Nyrstar NV

Earnings Release • Feb 24, 2011

News Release Regulated information

Nyrstar announces 2010 Full Year Results

24 February 2011

HIGHLIGHTS

Strong Financial Performance

• Underlying EBITDA of €207 million more than doubled (€93m million in 2009) with the first contribution of €24 million from the Company's mining segment in 2010
• Completed syndication of €400 million credit facility in March 2010, subsequently extended to €500 million in November 2010
• Completed offering of bonds for total of €225 million in March 2010
• Proposed distribution of €0.15 per share via a share capital reduction
• Basic EPS at €0.74 per share, more than seven times greater than in 2009 (€0.10)

Solid Operating Performance

• Record annual zinc metal production of 1.08 million tonnes from the smelting segment
• Coricancha, Contonga and East Tennessee Mines operating at full capacity at year-end 2010
• Continued improvement in health and safety performance even with the ramping-up of mining assets

Continuing to Deliver on our Strategy

• Acquired 1.25 million tonnes of zinc in concentrate from Talvivaara in February, remaining 15% of Coricancha mine and Contonga and Pucarrajo mines in July
• Subsequently acquired Farallon Mining Ltd, owner of the Campo Morado operation in January 2011
• Exceeded 30% integration target based on full production of existing assets (including the Talvivaara streaming agreement and the Campo Morado operation)
• Continue to actively explore opportunities to achieve medium term goal of a 50% integration level

COMMENT

The Company delivered a strong financial performance in 2010, with Underlying EBITDA more than doubling to €207 million (compared to €93 million in 2009). This consisted of a €24 million and €198 million contribution respectively from the mining and smelting segments, with €(15) million in the other and eliminations segment.

Nyrstar continued to deliver on its growth strategy, focussing selectively on pursuing opportunities in mining, favouring mines that support its existing smelting assets and where it has expertise and proven capability. In 2010, Nyrstar acquired 1.25 million tonnes of zinc in concentrate from Talvivaara (Finland) in February, the remaining 15% of the Coricancha mine (Peru) in July, the Contonga and Pucarrajo mines (Peru) in July and subsequently the Campo Morado operations (Mexico) in January 2011. Nyrstar has now exceeded its target 30% integration level, based on full production of its existing mines (including the Talvivaara streaming agreement and the Campo Morado operation). At full production Nyrstar's current zinc mining operations would be one of the ten largest in the world based on 2010 production according to Brook Hunt.

Also in 2010, Nyrstar acquired a 10.24% interest in a mining development project in Chile (Herencia Resources plc) and a further 11% stake (now representing a 26.5% stake) in a mining development project in Northern Greenland (Ironbark Zinc Limited).

NYRSTAR NV ZINKSTRAAT 1 B-2490 BALEN BELGIUM

info@nyrstar.com www.nyrstar.com

Contacts

Investors

Anthony Simms Manager, Investor Relations T: +41 44 745 8157 M: +41 79 722 2152 anthony.simms@nyrstar.com

Media

Geert Lambrechts Manager, Corporate Communications T: +32 14 449 646 M: +32 473 637 892 geert.lambrechts@nyrstar.com

The Company has a medium term goal of achieving a 50% integration level and continues to actively explore opportunities to deliver on its strategy.

In 2010, Nyrstar achieved record annual zinc metal production of approximately 1.076 million tonnes and is once again the world's largest zinc smelting company based on production according to Brook Hunt. Production in 2010 was 33% higher than in 2009, primarily due to the return of the Balen smelter (Belgium) from care and maintenance and the return of the Budel (the Netherlands) and Clarksville (U.S.) smelters from reduced production levels to full production.

Nyrstar's mining segment, which includes the Talvivaara streaming agreement, produced approximately 84,000 tonnes of zinc in concentrate in 2010, an approximately 47% increase in production in H2 2010 compared to H1 2010. At the end of 2010, the Coricancha, Contonga and East Tennessee Mines were operating at full production capacity. As previously stated, all of Nyrstar's mines (including the Campo Morado operation) and its streaming agreement with Talvivaara are expected to reach full production by the end of 2012.

The zinc price rose 30% to US\$2,159/tonne in 2010 reflecting the overall improvement of the world economy and the increased demand for zinc. However, the zinc price was volatile throughout 2010, with a high of US\$2,635/tonne in January and a low of US\$1,595/tonne in June. The LME lead price followed a similar pattern of volatility to zinc during 2010, with an average price in 2010 of US\$2,148/tonne (24% higher than 2009). Gold and silver prices increased throughout 2010, supported by increasingly risk-averse investor sentiment, with gold rising approximately 27% to US\$1,410/troy oz and silver rising approximately 73% to US\$30.63/troy oz by 31 December 2010. The Company's financial performance also benefited from a 4% depreciation of the Euro against the US dollar, from an annual average of 1.39 in 2009 to an average of 1.33 in 2010, as the Company's earnings are largely denominated in US dollars, whereas a substantial proportion of operating costs are denominated in euros.

Roland Junck, chief executive officer of Nyrstar, said,

"2010 was a year of delivery for Nyrstar.

We achieved an underlying EBITDA of €207 million, more than double that of 2009. Our smelting segment produced record volumes of zinc metal in an environment of higher average metal prices and a weaker euro compared to 2009.

In our mining segment we achieved our 2010 target of 30% integration with the acquisition of the Campo Morado operations and fully ramped up our Contonga, Coricancha and East Tennessee Mines to full production.

In 2010, we implemented a number of important financing initiatives. These initiatives have provided Nyrstar with a solid base for the continued execution of our strategy.

We continue to actively explore opportunities to deliver on our strategy of expanding into mining, with a target of 50% integration in the medium term providing us with greater exposure to the more profitable part of the zinc value chain.

Whilst the zinc price in 2010 was volatile it was much stronger than in 2009, supported by a strengthening of our primary markets. Similar to 2010, we expect the zinc price to remain volatile in

1. However, the fundamental medium to long term outlook for the zinc market remains strong and we believe that Nyrstar, as the world's largest zinc metal producer and through its continued upstream integration, is best positioned to leverage off these strong zinc market fundamentals."

CONFERENCE CALL

Management will present these results to the investment community on 24 February at 08:00 Greenwich Mean Time, 09:00 Central European Time. The presentation will be webcast live on the Nyrstar website, www.nyrstar.com, and will also be available in archive.

