Nyrstar Investor Presentation. November 2017

Transkript

1 Nyrstar Investor Presentation November 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 3.4bn LTM 2 Underlying EBITDA EUR 236m 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 1,028kt zinc metal 112kt 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 1,028 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 October 2016 to September 2017; restated to exclude El Toqui, El Mochito, Contonga, Coricancha and Campo Morado discontinued operations 3 Wood Mackenzie Q3-17 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 substantially strengthened with a focus on operational expertise Hilmar Rode appointed as CEO and Frank Rittner as COO to draw on their significant metals & mining 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 ~ 130m per annum from vs previous guidance of ~ 80m per annum Construction complete; hot commissioning commenced end September 2017 and first feed to TSL furnace achieved end October 2017 Extract maximum value from mining Successful divestment from Latin American mining completed Divestment process now concluded with the North American mines to be held as a core component of the Nyrstar business and optimised Optimise zinc smelting Full potential assessments completed across all five zinc smelters by end Q Low-capex initiatives set to deliver improved operating performance and zinc production of c. 1.2m tonnes per annum Strengthen balance sheet Balance sheet strengthened in 2016 and 2017 demonstrating access to capital markets: 274m rights offering, US$185m upsized zinc metal prepay, 115m convertible bond issuance, 400m high yield bond issuance upsized to 500m, 100m upsize of the Structured Commodity Trade Finance Facility (SCTFF) and repeat issuance of silver prepayments to roll forward amortising prepays Trafigura US$250m committed working capital facility extended to end of 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 September 2017, AUD 632m incurred Remaining cost to complete to be financed via 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 Redevelopment allows Nyrstar to leverage the 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: 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 Total project cost to complete of c. AUD 660m with AUD 632m incurred at 30 September Remaining cost to complete to be financed via the issuance of perpetual securities backed by the Australian government Projected increase in throughput - greater ability to use residues Internal Primary Pb 360kt kt Revised Underlying EBITDA uplift profile 1 ~ EUR 0m Optimisation expected to drive run-rate earnings uplift in the region of EUR 130m p.a. compared to 2016 ~ EUR 40m ~ EUR 100m ~ EUR130m Full ramp-up 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 Major milestone reached with hot commissioning commencing at end September 2017and first feed to TSL furnace achieved at the end of October 2017 Project cost to complete of c. AUD 660 million in-line with revised guidance provided in February 2017 Re-work of modules and enhanced slag tapping arrangements have been implemented Training of Nyrstar personnel at Kazzinc lead smelting operations in Kazakhstan completed and commissioning assistance by Kazzinc personnel at Port Pirie ongoing TSL furnace first heat-up 25 October 2017 Key investment highlights TSL furnace control room October 2017 New slag launders installed October

12 #2 Excellence in smelting and mining Latin American assets divested, North American mines demonstrating solid potential Key investment highlights Latin American Mining assets sold (5 mines), with additional upside through price participation at El Toqui, earn-out at Coricancha and royalty at Campo Morado Divestment process now concluded with the North American mines to be held as a core component of the Nyrstar business and optimised Myra Falls mine restart approved in August 2017 and proceeding as planned Total restart capex of EUR c.70m split evenly between H and 2018; agreed terms for prepay of USD 30m to partially fund the restart capex North American mining operations continue to increase their quarterly run rate of EBITDA generation and are expected to generate robust free cash flow in 2018 Continued improvement in Mining EBITDA Full indicative potential - North American mines 128m Production (kt) 220 C1 cash cost (USD/t) 2,500 14m 32m m ,000 5m 5m Q1 17 (23kt zinc in conc) Strategic hedge 10m 10m Q2 17 (30kt zinc in conc) Myra 18m 18m Q3 17 (34kt zinc in conc) Actual 3m Q3 17 Normalisation 32m Q3 17 Normalised Mining EBITDA (34kt zinc in conc) 128m Q3 17 Annualised and Nomalised Mining EBITDA (136kt zinc in conc) F C1 cash cost (USD/t) 2018F 2019F Zinc contained production (kt) 2020F 1,500 1,000 12

13 #2 Excellence in smelting and mining Full potential review of zinc smelting network completed Key investment highlights Zero to low-capex operational excellence initiatives identified for implementation over the coming years, focusing on: Zinc smelter asset integrity; Asset management; Metallurgical excellence; Productivity improvements Low capex debottlenecking initiatives to drive output to 1.2m tonnes per annum by 2020 on a consistent basis Operating cost reductions to be achieved by: Production volume increases over a reduced fixed cost base; and External spend optimisation Full indicative potential Zinc smelters Substantial improvement potential for Nyrstar Zinc smelters Zn market metal (kt) 1,300 1,200 1,100 1, F 2018F 2019F 2020F DOC (EUR/t) Zn smelting DOC/t market metal (EUR/t) Zinc market metal production (kt) Wood Mackenzie industry cost curve data used for global comparison zinc smelters 13

