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NORNICKEL ANNOUNCES 1H 2021 CONSOLIDATED OPERATING RESULTS

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MMC Norilsk Nickel (MNOD)
20-Jul-2021 / 13:00 MSK
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

PRESS RELEASE

Public Joint Stock Company «Mining and Metallurgical Company «NORILSK NICKEL»

(PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company")

NORNICKEL ANNOUNCES 1H 2021 CONSOLIDATED OPERATING RESULTS

Moscow, July 20, 2021 - Nornickel, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces preliminary consolidated operating results for the second quarter and the first half of 2021 and production outlook for the full year 2021.

Senior Vice-President, Operations, Sergey Stepanov commented on the 1H2021 production results,

«In 2Q and 1H 2021, the output of all key metals reduced owing to one-off factors such as the temporary suspension of Oktyabrsky and Taimyrsky underground mines of the Norilsk division due to the natural groundwater inflow and an accident at Norilsk Concentrator. Currently, recovery of these assets is progressing by and large in line with the schedule.

The water inflow to these mines was effectively stopped in late March. The Oktyabrsky mine resumed full production by the middle of May, however the restoration of mining at the Taimyrsky mine has been delayed due to larger than expected volume of recovery work. As the industrial and environmental safety is our absolute priority, having pumped out the water, we are reinforcing supports in the mine underground workings. The Taimyrsky mine has been already restored to 80% capacity since resuming operation in early June and expected to return to full capacity by the end of this November.

The technical audit of the Norilsk Concentrator was completed in the second quarter. The construction defects identified by the audit have been completely fixed by now. The Concentrator has already reached 85% of its design capacity and is expected to return to full capacity in early October this year.

Taking into account the current progress in the restoration of the impacted production capacity of the Norilsk division, as well as the efficiency gains at other mining assets, we reiterate previously announced 2021 metal production forecast».

NORILSK NICKEL GROUP

Nickel

In 2Q21, consolidated nickel output decreased 30% quarter-on-quarter (q-o-q) to 33 kt, most of which were produced from the Company's own Russian feed (31 kt, down 31% q-o-q). In 1H2021, total nickel output decreased 26% year-on-year (y-o-y) to 79 kt (of which 77 kt were produced from own Russian feed, down 28% y-o-y).

The decrease in production was attributed to the temporary suspension of mining operations and subsequent restoration works at Oktyabrsky (5 mtpa of ore) and Taimyrsky (4.3 mtpa of ore) underground mines of the Norilsk division after the flooding caused by the inflow of groundwater, as well as the suspension at the Norilsk Concentrator and consequent repairs. The copper circuit (4 mtpa of ore throughput) of the concentrator resumed operations on March 15th after a temporary suspension for technical safety inspections and necessary repairs. The disseminated ore processing circuit (5.2 mtpa of ore throughput) of the Norilsk Concentrator operated in 2Q21 at just over 50% of its nameplate capacity.

Copper

In 2Q21, consolidated copper production decreased 11% q-o-q to 81 kt. In 1H2021, total copper output decreased 28% y-o-y to 173 kt. All of the copper produced in the reporting periods was produced from the Company's own feed. Copper production declined in the reporting periods owing to the same causes as nickel as described above.

Bystrinsky Project continued to ramp up on schedule, having increased production of copper in concentrate by 8% y-o-y to 33 kt in 1H2021.

Platinum Group Metals

In 2Q21, palladium and platinum output decreased 28% q-o-q to 548 koz and 27% q-o-q to 134 koz, respectively. All PGMs were produced from the Company's own Russian feed. The decline of PGM output in the second quarter was attributed to the same reasons as base metals as described above. In 1H2021, palladium and platinum output amounted to 1,314 koz (up 3% y-o-y) and 318 koz (down 1% y-o-y), respectively. The increase of palladium and slight decrease of platinum output in the first half, despite a significant loss of production in the second quarter, was explained by the high base effect of the first quarter, when a new line for production of precious metals from chlorine leaching residues at Kola MMC was ramped up to its design capacity and, as a result, the work-in-progress in transit inventory reduced.

NKOMATI (SOUTH AFRICA) (*)

In 2Q21, Nkomati (50% of the Group) was placed on limited care and maintenance pending the finalization and submission of a closure plan.

Note: (*) Nkomati production results are not consolidated in the Group's total operating results.

 

Production Guidance from the Company's Russian feedstock for 2021

 

Metal

Volume

Norilsk Nickel Group (excluding Chita)

Ni, kt

190-200

Cu, kt

335-355

Pd, koz

2,350-2,410

Pt, koz

580-640

Bystrinsky (Chita) Copper Project (1)

Cu, kt

65-70

Au, koz

230-240

 

Note: 1. Norilsk Nickel Group owns 50.01% of Bystrinsky GOK (Chita Copper Project). Production results are shown metal in concentrate for sale on 100% basis and fully consolidated in total operational results. The concentrator at the Bystrinsky project was launched 2019.