KEY FIGURES

€ millions	FY 2010	FY 2009	∆ %	H2 2010	H1 2010	∆ %
unless otherwise indicated
Mining Production 1
Zinc in concentrate ('000 tonnes)	84	-		50	34	47%
Smelting Production 1
Zinc metal ('000 tonnes)	1,076	809	33%	546	530	3%
Lead metal ('000 tonnes)	198	227	(13)%	101	97	4%
Copper cathode ('000 tonnes)	4	4	-	2	2	-
Silver ('000 troy ounces)	13,399	16,665	(20)%	6,169	7,231	(15)%
Gold ('000 troy ounces)	22	24	(8)%	11	10	10%
Sulphuric acid ('000 tonnes)	1,444	1,119	29%	739	706	5%
Market
Average LME zinc price (US\$/t)	2,159	1,659	30%	2,163	2,155	0%
Average exchange rate (€/US\$)	1.33	1.39	(4)%	1.33	1.33	-
Key Financial Data
Revenue	2,696	1,664	62%	1,419	1,277	11%
Underlying Smelting EBITDA	198	97	104%	113	85	33%
Underlying Mining EBITDA	24	(3)		17	7	143%
Underlying Other & Eliminations
EBITDA	(15)	(2)		(16)	1	(1700)%
Underlying EBITDA 2	207	93	123%	114	93	23%
Results from operating activities
before exceptional items	110	32	244%	61	49	24%
Profit/(loss) for the period	72	10	620%	47	25	88%
Underlying EPS 2 (€)	0.99	0.32	209%	0.55	0.43	28%
Basic EPS (€)	0.74	0.10	640%	0.48	0.25	92%
Capital Expenditure	147	68	116%	91	56	63%
Cash Flow and Net Debt
Net operating cash flow	210	(19)		210	0
Net debt/(cash), end of period	296	38		296	402
Gearing3 (%)	26%	5%		26%	33%

1 Includes production from mines and primary and secondary smelters only. Internal transfers of cathode for subsequent melting and casting are excluded (approximately 30,000 tonnes in 2010 and 106,000 tonnes in 2009). 2009 production re-stated to exclude Nyrstar Yunnan Zinc Alloys (disposed of in August 2009). Lead production at ARA reflects Nyrstar's ownership (50%). Production at Föhl, Galva 45, Genesis and GM Metal (closed in 2010) are not included.

²Underlying measures exclude exceptional items related to restructuring measures, impairment of assets, material income or expenses arising from embedded derivatives recognised under IAS 39 and other items arising from events or transactions clearly distinct from the ordinary activities of Nyrstar. Underlying EPS does not consider tax effect on underlying adjustments

³Gearing: net debt to net debt plus equity at end of period.

OPERATIONS REVIEW

MINING

FY 2010	FY 2009	∆ %	H2 2010	H1 2010	∆ %
2	-		2	-
1	-		1	-
63	-		36	27	33%
18	-		11	7	57%
84	-		50	34	47%
5	-		5	-
70	-		70	-
201	-		201	-
271	-		271	-
0.1			0.1
0.6			0.6
0.7	-		0.7	-
0.2			0.2

The Coricancha mine in Peru, having been on care and maintenance since May 2008 under its previous owner and acquired by Nyrstar in November 2009, recommenced production in the second half of 2010 following the recommissioning of the mine and mill and construction of a new tailings facility. In 2010, the Coricancha mine produced approximately 5,000 troy ounces of gold and 201,000 ounces of silver. By the end of 2010, the Coricancha mine was operating at its full capacity, which equates to an annualized rate of approximately 20,000 troy ounces of gold, 1 million troy ounces of silver, 5,000 tonnes of zinc in concentrate and 3,000 tonnes of lead in concentrate. During 2010, Nyrstar expanded the scope of the operations by the addition of a copper circuit to capture unrealized value from copper contained in the ore and commenced an exploration program that is expected to significantly increase mineral resources and reserves and also move a significant portion of mineral resources into the proven and probable categories. In addition, Nyrstar intends to expand the scale of operations at the mine in order to (approximately) double the existing production capacity.

In 2010, the East Tennessee Mines produced approximately 50,000 tonnes of zinc in concentrate and were operating at full capacity by the end of the third quarter. The Middle Tennessee Mines were operating at approximately 35% of capacity at the end 2010 and produced approximately 13,000 tonnes of zinc in concentrate. Nyrstar's management expects that with the successful commissioning of a new ball mill at the Middle Tennessee Mines, which was completed in January 2011, and the expected completion of the dewatering and rehabilitation activities at the Cumberland and Elmwood mines (Middle Tennessee) in early 2011, the Nyrstar Tennessee Mines are expected by management to be operating at their full capacity of 130,000 tonnes of zinc in concentrate per annum.

¹ Deliveries to Antwerp under the zinc streaming agreement

Following the acquisition of the Contonga and Pucarrajo polymetallic mines in Peru in July 2010, 2,400 tonnes of zinc in concentrate and 70,000 troy ounces of silver in concentrate were produced at the Contonga mine. Nyrstar is in the process of re-commissioning the Pucarrajo mine and expects to re-commence commercial production in the second half of 2011 and thereafter ramp-up to full capacity by the end of 2012. At full production, expected to be reached by the end of 2012, the Contonga and Pucarrajo mines are expected to produce at an annual rate of approximately 40,000 tonnes of zinc in concentrate, 4,000 tonnes of lead in concentrate, 1,000 tonnes of copper in concentrate and 1.5 million troy ounces of silver. The Contonga and Pucarrajo mines are managed in conjunction with the Coricancha mine by a single experienced management team, utilizing the shared services of Nyrstar's Lima office.

In 2010, the Talvivaara Zinc Stream (Finland) delivered approximately 18,000 tonnes of zinc in concentrate to Nyrstar under the streaming agreement, with a strong ramp-up of deliveries in the fourth quarter. Based on public statements by Talvivaara, Nyrstar anticipates approximately 60,000 tonnes of zinc in concentrate to be delivered from this source in 2011 with the mine ramping-up on schedule thereafter to deliver approximately 90,000 tonnes per annum of zinc in concentrate to Nyrstar by 2012.

Production ('000 tonnes)	FY 2010	FY 2009	∆ %	H2 2010	H1 2010	∆ %
Zinc metal
Auby	163	161	1%	83	80	4%
Balen/Overpelt	281	137	105%	140	141	(1)%
Budel	264	224	18%	139	125	11%
Clarksville	120	94	28%	60	60	-
Hobart	247	264	(6)%	127	121	5%
Port Pirie	32	35	(9)%	16	16	-
Elimination	(30)	(106)	(72)%	(17)	(13)	31%
Total 2	1,076	809	33%	546	530	3%
Lead metal
Port Pirie	179	208	(14)%	92	87	6%
ARA (50%)	19	19	-	9	10	(10)%
Total	198	227	(13)%	101	97	4%
Other products
Copper cathode	4	4	-	2	2	-
Silver ('000 troy ounces)	13,399	16,665	(20)%	6,169	7,231	(15)%
Gold ('000 troy ounces)	22	24	(8)%	11	10	10%
Sulphuric acid	1,444	1,119	29%	739	706	5%

SMELTING

In 2010, Nyrstar achieved record annual zinc metal production of approximately 1.076 million tonnes. Production in 2010 was 33% higher than in 2009, primarily due to the return of the Balen smelter (Belgium) from care and maintenance and the return of the Budel (the Netherlands) and Clarksville (U.S.) smelters from reduced production levels to full production. As a result of this increased production, fewer cathodes were transferred to the Balen/Overpelt complex from other Nyrstar smelters for the production of zinc metal in 2010, consequently reducing internal eliminations compared to 2009.