14 #3 Robust industry backdrop Continued robust demand Key investment highlights Strong macro fundamentals Key Sources of Demand (1) Global Slab Zinc Consumption (2) The construction industry is the largest end consumer and accounts for c. 50% of overall demand Zinc is used for its corrosion resistance in galvanised steel, which accounts for c. 60% of zinc first use China is the biggest consumer of zinc accounting for c. 48% of global demand Urbanisation and industrialisation in China has resulted in a sharp increase in per capita zinc consumption (from 4.8kg per head in 2015 to an estimated 6.5kg per head by 2030) Zinc (kt) 20,000 16,000 12,000 8,000 4, China Asia (ex. China) Russia and Caspian Europe North America Other Continued positive global industrial production growth Demand outlook (3) World consumption growth is forecast to average 2.4% p.a. from 2017 to 2024 with consumption expected to reach 17.2Mt/a Ongoing urbanisation and industrialisation of the developing world will be a key driver Zinc premiums hit a 3.5 year high in August 17 in Shanghai due to tightening supply-demand balance (1) AME (2) Wood Mackenzie (3) WoodMckenzie LTO Q

15 #3 Robust industry backdrop Additional concentrate production will return the market to balance Tight Concentrate Supply Requirement and Sources of Future Mine Production (1) Key investment highlights Strong macro fundamentals Current concentrates supply is challenged, driven by mine closures including Century, Lisheen and Glencore Year-on-year mine production declined c.6% for which has contributed to a tight concentrates market, with stock days at 27 in Q3 (vs 48 in 2015, 53 in 2014 and 52 in 2013) Miners retain substantial bargaining power for now, but the current zinc price is incentivising brownfield expansions and de-bottlenecking of mines The average annual requirement for new mine production is 500kt/a from 2017 to 2024 Supply outlook (1) Global mine production is forecast to increase by 7% in 2017 with 895kt of new production and expected to stabilise over the medium to long term. Major capacity additions in 2017 include: Antamina 165kt, Rampura Agucha 150kt, Sindesar Khurd 50kt, Bisha 50kt and Penasquito 35kt Although still tight this additional capacity will move the concentrates market to balance in 2017, with a small surplus expected to Tightness forecast to continue through to 2020 (1) Wood Mackenzie LTO Q

16 #3 Robust industry backdrop The bottleneck and pricing power will move from mines to smelters Key investment highlights Strong macro fundamentals Tight refined metal market to tighten further (1) Record refined metal deficits driving prices (1,2) Decline in concentrate stocks during 2017 together with smelter outages led to falling refined supply and record metal deficits - with total refined production c.200kt below consumption in Q3 and an overall c.755kt deficit expected for Further deficits in the refined market are expected to squeeze stocks to critical levels in H1 2018, potentially driving the zinc price to a cyclical peak in Q A prolonged zinc price environment is expected to incentivise concentrate supply, with feed balance returning to a surplus in 2019 Smelter capacity growth is however expected to lag mine supply in the medium term thus keeping the refined market tight. Probable smelter projects due to add additional capacity, redressing the balance in the longer term. (1) CRU, October 2017 (2) Forecasts as per Wood Mackenzie 16

17 Key investment highlights #3 Robust industry backdrop Zinc Market and Treatment Charges Mines and Smelters operate in a symbiotic relationship of dependence at the top end of the zinc market: They share zinc price exposure through free metal (1) and escalators on treatment charges (2), negotiating these TC terms between each other Over the medium term zinc smelters receive a relatively constant share of the total value, with the zinc price having been positively correlated with TCs in the past Over the short term however, market dynamics influence the balance between metal prices and the treatment charges negotiated between smelters and mines The realised contract TC currently represents a historic low of c.12.8% of the payable zinc price. This compares to 22.2% in 2016 and is lower than the last price cycle peak in 2007 (19% of paid zinc price). TC value share is forecast to fall further to 9.4% in 2018 (3) As the bottleneck moves from concentrates to refining capacity pricing power shifts to smelters, possibly leading to a period of sustained high prices and rising TCs Treatment charges and metal price relationship Surplus metal and concentrates LME price falls Mines cut production Concentrates draw down Power shifts to miners TCs fall Share % Treatment charge Concentrate surplus Power shifts to smelters TCs increase Smelters increase production Metal price Metals draw down LME price increases Miners increase production We are here Treatment Charge and LME zinc price Zinc price (USD/t) H ,500 3,000 2,500 2,000 1,500 1, Smelter Share, % Mine Share, % (1) Zinc smelters only pay for 85% of the metal contained in concentrates, but are able to recover approximately 96%. The difference is free metal (2) Escalators and de-escalators were set at 0% for the 2017 benchmark terms (3) Wood Mackenzie LTO Q

