Nyrstar Investor Presentation. September 2017

Transcription

1 Nyrstar Investor Presentation September August 2017

2 Important notice This presentation has been prepared by the management of Nyrstar NV (the "Company"). It does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever The information included in this presentation has been provided to you solely for your information and background and is subject to updating, completion, revision and amendment and such information may change materially. Unless required by applicable law or regulation, no person is under any obligation to update or keep current the information contained in this presentation and any opinions expressed in relation thereto are subject to change without notice. No representation or warranty, express or implied, is made as to the fairness, accuracy, reasonableness or completeness of the information contained herein. Neither the Company nor any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this presentation or its contents This presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations concerning, among other things, the Company s results of operations, financial condition, liquidity, performance, prospects, growth, strategies and the industry in which the Company operates. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company's actual results of operations, financial condition, liquidity, performance, prospects, growth 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. The Company 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 the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company's results of operations, financial condition, liquidity and growth and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The Company 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 presentation or any change in the Company'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 This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe any such restrictions. The Company s shares have not been and will not be registered under the US Securities Act of 1933 (the Securities Act ) and may not be offered or sold in the United States absent registration under the Securities Act or exemption from the registration requirement thereof 2

3 Table of Contents I. Introduction II. Key investment highlights III. Financial and operating results IV. Delivering a strong future for Nyrstar V. Appendix 3

4 Nyrstar today Global multi-metals business, with a market leading position in zinc and lead, and growing positions in other base and precious metals Geographically diverse smelters operating in OECD countries 1 Introduction LTM 2 Revenue EUR 3.2bn LTM 2 Underlying EBITDA EUR 216m MYRA FALLS LANGLOIS Operating Mine Canada Restarting Mine Canada BALEN / OVERPELT Smelter & Oxide Washing Plant Belgium CLARKSVILLE Mines and Smelter Complex Tennessee, USA HOYANGER Fumer Norway BUDEL Smelter The Netherlands AUBY Smelter France c. 4,300 employees LTM 2 production 1,026kt zinc metal 99kt zinc in conc. Operating Smelters Operating Mines Non-operating Assets PORT PIRIE Multi-metals Processing Facility Australia HOBART Smelter Australia Second largest zinc metal producer globally with consistent long term production 1, zinc smelter production 3 (kt Zn) Metal (kt) Stable zinc processing guidance ( mt) 1,015 1, ,125 1,084 1,088 1,097 1,115 1,015 1,026 Korea Zinc Nyrstar Glencore Votorantim Hindustan Boliden Zinc Market Share 2 9.1% 7.5% 7.4% 4.5% 4.5% 3.4% Lead 2013 Zinc LTM 1 Excludes corporate offices and mining assets where sale has been agreed or completed 2 LTM last 12 months from July 2016 to June 2017; restated to exclude El Toqui, El Mochito, Contonga, Coricancha and Campo Morado discontinued operations 3 Wood Mackenzie Q2-17 Global zinc long-term outlook figures other than Nyrstar Source: Wood Mackenzie; Nyrstar company information 4

5 Table of Contents I. Introduction II. Key investment highlights III. Financial and operating results IV. Delivering a strong future for Nyrstar V. Appendix 5

6 Key investment highlights Key investment highlights #1 Strong progress on key strategic initiatives #2 Excellence in smelting and mining #3 Robust industry backdrop #4 Significantly enhanced liquidity, capital structure and maturity profile #5 Expert management and Board #6 Strategic relationship with supportive cornerstone shareholder 6

7 #1 Strong progress on key strategic initiatives Key investment highlights Proactive operational and financial initiatives to transform Nyrstar into the leading global multimetals business Upgrade Board and management Board and management strengthened with a focus on operational expertise Hilmar Rode appointed as CEO and Frank Rittner as COO to draw on their significant experience Deliver Port Pirie Redevelopment Project optimised to accelerate construction completion, de-risk ramp-up and maximise long term cash flows Underlying EBITDA uplift of ~ EUR 130m per annum from vs previous guidance of ~ EUR 80m per annum Substantial progress at Port Pirie Redevelopment; on track for hot commissioning to commence in late September 2017 with first feed of the new TLS furnace commencing in October 2017 Extract maximum value from mining Sale of Latin American mining assets completed North American mining operations being optimised and have the foundations for a profitable mining portfolio to generate robust free cash flow Optimise zinc smelting Full potential assessments currently underway across all five zinc smelters Targeting consistent zinc metal production of 1.1 to 1.2m tonnes per annum and improvement in EBITDA margin Strengthen balance sheet Balance sheet strengthened in 2016 and 2017 with demonstrated access to capital markets: EUR 274m rights offering, USD 185m upsized zinc metal prepay, EUR 115m convertible bond issuance, EUR 400m high yield bond issuance, EUR 100m upsize of the Structured Commodity Trade Finance Facility (SCTFF) and EUR 100m tap of 2024 HYB Trafigura working capital facility committed with a recent upsize to USD 250m 1 Uplift vs 2016 Underlying EBITDA applying 2016 macros Source: Nyrstar company information 7

