Nyrstar: Further update on unplanned production outage at Port Pirie smelter and impact of Metal at Risk position in H1 2019
19 July 2019 - 4:00PM
Nyrstar: Further update on unplanned production outage at Port
Pirie smelter and impact of Metal at Risk position in H1 2019
Regulated Information – Inside Information
Nyrstar: Further update on unplanned production outage
at Port Pirie smelter and impact of Metal at Risk position in H1
2019
19 July 2019 at 08.00 CEST
Nyrstar NV ("Nyrstar" or the “Company”) today
provides an update with regards to the Port Pirie smelter unplanned
production outage and the impact of its unhedged Metal at Risk
position in H1 2019.
Port Pirie unplanned production
outageFurther to the press releases issued on 9 July 2019,
10 June 2019 and 28 June 2019, whereby it was communicated that the
Company had to declare force majeure under a number of its
agreements due to an unplanned stoppage of production at the Port
Pirie smelter, the Company today provides an update. The Company
had previously advised on 9 July 2019 that it anticipated that the
force majeure would continue until the last week of July 2019 and
that both the TSL Furnace and the Blast Furnace were expected to
restart by the end of July 2019.
The Company today advises that the TSL Furnace
commenced its restart on 18 July 2019 and that the Blast Furnace is
still expected to restart by the end of the month.
Nyrstar has quantified the impact of the
unplanned production outage during June and July 2019 as
approximately 30kt of lead metal and a reduction in Underlying
EBITDA of approximately EUR 20 million to EUR 25 million in the
same period.
Metal at RiskAt any given time Nyrstar
holds metal, either as work-in-progress or finished good inventory
that has been “priced-in” but not “priced-out”. As this metal
remains exposed to fluctuations in the underlying metal price until
it is “priced out”, it is called “Metal at Risk”. The actual Metal
at Risk at any given point in time fluctuates with deliveries of
raw materials and production levels.
As announced in Nyrstar’s 2018 Full Year Results
release issued on 26 May 2019, during the course of March 2019,
Nyrstar closed out all of its Metal at Risk hedge positions to
release cash collateralized against the credit lines. As a
consequence of closing out these Metal at Risk hedges, Nyrstar
realised a one-off cash benefit of approximately USD 40 million and
since this time has been fully exposed to fluctuations in metal
prices for its Metal at Risk. The Company today advises that it has
now quantified the adverse impact of metal price movements in H1
2019 as a Metal at Risk loss of EUR 31 million.
About Nyrstar
Nyrstar is a global multi-metals business, with a market leading
position in zinc and lead, and growing positions in other base and
precious metals, which are essential resources that are fuelling
the rapid urbanisation and industrialisation of our changing world.
Nyrstar has mining, smelting and other operations located in
Europe, the Americas and Australia and employs approximately 4,100
people. Nyrstar is incorporated in Belgium and has its corporate
office in Switzerland. Nyrstar is listed on Euronext Brussels under
the symbol NYR. For further information please visit the Nyrstar
website: www.nyrstar.com.
For further information
contact:
Anthony Simms - Head of Investor Relations &
Insured Risk T: +41 44 745 8157 M: +41 79
722 2152 anthony.simms@nyrstar.com Franziska
Morroni - Head of Corporate Communications T: +41 44
745 8295 M: +41 79 719 2342 franziska.morroni@nyrstar.com
- Port Pirie unplanned outage update nd MAR EN 19072019
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