18 Key investment highlights #3 Robust industry backdrop Proactive approach to risk management During the implementation of the transformation and turnaround strategy, the company has taken prudent measures to mitigate downside risk on Zinc price and currency AUD-USD D FX RATE EUR-USD FX RATE ZINC PRICE 4,000 3,500 3,000 2,500 2,000 1, Jan.16 Apr.16 Jul.16 Upside from $2,800 $2,437 Call $2,100 Put Oct.16 Jan.17 $2,496 Call $2,127 Put 1.15 Call 1.14 Call 1.08 Put H2 16: 0.83 Call H2 16: 0.68 Put 1.05 Put Upside from $3,117 Q2-Q4 17: $2,543 Call Q2-Q4 17: $2,172 Put H1 18: $3,094 Call H1 18: $2,300 Put Apr.17 Jul.17 Oct.17 Jan.18 Apr.18 Jul.18 Oct.18 Jan.19 H1 17: 0.62 Put 2017: 0.81 Call 1.10 Call 1.00 Put H1 17: 0.68 Put 2018: 0.80 Call Jan.16 Apr.16 Jul.16 Oct.16 Jan.17 Apr.17 Jul.17 Oct.17 Jan.18 Apr.18 Jul.18 H2 18: $3,545 Call 2018: 0.68 Put H2 18: $2,600 Put Oct.18 Jan.19 Zinc Price Zinc hedge collars were effected to protect 70% of free metal through to end June 2018 and 15% of free metal in H 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 Other All FX and commodity exposure for Myra Falls hedged until % 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 18

19 #4 Significantly enhanced liquidity, capital structure and maturity profile Liquidity and average maturity profile extended over past 18 months Solid financial position Committed liquidity at the end of 9m 2017 Diversified sources of funding backed by broad banking syndicate EUR 400m Bond Offering in March 2017 upsized by EUR 100m in September 2017 to EUR 500m and tender on the 2018 convertible bond 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 Trafigura USD 250m committed WC facility to be extended to end 2019 m Capacity Drawn Available SCTF Facility 500 (226) 274 KBC Facility Trafigura Facility Cash Total 826 (226) 600 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 2018 CB tender 19

20 #4 Significantly enhanced liquidity, capital structure and maturity profile Further funding activities planned to extend maturities and maintain strong liquidity position Structural Debt Outstanding balances at 30 Sept 2017 ( m) Drawing m Capacity m Maturity 2018 Convertible Bond Sept High Yield Bond Sept Convertible Bond July High Yield Bond Mar 2024 Structural Debt Working Capital Facilities SCTF June 2019 Loan from Related Party (Trafigura) Dec 2019 KBC 0 50 July 2018 Working capital facilities Continued proactive approach to balance sheet management Continue to monitor the market for additional opportunistic financings to further strengthen the balance sheet, extend the existing maturity profile and maintain strong liquidity Rollover prepays to offset amortisation profile Renew SCTF facility >12 months ahead of maturity Issuance of new HY bond to address 2019 maturity Outstanding maturity / anticipated amortisation profile 32m 20m Prepays in Other Financial Liabilities / Deferred Income Zinc Prepay (Dec-2015) 12 month grace 98 Dec 2018 Silver Prepay PPR 58 Aug 2019 Silver Prepay (Mar-17) 6 month grace 51 Mar 2018 Silver Prepay (May-17) 11 month grace 42 Nov 2018 Silver Prepay (Jun-17) 9 month grace 42 Aug 2018 Prepays m 220m 29m 226m 350m 32m 500m Perpetual Securities 1 Perpetual Securities m m 0m m m m Perpertual Securities HY Bonds KBC All Prepays SCTF Convertible Bonds Trafigura facility 20

