Nyrstar: 2013 Second Interim Management Statement Regulated Information 24 October 2013 HIGHLIGHTS Total zinc in concentrate production of 70,000 tonnes in Q3 2013, down 7% *Impacted by operational challenges at Myra Falls and Middle Tennessee mines *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 maintained *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 indicated Mining Own mine zinc in concentrate 65 70 (7)% 68 203 209 Total zinc in concentrate  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)  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 Market Average LME zinc price 1,859 1,840 1% 2,033 1,910 1,946 (USD/t) 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 section. 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. CONFERENCE CALL 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: http://www.media-server.com/m/p/wh323qqc  Includes production from Nyrstar operated mines and deliveries under the Talvivaara streaming agreement  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  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 firstname.lastname@example.org Sheela Pawar de Groot Group Manager Corporate Affairs T: +41 44 745 8154 M:+41 79 722 6917 email@example.com Geert Lambrechts Manager Corporate External Communications T: +32 14 449 646 M: +32 473 637 892 firstname.lastname@example.org The full press release can be downloaded from the following link: Press Release (Dutch) Press Release (English) Press Release (French) ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. 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Nyrstar: 2013 Second Interim Management Statement
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