8 Key investment highlights #2 Excellence in smelting and mining Clearly defined business model in metals processing generates significant gross profit from diverse sources Diverse sources of smelting gross profit Treatment charges ( TC ) Free metal Paid to the smelters by miners in the form of concessions Consistent source of gross profit driven by the annual benchmark TC Small proportion (5-10%) of purchases are at spot treatment charge terms Metal produced over and above the content the smelter has paid for in concentrates purchased Nyrstar s operational excellence helps extract maximum free metal to supplement earnings from the TC Free metal set to increase once Port Pirie is fully operational as higher value feedstock is processed LTM Metals Processing sources of gross profit 1 Zinc and lead Premium 16% By-product Sales 14% Zinc and Lead TCs 36% Metal premiums Byproducts Sales of refined metal made above the LME zinc and lead reference price Significant portion of zinc / lead production above commodity grade due to strong R&D and technical know-how Extraction of additional metals and by-products from the concentrates High quality assets extract significant amounts of high value by-products from the feedstock Exposure set to increase once Port Pirie is fully ramped-up Zinc and lead free Metal 34% Total 2 : EUR 890m 1 LTM last 12 months from July 2016 to June 2017; Note that the percentages in the chart refer to the gross profit contributed by each source as a percentage of Gross Profit excluding Other Gross Profit (total of EUR 990m) 2 Includes Other Gross Profit of EUR (89)m 8

9 #2 Excellence in smelting and mining Port Pirie delivering long term cash flow uplift Key investment highlights Port Pirie update How Port Pirie allows Nyrstar to leverage its zinc smelter network The Port Pirie Redevelopment will help maximise long term cash flow generation for Nyrstar The redevelopment will mark a step change in operational performance in the Metals Processing division: POLY-METALLIC PROCESSING & RECOVERY CENTRE Nyrstar Zinc Smelters residues 3 rd party lead concentrates Third party residues Improved operational flexibility Approximately 70% increase in throughput (vs 2016 base) Processing of higher margin feed maximising gross profit from by-products and free metal Ability to treat internal residue from across the smelter network helping improve efficiency Other material Nyrstar mine concentrates PORT PIRIE E-waste Complex waste streams Following a detailed review, the ramp-up profile has been extended to de-risk the project and maximise the long term earnings uplift Port Pirie funding sources The extended schedule and incremental engineering improvements have increased the capital cost from AUD 567m to AUD 660m As of 30 June 2017, AUD 609m incurred, with AUD 627m committed, and AUD 219m drawn from Australian government backed perpetual securities Perpetual securities AUD 291m Silver prepay AUD 120m Nyrstar direct contribution AUD 249m 1 Total AUD 660m 1 Increase from previous direct contribution forecast of AUD 152m Source: Company information 9

10 #2 Excellence in smelting and mining Project and earnings uplift overview Key investment highlights What has been achieved to-date? Current commissioning and ramp-up schedule Commenced early stage cold commissioning by the end of H Continuing to meet identified milestones in commissioning plan Slab concrete and footings construction completed (Mar-16) Oxygen plant completed (Aug-16) Fabrication of all components completed (Sept-16) Construction activity more than 95% completed (Aug-17) Commissioning and ramp-up activities to continue through 2017 with hot commissioning to commence by the end of September 2017 and first feed of new TSL furnace in October 2017 Furnace System Site Construction Acid Plant Construction Oxygen Plant Construction Site Roadworks and Final Building Infrastructure System No Load and Load Commissioning Sinter Plant Only Operating TSL + Sinter Plant Operating Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Projected increase in throughput - greater ability to use residues Revised Underlying EBITDA uplift profile 1 620kt 260 Optimisation expected to drive run-rate earnings uplift in the region of EUR 130m p.a. compared to 2016 ~ EUR130m Internal Primary Pb 360kt ~ EUR 40m ~ EUR 100m Full ramp-up ~ EUR 0m Against 2016 Underlying EBITDA using 2016 macroeconomic assumptions Source: Company information 10