21 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 21

22 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 to continue on arm s length basis and on normal commercial terms Trafigura has two dependent directors on Nyrstar s six person board Commercial Agreements Long term purchase agreements for approximately one third of Nyrstar s zinc concentrate requirements (600Kdmt per annum) and zinc metal off-take sales agreements for approximately one fifth of Nyrstar s zinc metal production (200Kt per annum) with a prepayment mechanism 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 Trafigura WC Facility upsized to US$250m on a committed basis and current negotiations to extend on similar terms to end 2019 Nyrstar s December 2015 US$150m zinc prepayment facility (ultimately upsized to US$185m) Supported Nyrstar s February m rights offering by underwriting up to 125m Leverage Trafigura s financial relationships to achieve more beneficial terms for Nyrstar 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 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 Financial and operating results 9m 17 Financial summary Underlying EBITDA ( m) m 9m m 17 % Metals Processing Revenue 1,976 2, % MP U. EBITDA % Mining U. EBITDA ,550% Other U. EBITDA (25) (34) (9) 36% Group Underlying EBITDA % Mining 1 Other 5 10 (11) (11) Q Q Capex ( m) 18 (12) Q3 17 Capex MP Sustaining % Port Pirie Redevelopment % Growth % Mining % Group Capex % Growth capex Port Pirie Redevelopment MP Sustaining capex Mining Sustaining Q Q Q3 17 m Dec 16 Sep 17 % Net Debt , % Net Debt, inclusive of Zinc Prepay and perpetual securities 1,167 1, % Bonds Working Capital Facilities Cash Net Debt ( m) 1,387 1,272 1, , (65) (58) (95) Mar 17 Jun 17 Sep 17 Net Debt, Incl Zn Prepay & Perp Sec. Net Debt, ex Zn Prepay & Perp Sec. 24

25 Financial and operating results 9m 17 Stable safety performance, improved zinc metal and mine production Safety, Health & Environment Preventing harm is a core priority of Nyrstar LTIR of 2.0 in first 9 months of 2017 was higher than that achieved in first 9 months of 2016 (1.7) No environmental events with material business consequences occurred in the first 9 months of Lagging Safety Indicators Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 LTIR RIR Production Zinc metal production of 766kt, up 2% over first nine months of 2016 despite the impact of unplanned outages at Budel and Hobart in first 9 months of 2017 Lead production at Port Pirie of 123kt, down 14% vs. first 9 months of 2016 due to heat exchanger failure in old acid plant in January 2017, and two 12 day blast furnace outages in March 2017 and September 2017 (planned Q4 17 roaster outage was brought forward to September 2017) Zinc in concentrate production of 88kt, up 22% on first 9 months of 2016, primarily due to restart of MTN Auby Balen Budel Clarksville Hobart Zinc metal production per site (kt) % m 16 9m 17 Lead metal production at Port Pirie (kt) 143 9m 16-14% 123 9m 17 Zinc in concentrate per site (kt) m % m 17 Langlois East Tennessee Middle Tennessee 25

26 Financial and operating results Group underlying EBITDA 9m 17 on 9m 16 ( m) Other (26) 6 FX (32) Zinc Macro + 80m (4) (65) Metals Processing (11)m Mining (19)m Group 120m 156 Zinc 2 USD (6) AUD (63)TC (2) Other 6 (17) 19 (38) (8) Group 162m MP MP 143 Mining Other (25) 2 33 Mining (34) Other 9m 16 EBITDA 7 Metal prices Strategic hedges FX TC rate/ Other macro 8 MP Volume MP Costs Mining Volume Mining Costs Other & Eliminations 9m 17 EBITDA 9m 16 9m 17 Zinc price (USD/t) 1,955 2, B/M Zn TC (USD/dmt) (30) FX (EUR/USD) (0.01) FX (EUR/AUD) (0.05) Zinc metal (kt) Zinc in concentrate (kt)

27 Financial and operating results Net Debt evolution over Q3 17 m (1,243) (257) 51 Zn Prepay & Perp Notes Net Debt (47) (54) (40) (54) (26) 18 (257) 23 (16) (1,387) (249) (986) (986) PPR (41)m Perp Note 16m MP Growth (15)m 1138 (1,138) 1387 (1,138) (257) Net Debt Jun 17 Group EBITDA Sustaining Capex 10 Interest & Tax Net Growth Capex Working Capital Change in Ag Prepays Proceeds from divestment Net Debt exclusive Zn Prepay and Perp Notes Sep 17 Change in Zn prepay Change in Perp Notes Net Debt inclusive Zn Prepay and Perp Notes Sep 17 Net debt (excluding the zinc prepay and perpetual securities) increased by EUR 152m over the quarter, predominantly due to: working capital outflow due to higher commodity prices; capex in-line with guidance; and amortisation of Ag prepays. Committed liquidity at the end of Sep 17 m Capacity Drawn Available SCTF Facility 500 (226) 274 KBC Facility Trafigura Facility Cash Total 826 (226) 600 Excluding intra-month liquidity needs of ~USD m 27

