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NORNICKEL ANNOUNCES CONSOLIDATED PRODUCTION RESULTS FOR 9 MONTHS OF 2021

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MMC Norilsk Nickel (MNOD)
20-Oct-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 CONSOLIDATED PRODUCTION RESULTS FOR 9 MONTHS OF 2021


Moscow, October 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 production results for the third quarter and nine months of 2021.

Senior Vice President, Operations, Sergey Stepanov commented on the production results:

«In 9M 2021, the output of all key metals decreased owing to the temporary suspension of Oktyabrsky and Taimyrsky underground mines and Norilsk Concentrator. Over this period, production volumes of saleable nickel and copper reduced more relative to platinum group metals due to the shorter production cycle from ore to refined metal of the former. This factor played a reversed role once the mines and the concentrator started to recover, driving faster recovery of nickel and copper volumes relative to PGMs in the third quarter.

In addition, we would like to remind that a significant reduction in work-in-progress in transit materials and increase in PGM output in 1Q21 helped to partly offset the negative impact of temporary suspension of operations during the first 9M 2021. However, the shutdown of the metallurgical shop of Kola MMC in Monchegorsk in 1Q21 contributed additionally to the reduction of copper production in 9M 2021.

Currently, the Oktyabrsky mine is operating at full capacity, which was resumed already by the middle of May. The Taimyrsky mine is running at 85% capacity since resuming operation in early June and expected to return to full capacity by the beginning of December. At the moment, we are finishing pumping out the water from the bottom horizons of this mine, as well as reinstalling the fasteners at the horizons, which have been already drained, aiming at the improvement of industrial safety. The Norilsk Concentrator has recovered to 93% of its design capacity with the help of mobile crushers, and is expected to return to full capacity by this December.

Taking into account the current progress in the recovery of the production facilities of the Norilsk division, we reiterate 2021 metal production forecast for nickel and copper within the earlier announced range, while flagging up an upside risk for PGM volumes, which are expected at the top end of the guided range.»

NORILSK NICKEL GROUP

Nickel

In 3Q21, consolidated nickel output increased 55% quarter-on-quarter (q-o-q) to 51 kt, almost all of which were produced from the Company's own Russian feed (50 kt, up 60% q-o-q). The increase in production was attributed to the completion of recovery of the Taimyrsky mine (4.3 mtpa of ore) after the flooding caused by the inflow of groundwater, as well as the ramp up of the Norilsk Concentrator as a result of the launch of mobile crushers. The Taimyrsky underground mine and Norilsk Concentrator are scheduled to return to full capacity this December.

The decrease in nickel production in 3Q21 at Norilsk Nickel Harjavalta was caused by annual scheduled maintenance and repairs.

In 9M21, total nickel output decreased 23% y-o-y to 130 kt, practically all of which were produced from the Company's own Russian feed (127 kt, down 23% q-o-q).

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 temporary suspension of the Norilsk Concentrator and consequent repairs.

Copper

In 3Q21, copper production increased 42% q-o-q to 116 kt. In 9M21, total copper output decreased 20% y-o-y to 288 kt, almost all of which were produced from the Company's own Russian feed. Copper production declined in the reported periods due to the same causes as described above for nickel.

Platinum Group Metals

In 3Q21, palladium and platinum output increased 9% and 8% q-o-q to 598 koz and 145 koz, respectively. In 9M21, total palladium and platinum output reduced 7% y-o-y to 1,913 koz and 10% y-o-y to 463 koz, respectively. All PGMs were produced from the Company's own Russian feed. The decline in PGMs production in the reported periods was attributed to the same causes as described above for nickel.

 

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

 

3Q

2021

2Q

2021

Q-o-Q

9M 2021

9M 2020

Y-o-Y

Total nickel

t

50,575

32,644

55%

129,858

167,753

-23%

 including from own Russian feed

t

50,194

31,457

60%

127,208

165,985

-23%

Total copper

t

115,617

81,400

42%

288,310

358,588

-20%

 including from own Russian feed

t

115,591

81,400

42%

288,284

358,447

-20%

Total palladium

koz

598

548

9%

1,913

2,053

-7%

 including from own Russian feed

koz

598

548

9%

1,912

2,052

-7%

Total platinum

koz

145

134

8%

463

513

-10%

 including from own Russian feed

koz

145

134

8%

463

513

-10%

Norilsk and Kola Division (Russia)

 

 

 

 

 

 

 

Nickel

t

43,014

23,874

80%

99,698

121,938

-18%

 Kola MMC, including

t

43,014

23,874

80%

99,698

121,938

-18%

  refined Ni from own Russian feed

t

37,700

17,107

120%

81,002

112,079

-28%

  saleable intermediate products from own Russian feed

t

5,314

6,767

-21%

18,696

9,859

90%

  from 3d parties feed

t

0

0

0%

0

0

0%

Copper

t

97,810

64,932

51%

237,756

311 159

-24%

 Norilsk Division

t

95,020

61,427

55%

219,108

262,384

-16%

 Kola MMC, including

t

2,790

3,505

-20%

18,648

48,775

-62%

  Cu cathodes from own Russian feed

t

0

66

-100%

9,169

44,990

-80%

  saleable intermediates from own Russian feed

t

2,790

3,439

-19%

9,479

3,785

150%

  from 3d parties feed

t

0

0

0%

0

0

0%

Palladium

koz

592

548

8%

1,906

2,044

-7%

 Norilsk Division

koz

299

249

20%

783

880

-11%

 Kola MMC, including

koz

293

299

-2%

1,123

1,164

-3%

  from own Russian feed

koz

293

299

-2%

1,123

1,164

-3%

  from 3d parties feed

koz

0

0

0%

0

0

0%

Platinum

koz

144

134

7%

461

511

-10%

 Norilsk Division

koz

73

67

9%

199

224

-11%

 Kola MMC, including

koz

71

67

5%

262

288

-9%

  from own Russian feed

koz

71

67

5%

262

288

-9%

  from 3d parties feed

koz

0

0

0%

0

0

0%

Kola Division (NN Harjavalta, Finland)

 

 

 

 

 

 

 

Nickel, including

t

7,561

8,770

-14%

30,160

45,815

-34%

  from own Russian feed

t

7,180

7,583

-5%

27,510

44,047

-38%

  from 3d parties feed

t

381

1,187

-68%

2,650

1,768

50%

Copper, including

t

393

0

-

393

1,650

-76%

  from own Russian feed

t

367

0

-

367

1,509

-76%

  from 3d parties feed

t

26

0

-

26

141

-82%

Palladium, including

koz

6

0

-

6

9

-33%

  from own Russian feed

koz

6

0

-

6

8

-27%

  from 3d parties feed

koz

0

0

-

0

1

-81%

Platinum, including

koz

1

0

-

1

2

-28%

  from own Russian feed

koz

1

0

-

1

2

-10%

  from 3d parties feed

koz

0

0

-

0

0

-100%

Zabaykalsky Division (Russia) 2

 

 

 

 

 

 

 

Copper

t

koz

kt

17,414

67

676

16,468

62

638

6%

8%

6%

50,161

189

1,946

45,779

176

1,466

10%

8%

33%

Gold

Iron ore concentrate

Nkomati (South Africa) 3

 

 

 

 

 

 

 

Nickel

t

0

0

-

0

4,387

-70%

Copper

t

0

0

-

0

2,035

-59%

Palladium

koz

0

0

-

0

22

-62%

Platinum

koz

0

0

-

0

10

-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 and South Africa.

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.:

124803

EQS News ID:

1242166


 

End of Announcement

EQS News Service

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