11 #2 Excellence in smelting and mining Port Pirie Redevelopment in-line with revised schedule and budget Key investment highlights Project comprehensively reviewed at the start of Q1 17 business case confirmed Re-work of modules and enhanced slag tapping arrangements being implemented Agreement with Glencore for training of Nyrstar personnel at Kazzinc lead smelting operations in Kazakhstan and commissioning assistance by Kazzinc personnel at Port Pirie On track for hot commissioning to commence by end September 2017 with first feed of new TSL furnace in October with cost to complete of c. AUD 660 million in-line with revised guidance provided in February 2017 TSL furnace construction December 2016 TSL furnace construction August

12 #2 Excellence in smelting and mining North American mines being optimised for free cash flow Sale of Latin American Mining assets completed Key investment highlights Middle Tennessee mines restart is ahead of schedule with first zinc in concentrate production of 5kt during Q2 17 Myra Falls mine restart approved with actions now commencing for a restart of concentrator operations Total restart capex of EUR c.70m split evenly between 2017 and 2018; advanced discussions with various parties for prepay/streaming to partially fund the restart capex Zinc in concentrate production to commence by start of H2 18 and ramp up to 30kt per annum by end of 2018 North American mining operations will be optimised and have the foundations for a profitable mining portfolio to generate robust free cash flow Continued improvement in Mining EBITDA Full indicative potential - North American mines 11 7m 34m Production (kt) C1 cash cost (USD/t) 220 2,500 Q1 17 mining EBITDA of 3.0m restated by 1.9m to exclude Campo Morado 15m 11m 5 MTN 6 Myra , m 2m 4 TC rate (2) Zn price 3 MTN 10m ,500 Q1 17 Mining EBITDA (23kt zinc in conc) Macro Performance improvement Q2 17 Mining EBITDA (30kt zinc in conc) H1 17 Mining EBITDA (53kt zinc in conc) Mines on C&M or ramping-up Strategic hedge opportunity loss H1 17 Normalised EBITDA at operating mines F C1 cash cost (USD/t) Zinc contained production (kt) 2018F 2019F 1,000 12

13 #3 Robust industry backdrop Zinc Market Outlook Key investment highlights Positive market fundamentals 1 LME nominal zinc price ($/t) 3 Decline in mine production for 2016 of c. 3% due to mine closures (kt) 650 (USD/t) 4,000 Supply outlook The contraction of mine supply, which has lead to a drawdown of accumulated stocks resulted in continued tight zinc concentrate supply in 2017 with benchmark TC terms falling by 15% 2 Over the medium to long term supply is expected to stabilize Aug-17 $3,140 3,500 3,000 Demand outlook Continued positive global industrial production growth Positive trend in mature economies Moderately lower growth in China Demand expected to grow at a CAGR of 2.3% over period Ongoing urbanization and industrialization of the developing world will be the key driver Zinc premiums hit a 3.5 year high in August 17 in Shanghai due to tightening supplydemand balance Jul Jan Jul Jan Jul Jan Jul Jan Jul ,500 2,000 1,500 1,000 Jan Deficit in zinc concentrate and refined zinc supply is expected to remain in the near-term SHFE zinc stocks LME Zinc stocks LME Zinc price (USD/t) Wood Mackenzie (USD/t) 1 As per Wood Mackenzie 2 Zinc concentrate 2017 Benchmark TC settled on the following terms: base TC $172 per dmt at basis price of $2,800/t with zero escalator and zero de-escalator 3 Forecasts as per Wood Mackenzie Source: Bloomberg, Nyrstar, Woodmac, Global zinc long-term outlook Q