28 Table of Contents I. Introduction II. Key investment highlights III. Financial and operating results IV. Delivering a strong future for Nyrstar V. Appendix 28

29 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. Hot commissioning commenced end of September 2017 and first feed of new TSL at end of 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 of EUR 600m at the end of September 2017 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 29

30 Table of Contents I. Introduction II. Key investment highlights III. Financial and operating results IV. Delivering a strong future for Nyrstar V. Appendix 30

31 Appendix Zinc market fundamentals remain strong Zinc Zinc outperformed the base metals complex in Q3 2017, with the price on both the LME and Shanghai Futures Exchange moving beyond $3,200/t and $3,900/t respectively by the end of September The average monthly price for zinc on the LME of $3,121/t in September 2017 was the highest since August 2007 The supply of zinc concentrate has remained tight and has now been accompanied by a tightening of availability of refined metal, as evidenced by the emergence of a sustained backwardation in the cash to three month spreads on the LME and increased imports of zinc metal into China Exchange stocks of zinc at the end of Q on the LME and SHFE continue to be at decade lows, having reduced by c. 250,000 tonnes over the first 9 months of 2017 Higher prices are triggering a supply response from miners (largely in India, Peru and Turkey) with the market now slightly less tight than at the start of the year FX The USD has weakened materially over the first 9 months of In H the EUR/USD averaged 1.08 whilst in Q it weakened to average 1.17, causing a material headwind for the translation of Nyrstar s earnings LME zinc price USD/t 3,400 3,200 3,000 Q4 16 $2,517/t 2,800 2,600 Q3 16 $2,196/t 2,400 2,200 2,000 0 Q3 17 $2,963/t Q1 17 $2,780/t Q2 17 $2,596/t Zn price USD/t Average zinc price Jul/16 Sep/16 Nov/16 Jan/17 Mar/17 May/17 Jul/17 Sep/17 EUR: USD Exchange Rate 1.22 Q Q Q Q Q Jul/16 Sep/16 Nov/16 Jan/17 Mar/17 May/17 Jul/17 Sep/17 EUR/USD Average EUR:USD 31

32 Appendix H underlying EBITDA sensitivity excluding hedging 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. 32

33 Metals Processing MP EBITDA (EURm) MP Capex (EURm) Zinc production (kt) Q1 17 Q2 17 Q3 17 Q1 17 Q2 17 Q3 17 Q1 17 Q2 17 Q3 17 Port Pirie Redevelopment Growth Sustaining Lead (kt) 49 EBITDA of EUR 45m (down 18% on Q2 17), due primarily to higher energy prices, reduced production at Port Pirie and Budel and a weakening of the US dollar against the Euro Total capex up 7% on Q2 17, in-line with higher sustaining capex guidance provided for 2017 (EUR 100 to 135m), planned maintenance shuts in Q3 17 and increased spend at Port Pirie with the completion of the redevelopment works Zinc metal production down 4% on Q2 17 and in line with full year 2017 guidance of 1 to 1.1 million tonnes, predominantly due to planned maintenance outages in Q3 17 and unplanned outages at Budel caused by defluidisations in August 2017 Q Q2 17 Silver (k toz) 3.6 Q Q1 17 Q2 17 Q

34 Mining Mining EBITDA (EURm) Capex (EURm) Zinc in concentrate production (kt) Q1 17 Q2 17 Q3 17 Q1 17 Q2 17 Q3 17 Q1 17 Q2 17 Q3 17 Growth Sustaining Exploration & Development EBITDA of EUR 18m in Q3 17, up 76% on Q2 17, due to higher zinc price, operational improvements and restart of the Middle Tennessee Mines Capex in Q3 17 was EUR 16m, up EUR 5m on Q2 17, primarily due to the re-start of the Middle Tennessee Mine and Myra Falls mine Zinc in concentrate production in Q3 17 of 34kt was up 13% on Q2 17 due primarily to the ramp-up of the Middle Tennessee mines and improved production at East Tennessee which was impacted in Q2 17 due to lack of development 34

35 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 35

36 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 36

37 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-Q2 18* 6 weeks 22,000 tonnes * Shutdown was moved from Q4-17 to Q

38 For further information: Anthony Simms Head of Investor Relations & Insured Risk D: +41 (0) M: +41 (0) E: 38