² Includes production from primary and secondary smelters only (Auby, Balen and Overpelt, Budel, Clarksville, Hobart, Port Pirie, ARA). Internal transfers of cathode for subsequent melting and casting are removed in the elimination line. 2009 production re-stated to exclude Nyrstar Yunnan Zinc Alloys (disposed of in August 2009). Lead production at ARA reflects Nyrstar's ownership (50%). Production at Föhl, Galva 45, Genesis and GM Metal (closed in 2010) are not included

Production at the Clarksville smelter was 28% higher in 2010 compared to 2009. This is due in part to reduced production levels in the first half of 2009 (in response to market conditions), but also due to zinc recovery improvements through the processing of local concentrates from the Tennessee Mines. Production at the Budel smelter was up 18% in 2010, again due in part to reduced production in the first half of 2009. Record production at the Auby smelter (France) was achieved for the second consecutive year, with Zinc metal output 2% higher than 2009.

Zinc metal production at Hobart decreased by 6% in 2010 compared to 2009 due to minor equipment failures in the cast house in the first quarter of 2010, and damage to two transformer rectiformers caused by a localized fire in May, which temporarily reduced production to approximately 80% of capacity. The damage was largely repaired in June, restoring production to approximately 95% of capacity at that time, and the operation was restored to 100% of capacity in December 2010.

Lead metal production at the multi-metal Port Pirie smelter (Australia) was down 14% in 2010 due to sinter plant reliability issues in the first quarter, which resulted in two unplanned blast furnace shutdowns and restricted production of all metals. In addition, a planned blast furnace shutdown was carried out in July 2010. Following the planned shutdown, both production performance and reliability have been restored at Port Pirie.

OTHER OPERATIONS

In November 2009 Nyrstar announced its intention to close the operations of its wholly-owned subsidiary GM Metal. The plant ceased operations as planned in the first half of 2010.

HEALTH, SAFETY AND ENVIRONMENT

Nyrstar's recordable injury rate decreased 31% to 12.4 in 2010 compared to 18.1 in 2009, and the lost time injury rate decreased 26% to 4.5 in 2010, compared to 6.1 in 2009.

In 2010, Nyrstar completed the roll out of seven critical safety standards at all sites, the roll out of various safety leadership and behavioural programs across its operations, and the development of action plans at its new mining assets as a result of thorough baseline assessments. In addition, a comprehensive strategy was developed for 2011-2012, including the development of cognitive behavioural safety programs, further frontline leadership development and a continued focus on critical risk at both Nyrstar's smelting and mining operations.

Tragically, despite Nyrstar's strong focus on safety, an employee was fatally injured in an incident related to the commissioning of the Coricancha mine in 2010. Nyrstar remains fully committed to continually improving safety performance across all operations.

There were 28 minor recordable environmental incidents in 2010, which is only four more than 2009 despite the ramping-up of the Tennessee, Coricancha, Contonga and Pucarrajo mining operations in 2010. The total number of recordable environmental incidents in 2009 for all the sites Nyrstar owned as of December 31, 2010, was 38.

CORPORATE

Nyrstar relocated its management committee and other corporate, marketing and sales functions from Balen (Belgium) and London (U.K.) to its new corporate office in Zurich, Switzerland in July 2010. Certain financing functions were also relocated from Balen (Belgium) to Zurich (Switzerland) in January 2011.

MARKET REVIEW

Average prices 3	FY 2010	FY 2009	∆ %	H2 2010	H1 2010	∆ %
Exchange rate (€/US\$)	1.33	1.39	(4)%	1.33	1.33	-
Zinc price (US\$/tonne, cash settlement)	2,159	1,659	30%	2,163	2,155	0%
Lead price (US\$/tonne, cash settlement)	2,148	1,726	24%	2,209	2,085	6%
Copper price (US\$/tonne, cash settlement)	7,539	5,164	46%	7,933	7,130	11%
Silver price (US\$/t.oz, LBMA AM fix)	20.19	14.67	38%	22.38	17.62	27%
Gold price (US\$/t.oz, LBMA AM fix)	1,225	1,125	9%	1,297	1,153	12%

ZINC

Zinc consumption

Brook Hunt estimates that although the economic recovery has yet to return the global economy to normality, robust economic growth, particularly in the first half of 2010, resulted in global refined zinc consumption growth of 14.2% in 2010 to a record 11.6 million tonnes (slightly above the prior peak of 11.4 million tonnes in 2007). Chinese zinc consumption grew by 14.8% in 2010, compared to 8.0% in 2009, despite efforts to normalize the pace of expansion in the Chinese economy, and moves by the government to cut production at steel mills and other major power consumers. The strong rebound in U.S. manufacturing activity resulted in North American zinc consumption growing in 2010 for the first time since 2006 (by 5.2%). Having contracted by 25.5% in 2009, Europe's zinc consumption grew 16.6% in 2010 due to increased demand in the steel and automotive sectors.

Zinc production

World refined zinc production increased by 12.4% to 12.6 million tonnes in 2010, with the market in surplus by approximately 1 million tonnes. Reflecting the market surplus, stocks on the LME and SHFE increased to approximately 1 million tonnes by the end of 2010, approaching record levels at approximately one month of world consumption.

Zinc price

The average LME zinc price rose 30% to US\$2,159/tonne in 2010 reflecting the overall improvement of the world economy and the increased demand for zinc. However the zinc price remained volatile throughout 2010, with the price peaking in early January at US\$2,635/tonne and then falling to US\$1,595/tonne in early June. Later in 2010 the price peaked at US\$2,557/tonne in late October and within one month fell by approximately US\$500/tonne; by the end of 2010 the price recovered to US\$2,433/tonne.

Lead

Brook Hunt estimates world lead consumption growth of 6.4% to 8.8 million tonnes in 2010, a more modest increase compared to other metals but lead consumption also declined less than other metals in 2008 and 2009. The majority of the growth in lead consumption is attributable to China, where lead consumption increased by 10.0% to a new record of 3.9 million tonnes. World refined lead production increased by 5.0% to 9.0 million tonnes in 2010, leaving the market for refined lead with an increased surplus of 0.2 million tonnes. With the market in surplus, LME stocks rose through the year, reaching an eight-year high of approximately 208,000 tonnes at the end of 2010, equivalent to approximately 9 days of world consumption.

³ Zinc, lead and copper prices are averages of LME daily cash settlement prices. Silver and gold prices are averages of LBMA AM daily fixing prices.

The LME lead price followed a similar pattern to the zinc price during 2010. The average price for 2010 of US\$2,148/tonne was 24% higher than in 2009 (average price US\$1,726/tonne). As with zinc, the price peaked in early January at US\$2,591/tonne and then fell to a low of US\$1,559/tonne in early June. Later in 2010 the price peaked at US\$2,594/tonne in early November and within approximately two weeks the price fell 17% to US\$2,150/tonne. At the end of 2010 the price recovered to US\$2,587/tonne.

Gold & Silver

Gold and silver prices increased throughout 2010, supported by the increasingly risk-averse investor sentiment, with gold rising from US\$1,113/troy oz at the start of the year to US\$1,410/troy oz on 31 December 2010, and silver rising from US\$17.74/troy oz to approximately US\$30.63/troy oz in the same period.

Sulphuric Acid

In 2010, prices achieved by Nyrstar on sales of sulphuric acid, which are predominately based on contracts, improved steadily throughout the year to an average of approximately US\$35/tonne. The increase in the sulphuric acid price reflects the overall improvement of the world economy and particularly the fertiliser and mining industries over this period.