14 Key investment highlights #3 Robust industry backdrop Proactive approach to risk management AUD-USD D FX RATE EUR-USD FX RATE ZINC PRICE 3,500 3,000 2,500 2,000 1, During the implementation of the transformation and turnaround strategy, the company has taken prudent measures to mitigate downside risk on Zinc price and currency Jan.16 Jan.16 Jul.16 Jul.16 Upside from $2,800 $2,437 Call $2,100 Put 1.15 Call 1.08 Put H2 16: 0.83 Call H2 16: 0.68 Put $2,496 Call $2,127 Put Jan.17 Jan Call 1.05 Put H1 17: 0.62 Put Upside from $3,117 Q2-Q4 17: $2,543 Call Q2-Q4 17: $2,172 Put Jul Call 1.00 Put Jan.18 H1 18: $3,094 Call H1 18: $2,300 Put Jul.18 Jan.19 Jul.17 Jan.18 Jul.18 Jan : 0.81 Call 2018: 0.80 Call H1 17: 0.68 Put 2018: 0.68 Put Jan.16 Jul.16 Jan.17 Jul.17 Jan.18 Jul.18 Jan.19 Zinc Price Zinc hedge collars were effected to protect 70% of free metal through to end June 2018 Nyrstar will continue to implement zinc price and FX hedges on a rolling 6-9 month basis to protect downside risk FX EUR-USD hedges cover 100% of the total transactional expenses for 2017 AUD-USD hedges cover 100% of total transactional expenses for 2017 and 33% of CAD-USD hedges cover c. 70% of Langlois transactional expenses for 2017 and 100% for % of 2018 AUD-USD exposure buying puts and selling calls 2 100% of 2018 CAD-USD exposure for Langlois buying 1.32 puts and selling calls Source: Bloomberg, FactSet, Company information 14

15 Key investment highlights #4 Significantly enhanced liquidity, capital structure and maturity profile Solid financial position Committed liquidity at the end of H Diversified sources of funding backed by broad banking syndicate EUR 400m Bond Offering in March 2017, upsized by EUR 100m in September 2017 has substantially increased liquidity and Nyrstar s average debt maturity Borrowing base (SCTF) facility committed to June 2019; upsized by EUR 100m to EUR 500m in April 2017 Silver prepays of USD 60m in March 2017, USD 50m in May 2017 and USD 50m in June 2017 to roll forward prepays that are amortizing in 2017 Continue to monitor the market for additional opportunistic financings to further strengthen the balance sheet, extend the existing maturity profile and improve liquidity m Capacity Drawn Available SCTF Facility 500 (146) 354 KBC Facility Trafigura Facility Cash Total 864 (146) 718 Excluding intra-month liquidity needs of ~USD m Jul 16 Nov 15 Aug 16 Dec 15 Sep 16 Jan 16 Oct 16 Feb 16 Nov 16 Mar 16 Dec 16 Apr 16 Jan 17 May 16 Feb 17 Jun 16 Mar 17 Jul 16 Apr 17 Aug 16 May 17 Sep 16 Jun 17 Oct 16 Jul 17 Nov 16 Aug 17 Dec 16 Sep 17 Convertible bond (EUR 115m) Upsize zinc metal prepay (USD 175m) Upsize & extension of Trafigura working capital facility (USD 250m) Silver Prepay (USD 50m) Upsize zinc metal prepay (USD 185m) HY Bond (EUR 400m) Silver prepay (USD 60m) Upsize SCTFF (by EUR 100m to EUR 500m) Silver Prepay (USD 50m) Silver Prepay (USD 50m) HY Bond Tap (EUR 100m) to EUR 500m 15

16 Key investment highlights #5 Expert management and Board Nyrstar Management Committee Hilmar Rode Chief Executive Officer Chris Eger Chief Financial Officer Frank Rittner Chief Operating Officer Sebastião Balbino Chief Commercial Officer Willie Smit Chief HR Officer Superior operational expertise Strengthening of Board and management since November 2015 Management team are fully committed to Nyrstar s stated strategy Focus on operational excellence with knowledge of bringing complex metals projects into production Hilmar Rode appointed as CEO to draw on his significant metals processing experience to bring operational and technical best practices to Nyrstar: Over 20 years of industry experience Recently led the successful transformation at Minera Escondida Led the restructuring and business optimisation of Kazzinc 16

