HIGHLIGHTS:
◦Key strategic initiatives to turnaround the business are progressing well: balance sheet strengthened with completion of rights offering in February 2016 and convertible bond in July 2016; mining divestment advancing with the sale of El Toqui announced and further divestments expected in H2 2016; significant reduction in cash consumption of Mining segment and group cost reductions ahead of plan
◦Group Underlying EBITDA of EUR 84 million for H1 2016, approximately half that achieved in H1 2015 primarily due to a 16% decrease in the average zinc price (USD 2,134/t to USD 1,799/t) and a 17% reduction in the 2016 benchmark zinc TC, partially offset by cost reductions:
◦Metals Processing EBITDA down EUR 79 million year-on-year from EUR 183 million to EUR 104 million, driven by lower commodity prices and lower zinc metal production (down 9%) due to planned maintenance shutdowns at Auby and Balen and unplanned cellhouse repairs in Hobart, partially offset by efficiency improvements and reduced energy prices
◦Mining EBITDA down EUR 11 million year-on-year at negative EUR 6 million, driven by lower commodity prices, partially offset by the suspension and care & maintenance of the Myra Falls and Middle Tennessee Mines respectively and other cost reductions
◦Net debt flat year-over-year at EUR 668 million with the completion of the EUR 274 million rights offering in February 2016 and movements in borrowings with the repayment of the EUR 415 million retail bond in May, drawings on the revolving working capital facilities and reduction in cash balance
◦Net loss from continuing operations of EUR 213 million for the period, primarily as a result of an impairment charge of EUR 106 million related to the Mining segment assets
◦Port Pirie Redevelopment has commenced initial commissioning activities and remains on budget, with AUD 115 million drawn from the Australian government backed perpetual notes by the end of H1 2016

Commenting on the first half 2016 results, Bill Scotting, Chief Executive Officer said:

"In H1 2016, Nyrstar has continued to progress against the clear set of strategic priorities that were communicated in November 2015. This has been achieved despite a very volatile and tough operating environment during the half, with large movements experienced in commodity prices, foreign exchange rates and treatment charges.

On the back of improving supply-demand fundamentals, zinc was the standout performer amongst the base metals in H1 2016. Having fallen to a six year low of USD 1,444 per tonne in January 2016, the zinc price proceeded to climb strongly through the half to close up 35% at USD 2,104 per tonne. The zinc price appreciation over the half resulted in a H1 2016 average of USD 1,799 per tonne, which was still 16% lower than the same period in 2015. On the back of the tightening availability of zinc concentrate supply, the annual 2016 benchmark treatment charge terms were settled at approximately 17% below the 2015 terms.

In the medium term, the strengthening of the zinc price on the back of improving supply-demand fundamentals and weakening Euro against the US dollar, should further support Nyrstar's financial performance.

The operational performance of the Metals Processing segment was impacted in H1 2016 by planned maintenance shuts at Auby and Balen, reduced output at Clarksville following the care & maintenance of the Middle Tennessee mines and unplanned cellhouse repairs in Hobart. Whilst production of 507kt of zinc metal during the first half is at the lower end of production guidance, it is expected that second half production will be stronger with limited scheduled maintenance shuts.

Mining segment performance in H1 2016 showed further signs of improvement with EBITDA of negative EUR 6 million versus negative EUR 46 million in H2 2015. The annualised quarterly cash consumption in the Mining segment has been significantly reduced from the EUR 170 million run rate at Q3 2015 to approximately EUR 29 million in Q2 2016. Together with the cash consumption improvements, the Mining segment divestment process has progressed over the first half with the divestment of El Toqui announced in June and continued interest for the remaining Mining assets. The Company is committed to its divestment strategy and expects to announce the sale of additional Mining segment assets during the course of H2 2016 with the possibility of some assets being held into 2017 for divestment.

The Company is also ahead of target for its Metals Processing and Corporate operating cost savings. On the basis of the H1 2016 results, the annualised Metals Processing and Corporate operating costs reductions are in excess of the EUR 30 million of targeted savings. Further savings are expected with ongoing operational efficiency gains in Metals Processing and a further reduction in corporate overheads once the Mining segment has been divested.

The Company's balance sheet strengthening priority that was announced on 9 November 2015 has been greatly advanced in H1 2016. In the first six months of 2016, the Company has completed a EUR 274 million rights offering, finalised a USD 75 million short term silver prepay, repaid the EUR 415 million retail bond that was due in May and introduced an uncommitted USD150 million revolving working capital facility with Trafigura. Furthermore, in July 2016, the Company issued a EUR 115 million convertible bond due in 2022 and in August 2016 increased the USD 150 million zinc metal prepay that was issued in December 2015 to USD 175 million. These most recent financing initiatives have been opportunistically pursued by the Company as part of the balance sheet strengthening approach and have collectively resulted in increasing both the liquidity headroom and extending the balance sheet maturity profile of the Company in a macroeconomic environment that remains volatile and uncertain. Despite our belief in a strengthening zinc price environment, we will continue to monitor the market for further opportunistic financings in order to complete the balance sheet strengthening initiatives described last year or to extend our existing maturity profile. Nevertheless, in the current operating environment we have sufficient liquidity headroom to defer such further financings into 2017 should we decide to do so.

As we have done in previous halves, the Company in H1 2016 conducted a review of the carrying value of the Mining segment. The outcome of this review was the recognition of a non-cash, pre-tax impairment loss of EUR 106 million against the carrying value of the Mining segment assets. Post the H1 2016 impairment, the Company had substantial covenant headroom and remains in compliance with all of its funding agreements.

The Port Pirie Redevelopment commenced initial commissioning activities towards the end of H1 2016. The project is progressing in line with its budgeted cost to complete of AUD 563 million and its schedule with commissioning and ramp-up activities to continue through H2 2016 and into 2017. Once fully ramped-up over the course of 2017, the Port Pirie Redevelopment will allow Nyrstar to capture a greater proportion of the value contained within the feed material consumed by Metals Processing's global network of smelters.

As previously communicated, tragically three of our mining colleagues lost their lives in the first quarter of 2016. These fatalities are a reminder that preventing harm across all of our operations must always remain a key focus area for Nyrstar's operations. Since the difficult start to the year, Nyrstar has consistently reinforced its strong commitment to putting safety first and I am pleased to report that safety performance in the second quarter of 2016 has been the best on record, with 14 of our 17 sites being lost time injury free.

With the balance sheet strengthening initiatives largely completed for 2016, the strategic priorities for the second half of the year and into 2017 will be to advance the divestment of the mining segment; deliver on the Port Pirie Redevelopment; and make continued operational improvements and cost savings to benefit from the forecasted strengthening of zinc market fundamentals."