FINANCIAL REVIEW

Nyrstar delivered strong underlying EBITDA growth in 2010, achieving an underlying EBITDA of €207 million, compared to €93 million in 2009. The result benefited from a €24 million underlying EBITDA contribution from the Mining segment, which accelerated in the second half of 2010 with the ramp-up of mining assets, higher average metal prices, and the depreciation of the Euro exchange rate in the period. Denominated in Euros, the average LME zinc price in 2010 was 38% higher than in 2009.

MINING

€ millions	FY 2010	FY 2009 ∆ %	H2 2010	H1 2010	∆ %
Treatment charges	(27)	-	(17)	(10)	70%
Free metal contribution	118	-	78	40	95%
By-Products	9	-	9	-	-
Other	(5)	-	(5)	-	-
Underlying Gross Profit	96	-	66	30	120%
Employee expenses	27	1	19	8	138%
Energy expenses	9	1	6	3	100%
Other expenses	35	1	23	12	92%
Underlying Operating Costs	71	3	49	23	113%
Underlying EBITDA	24	(3)	17	7	143%

The Mining segment delivered a positive underlying EBITDA contribution of €24 million, resulting from increasing production at Nyrstar Tennessee Mines, the Talvivaara zinc stream, and Coricancha. The Contonga mine is currently at full production and the Pucarrajo mine is expected to continue to ramp-up operations in 2011 and contribute to further growth in the Mining segment. Nyrstar's acquisition of the Campo Morado operation in January 2011 is also expected to provide further growth in the mining segment.

The Mining segment's underlying gross profit was €96 million in 2010. Smelting TC expense was €(27) million, Free Metal income was €118 million, contribution from by-products was €9 million and Other Mining gross profit,

which includes realization expenses, was €(5) million. Approximately 88% of the Mining segment's gross profit was generated from inter-company sales to the Smelting segment.

Underlying mining operating costs were €71 million, with costs increasing during the year with the ramp-up of operations at Nyrstar Tennessee Mines, the Talvivaara zinc stream and Coricancha, and the acquisition of the Contonga and Pucarrajo mines in July 2010.

The C1 cash cost⁴ for Nyrstar Tennessee Mines was approximately US\$1,900 per tonne of payable zinc in 2010, which management expects to decrease to approximately US\$1,500 to US\$1,600 in 2011 if such mines are operating at full capacity by that time as expected. The C1 cash cost for zinc delivered from the Talvivaara zinc stream was approximately US\$1,000 per tonne of payable zinc. The C1 cash cost of the Contonga mine was approximately US\$2,915, due to the low volumes produced during ramp-up. At full production, management expects C1 cash costs per tonne of payable zinc for the Contonga and Pucarrajo mines of less than US\$1,000 due to significant by-product credits. The C1 cash cost for Coricancha was approximately US\$940 per troy ounce of payable gold in 2010; however, management expects at full production the C1 cash costs to decrease to approximately negative US\$100 to negative US\$200 per ounce of payable gold in 2011 as a result of significant by-product credits.

SMELTING

€ millions	FY 2010	FY 2009	∆ %	H2 2010	H1 2010	∆ %
Treatment charges	429	292	47%	205	224	(8)%
Free metal contribution	260	159	64%	132	128	3%
Premiums	105	86	22%	52	53	(2)%
By-Products	115	92	25%	74	41	80%
Other	(81)	(54)	50%	(28)	(53)	(47)%
Underlying Gross Profit	827	575	44%	434	393	10%
Employee expenses	187	164	14%	94	93	1%
Energy expenses 5	246	188	36%	128	118	8%
Other expenses	196	133	47%	99	97	2%
Underlying Operating Costs	629	478	32%	321	308	4%
Underlying EBITDA	198	97	104%	113	85	33%

Underlying EBITDA from the Smelting segment increased 104% to €198 million in 2010 compared to 2009 as a result of higher average metal prices, strengthening of the U.S. Dollar versus the Euro and a year-on-year 33% increase in zinc metal production.

Smelting segment's underlying gross profit increased 44% to €827 million in 2010, compared to €575 million 2009 as a result of the higher metal prices, stronger U.S. Dollar versus the Euro (the majority of smelting sales are denominated in U.S. Dollars) and increased zinc metal production.

Smelting TC income was €429 million in 2010, a 47% increase compared to €292 million in 2009, primarily due to the increased volumes of concentrate treated as well as higher metal prices. Increased volumes were a result of several smelting assets returning to full production in 2010, following the production curtailments in 2009 in

⁴ C1 cash costs are defined by Brook Hunt as: the costs of mining, milling and concentrating, on-site administration and general expenses, property and production royalties not related to revenues or profits, metal concentrate treatment charges, and freight and marketing costs less the net value of by-product credits.

⁵ Energy expenses do not include the net loss or gain on the Hobart smelter embedded energy derivatives (€13m loss in 2010, €5m loss in 2009)

reaction to the prevailing economic environment. Higher metal prices resulted in Nyrstar achieving a higher average treatment charge for feedstock containing zinc and lead.

Smelting free metal contribution from zinc and lead rose 64% to €260 million in 2010 from €159 million in 2009, also due to higher metal prices and increased production. In addition there was an improvement in several smelters' recovery rates, notably at the Clarksville smelter from treating Nyrstar Tennessee Mines concentrates, an important synergy from Nyrstar's acquisition of Nyrstar Tennessee Mines.

Smelting premium contribution was €105 million compared to €86 million in 2009, due to increased volumes as well as an increasing demand for zinc and zinc alloys.

Smelting by-product income improved in 2010 compared to 2009, primarily because other metal prices improved from 2009 levels and sulphuric acid volumes also increased. This resulted in a total by-product profit of €115 million, up 25% on 2009 (€92 million).

Smelting other gross profit was negative €81 million in 2010, compared to negative €54 million in 2009, primarily due to higher realization expenses and alloying costs as a result of higher production volumes.

Underlying smelting operating costs were €629 million, an increase of 32% compared to 2009 (€478 million), as a result of the increase in metal production with several smelting assets returning to full production. The weaker Euro versus the U.S. Dollar and Australian Dollar also significantly increased costs in Euro terms at Nyrstar's non-European smelters. As a result of the weaker Euro and temporary production issues at the Hobart and Port Pirie smelters, smelting operating costs per tonne increased (in Euro terms) to €501 in 2010, compared to €470 in 2009.

OTHER & ELIMINATIONS

The Other and Eliminations segment resulted in an underlying EBITDA contribution of €(15) million, comprising of an elimination of unrealized Mining segment earnings of approximately €(83) million (for material sold internally to own smelters), a net positive contribution of €5 million from other operations, and other group costs. The contribution from Nyrstar's smaller entities declined compared to 2009 due to the closure of the GM Metal whollyowned asset in the first half of 2010.

Cash Flow and Net Debt

As of December 31, 2010, cash and cash equivalents were €161 million, an increase of €76.6 million from December 31, 2009. Cash flows from operating activities in 2010 generated an inflow of €210 million compared to an outflow of €19 million in 2009, reflecting higher profits due to improved market conditions and successful ramp-up of mining assets. This includes a working capital inflow of €53 million due in part to a lower zinc price at December 31, 2010 compared to December 31, 2009 (US\$2,433 per tonne and US\$2,570 per tonne respectively).