17 Key investment highlights #6 Strategic relationship with supportive cornerstone shareholder Trafigura support demonstrated through a variety of commercial and financial agreements Relationship Agreement This has effect for as long as Trafigura holds at least 20% but less than 50% of the shares in Nyrstar Ensures all business dealings continue on arm s length basis and on normal commercial terms Commercial Agreements Long term purchase and sales agreements Based on market prices with annually agreed premiums and TCs Provides Nyrstar with additional certainty of supply and leverages Trafigura s strong marketing presence Capital Commitment Nyrstar s December 2015 USD 150m zinc prepayment facility (ultimately upsized to USD 185m) 1 Supported Nyrstar s February 2016 EUR 274m rights offering by underwriting up to EUR 125m In May 2016, Trafigura provided Nyrstar with a USD 150m working capital facility Facility upsized to USD 250m and maturity extended to the end of 2017 Changed from uncommitted to committed facility 1 The prepayment financing is linked to the physical delivery of refined zinc metal to Trafigura under the terms of a three-year offtake agreement 17

18 Table of Contents I. Introduction II. Key investment highlights III. Financial and operating results IV. Delivering a strong future for Nyrstar V. Appendix 18

19 Financial and operating results Financial summary Underlying EBITDA ( m) m H H1-17 % Revenue 1,321 1, % MP U. EBITDA % Mining U. EBITDA ,400% Other U. EBITDA (15) (22) (7) 47% Group Underlying EBITDA % DD&A (87) (77) 10 (11%) Metals Processing Mining 1 Other (15) H (20) H (22) H1-17 Impairment continuing operations (58) - 58 (100%) Loss from discontinued operations (100) (135%) Net financial expense 2 (53) (65) (12) 23% Income tax (expense)/ benefit (23) 9 32 (139%) Loss for the period (242) (21) 221 (91%) Growth capex Port Pirie Redevelopment Capex ( m) Capex MP Sustaining % Port Pirie Redevelopment % MP Growth % Mining % Group Capex % MP Sustaining capex Mining Sustaining H H Net Debt ( m) H1-17 Net Debt % Net Debt, inclusive of Zinc Prepay and perpetual securities 887 1, % Bonds 1,167 1,272 1, Net Debt, Incl Zn Prepay & Perp Sec. Net Debt, ex Zn Prepay & Perp Sec. 1. H1-16 and H2-16 were restated to exclude El Toqui, El Mochito, Contonga, Coricancha and Campo Morado discontinued operations 2. Net foreign exchange loss of EUR 35m in H and a net foreign exchange loss of EUR 4 million in H were excluded from Net Financial expense 3. Net Debt is short term and long term liabilities, exclusive of Zinc Prepay ( 118m) and perpetual securities ( 139m), minus cash Working Capital Facilities Cash 425 (127) Dec (58) Mar (95) Jun 17 19

20 Financial and operating results Group underlying EBITDA H on H ( m) Macro + 86m Metals Processing (38)m Mining (22)m Other (15) 4 (41) Group 90m 124 Zinc 12 USD (8) AUD (40)TC (1) Other (16) (22) 2 (24) (6) Group 111m MP MP 104 Mining Other (15) 1 15 (22) Mining Other H1 16 EBITDA 1 Metal prices Strategic Zn hedges FX TC rate/ Other macro 2 MP Volume MP Costs Mining Volume Mining Costs Other & Eliminations H1 17 EBITDA 1. Underlying EBITDA from continuing operations restated to exclude Campo Morado 2. Premium and freight rate and 2017 benchmark TC at average H1 16 and H1 17 zinc price H1 16 H1 17 Zinc price (USD/t) 1,799 2, B/M Zn TC (USD/dmt) (25) FX (EUR/USD) (0.03) FX (EUR/AUD) (0.08) Zinc metal (kt) Zinc in concentrate (kt)

21 Financial and operating results Net Debt evolution over Q m (1,272) (286) 54 Zn Prepay & Perp Notes Net Debt (62) (21) (39) (286) 29 0 (1,243) (257) PPR (31)m Perp Note 0m MP Growth (8)m (986) (986) (986) (286) Net Debt Mar 17 Group EBITDA Sustaining Capex 1 Interest & Tax Net Growth Capex Working Capital Working capital reduced by EUR 37m; primarily due to a decrease in inventory Change in Ag/Zn Prepays Other Net Debt exclusive Zn Prepay and Perp Notes Jun 17 Change in Zn prepay Change in Perp Notes Net Debt inclusive Zn Prepay and Perp Notes Jun 17 Interest and capex in-line with expectations Inventory ( m) Amortisation of silver and zinc prepays was more than offset by the issuance of USD 100m of silver prepays in Q2 17 (51) (48) (-6%) Cash balance at the end of Q of EUR 95m with liquidity of EUR 718m 798 EUR/USD moved from 1.07 to 1.14 (9) Zinc (2)m Lead (1)m Silver (6)m Gold 0m 13 (1) Capex is shown on cash outflow basis rather than incurred Inventory Mar 17 FX Price Volume Stores Inventory Jun 17 21

