Nyrstar: 2013 Second Interim Management Statement

              Nyrstar: 2013 Second Interim Management Statement

Regulated Information

24 October 2013


Total zinc in concentrate production of 70,000 tonnes in Q3 2013, down 7%

  *Impacted by operational challenges at Myra Falls and Middle Tennessee
  *Although higher production expected in Q4 2013 some challenges expected to
    continue; therefore full year 2013 zinc guidance (at own mines) reduced to
    265,000-280,000 tonnes (previously 300,000-340,0000 tonnes)
  *Significant increase in gold production at El Toqui and continued strong
    performance at East Tennessee

Zinc metal production  up 10%  in Q3 2013  and full  year production  guidance 

  *Strong operational performance result in Q3 2013; highest quarterly zinc
    metal production since Q4 2011
  *Update on Port Pirie Redevelopment and Smelting Strategic Review to be
    provided on 29 October 2013

Entered strategic marketing  agreement with Noble,  made several senior  level 
appointments in  Marketing,  Sourcing  and  Sales and  executed  a  number  of 
commercial initiatives to support new commercial strategy

Challenging trading environment persisted in Q3 2013 and expected to  continue 
into Q4 2013

  *Zinc traded between USD1,800-1,900/t, precious metal prices remained low
    and acid prices deteriorated
  *Zinc premia and treatment charge outlook favourable for smelters

'000 tonnes unless otherwise    Q3 2013 Q2 2013   D % Q1 2013  9m 2013 9m 2012
Own mine zinc in concentrate         65      70  (7)%      68      203     209
Total zinc in concentrate [1]        70      75  (7)%      70      214     230
Gold ('000 troy ounces)            26.3    15.3   72%     9.6     51.1    66.2
Silver ('000 troy ounces) [2]     1,178   1,269  (7)%   1,094    3,541   4,137
Copper in concentrate               2.8     3.4 (18)%     2.8      9.1    10.7
Metals Processing
Zinc metal                          282     256   10%     263      801     803
Lead metal (Port Pirie)              41      46 (11)%      40      127     113
Average LME zinc price            1,859   1,840    1%   2,033    1,910   1,946
Average exchange rate (EUR/USD)            1%             1.28
                                   1.32   1.31         1.32    1.32

In the Mining segment Nyrstar's own mines produced approximately 65,000 tonnes
of zinc in concentrate in Q3 2013, a 7% decline on the previous quarter.  This 
decrease was  driven  by  operational  challenges at  Myra  Falls  and  Middle 
Tennessee  mines.  The  East  Tennessee  mines  continued  to  perform  at   a 
consistently high level, while the  Langlois mine increased its production  of 
zinc in concentrate due to the  benefits of the optimisation programme put  in 
place during Q2 2013. Nyrstar expects higher production volumes from its mines
in Q4 2013, however some challenges are expected to continue within the Mining
segment during Q4 2013. Therefore, Nyrstar  lowers its full year 2013 zinc  in 
concentrate production  guidance  to  265,000  -  280,000  tonnes  (previously 
300,000-340,000 tonnes).

Gold production  in Q3  2013 was  significantly up  on the  previous  quarter, 
mainly due to  the planned and  previously announced switch  to mining  higher 
grade gold ore faces at El Toqui, following its focus on mining zinc/lead  ore 
faces in H1 2013.  For this reason, total  lead in concentrate production  was 
slightly down in Q3 2013. Copper in concentrate production was impacted by the
operational challenges at Campo Morado and Myra Falls, while silver production
was down at  several mines.  In addition after  assessing all  options in  the 
context of challenged financial performance  and a lower precious metal  price 
environment, Management took the decision to put the Coricancha mine on  care 
and maintenance. For  this reason  and given  the level  of silver  production 
achieved for  the  first nine  months  of 2013  at  the other  mines,  Nyrstar 
believes it is unlikely that full  year 2013 silver guidance will be  achieved 
and therefore  lowers  guidance to  4.7-4.9  million troy  ounces  (previously 
5.25-5.75 million troy ounces).

