Regulatory Filings • Sep 27, 2016
Regulatory Filings
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27 September 2016 at 7 p.m. CEST
Nyrstar NV ("Nyrstar" or the "Company") announces today that it has commenced actions for the restart of its Middle Tennessee mining operations which were put into care and maintenance in early December 2015. Given the current strength in zinc prices and Nyrstar's expectation that these prices are sustainable, it is now time to restart the three mines and processing plant, which will deliver a net cash benefit across the Company.
The cash flow will be generated from higher zinc prices, and from increasing Nyrstar's flexibility to optimize the feed book across the Company.
A small team has been in place overseeing the care and maintenance and this group will now increase to facilitate mine development with ore production to commence during Q1 2017, and mill processing operations to commence in Q2 2017. Full capacity of 50,000 tonnes per annum of zinc in concentrate is expected to be reached by November 2017. The capital costs of the re-start are estimated to be approximately USD\$14 million, to occur over 12 months until the mill is at full production.
The strategy of divesting the Nyrstar mining assets has not changed and the on-going mine divestment process will continue.
"The restart of our Middle Tennessee operations will allow Nyrstar to generate additional net positive cash flow resulting from the higher zinc price environment, and improving the quality of the feed book for the Clarksville smelter at a time of tightened concentrate markets. The Middle Tennessee operations produce very high-quality concentrates that our Clarksville smelter can capitalise on through its refining and recovery processes."
"We are continuously evaluating every aspect of the business to sustainably improve cash flow in these volatile markets. As the Middle Tennessee Mines' infrastructure was maintained in good condition, I am confident that we will see a smooth transition into production and reintegration with operations at the East Tennessee Mines and Clarksville."
Middle Tennessee is comprised of three underground zinc mines; Gordonsville, Elmwood and Cumberland and a processing plant located at the Gordonsville mine site. All three mines are located in Smith County, Tennessee. Situated approximately 100 miles from Nyrstar's Clarksville smelter, the mines and smelter operations have a history of close association as the smelter was originally constructed to specifically treat zinc concentrate from the mines.
Nyrstar is a global multi-metals business, with a market leading position in zinc and lead, and growing positions in other base and precious metals, which are 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 and Australia and employs approximately 5,000 people. Nyrstar is incorporated in Belgium and has its corporate office in Switzerland. Nyrstar is listed on Euronext Brussels under the symbol NYR. For further information please visit the Nyrstar website: www.nyrstar.com
Anthony Simms - Group Manager Investor Relations T: +41 44 745 8157 M: +41 79 722 2152 [email protected] Franziska Morroni - Group Manager Corporate Communications T: +41 44 745 8295 M: +41 79 719 2342 [email protected]
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