22 Financial and operating results Stable safety performance, solid zinc metal and mine production Safety, Health & Environment Lagging Safety Indicators 3 Preventing harm is a core priority of Nyrstar LTIR of 1.8 in H1 17 has been maintained at a similar rate to that achieved in H1 16 of No environmental events with material business consequences occurred in H LTIR RIR Production Zinc metal production of 518kt, up 2% over H1 16 and in-line with management expectations given planned maintenance shuts in Q2 17 at Balen, Budel and Hobart Lead production at Port Pirie of 84kt, down 12% vs. H1 16 due to heat exchanger failure in old acid plant and 12 day blast furnace outage in Q1 17 Indium metal production at Auby recommenced with 9.7 tonnes of indium produced in H1 17 Zinc in concentrate production of 53kt, up 6% on H1 16, primarily due to restart of MTN Auby Balen Budel Clarksville Hobart Zinc metal production per site (kt) % H1-16 Q1-16 H1-17 Q2-16 Q3-16 Q4-16 Q1-17 Lead metal production at Port Pirie (kt) 95 H % 84 H1-17 Q2 17 Zinc in concentrate per site (kt) H % H1-17 Langlois East Tennessee Middle Tennessee 22

23 Table of Contents I. Introduction II. Key investment highlights III. Financial and operating results IV. Delivering a strong future for Nyrstar V. Appendix 23

24 Delivering a strong future for Nyrstar Delivering a strong future for Nyrstar Set to become cash flow positive from 2018 Nyrstar is set to become a cash flow positive business from 2018 on the basis of three key pillars: Locking in an earnings uplift of ~ EUR 130m 1 per annum from the fully ramped-up Port Pirie Redevelopment with commissioning of TSL furnace on-track to commence by the end of September 2017 with first feed of new TSL furnace in October 2017 Delivering a step change in operational performance to unlock the full potential of the existing zinc smelter asset base Extracting maximum value from Mining by concluding the sale of the Latin American mines and optimising the North American mines, including the restart of Middle Tennessee and Myra Falls, to operate for strong free cash flow Balance sheet has been substantially strengthened utilising a diverse range of funding opportunities with liquidity in excess of EUR 700m at the end of H1 17 and average maturity profile increased to 4 years Zinc industry macros are supportive and fundamentals look strong Expecting a period of sustained demand growth Supply response likely to be muted Metal stocks are low and declining 1 EUR 130m uplift against 2016 Underlying EBITDA using 2016 macroeconomic assumptions 24

25 Table of Contents I. Introduction II. Key investment highlights III. Financial and operating results IV. Delivering a strong future for Nyrstar V. Appendix 25

26 Appendix Fundamentals remain positive Zinc Zinc outperformed the base metals complex in H and was relatively volatile during H1 17, regaining its positive momentum in June 2017 Exchange stocks of zinc at the end of H on the LME and SHFE are at their lowest levels since Q FX Average USD/EUR exchange rate has been volatile over the past 12 months. Recently the USD has weakened materially against the Euro and is providing a headwind for Nyrstar s earnings for the remainder of the year Treatment Charges Zinc benchmark treatment charge settled in Q1 17 at USD USD 2,800/t with zero escalators and deescalators. Nyrstar s average realised discount to the zinc benchmark treatment charge has been consistently USD 40-50/t and is expected to remain so for the remainder of ,200 3,000 LME zinc price USD/t EUR: USD Exchange Rate H2 16 $2,386/t H $2,690/t 1.20 H H ,800 2, , ,200 2,000 0 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Zn price USD/t Average zinc price May-17 Jul-17 Sep Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 EUR/USD Average EUR:USD 26