Cash flows from investing activities in 2010 mainly relate to mine acquisitions. This includes the prepayment of €242.6 million to Talvivaara Sotkamo Limited for 1.25 million tonnes of zinc in concentrate under a streaming agreement, the acquisition of the remaining 15% interest in Coricancha mine (Peru) for approximately €3.8 million, the acquisition of the Contonga and Pucarrajo mines (Peru) for approximately €25.7 million, and investments in Herencia and Ironbark for approximately €1.5 million and €10.3 million respectively. In total, mine acquisitions amounted to an outflow of approximately €284 million in 2010, compared to €111 million in 2009. In addition the acquisition of property, plant and equipment increased by €77.4 million in 2010 compared to 2009.

Cash inflows from financing activities increased to €291 million to finance acquisitions. Included in this amount are the €225 million proceeds of the 5.5% fixed rate bonds due 2015, issued in April 2010. Cash and available credit lines were sufficient to fund all acquisitions during 2010.

Net debt at 31 December 2010 was €296 million. There was a significant decrease in working capital requirements in part due to renegotiated and accelerated payment terms under the commodity grade off-take agreement (€107 million).

Capital Expenditure

Capital expenditure was €147 million in 2010, which includes approximately €60 million for mines of which approximately €24 million was invested to ramp up the mine operations. Capital expenditure for smelters was approximately €81 million in 2010, which included both maintenance and growth spend. In addition, approximately €6 million was invested at other operations and corporate offices.

Taxation

The main tax jurisdictions in which Nyrstar operated in 2010 were Australia, Belgium, France, the Netherlands, Peru, Switzerland and the United States. Based on the proportion of its income from each of these jurisdictions, Nyrstar's effective statutory tax rate in 2010 was approximately 18.7%. Nyrstar has accumulated tax losses in some of the jurisdictions where it operates and deferred tax benefits have been recognized to the extent it is likely that future taxable amounts will be available. Nyrstar expects to benefit from these deferred tax benefits through a decrease in its actual cash tax payments until such deferred tax benefits are used up or expire.

Proposed distribution

The Board of directors will propose to shareholders at the annual General Meeting to be held in Brussels on 27 April 2011 a gross distribution of €0.15 per share and to structure the distribution as a capital reduction. This reflects the Board's continued confidence in the Company's financial strength and the medium to long-term prospects for the markets in which it operates.

OTHER SIGNIFICANT EVENTS IN 2010

Amendments to Nyrstar's credit facilities

In January 2010 Nyrstar entered into a secured €250 million multi-currency Revolving Structured Commodity Trade Finance Facility underwritten by Deutsche Bank. Prior to entering into this facility, Nyrstar cancelled its existing syndicated facility which commenced with a limit of €350 million in December 2007 and was reduced to €150 million in December 2009.

Deutsche Bank and Nyrstar subsequently commenced a syndication process targeting an increase in the facility limit to €300 million. In March 2010, Nyrstar announced the completion of the syndication process. The syndication process was more than twice over-subscribed and following the scaling back of allocations was closed with an increased facility limit of €400 million. The syndicated facility incorporated an "accordion" feature that facilitated an increase in the facility limit on an approved, but uncommitted basis to €500 million. In November 2010, Nyrstar exercised the accordion and the syndicate banks increased their commitments to €500 million, resulting in a facility limit of €500 million.

Contonga and Pucarrajo

On July 19, 2010, Nyrstar acquired the Contonga and Pucarrajo polymetallic mines in Peru for approximately US\$33 million, including assumed debt. Part of the purchase price (US\$5 million) will be held in an escrow account for 12 months as security for the vendor's obligations in relation to customary representations and warranties relating to the acquisition. At full production, expected by the end of 2012, the Contonga and

Pucarrajo mines are expected to produce at an annual rate of approximately 40,000 tonnes of zinc in concentrate, 4,000 tonnes of lead in concentrate, 1,000 tonnes of copper in concentrate and 1.5 million troy ounces of silver. The ramped-up operations are expected to operate with C1 cash costs of less than US\$1000 per tonne of payable zinc due to significant by-product credits.

Coricancha

On July 7, 2010, Nyrstar acquired the remaining 15% interest in the Coricancha mine in Peru from Gold Hawk Resources Inc for approximately US\$4.8 million.

Share buy back

During May and June 2010, the board of directors utilized the authority granted in Article 13 of Nyrstar's articles of association to acquire 3,321,558 Shares (approximately 3.3% of issued share capital). These shares will be held as treasury shares with suspended dividend rights, for potential delivery to eligible employees in 2011, 2012 and 2013 to satisfy Nyrstar's outstanding obligations under the Executive Long Term Incentive Plan and the Management Committee Co-Investment Plan. During the relevant period the designated broker, KBC Securities NV, purchased shares for a price not lower than 10% below the average closing price during the 20 trading days prior to such purchase, and not higher than 10% above the average closing price during the 20 trading days prior to such purchase. The total cost of the buy back program amounted to €29,278,364.

Ironbark Zinc Limited

In March 2010, Nyrstar agreed to acquire an additional 11% interest in Ironbark for €10.3 million, taking Nyrstar's interest in Ironbark to approximately 31%.The amount raised by the placement was used by Ironbark to fund its 2010 drilling program at the Citronen zinc-lead deposit in Northern Greenland, an important step in the completion of a bankable feasibility study in relation to its potential development. Ironbark conducted a private placement in November 2010 to raise a further AUD\$11.5 million; however, Nyrstar chose not to participate in this placement and currently has a diluted shareholding of approximately 26.5%.

Public bond

In March 2010 Nyrstar successfully completed the placement of five-year 5.5% fixed rate bonds due 2015 for €225 million through a public offering in Belgium and Luxembourg.

Talvivaara Zinc Streaming Agreement

In February 2010, Nyrstar acquired 1.25 million tonnes of zinc in concentrate (approximately 2 million tonnes of zinc concentrate at a grade of 65%) from Talvivaara Sotkamo Limited for a purchase price of US\$335 million (approximately €243 million). In addition to the purchase price, Nyrstar will pay Talvivaara certain extraction and processing fees. The agreement is an innovative approach to the execution of Nyrstar's strategy, providing participation in the economic benefits of a low-cost zinc mine with a defined life of 1.25 million tonnes of zinc in concentrate. Based on Talvivaara's public statements regarding its planned production, Nyrstar expects a rampup to approximately 90,000 tonnes per annum of zinc in concentrate by 2012, with deliveries over a period of 10 to 15 years. On March 10, 2010, Nyrstar announced the appointment of Roland Junck, Nyrstar's CEO, to the board of directors of Talvivaara Mining Company plc by Talvivaara Mining Company plc's nomination committee.

SUBSEQUENT EVENTS – FARALLON ACQUISITION

In January 2011, Nyrstar successfully completed the acquisition of Farallon Mining Ltd. ("Farallon"), owner of the Campo Morado operation, pursuant to a friendly take-over for approximately CAD409 million (€296 million). In conjunction with the acquisition, Farallon's board of directors and officers resigned in favour of Nyrstar's representatives, and were replaced by Roland Junck (Nyrstar's Chief Executive Officer), Michael Morley (Nyrstar's Chief Corporate and Development Officer) and Greg McMillan (Nyrstar's Chief Operating Officer).

