Nyrstar Nv · EURONEXT:NYR
Nyrstar Nv — H1 2015 Earnings Presentation
32 slides from Nyrstar Nv's earnings presentation, Jul 23, 2015
Slide 1: First Half 2015 Results
23 JULY 2015 First Half 2015 Results
Slide 2: Important Notice
First Half 2015 Results 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 securiti
Slide 3: Highlights
Highlights Group financial results Metals Processing Mining Outlook Heinz Eigner Acting Chief Executive Officer and Chief Financial Officer 3
Slide 4: H1 2015 Overview
First Half 2015 Results: Highlights H1 2015 Overview H1 2015 EBITDA of EUR 168 million, significant 53% improvement y-o-y on the back of continued strong operational performance in Metals Processing & continued USD strength Port Pirie Redevelopment continues to be on budget and schedule NYRSTAR Net
Slide 5: Metals prices and foreign exchange development
First Half 2015 Results: Highlights Metals prices and foreign exchange development LME zinc price EUR: USD exchange rate H1 2015 Sensitivity:-/+ 10% zinc price1 => EUR (71) / +94 million H1 2015 Sensitivity: -/+ 10% EUR:USD1 => EUR +140 / (115) million Zinc $2,051 Zinc $2,273 Zinc $ 2,134 2,450 €1,4
Slide 6: Group financial results
Highlights Group financial results Metals Processing Mining Outlook Heinz Eigner Acting Chief Executive Officer and Chief Financial Officer 6
Slide 7: Financial Summary
First Half 2015 Results: Group financial results Financial Summary EBITDA1 Capex (EURm) (EURm) (EURm) H1 2014 H1 2015 ∆ 168 177 Revenue 1,354 1,501 11% +53% 110 100 +90% Gross profit 637 717 13% 183 93 EBITDA 110 168 53% 108 20 Profit/(Loss) after tax (66) (250) 279% 73 78 Capex 93 177 90% 26 6 -24
Slide 8: Financial position
First Half 2015 Results: Group financial results Financial position Net Debt (EURm) +2% 800 4.5 Net debt of EUR 667M level flat year-over-year despite increased working 720 700 653 667 4.0 capital for post-Century concentrate requirements, strengthening of USD 600 and capex spend at Port Pirie Red
Slide 9: Impairment of mining assets
First Half 2015 Results: Group financial results Impairment of mining assets Carrying Values of Mining assets 30-Jun-2015 (EURm) EUR (407)M * (40%) 1,031 Testing was carried-out applying the most recent macroeconomic assumptions and updated life of mine plans Commodity price and foreign exchange
Slide 10: Metals Processing
Highlights Group financial result Metals Processing Mining Outlook Michel Morley Senior Vice President, Metals Processing and Chief Development Officer 10
Slide 11: Record half-year EBITDA result from Metals Processing
First Half 2015 Results: Metals Processing Record half-year EBITDA result from Metals Processing Gross Profit increased H1 H1 EURm Premium +15% 1 : EURm ∆ positive FX and 2014 2015 +21% volume impact Gross profit 430 520 21% 520 offset by lower European realised 86 premium rates Direct operating cos
Slide 12: Zinc metal production at the top end of guidance
First Half 2015 Results: Metals Processing Zinc metal production at the top end of guidance Production Total direct operating cost DOC per tonne 1 Capex kt EURm EUR/t EURm 135 +7% 125 93 85 85 +7% +1% 59 69 508 10 307 327 552 545 560 287 477 456 45 22 11 67 2 32 34 H1 2014 H2 2014 H1 2015 H1 2014 H2
Slide 13: Safety, Health and Environment – Metals Processing
First Half 2015 Results: Metals Processing Safety, Health and Environment – Metals Processing Lagging Safety Indicators Safety MP safety statistics in H1 2015 were at a record low 10.2 10.3 with the number of cases with days lost or under restricted duties (DART) and number of cases requiring medi
Slide 14: Port Pirie Redevelopment progressing on budget and on schedule
First Half 2015 Results: Metals Processing Port Pirie Redevelopment progressing on budget and on schedule Overall capital cost for the project remains as guided at AUD 514 million Key H1 2015 milestones achieved Detailed engineering has progressed to approximately 90% complete and is now expected
Slide 15: Port Pirie Redevelopment visible progress on site
First Half 2015 Results: Metals Processing Port Pirie Redevelopment visible progress on site Major concrete footings completed at the Oxygen plant TSL Furnace undergoing Redevelopment final progress – 30 June fabrication works2015 Redevelopment progress – 31 March 2015 TSL Furnace piling and concret
Slide 16: Metals Processing Growth Pipeline
First Half 2015 Results: Metals Processing Metals Processing Growth Pipeline Work progresses across the broader growth pipeline, with a focus in 2015 on: Deconstraining projects at Budel and Hobart enabling the treatment of a more complex feedbook following the closure of the Century mine Projec
Slide 17: Mining