27 Appendix H underlying EBITDA sensitivity Parameter H average price/rate Change +/-10% Estimated unhedged annual H underlying EBITDA impact ( m) Metals Processing Mining Group EUR:USD* /+ 10% +83 (68) +19 (15) +101 (83) Zinc price $2,690/t -/+ 10% (34) +45 (18) +18 (52) +63 Zinc Base TC $172/dmt -/+ 10% (25) (3) (22) +22 EUR:AUD* /+ 10% (31) (31) +26 Silver price $17.32/oz -/+ 10% (4) +4 (1) +1 (5) +5 Copper price $5,749/t -/+ 10% (2) +2 (1) +1 (3) +3 Gold price $1,238/oz -/+ 10% (1) (1) +1 Lead price $2,221/t -/+ 10% (1) (1) +1 Lead TC $138/dmt -/+ 10% (3) (3) +3 EUR:CHF /+ 10% (6) +5 * In 2017, Nyrstar has implemented a strategic foreign exchange hedging program to reduce the transactional impact of foreign exchange rate movements (transactional impact defined as cash outflows due to expenses in non-usd currencies). Nyrstar has executed strategic foreign exchange hedges utilizing put and call collar structures. For the EUR/USD transactional exposure, various collars have been executed resulting in a weighted average collar of 1.05 to 1.14 for approximately 100% of the total transactional expenses for H and 1.00 to 1.10 for approximately 100% of the total transactional expenses for H For the AUD/USD transactional exposure, various collars have been executed resulting in a weighted average collar of 0.62 to 0.81 for approximately 100% of the total transactional expenses for H and 0.68 to 0.81 for approximately 100% of the total transactional expenses for H The sensitivities give the estimated effect on underlying EBITDA assuming that each individual price or exchange rate moved in isolation. The relationship between currencies and commodity prices is a complex one and movements in exchange rates can affect movements in commodity prices and vice versa. The exchange rate sensitivities include the effect on operating costs but exclude the effect on the revaluation of foreign currency working capital. They should therefore be used with care. 27

28 Appendix Debt, working capital facilities, prepays, perpetual securities overview Outstanding balances at 30 Jun 2017 ( m) Aggregate maturity / anticipated amortisation profile Structural Debt m Maturity 2018 Convertible Bond 91 Sept High Yield Bond 350 Sept Convertible Bond 115 July High Yield Bond 400 Mar 2024 Structural Debt m 20m 500m Perpertual Securities All Prepays KBC SCTF HY Bonds Trafigura facility Convertible bonds Working Capital Facilities SCTF 146 June 2019 Loan from Related Party (Trafigura) 0 Dec 2017 KBC 0 July 2018 Working capital facilities m Prepays in Other Financial Liabilities / Deferred Income Zinc Prepay (Dec-2015) 12 month grace 118 Dec 2018 Silver Prepay PPR 62 Aug 2019 Silver Prepay (Mar-17) 6 month grace 53 Mar 2018 Silver Prepay (May-17) 6 month grace 44 June 2018 Silver Prepay (Jun-17) 9 month grace 44 Aug 2018 Prepays m 219m 220m 50m 91m 350m 28m 28m 28m 115m 400m Perpetual Securities Perpetual Securities Anticipated amortisation profile for the Perpetual Securities 28

29 Appendix Metals Processing MP EBITDA (EURm) MP Capex (EURm) Zinc production (kt) H1-16 H2-16 H1-17 H1-16 H2-16 H1-17 H1-16 H2-16 H1-17 Port Pirie Redevelopment Growth Sustaining 95 Lead (kt) 92 EBITDA of EUR 117m (up 13% on H1 16), due to higher commodity prices and a stronger USD, partially offset by lower zinc treatment charges, higher energy prices and reduced production at Port Pirie 84 Sustaining capex up 19% on H1 16, in-line with higher sustaining capex guidance provided for 2017 (EUR 100 to 135m) compared to 2016 (EUR 97m) H1-16 H2-16 H1-17 Zinc metal production up 2% on H1 16 and in line with full year 2017 guidance of 1 to 1.1 million tonnes Silver (k toz) H1-16 H2-16 H