The Campo Morado operation, a zinc-rich polymetallic mining operation in Mexico, comprises approximately 12,000 hectares in six mining concessions, located 160 kilometres south-southwest of Mexico City. The ore deposit currently being mined is the G-9 deposit which achieved commercial production in April 2009 and comprises high grade zinc, copper, lead, gold and silver (the "G-9 Mine"). In addition to the G-9 Mine, there are four additional ore bodies that have been delineated (Reforma, El Largo, El Rey, Naranjo). In 2010, the G-9 Mine produced approximately 42,000 tonnes of zinc in concentrate, 4,000 tonnes of copper in concentrate, 1.8 million troy ounces of silver and 19,000 troy ounces of gold. Nyrstar is currently ramping-up production to an expected rate of 2,500 tonnes per day of ore by the end of 2012, representing production of approximately 70,000 tonnes per annum of zinc in concentrate, 8,000 tonnes of copper in concentrate, 7,000 tonnes of lead in concentrate, 3 million troy ounces of silver and 35,000 troy ounces of gold. At full production, the G-9 Mine is expected to have a C1 cash cost of less than US\$500 per tonne of payable zinc due to significant by-product credits.

Sensitivities

The Company's results are significantly affected by changes in metal prices, exchange rates and Treatment Charges (TCs). Sensitivities to variations in these parameters are depicted in the following table, which sets out the estimated impact of a change in each of the parameters on the Company's full year underlying EBITDA based on the actual results and production profile for the year ending 31 December 2010.

FY 2010
	Estimated EBITDA
Parameter	Variable	impact in € million
Zinc Price	+/- US\$100/tonne	+/-25
Lead Price	+/- US\$100/tonne	+/- 1
US\$/€	+/- €0.01	+/- 10
A\$/€	+/- €0.01	-/+ 4
Zinc TC	+/- US\$25/dmt	+/-32
Lead TC	+/- US\$25/dmt	+/- 5

The above sensitivities were calculated by modelling the Company's 2010 underlying operating performance. Each parameter is based on an average value observed during that period and is varied in isolation to determine the annualised EBITDA impact.

Sensitivities are:

• Dependent on production volumes and the economic environment observed during the reference period.
• Not reflective of simultaneously varying more than one parameter; adding them together may not lead to an accurate estimate of financial performance.
• Expressed as linear values within a relevant range. Outside the range listed for each variable, the impact of changes may be significantly different to the results outlined.

These sensitivities should not be applied to the Company's results for any prior periods and may not be representative of the EBITDA sensitivity of any of the variations going forward.

UNDERLYING SEGMENT INFORMATION

Year Ending 31 December 2010
€millions	Smelting	Mining	Other and Eliminations	Group
Unless otherwise indicated	2010	2010	2010	2010
Zinc in concentrate ('000 tonnes)	-	84	-	84
Zinc market metal ('000 tonnes)	1,076	-	-	1,076
Lead market metal ('000 tonnes)	179	-	19	198
Sulphuric acid ('000 tonnes)	1,444	-	-	1,444
Revenue	2,654	13	30	2,696
Underlying EBITDA	198	24	(15)	207
Capital expenditure	81	60	6	147
Elements of Gross Profit
Treatment charges	429	(27)	-	403
Free metal	260	118	-	378
Premiums	105	-	-	105
By-products	115	9	-	124
Other	(81)	(5)	2	(83)
Underlying gross profit	827	96	2	925
Operating costs
Employee benefits expense	187	27	48	262
Energy expenses	246	9	1	256
Other expenses	196	35	(29)	203
Underlying operating costs	629	72	21	721
Year Ending 31 December 2009	Smelting	Mining	Other and	Group
€millions			Eliminations
Unless otherwise indicated	2009	2009	2009	2009
Zinc in concentrate ('000 tonnes)	-	-	-	-
Zinc market metal ('000 tonnes)	809	-	-	809
Lead market metal ('000 tonnes)	208	-	19	227
Sulphuric acid ('000 tonnes)	1,119	-	-	1,119
Revenue	1,628	-	36	1,664
Underlying EBITDA	97	(3)	(2)	93
Capital expenditure	61	4	3	68
Elements of Gross Profit
Treatment charges	292	-	-	292
Free metal	159	-	-	159
Premiums	86		-	86
By-products	92	-	-	92
Other	(54)	-	19	(35)
Underlying gross profit	575	-	19	594
Operating costs
Employee benefits expense
Energy expenses	164	1	43	209
Other expenses	181 133	1 1	7 (24)	188 110

RECONCILIATION OF UNDERLYING RESULTS

The following table sets out the reconciliation between the "Result from operating activities before exceptional items" to Nyrstar's "EBITDA" and "Underlying EBITDA".

"EBITDA" is a non-IFRS measure that includes the result from operating activities, before depreciation and amortization, plus Nyrstar's share of the profit or loss of equity accounted investees.

"Underlying EBITDA" is an additional non-IFRS measure of earnings, which is reported by Nyrstar to provide greater understanding of the underlying business performance of its operations. Underlying EBITDA excludes items related to restructuring measures, impairment losses, material income or expenses arising from embedded derivatives recognized under IAS 39 and other items arising from events or transactions that management considers to be clearly distinct from the ordinary activities of Nyrstar.

€ millions	FY 2010	FY 2009	H2 2010	H1 2010
Result from operating activities before exceptional items	110	32	61	49
Depletion, depreciation and amortisation expense	82	50	50	32
Share of profit / (loss) of equity accounted investees	3	4	1	2
(a) Restructuring expenses	(11)	(24)	(4)	(7)
(b) Impairment (losses) / reversals	(1)	2	0	(1)
Net gain on disposal of subsidiaries	0	6	-	-
EBITDA	183	71	108	75
Underlying adjustments
Add back:
(a) Restructuring expenses	11	24	4	7
(b) Impairment losses / (reversals)	1	(2)	(0)	1
Net loss / (gain) on disposal of subsidiaries	0	(6)	-	-
(c) Net loss / (gain) on Hobart Smelter embedded derivatives	13	5	3	10
Underlying EBITDA	207	93	114	93

The items excluded from the "Result from operating activities before exceptional items and depletion, depreciation and amortisation" in arriving at "Underlying EBITDA" are as follows:

(a) Restructuring expenses of €11 million in 2010 (€24 million in 2009) were incurred in relation to the continuation of the Company's organisational re-structuring programs, including the relocation of its management committee and other corporate, marketing and sales functions to its new corporate office in Zurich, Switzerland.

(b) In 2010 an impairment loss of € 0.9 million was recognised on leasehold improvements as a consequence of the announced relocation of the corporate office from London to Zurich. In 2009 a review of Nyrstar Yunnan Zinc Alloys Co. Ltd assets and liabilities held for sale was conducted, leading to a reversal of €4 million of previously recognised impairment losses. In addition, an impairment of €2 million was recognised with regard to the fixed assets of GM Metal when Nyrstar announced its planned closure in 2009.

