Nyrstar completes funding package for Port Pirie smelter

METALS company has locked in the third and final part of its complex funding package for the $514 million redevelopment of the Poert Pirie smelter.

METALS company Nyrstar has locked in the final part of its complex financing package for the euro 338 million ($514 million) redevelopment of Port Pirie’s smelter.

The Swiss-Belgian company said it had reached an agreement on the forward sale of euro 79 million worth of silver which will be produced at the upgraded plant.

This put it on schedule and on budget to commission the plant in the first half of 2016, it said.

Most of the silver covered by the five-year agreement will be supplied according to a defined delivery schedule from 2016 to 2019.

Nyrstar has safeguarded its position by taking out hedging contracts on the silver price.

The Port Pirie redevelopment is being funded through a three-part package.

As well as the silver sales, Nyrstar last week completed a capital raising to chip in euro 68 million itself.

The third component will be euro 191 million in securities issued to third parties with a AAA credit rating guaranteed by EFIC and backed by the South Australian Government.

Nyrstar will start drawing down on that component in the first half of next year.