30 Mining Appendix Mining EBITDA (EURm) Capex (EURm) +13m Zinc in concentrate production (kt) +3kt 1 H H2-16 H H H H H1-16 H2-16 H1-17 Growth Sustaining Exploration & Development EBITDA of EUR 15m in H1 17, up EUR 14m on H1 16, due to higher zinc price, lower treatment charge and operational improvements Capex in H1 17 was EUR 19m, up EUR 13m on H1 16, primarily due to the re-start of the Middle Tennessee Mine Zinc in concentrate production in H1 17 of 53kt was up 6% on H1 16. Production at Langlois was impacted due to lack of development which is currently being addressed and two unplanned production outages in Q1 17 The Middle Tennessee Mine re-started its mill production ahead of its previously communicated schedule with 5kt of zinc in concentrate produced in Q

31 Appendix Transformation EBITDA uplift driven by substantially increased throughput and margin on internal zinc smelter residues Port Pirie throughput k dmt Internal Residues Pb Concentrates Indicative Port Pirie feed content 1 Int. Res. Lead (kt) Silver (Moz) Gold (koz) Copper (kt) Zinc (kt) Pb Conc. s Lead (kt) Silver (Moz) Gold (koz) Copper (kt) Zinc (kt) Int. Res. Indicative margin per metal Lead ~99% Silver 75-85% Gold 80-90% Copper 90-95% Zinc ~15% Pb Conc. s 2016 Lead ~10% Silver 5-7% Gold 6-9% Copper 90-95% Zinc ~90% Blended Margin Lead 12-21% Silver 8-17% Gold 15-16% Copper 90-95% Zinc Uplift % 1 Content values presented on rounded basis 2 Indicative margin represents approx. net value capture i.e. (Payable out Payable in / Recoveries) 3 Blended Zinc margin uplift represents increase in average zinc free metal capture at segment level attributable to Port Pire Transformation 31

32 Increased throughput and increased margins provide a substantial segment earnings uplift once ramped-up Appendix 1 Indicative production and consumption 2 Indicative margin % 1 3 Prices 2 Production Margin Average Prices Lead (kt) Lead 12% 19% 20% 21% Lead USD 1,872/t Silver (Moz) Silver 8% 12% 17% 17% Silver USD 17/oz Gold (koz) Copper (kt) Zinc (kt, segment) X Gold 16% 16% 16% 16% Copper 95% 90% 90% 90% Zinc 0.50% 1.0% 1.0% 1.0% X Gold USD 1,250/oz Copper USD 4,863/t Zinc USD 2,095/t = Acid (kt) Acid n/a n/a n/a n/a Acid USD 40/t Consumption Avg Realised Pb TC Pb conc. (k dmt) USD 190/dmt Int Res (k dmt) n/a 4 Indicative Gross Profit uplift less DOC = EBITDA uplift (meur) Indicative U.EBITDA Uplift Uplift in Gross Profit Change in Port Pirie DOC 3 (24) (34) (34) Uplift in EBITDA Margin represents increase in net value capture i.e. (Payable out Payable in / Recoveries) 2 Uplift based on applying 2016 annual average metal prices, FX rates and 2016 commercial terms 3 Increase in Port Pirie DOC converted to EURm applying 2016 annual average EUR:AUD FX rate 32

33 Appendix 2017 guidance Production Metals Processing 2016 Actual 2017 Guidance Zinc (kt) 1,015 1,000 1,100 Mining - metal in concentrate Zinc (kt) Capex m 2016 Actual 2017 Guidance Metals Processing Sustaining Growth Port Pirie Redevelopment Mining Myra Falls restart - 35 Group capex Estimated impact of maintenance shuts on 2017 production have been taken into account when determining zinc metal guidance for 2017 Planned maintenance shuts Smelter & production step impacted Timing and duration Estimated impact Auby roaster, acid plant Q3: 2 weeks Nil Balen cellhouse Q2: 3 weeks 11,000 tonnes Balen roaster F5 Q3: 4 weeks Nil Budel roaster N1, roaster N2, acid plant Q2: 4 weeks 4,000 tonnes Budel HV Transformer 1 & 2 Q2 & Q4: 1 week (each) Clarksville roaster, acid plant, cellhouse 2,500 tonnes (each) Q3: 1 week 3,000 tonnes Hobart roaster, acid plant Q2-Q3 11 : 5 weeks 5,500 tonnes Port Pirie blast furnace, lead refinery Q1 2018*: 6 weeks 22,000 tonnes * Shutdown was moved from Q4-17 to Q

34 For further information: Anthony Simms Head of Investor Relations D: +41 (0) M: +41 (0) E: 34