(c) The Hobart Smelter's electricity contract contains an embedded derivative which has been designated as a qualifying cash flow hedge. To the extent that the hedge is effective, changes in its fair value are recognised directly in equity, whilst to the extent the hedge is ineffective changes in fair value are recognised in the consolidated income statement. As the hedge is partially ineffective, the negative change in fair value of €13 million (2009: €5 million) on the ineffective portion of the hedge was recorded as a cost in energy expenses within the consolidated income statement. The impact on the income statement has been reversed from EBITDA for the purpose of calculating the Company's underlying EBITDA.

FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements that reflect Nyrstar's intentions, beliefs or current expectations concerning, among other things: Nyrstar's results of operations, financial condition, liquidity, performance, prospects, growth, strategies and the industry in which Nyrstar operates. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause Nyrstar's actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Nyrstar cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which Nyrstar operates may differ materially from those made in or suggested by the forward-looking statements contained in this news release. In addition, even if Nyrstar's results of operations, financial condition, liquidity and growth and the development of the industry in which Nyrstar operates are consistent with the forward-looking statements contained in this news release, those results or developments may not be indicative of results or developments in future periods. Nyrstar and each of its directors, officers and employees expressly disclaim any obligation or undertaking to review, update or release any update of or revisions to any forward-looking statements in this report or any change in Nyrstar's expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.

• end -

About Nyrstar

The partner of choice in essential resources for the development of a changing world. Nyrstar is a leading global multi-metals business, producing significant quantities of zinc and lead as well as other products (including silver, gold and copper). Nyrstar is listed on NYSE Euronext Brussels under the symbol NYR. For further information visit the Nyrstar website, www.nyrstar.com.

Selected Nyrstar Consolidated Financial Information

For the year ended 31 December 2010

Management responsibility statement

We hereby certify that, to the best of our knowledge, the selected consolidated financial information for the year ended 31 December 2010, which has been prepared in accordance with the International Financial Reporting Standards as adopted by the European Union and with the legal requirements applicable in Belgium, give a true and fair view of the

-Consolidated income statement -Consolidated statement of comprehensive income -Consolidated statement of financial position -Consolidated statement of changes in equity -Consolidated statement of cash flows -Segment reporting

for the reporting year 2010, and that the commentary on pages 1 to 17 offers a fair and balanced review of overall performance of the business during 2010.

Brussels, 24 February 2011

Roland Junck Heinz Eigner Chief Executive Officer Chief Financial Officer

Financial Audit statement

The statutory auditor PricewaterhouseCoopers Bedrijfsrevisoren burg. CVBA / Réviseurs d'Entreprises SCRL civile, represented by Peter Van den Eynde, has issued an unqualified audit opinion on the IFRS consolidated financial statements and has confirmed that the IFRS accounting data included in this annual announcement does not include any apparent inconsistencies with the IFRS consolidated financial statements. The accounting data included in this annual announcement incorporates other financial information which has not been audited.

The selected consolidated financial information in this press release are extracted from the 2010 audited financial statements which will be published in April 2011 for submission to the Annual General Meeting of shareholders on 27 April 2010. The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards as adopted by the European Union and with the legal requirements applicable in Belgium.

Consolidated income statement

For the year ended 31 December	2010 €m	2009 €m
Revenue	2,696.1	1,663.9
Raw materials used	(1,727.6)	(1,024,9)
Freight expense	(43.1)	(44.7)
Gross profit	925.4	594.3
Other income	9.1	6.2
Employee benefits expense	(262.2)	(208.9)
Energy expenses	(269.1)	(193.2)
Stores and consumables used	(103.1)	(65.4)
Contracting and consulting expenses	(85.7)	(58.9)
Other expenses	(23.1)	8.2
Depreciation, amortisation and depletion expense	(81.7)	(50.2)
Result from operating activities before	109.6	32.1
exceptional items (a)
Restructuring expenses	(10.5)	(24.0)
Impairment (losses) / reversal	(0.9)	2.4
Profit on the disposal of subsidiaries	-	6.0
Result from operating activities	98.2	16.5
Finance income	0.8	1.8
Finance expenses	(37.6)	(11.6)
Net foreign exchange gain / (loss)	24.3	3.0
Net financing income / (expense)	(12.5)	(6.8)
Share of profit of equity accounted investees	3.1	4.0
Profit before income tax	88.8	13.7
Income tax (expense)	(16.6)	(3.3)
Profit for the period	72.2	10.4
Attributable to:
Equity holders of the parent	72.2	10.0
Non-controlling interest	-	0.4
	72.2	10.4
Earnings per share for profit attributable to the
equity holders of the Company during the period
(expressed in € per share)
- basic	0.74	0.10
- diluted	0.73	0.14

(a) Exceptional items are those items of financial performance which the Group believes should be separately disclosed on the face of the income statement to assist in the understanding of financial performance achieved by the Group.

Consolidated statement of comprehensive income

	2010	2009
For the year ended 31 December	€m	€m
Foreign currency translation differences	29.4	68.5
Defined benefit plans – actuarial losses and asset ceiling	(0.1)	(3.3)
Effective portion of changes in fair value of cash flow hedges	(16.0)	(32.7)
Change in fair value of investments in equity securities	2.7	1.4
Income tax on income and expenses recognised directly in
equity	5.1	10.8
Other comprehensive income for the period, net of tax	21.1	44.7
Profit for the period	72.2	10.4
Total comprehensive income for the period	93.3	55.1
Attributable to:
Equity holders of the parent	93.3	54.7
Non-controlling interest	-	0.4
Total comprehensive income for the period	93.3	55.1

Consolidated statement of financial position

As at	31 December 2010 €m	31 December 2009 * €m
ASSETS
Non-current assets
Property, plant and equipment Intangible assets	758.8 18.7	611.3 12.4
Investments in equity accounted investees	50.9	26.8
Investments in equity securities	9.8	5.5
Zinc purchase interests	247.3	-
Deferred tax assets	13.5	37.0
Other financial assets	23.7	53.9
	1,122.7	746.9
Current assets
Inventories	556.6	480.5
Trade and other receivables	209.6	160.1
Prepayments	9.5	3.7
Current tax assets	7.2	5.8
Other financial assets	36.8	35.6
Cash and cash equivalents	160.6	84.0
	980.3	769.7
Total assets	2,103.0	1,516.6
EQUITY
Equity attributable to equity holders of the parent
Share capital and share premium	1,255.4	1,255.4
Reserves	(258.3)	(230.0)
Retained earnings	(169.0)	(252.0)
	828.1	773.4
Non-controlling interest	4.2	5.3
Total equity	832.3	778.7
LIABILITIES
Non-current liabilities
Loans and borrowings	443.4	110.0
Deferred tax liabilities	54.2	48.6
Provisions	115.3	124.0
Employee benefits	52.2	50.2
Other financial liabilities	-	0.2
Other liabilities	12.1	23.9
	677.2	356.9
Current liabilities
Trade and other payables	314.0	248.6
Current tax liabilities	13.9	4.0
Loans and borrowings	13.4	12.0
Provisions	42.7	33.4
Employee benefits	44.7	38.2
Other financial liabilities	30.2	17.3
Deferred income	107.0	-
Other liabilities	27.6	27.5
	593.5	381.0
Total liabilities	1,270.7	737.9
Total equity and liabilities	2,103.0	1,516.6

