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Moscow – Shareholders of MMC Norilsk Nickel, the world’s largest palladium and refined nickel producer, held the Extraordinary General Meeting (EGM) on September 26, 2019. The EGM approved the interim dividend for the first half of 2019 in the amount of RUB 883.93 per ordinary share (approximately USD 13.27 at the RUB/USD exchange rate of the Russian Central Bank as of August 20, 2019, the date when the Board of Directors made a recommendation on the dividend), totaling RUB 139.88 bn (approximately USD 2.1 bn).
NORNICKEL is Russsias’s leading mining and metals company and currently the world’s largest HIGH-GRADE NICKEL and PALLADIUM producer. Currently ranked NO. 1 global refined NICKEL producer, NO. 1 global PALLADIUM producer, NO. 4 global PLATINUM producer, NO. 4 global RHODIUM producer and NO. 11 global COPPER miner the company also produces gold, silver, iridium, selenium, ruthenium and tellurium.
Operating on a clear strategy to develop tier-1 assets, upgrade existing capacities to boost performance and build new environmentally friendly and safe production facilities, the company aims at generating annual revenue of over USD 1 bn, EBITDA margin of more than 40% and reserves-to-production ratio of at least 20 years. To date Nornickel has strategic partnerships in more than 30 countries delivering its products to 440 partner companies.
So, shareholders approved the dividend slated for October 7, 2019. In its financial report for the first half of the year, the Norilsk reported a number of highlights which include among many:
- Consolidated revenue increased 8% y-o-y to USD 6.3 billion owing to output growth of all key metals and higher palladium price;
- EBITDA expanded 21% y-o-y to USD 3.7 billion owing to higher metal revenue and the ramp-up of the Bystrinsky copper project, with EBITDA margin reaching 59%;
- CAPEX was almost unchanged from last year amounting to USD 0.5 billion. The Company made final investment decisions on strategic growth projects such as the expansion of the Talnakh concentrator (TOF-3 project) and the South Cluster mining project, with the active construction phase scheduled to start in 2H19;
- Net working capital temporarily increased to USD 1.3 billion as a result of scheduled amortization of advance payments for delivered metals from customers;
- Free cash flow amounted to USD 2.2 billion;
- Net debt/EBITDA ratio decreased to 0.8x as of June 30, 2019;
- Cash interest paid decreased 23% to USD 202 million owing to the ongoing optimization of debt portfolio;
- On February 12, 2019, Moody’s upgraded the Company’s credit rating to “Baa2” with a “Stable” outlook in the wake of raising Russia’s sovereign ceiling for foreign currency debt to “Baa2” and upgrade of Russia’s sovereign rating to investment grade level of “Baa3” with “Stable” outlook.
On July 1, 2019, the Company paid final dividend for 2018 in the amount of RUB 792.52 (approximately USD 12.56) per ordinary share for the total amount of approximately USD 2.0 billion;On August 20, 2019, the Company’s Board of Directors recommended to the General Meeting of shareholders (EGM) to approve interim dividend for the first half of 2019 in the amount of RUB 883.93 per share (USD 13.27 at the RUB/USD exchange rate the Russian Central Bank as of August 20, 2019) for the total amount of USD 2.1 billion. The Board of Directors set the date of the EGM on September 26, 2019 and the EGM record (the list of shareholders eligible to vote) date on September 2, 2019. The Board of Directors proposed to set the dividend record date (the list of shareholders entitled to the dividend) on October 7, 2019.
ABOUT MMC NORILSK
PJSC «MMC NORILSK NICKEL» is a diversified mining and metallurgical company, the world’s largest producer of refined nickel and palladium and a leading producer of platinum, cobalt, copper and rhodium. The company also produces gold, silver, iridium, selenium, ruthenium and tellurium.
The production units of NORILSK NICKEL Group are located at the Norilsk Industrial District, on the Kola Peninsula and Chita region in Russia as well as in Finland and South Africa.
PJSC NORILSK NICKEL shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges. PJSC NORILSK NICKEL ADRs trade over the counter in the US and on the London and Berlin Stock Exchanges.