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Nyrstar shares dropped as much as 6 percent in Brussels and traded at 6.54 euros at 9:17 a.m. local time, down 2.5 percent.

Full-year zinc production from mines will be as little as 205,000 metric tons, the company, based in Balen, Belgium, said today in a statement. That compares with an earlier prediction of 215,000 tons, which didn’t include four months of output from the Breakwater Resources Ltd. mines Nyrstar agreed to buy in June.

Nyrstar expects mining output of at least 73,500 tons in the final three months, a 42 percent increase from the preceding period, as the Breakwater mines will contribute for a full quarter, and plans to raise its annual production rate to 475,000 tons by the end of next year. Nyrstar also relies on the Breakwater acquisition to lower the average cost of mined zinc production to less than $1,000 a ton from $1,515 in the first half and counter a drop in the price of the metal used to galvanize steel.

“Nyrstar has been actively developing life-of-mine plans that will be implemented over the next 12 months and are expected to deliver further growth in production and earnings consistent with previous guidance,” the company said in the statement. A sustained decline in zinc prices “will have a negative impact on financial performance for 2011.”

‘Operational Issues’

Zinc output from smelters has risen 2.5 percent to 805,000 metric tons so far this year. Third-quarter production fell 12 percent because of the planned replacement of the roaster dome in Clarksville, Tennessee, and unexpected “operational issues” on the casting lines in Overpelt, Belgium. Lead production has climbed 19 percent to 162,000 metric tons so far this year.

To contact the reporter on this story: John Martens in Brussels at jmartens1@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net