The Metals  Processing segment  delivered a  strong Q3  2013 with  zinc  metal 
production of approximately 282,000 tonnes, an  increase of 10% from Q2  2013, 
and the highest quarterly production since Q4 2011. Full year 2013 zinc  metal 
guidance of 1.0-1.1 million  tonnes is maintained. Production  rose at all  of 
the zinc  smelters  quarter  on  quarter, with  the  Auby  and  Balen/Overpelt 
smelters delivering the  largest improvements,  up 30%  and 17%  respectively, 
following planned maintenance  shuts in  Q2 2013.  Despite a  number of  these 
planned shuts across  the Metals  Processing segment  in H1  2013, zinc  metal 
production for the first nine months of 2013 was in line with the same  period 
in 2012, emphasising the very strong performance in Q3 2013. The Auby  smelter 
also produced a record indium  metal in Q3 2013,  while lead metal and  silver 
production at Port Pirie were  impacted by an unplanned  one week shut of  the 
sinter and blast furnace (as stated in Nyrstar's Half Year 2013 results).

Delivering on its commitment to  provide an update to  the market on the  Port 
Pirie Transformation and Smelting  Strategic Review in  H2 2013, Nyrstar  will 
host a  conference  call to  to  discuss the  company's  continuing  strategic 
journey  including  the  proposed  transformation  of  its  Metals  Processing 
business on 29  October 2013. For  further details see  the Metals  Processing 

During Q3 2013  the Marketing, Sourcing  and Sales (MSS)  segment delivered  a 
number of important milestones as  part of Nyrstar's new commercial  strategy. 
Nyrstar entered into a strategic offtake  and marketing agreement for some  of 
its  European  commodity  grade  metal  with  Noble  starting  January   2014. 
Discussions on direct  sales, marketing and  financing opportunities  continue 
with a  number  of market  participants  for remaining  European  volumes,  as 
Nyrstar believes the best way to market its product is through a multi-channel
approach. This  could include  placing commodity  grade zinc  metal and  other 
products in offshore markets, a route  which was tested during Q3 2013.  With 
regards  to  the  sourcing  of  raw  materials  Nyrstar  entered  tenders  for 
concentrates for the  first time  and held  key contract  negotiations with  a 
number of suppliers. To support the implementation of the new strategy Nyrstar
has  made  a  number  of  senior  level  appointments  to  MSS  to  build  its 
capabilities and market insight.

The zinc price continued to trade between USD 1,800/t and USD1,900/t during Q3
2013, with the average price for the quarter in line with Q2 2013, and Nyrstar
expects the zinc  price to continue  to trade  in this range  during Q4  2013. 
During Q3  2013  gold  and  silver  prices  remained  low  while  acid  prices 
deteriorated across a number  of regions. Given  the sensitivity of  Nyrstar's 
earnings to changes  in those prices,  this may impact  2013 results,  however 
metal price hedges  put in place  in H1 2013  provide some protection  against 
this. Based on current market dynamics,  the outlook for both zinc premia  and 
treatment charges appear favourable for  smelters and positive momentum  seems 
to be building behind zinc with major mine closures which started in 2013  and 
will continue in 2014.

Management  will  discuss  this  statement  in  a  conference  call  with  the 
investment community on 24 October 2013  at 9:00am Central European Time.  The 
presentation will be webcast live on the Nyrstar website, www.nyrstar.com, and
will  also  be  available  in  archive.  The  webcast  can  be  accessed  via: 

[1] Includes production from Nyrstar  operated mines and deliveries under  the 
Talvivaara streaming agreement
[2] 75% of  the silver  produced by  Campo Morado  is subject  to a  streaming 
agreement with Silver Wheaton Corporation whereby only USD 3.90/oz is payable.
In Q3 2013, Campo Morado produced approximately 373,000 troy ounces of silver
[3] Zinc price is average of LME daily cash settlement prices

About Nyrstar
Nyrstar is  an integrated  mining  and metals  business, with  market  leading 
positions in zinc and lead, and  growing positions in other base and  precious 
metals; 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, China  and Australia  and 
employs over 7,000  people. Nyrstar  is incorporated  in Belgium  and has  its 
corporate office in Switzerland. Nyrstar  is listed on NYSE Euronext  Brussels 
under the  symbol  NYR.  For  further information  please  visit  the  Nyrstar 
website, www.nyrstar.com

For further information contact:
Jaideep Thatai   Manager Investor Relations T: +41 44 745 8103   M: +41
79 722 3089  jaideep.thatai@nyrstar.com
Sheela Pawar de Groot  Group Manager Corporate Affairs   T: +41 44 745
8154  M:+41 79 722 6917 sheela.pawar@nyrstar.com
Geert Lambrechts  Manager Corporate External Communications T: +32 14 449
646 M: +32 473 637 892 geert.lambrechts@nyrstar.com

The full press release can be downloaded from the following link:

Press Release (Dutch)
Press Release (English)
Press Release (French)


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Source: Nyrstar via Thomson Reuters ONE
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