NorNickel GMK

Earnings Release • Oct 20, 2021

National Storage Mechanism | Additional information

MMC Norilsk Nickel (MNOD)

NORNICKEL ANNOUNCES CONSOLIDATED PRODUCTION RESULTS FOR 9 MONTHS OF 2021

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.

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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:

1. Totals may value from the sum of numbers as a result of rounding. The production results of Nkomati is not reflected in totals of Norilsk Nickel Group.
2. 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.
3. Norilsk Nickel Group owns 50% of Nkomati. Production results report metal contained in saleable concentrate on a 50% basis and are not consolidated in the Group's total operating results. In 2019, the Group and its operating partner, African Rainbow Minerals, reached an agreement to cease the project. In 2Q2021 the mine was placed on limited care and maintenance pending the finalization and submission of a closure plan.

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

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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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