News Releases
Nyrstar: Strong Operational Performance - Financial results lower due to deteriorating external market conditions, including falling zinc price and weakening US dollar
Balen, Belgium (19 August 2008) - Nyrstar NV, the world's largest producer of zinc metal and alloys, today announced the release of its half year report for the six months to 30 June 2008.
Operational Highlights
- Zinc market metal production increased to 541,000 tonnes, up 5% compared with H2 2007
- Lead market metal production increased to 118,000 tonnes, up 13% compared with H2 2007
- Underlying operating costs stayed relatively flat at €359 million on the back of higher output and an inflationary labour and energy cost environment
- Synergy realisations resulted in a 3% improvement in the recovery rate at Hobart, that will translate to an additional 8,000 tonnes annualised of zinc cathode produced from the same amount of feed material
- Lost Time Injury Rate per million hours worked reduced to 6.2 from 7.9 in H2 2007
- Review announced to investigate shifting zinc metal production from Port Pirie to more cost efficient Hobart, as well as a feasibility study into modernising smelting technology and increasing multi-metals recycling at Port Pirie
Market and Financial Highlights
- Average zinc price down by 22% from H2 2007
- €/US$ exchange rate falls 9% from H2 2007
- Revenues declined 18% to €1,408 million
- Underlying gross profit down 14% to €461 million
- Underlying EBITDA down 45% to €106 million
- Synergy revenue benefits and cost savings of approximately €30 million per annum from 2009
- Capital expenditure reduced by €30 million for 2008 versus previous guidance
Comment
Paul Fowler, chief executive officer, said:
"Today's results demonstrate Nyrstar's ability to achieve strong operational performance in spite of challenging market conditions. Despite a falling zinc price and weakening €/US$ exchange rate, we have continued to focus on managing factors that are within our control. Through a combination of prudent and disciplined management we have improved production of both zinc and lead metal and maintained largely flat costs in an inflationary environment."
Nyrstar's full H1 2008 financial report can be accessed below or via the Nyrstar website, www.nyrstar.com.
Conference Call and Presentation
Management will discuss this report in a conference call and presentation with the investment community on 19 August at 8:30am UK Time, 9:30am Central European Time. The conference call will be webcast live on the Nyrstar website, www.nyrstar.com, where it will also be available in archive.
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About Nyrstar
Nyrstar NV is the world's largest producer of zinc metal and alloys, and in addition, is one of the world's largest primary lead smelting and refining companies. The company produces other valuable by-products including copper, gold and indium, along with significant quantities of refined silver. In 2007 Nyrstar produced more than one million tonnes of zinc. Incorporated in Belgium and with its corporate offices in London (United Kingdom) and Balen (Belgium), Nyrstar has wholly-owned operations in Australia, Belgium, France, the Netherlands and the USA and joint ventures in Australia, China and France. Nyrstar is listed on Euronext Brussels under the symbol NYR. For further information visit the Nyrstar website, www.nyrstar.com.
Contacts
Investors / Media
Jan Altink
Director IR and
Communications
T: +44 20 7408 8119
M: +44 7912 269 483
Craig Chapman
IR Manager
T: +44 20 7408 8195
M: +44 7912 391 370
or
Jennifer Martin
Capital MS&L
T: +44 20 7307 5335
M: +44 7841 401 304
Jan Van Heuverswyn
Interel (Belgium)
T: +32 475 370 338
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