Consolidated statement of changes in equity

					Total amount	Non
	Share	Share		Retained	attributable	controlling	Total
€ millions	capital	premium	Reserves	earnings	to owners	interests	equity
Balance at 1 January 2010	1,176.9	78.5	(230.0)	(252.0)	773.4	5.3	778.7
Profit or loss	-	-	-	72.2	72.2	-	72.2
Other comprehensive income	-	-	21.2	(0.1)	21.1	-	21.1
Treasury shares	-	-	(49.5)	20.2	(29.3)	-	(29.3)
Convertible bond	-	-	-	-	-	-	-
Net movement in non-controlling interests
as result of acquisition/disposal of
subsidiaries	-	-	-	(2.7)	(2.7)	(1.1)	(3.8)
Dividends	-	-	-	(10.0)	(10.0)	-	(10.0)
Share-based payments	-	-	-	3.4	3.4	-	3.4
Balance at 31 December 2010	1,176.9	78.5	(258.3)	(169.0)	828.1	4.2	832.3

					Total amount	Non
	Share	Share		Retained	attributable	controlling	Total
€ millions	capital	premium	Reserves	earnings	to owners	interests	equity
Balance at 1 January 2009	1,176.9	78.5	(285.9)	(262.9)	706.6	4.5	711.1
Profit or loss	-	-	-	10.0	10.0	0.4	10.4
Other comprehensive income	-	-	47.1	(2.4)	44.7	-	44.7
Convertible bond	-	-	8.8	-	8.8	-	8.8
Net Movement in non-controlling interests
as result of acquisition/disposal of
subsidiaries	-	-	-	-	-	0.4	0.4
Share-based payments	-	-	-	3.3	3.3	-	3.3
Balance at 31 December 2009	1,176.9	78.5	(230.0)	(252.0)	773.4	5.3	778.7

Consolidated statement of cash flows

	2010	2009
For the year ended 31 December	€m	€m
Cash flows from operating activities
Profit for the period	72.2	10.4
Adjustment to:
Depreciation, amortisation and depletion expense Income tax (benefit) / expense	81.7 16.6	50.2 3.3
Net finance (benefit) / expense	12.5	6.8
Share of profit in equity accounted investees	(3.1)	(4.0)
Impairment/(reversal of impairment)	0.9	(2.4)
Equity settled share based payment transactions	3.4	3.2
Other non-monetary items	(3.8)	-
(Gain)/Loss on sale of investments	-	(6.0)
(Gain)/Loss on sale of property, plant and equipment	(3.2)	0.1
	177.2	61.6
Changes in inventories	(51.3)	(185.4)
Changes in trade and other receivables	(30.6)	50.7
Changes in prepayments	(5.1)	2.8
Changes in other financial assets and liabilities	47.0	(57.7)
Changes in trade and other payables and deferred income	135.1	85.3
Changes in other liabilities	(11.7)	51.4
Change in provisions and employee benefits Interest paid	(24.8) (21.1)	(20.2) (2.7)
Income tax paid	(4.2)	(4.8)
Net cash inflows / (outflows) from operating activities	210.5	(19.0)
Cash flows from investing activities
Acquisition of property, plant and equipment	(145.3)	(67.9)
Acquisition of intangible assets	(1.7)	-
Proceeds from sale of property, plant and equipment	7.7	0.3
Acquisition of zinc purchase interests Acquisition of subsidiary net of cash acquired	(242.6) (29.5)	(104.0)
Acquisition of investments in equity securities	(5.7)	(4.1)
Acquisition of investments in equity accounted investees	(10.5)	(0.2)
Distribution from associates	-	12.7
Proceeds from sale of subsidiary	-	5.1
Interest received	0.8	2.8
Net cash (outflows) from investing activities	(426.8)	(155.3)
Cash flows from financing activities
Repurchase of own shares	(29.3)	-
Proceeds from borrowings Repayments of borrowings	333.7 (3.0)	121.4 (158.4)
Distributions to shareholders	(10.0)	-
Net cash inflows / (outflows) from financing activities	291.4	(37.0)
Net increase (decrease) in cash held	75.1	(211.3)
Cash at the beginning of the reporting period	84.0	297.0
Exchange fluctuations	1.5	(1.7)
Cash and cash equivalents at the end of the reporting period	160.6	84.0

For the year ended 31 December 2010 € millions	Smelting	Mining	Other & Eliminations	Total
Revenue from external customers	2,653.6	12.7	29.8	2,696.1
Inter-segment revenue	-	83.2	(83.2)	-
Total segment revenue	2,653.6	95.9	(53.4)	2,696.1
Raw materials used	(1,783.4)	-	55.8	(1,727.6)
Freight expense	(42.8)	(0.3)	-	(43.1)
Gross profit	827.4	95.6	2.4	925.4
Employee benefits expense	(186.7)	(27.3)	(48.2)	(262.2)
Energy expenses	(258.9)	(9.1)	(1.1)	(269.1)
Other income / (expenses)	(196.3)	(35.2)	28.7	(202.8)
Depletion, depreciation and amortisation expense	(57.0)	(20.0)	(4.7)	(81.7)
Result from operating activities before exceptional items	128.5	4.0	(22.9)	109.6
Restructuring expenses				(10.5)
Impairment (losses) / reversal				(0.9)
Result from operating activities				98.2
Finance income				0.8
Finance expenses				(37.6)
Net foreign exchange gain/(loss)				24.3
Net financing income/(expense)				(12.5)
Share of profit/(loss) of equity accounted investees				3.1
Profit before income tax				88.8
Income tax benefit / (expense)				(16.6)
Profit for the period				72.2
Capital expenditure	(81.1)	(60.2)	(5.7)	(147.0)

For the year ended 31 December 2009 € millions	Smelting	Mining	Other & Eliminations	Total
Revenue from external customers Inter-segment revenue	1,627.9 -	- -	36.0 -	1,663.9 -
Total segment revenue	1,627.9	-	36.0	1,663.9
Raw materials used	(1,009.1)	-	(15.8)	(1,024.9)
Freight expense	(43.8)	-	(0.9)	(44.7)
Gross profit	575.0	-	19.3	594.3
Employee benefits expense	(164.1)	(1.4)	(43.4)	(208.9)
Energy expenses	(186.0)	(0.6)	(6.6)	(193.2)
Other income / (expenses)	(132.9)	(0.9)	23.9	(109.9)
Depletion, depreciation and amortisation expense	(45.9)	(0.4)	(3.9)	(50.2)
Result from operating activities before exceptional items	46.1	(3.3)	(10.7)	32.1
Restructuring expenses				(24.0)
Impairment (losses) / reversal				2.4
Profit on the disposal of subsidiaries				6.0
Result from operating activities				16.5
Finance income				1.8
Finance expenses				(11.6)
Net foreign exchange gain/(loss)				3.0
Net financing income/(expense)				(6.8)
Share of profit/(loss) of equity accounted investees				4.0
Profit before income tax				13.7
Income tax benefit / (expense)				(3.3)
Profit for the period				10.4
Capital expenditure	(61.5)	(3.7)	(2.8)	(68.0)