidated palladium and platinum output amounted to 633 koz (down 3% q-o-q) and 154 koz (down 2% q-o-q), respectively. Palladium output from the Company's own Russian feed reached 609 koz, down 1% q-o-q and platinum output reached 145 koz, up 1% q-o-q. The decrease of palladium and platinum output in the reported period was attributed to the reconfiguration of downstream production facilities and lower PGM content in mined ore.

2016 palladium and platinum output amounted to 2,618 koz (down 3% y-o-y) and 644 koz (down 2% y-o-y), respectively. The decrease was attributed to the reconfiguration of downstream production facilities. Palladium output from the Company's own Russian feed amounted to 2,518 koz above the 2,296-2,392 koz production target. Platinum output from the Company's own Russian feed amounted to 608 koz above the 542-586 koz production target. The increase of output above production target was attributed to the processing of work-in-progress material released after the shutdown of Nickel plant.

Russian operations

As a result of Nickel plant closure, starting from the 4Q16 all nickel matte produced at Nadezhda Metallurgical Plant has been shipped for processing to Kola MMC and Norilsk Nickel Harjavalta. 4Q16 nickel output at Kola division amounted to 42 kt increasing 2% compare to nickel output from all Russian assets in 3Q16.

2016 combined nickel production in Russia amounted to 182 kt, down 18% y-o-y. The decrease was driven by decommissioning of Nickel Plant in 3Q16 as a part of ongoing reconfiguration of downstream production facilities.

4Q16 copper output in Russia amounted to 93 kt, up 11% q-o-q. The increase was attributed to the lower base of the third quarter caused by pre-commissioning works at the upgraded Talnakh Concentrator.

2016 combined coper production in Russia amounted to 351 kt, down 1% y-o-y. The decrease was driven by calibration of upgraded Talnakh Concentrator and lower copper content in mined ore.

4Q16 palladium and platinum output in Russia decreased to 612 koz (down 3% q-o-q) and to 147 koz (down 2% q-o-q), respectively.

2016 palladium output in Russian amounted to 2,554 koz (down 2% y-o-y) and platinum output stayed flat y-o-y at 622 koz. The decrease of PGM production volumes in 4Q16 and palladium volumes in 2016 was attributed to the reconfiguration of downstream production facilities and lower PGM content in mined ore.

Norilsk Nickel Harjavalta (Finland)

4Q16 nickel production at Norilsk Nickel Harjavalta amounted to 17 kt, up 13% q-o-q, where nickel output from the Company's own Russian feed more than doubled q-o-q to 12 kt.

2016 nickel output amounted to 54 kt increasing 23% y-o-y. The growth was attributed to the increase in processing of Russian feed at Norilsk Nickel Harjavalta as a part of ongoing downstream reconfiguration and additional processing volumes of concentrate purchased from third parties.

4Q16 output of copper at Norilsk Nickel Harjavalta amounted to 3 kt, up 9% q-o-q. The growth was attributed to the increase in processing of Russian feed at Norilsk Nickel Harjavalta as a part of ongoing downstream reconfiguration.

2016 copper output amounted to 10kt decreasing 26% y-o-y. The decrease of output was driven by shipment of copper cake for processing to Kola MMC.

4Q16 output of saleable palladium (palladium in copper cake) increased by 11% q-o-q to 21 koz and output of saleable platinum (platinum in copper cake) stayed flat q-o-q at 7 koz.

2016 output of palladium and platinum reached 64 koz (down 18% y-o-y) and 22 koz (down 33% y-o-y) respectively. The decrease of PGM output was driven by shipment of copper cake for processing to Kola MMC.

2017 Production guidance from Russian feedstock:

Notes:¹ Totals may vary from the sum of numbers as a result of rounding.² Nickel concentrate from Kola MMC, produced for Norilsk Nickel Harjavalta. Production results are not included in totals.3 Production results include processing of nickel concentrate from Russian feed and purchased materials.4 The asset was sold in Q2 2015. 

This announcement contains inside information in accordance with Article 7 of 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 metallurgical company, the world's largest producer of refined nickel and palladium and a leading producer of platinum, cobalt, copper and rhodium. The company also produces 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 Kola Mining and Metallurgical Company located on the Kola Peninsula in Russia as well as Harjavalta nickel refinery in Finland.

PJSC MMC NORILSK NICKEL shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges. PJSC MMC NORILSK NICKEL ADRs trade over 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

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