MINING AND METALLURGICAL COMPANY NORILSK NICKEL MMC Norilsk Nickel (MNOD) NORNICKEL ANNOUNCES 1H 2021 CONSOLIDATED OPERATING RESULTS 20-Jul-2021 / 13:00 MSK Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. =---------------------------------------------------------------------------------------------------------------------- PRESS RELEASE Public Joint Stock Company «Mining and Metallurgical Company «NORILSK NICKEL» (PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company") NORNICKEL ANNOUNCES 1H 2021 CONSOLIDATED OPERATING RESULTS Moscow, July 20, 2021 - Nornickel, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces preliminary consolidated operating results for the second quarter and the first half of 2021 and production outlook for the full year 2021. Senior Vice-President, Operations, Sergey Stepanov commented on the 1H2021 production results, «In 2Q and 1H 2021, the output of all key metals reduced owing to one-off factors such as the temporary suspension of Oktyabrsky and Taimyrsky underground mines of the Norilsk division due to the natural groundwater inflow and an accident at Norilsk Concentrator. Currently, recovery of these assets is progressing by and large in line with the schedule. The water inflow to these mines was effectively stopped in late March. The Oktyabrsky mine resumed full production by the middle of May, however the restoration of mining at the Taimyrsky mine has been delayed due to larger than expected volume of recovery work. As the industrial and environmental safety is our absolute priority, having pumped out the water, we are reinforcing supports in the mine underground workings. The Taimyrsky mine has been already restored to 80% capacity since resuming operation in early June and expected to return to full capacity by the end of this November. The technical audit of the Norilsk Concentrator was completed in the second quarter. The construction defects identified by the audit have been completely fixed by now. The Concentrator has already reached 85% of its design capacity and is expected to return to full capacity in early October this year. Taking into account the current progress in the restoration of the impacted production capacity of the Norilsk division, as well as the efficiency gains at other mining assets, we reiterate previously announced 2021 metal production forecast». NORILSK NICKEL GROUP Nickel In 2Q21, consolidated nickel output decreased 30% quarter-on-quarter (q-o-q) to 33 kt, most of which were produced from the Company's own Russian feed (31 kt, down 31% q-o-q). In 1H2021, total nickel output decreased 26% year-on-year (y-o-y) to 79 kt (of which 77 kt were produced from own Russian feed, down 28% y-o-y). The decrease in production was attributed to the temporary suspension of mining operations and subsequent restoration works at Oktyabrsky (5 mtpa of ore) and Taimyrsky (4.3 mtpa of ore) underground mines of the Norilsk division after the flooding caused by the inflow of groundwater, as well as the suspension at the Norilsk Concentrator and consequent repairs. The copper circuit (4 mtpa of ore throughput) of the concentrator resumed operations on March 15th after a temporary suspension for technical safety inspections and necessary repairs. The disseminated ore processing circuit (5.2 mtpa of ore throughput) of the Norilsk Concentrator operated in 2Q21 at just over 50% of its nameplate capacity. Copper In 2Q21, consolidated copper production decreased 11% q-o-q to 81 kt. In 1H2021, total copper output decreased 28% y-o-y to 173 kt. All of the copper produced in the reporting periods was produced from the Company's own feed. Copper production declined in the reporting periods owing to the same causes as nickel as described above. Bystrinsky Project continued to ramp up on schedule, having increased production of copper in concentrate by 8% y-o-y to 33 kt in 1H2021. Platinum Group Metals In 2Q21, palladium and platinum output decreased 28% q-o-q to 548 koz and 27% q-o-q to 134 koz, respectively. All PGMs were produced from the Company's own Russian feed. The decline of PGM output in the second quarter was attributed to the same reasons as base metals as described above. In 1H2021, palladium and platinum output amounted to 1,314 koz (up 3% y-o-y) and 318 koz (down 1% y-o-y), respectively. The increase of palladium and slight decrease of platinum output in the first half, despite a significant loss of production in the second quarter, was explained by the high base effect of the first quarter, when a new line for production of precious metals from chlorine leaching residues at Kola MMC was ramped up to its design capacity and, as a result, the work-in-progress in transit inventory reduced. NKOMATI (SOUTH AFRICA) (*) In 2Q21, Nkomati (50% of the Group) was placed on limited care and maintenance pending the finalization and submission of a closure plan. Note: (*) Nkomati production results are not consolidated in the Group's total operating results. Production Guidance from the Company's Russian feedstock for 2021 Metal Volume Norilsk Nickel Group (excluding Chita) Ni, kt 190-200 Cu, kt 335-355 Pd, koz 2,350-2,410 Pt, koz 580-640 Bystrinsky (Chita) Copper Project (1) Cu, kt 65-70 Au, koz 230-240
Note: 1. Norilsk Nickel Group owns 50.01% of Bystrinsky GOK (Chita Copper Project). Production results are shown metal in concentrate for sale on 100% basis and fully consolidated in total operational results. The concentrator at the Bystrinsky project was launched 2019.