Highlights Group financial result Metals Processing Mining Outlook John Galassini Senior Vice President Mining 17
Slide 18: Mining performance
First Half 2015 Results: Mining Mining performance EURm H1 2014 H1 2015 ∆ Gross Profit decreased by 5% Positive translation EURm impact of weakened EUR/USD exchange Gross profit 208 197 (5)% rate in all GP items 1 221 (171) (193) 13% 208 Direct operating costs 197 75 48 By-products -47% : EBITDA 26
Slide 19: Mining Production, Costs, Capex
First Half 2015 Results: Mining Mining Production, Costs, Capex Zinc in concentrate production Other metal in concentrates kt Gold Silver k’toz m toz Lead Copper -9% kt kt -38% -48% +5% 140 138 -74% 127 29 2.6 11.3 6.2 2.5 5.1 23 7.9 8.3 1.6 3.2 8 H1 H2 H1 H1 H2 H1 H1 H2 H1 H1 2014 H2 2014 H1 2015 H
Slide 20: Safety, Health and Environment – Mining
First Half 2015 Results: Mining Safety, Health and Environment – Mining Lagging Safety Indicators Safety Tragically, despite Nyrstar’s strong focus on safety, a contractor was fatally injured on 16 June 2015 while operating an underground scoop at El Mochito 15.1 14.0 Nyrstar has concluded an in
Slide 21: Campo Morado and Myra Falls situation update
First Half 2015 Results: Mining Campo Morado and Myra Falls situation update Campo Morado Myra Falls Production at the Campo Morado operation Mining and milling operations at Myra Falls suspended since 5 January 2015 temporary suspended at the beginning of Q2 2015 In Q2 2015 employees were
Slide 22: Update on key steps to address mining performance
First Half 2015 Results: Mining Update on key steps to address mining performance Assess Improve and strengthen Deliver Safety as a first area of focus Over the past several months Nyrstar has conducted a comprehensive review of Establishing a performance culture Targeting and delivering o
Slide 23: Outlook
Highlights Group financial result Metals Processing Mining Outlook Heinz Eigner Acting Chief Executive Officer and Chief Financial Officer 23
Slide 24: Outlook
First Half 2015 Results: Outlook Outlook In H2 2015 we will continue our focus on the execution and delivery of the initiatives and targets that we have outlined to the market, including: Operational and financial targets Deployment of the Port Pirie Redevelopment which remains scheduled for c
Slide 25: Questions
Questions 25
Slide 26: 2015 Guidance maintained
First Half 2015 Results: Appendix 2015 Guidance maintained Production Capex EURm Group capex 2015 410 – 465 Metals Processing Metals Processing 2015 320 – 360 Zinc (kt) 1,000 – 1,100 Sustaining 85 – 95 Growth 35 – 45 Port Pirie Redevelopment 200 – 220 Mining - Metal in concentrate Mining 2015 90 – 1
Slide 27: H1 2015 underlying EBITDA sensitivity
First Half 2015 Results: Appendix H1 2015 underlying EBITDA sensitivity Estimated H1 Estimated FY 2015 H1 2015 2015 EBITDA Variation Parameter average impact EBITDA impact -/+10% price/rate EURm EURm EUR:USD 1.116 -/+ 10% +70 / (57) +140 (115) Zinc price $2,134/t -/+ 10% (35) / +47 (71) +94 Zinc TC
Slide 28: Impairment testing assumptions
First Half 2015 Results: Group financial results Impairment testing assumptions Commodity price and forex assumptions Recoverable values were determined on the basis of fair value less cost to sell (FVLCS) for each operation Low High Long term The FVLCS recoverable values for Mining operations w
Slide 29: Metals Processing gross profit by metal
First Half 2015 Results: Appendix Metals Processing gross profit by metal H1 2015 H1 2014 EUR 520 million 1 EUR 430 million 1 Other metals Gold (EUR 8m) (EUR 29m) Other metals Silver (EUR 11m) 5% Gold (EUR 5m) (EUR 27m) Copper (EUR 9m) 1% Silver (EUR 14m) 6% Leach product 2% 2% Copper (EUR 9m) (EUR
Slide 30: Mining gross profit by metal
First Half 2015 Results: Appendix Mining gross profit by metal H1 2015 H1 2014 EUR 197 million EUR 208 million Gold Other (EUR 3m) (EUR 6m) Gold Silver (EUR 23m) (EUR 18m) 1% 11% 9% 3% Copper (EUR 9m) Silver 4% (EUR 26m) Lead 13% (EUR 7m) 4% Copper 9% (EUR 20m) 64% Zinc 4% (EUR 132m) Lead 78% (EUR 7
Slide 31: Metals Processing DOC per tonne
First Half 2015 Results: Appendix Metals Processing DOC per tonne Direct Operating Costs per tonne H1 2014 H2 2014 H1 2015 EUR/t 710 680 695 +6% 503 501 508 495 480 466 461 477 454 456 435 423 404 418 424 390 356 291 Auby Balen/Overpelt Budel Clarksville Hobart Port Pirie 1 Metal Processing Average
Slide 32: Mining DOC per tonne
Appendix Mining DOC per tonne H1 2014 H2 2014 H1 2015 Direct operating cost per tonne of ore milled USD/t 197 136 115 105 93 95 +3% 88 85 81 83 75 74 78 72 66 65 66 68 62 42 43 41 n/a n/a Campo Contonga El Mochito El Toqui Langlois Myra Falls Tennessee Mining Morado Mines Average 1 Mining DOC per to