London (Platts)--7Feb2013/550 am EST/1050 GMT

Nyrstar produced 1.084 million mt of zinc metal in 2012, down 4% from 1.025 million mt in 2011, but output was in line with the stated guidance of approximately 1.1 million mt, the Belgium-based company said Thursday.

"The zinc smelters delivered a strong operational performance in H2 2012, producing approximately 547,000 mt of zinc metal, a 2% increase on H1 2012, a half in which the smelting segment experienced some operational issues (particularly at the start of the year)," Nyrstar said in a statement.

Nyrstar expects to produce 1.0 million-1.1 million mt of zinc metal in 2013, the company said, adding that this level of production "is based on maximising EBITDA and free cash flow generation in the smelting segment by targeting the optimal balance between production and sustaining capital expenditure."

During 2013 there are a number of major scheduled and budgeted maintenance shuts at the smelters, which will have an impact on production, the company noted.

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Nyrstar has begun a strategic review aimed at identifying opportunities to sustainably improve profitability of its zinc smelting business, the company said, adding that updates on the review "will be provided in due course."

Lead metal output from the company's Port Pirie operations in Australia fell 19% in 2012 to 158,000 mt, from 195,000 mt in 2011, on the back of an unplanned shutdown of the blast furnace in Q3 2012.

In 2012, Nyrstar produced around 312,000 mt of zinc in concentrate up 51% from 207,000 mt in 2011. Own mine production, excluding deliveries under the streaming agreement with Finnish producer Talvivaara, increased by 64% to 282,000 mt in 2012 from 172,000 mt in 2011.

The company's mining operations also produced 16,200 mt of lead in concentrate last year, up from 7,800 mt in 2011, and 13,000 mt of copper in concentrate, up from 7,700 mt.

--Andy Blamey, andy_blamey@platts.com
--Edited by James Leech, james_leech@platts.com

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