 

 

NORILSK NICKEL GROUP SALEABLE METALS PRODUCTION 1

 

2Q

2021

1Q

2021

Q-o-Q

1H 2021

1H 2020

Y-o-Y

Total nickel

t

32,644

46,639

-30%

79,283

107,588

-26%

 including from own Russian feed

t

31,457

45,558

-31%

77,015

106,571

-28%

Total copper

t

81,400

91,292

-11%

172,692

239,914

-28%

 including from own Russian feed

t

81,400

91,292

-11%

172,692

239,824

-28%

Total palladium

koz

548

766

-28%

1,314

1,270

3%

 including from own Russian feed

koz

548

766

-28%

1,314

1,270

4%

Total platinum

koz

134

184

-27%

318

323

-1%

 including from own Russian feed

koz

134

184

-27%

318

323

-1%

Norilsk and Kola Division (Russia)

 

 

 

 

 

 

 

Nickel

t

23,874

32,810

-27%

56,684

74,455

-24%

 Kola MMC, including

t

23,874

32,810

-27%

56,684

74,455

-24%

  refined Ni from own Russian feed

t

17,107

26,195

-35%

43,302

71,200

-39%

  saleable intermediate products from own Russian feed

t

6,767

6,615

2%

13,382

3,255

311%

  from 3d parties feed

t

0

0

0%

0

0

0%

Copper

t

64,932

75,014

-13%

139,946

208,258

-33%

 Norilsk Division

t

61,427

62,661

-2%

124,088

176,423

-30%

 Kola MMC, including

t

3,505

12,353

-72%

15,858

31,835

-50%

  Cu cathodes from own Russian feed

t

66

9,103

-99%

9,169

30,710

-70%

  saleable intermediates from own Russian feed

t

3,439

3,250

6%

6,689

1,125

495%

  from 3d parties feed

t

0

0

0%

0

0

0%

Palladium

koz

548

766

-28%

1,314

1,264

4%

 Norilsk Division

koz

249

235

6%

484

550

-12%

 Kola MMC, including

koz

299

531

-44%

830

714

16%

  from own Russian feed

koz

299

531

-44%

830

714

16%

  from 3d parties feed

koz

0

0

0%

0

0

0%

Platinum

koz

134

184

-27%

318

322

-1%

 Norilsk Division

koz

67

60

11%

127

143

-11%

 Kola MMC, including

koz

67

124

-46%

192

179

7%

  from own Russian feed

koz

67

124

-46%

192

179

7%

  from 3d parties feed

koz

0

0

0%

0

0

0%

Zabaykalsky Division (Russia) 2

 

 

 

 

 

 

 

Copper

t

16,468

16,278

1%

32,746

30,259

8%

Gold

koz

62

60

3%

122

114

7%

Iron ore concentrate

kt

638

631

1%

1 269

872

46%

Kola Division (NN Harjavalta, Finland)

 

 

 

 

 

 

 

Nickel, including

t

8,770

13,829

-37%

22,599

33,133

-32%

  from own Russian feed

t

7,583

12,748

-41%

20,331

32,116

-37%

  from 3d parties feed

t

1,187

1,081

10%

2,268

1,017

123%

Copper, including

t

0

0

0%

0

1,397

-100%

  from own Russian feed

t

0

0

0%

0

1,307

-100%

  from 3d parties feed

t

0

0

0%

0

90

-100%

Palladium, including

koz

0

0

0%

0

7

-100%

  from own Russian feed

koz

0

0

0%

0

6

-100%

  from 3d parties feed

koz

0

0

0%

0

1

-100%

Platinum, including

koz

0

0

0%

0

1

0%

  from own Russian feed

koz

0

0

0%

0

1

-100%

  from 3d parties feed

koz

0

0

0%

0

0

0%

Nkomati (South Africa) 3

 

 

 

 

 

 

 

Nickel

t

0

795

-100%

795

2,626

-70%

Copper

t

0

465

-100%

465

1,137

-59%

Palladium

koz

0

5

-100%

5

13

-62%

Platinum

koz

0

2

-100%

2

6

-65%

Notes:


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

MMC Norilsk Nickel is a diversified mining and metallurgical company, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products.

The production units of Norilsk Nickel Group are located at the Norilsk Industrial District, on the Kola Peninsula and Zabaykalsky Krai in Russia as well as in Finland.

MMC Norilsk Nickel shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges, ADRs are traded over the counter in the US and on the London, Berlin and Frankfurt 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

 


ISIN:

US55315J1025

Category Code:

MSCH

TIDM:

MNOD

LEI Code:

253400JPTEEW143W3E47

Sequence No.:

118031

EQS News ID:

1220254


 

End of Announcement

EQS News Service

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