2Q 1Q
NORILSK NICKEL GROUP SALEABLE METALS PRODUCTION 1 Q-o-Q 1H 2021 1H 2020 Y-o-Y
2021 2021
Total nickel t 32,644 46,639 -30% 79,283 107,588 -26%
including from own Russian feed t 31,457 45,558 -31% 77,015 106,571 -28%
Total copper t 81,400 91,292 -11% 172,692 239,914 -28%
including from own Russian feed t 81,400 91,292 -11% 172,692 239,824 -28%
Total palladium koz 548 766 -28% 1,314 1,270 3%
including from own Russian feed koz 548 766 -28% 1,314 1,270 4%
Total platinum koz 134 184 -27% 318 323 -1%
including from own Russian feed koz 134 184 -27% 318 323 -1%
Norilsk and Kola Division (Russia)
Nickel t 23,874 32,810 -27% 56,684 74,455 -24%
Kola MMC, including t 23,874 32,810 -27% 56,684 74,455 -24%
refined Ni from own Russian feed t 17,107 26,195 -35% 43,302 71,200 -39%
saleable intermediate products from own Russian feed t 6,767 6,615 2% 13,382 3,255 311%
from 3d parties feed t 0 0 0% 0 0 0%
Copper t 64,932 75,014 -13% 139,946 208,258 -33%
Norilsk Division t 61,427 62,661 -2% 124,088 176,423 -30%
Kola MMC, including t 3,505 12,353 -72% 15,858 31,835 -50%
Cu cathodes from own Russian feed t 66 9,103 -99% 9,169 30,710 -70%
saleable intermediates from own Russian feed t 3,439 3,250 6% 6,689 1,125 495%
from 3d parties feed t 0 0 0% 0 0 0%
Palladium koz 548 766 -28% 1,314 1,264 4%
Norilsk Division koz 249 235 6% 484 550 -12%
Kola MMC, including koz 299 531 -44% 830 714 16%
from own Russian feed koz 299 531 -44% 830 714 16%
from 3d parties feed koz 0 0 0% 0 0 0%
Platinum koz 134 184 -27% 318 322 -1%
Norilsk Division koz 67 60 11% 127 143 -11%
Kola MMC, including koz 67 124 -46% 192 179 7%
from own Russian feed koz 67 124 -46% 192 179 7%
from 3d parties feed koz 0 0 0% 0 0 0%
Zabaykalsky Division (Russia) 2
Copper t 16,468 16,278 1% 32,746 30,259 8%
Gold koz 62 60 3% 122 114 7%
Iron ore concentrate kt 638 631 1% 1 269 872 46%
Kola Division (NN Harjavalta, Finland)
Nickel, including t 8,770 13,829 -37% 22,599 33,133 -32%
from own Russian feed t 7,583 12,748 -41% 20,331 32,116 -37%
from 3d parties feed t 1,187 1,081 10% 2,268 1,017 123%
Copper, including t 0 0 0% 0 1,397 -100%
from own Russian feed t 0 0 0% 0 1,307 -100%
from 3d parties feed t 0 0 0% 0 90 -100%
Palladium, including koz 0 0 0% 0 7 -100% (MORE TO FOLLOW) Dow Jones Newswires
July 20, 2021 06:00 ET (10:00 GMT)
