MOSCOW - August 14, 2020 - (Newswire.com)
PJSC MMC Norilsk Nickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, expressed cautious optimism when delivering interim consolidated IFRS financial results for six months, ended June 30, 2020. The Company maintains that COVID-19 had no material impact on its operations.
On a conference call with investors earlier this week, the Company said: “While most analysts are currently forecasting a quick economic recovery, we remain cautious regarding the recovery prospects for our metals’ demand, at least until the end of this year.” The Company continues to receive an investment-grade rating from all of the world’s three major agencies.
The Company met its own medium-term target, as its working capital remained unchanged at $1 billion.
CapEx increased by 10% year-on-year to $0.6 billion owing to the development of its mining projects expansion of Talnakh Concentrator, as well as the launch of the Polar division project.
Consolidated revenue increased by 7% year-on-year to $6.7 billion, primarily driven by high palladium and rhodium prices as well as the ramp-up of Bystrinsky Project.
Negative FX cost decrease in advance payments and the accommodation of net on interest was compensated by the depreciation of Russian ruble against the U.S. dollar and the dynamics of income tax payable.
EBITDA decreased by 51% to $1.8 billion due to environmental provision in the amount of $2.1 billion. The Company has made such allocation while it disputes the methodology applied by the regulator in calculating its fine. Nornickel is fully cooperating with the regulator and will present its estimate separately.
Vladimir Potanin, Norilsk Nickel CEO said: “First half of 2020 turned out to be very challenging for our Company. The coronavirus pandemic had a significant ripple effect on the global economy as all major consumers of our products experienced an unprecedented downturn of business activity. Owing to the timely support that we have provided to local authorities and regional healthcare, socially vulnerable communities, small and medium enterprises, as well as safeguarding measures for our employees, the Company managed to pass the peak of the pandemic without any material impact on operations. We remain committed to continuing our support to the regions of our operations to combat the spread of coronavirus.”
About MMC “Norilsk Nickel,” “Nornickel” or the “Company.”
MMC Norilsk Nickel is a diversified mining and metallurgical company, world’s largest producer of palladium, high-grade nickel, and a major producer of platinum and copper; it also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products. Nornickel shares are listed on the Moscow and Saint Petersburg Stock Exchanges; ADRs are traded over the counter in the U.S. and on the London, Berlin and Frankfurt Stock Exchanges.
Press Contact: Tatyana Egorova, pr@nornik.ru
Press Release Service by Newswire.com
Original Source: Norilsk Nickel Forecasts Recovery by 2021
