Nornickel has published its interim consolidated IFRS financial results for the first half of 2024 and reported that its revenue decreased by 22% year on year to $5.6 billion.
The company noted that the decrease was attributed to a fall in metal prices as well as the accumulation of nickel and copper inventories following the maritime traffic restrictions in the Red Sea and other logistic issues.
At the same time, Nornickel’s cash operating costs decreased 9% year on year to $2.4 billion mostly driven by the weakening of Russian rouble, decrease in mineral extraction tax owing to lower metal prices and continuing execution of operating efficiency programme. CAPEX fell 34% year on year to $1 billion.
“Unfortunately, the adverse external conditions we faced last year continued to put pressure on or business in the first half of 2024,” said Nornickel’s president Vladimir Potanin.
Meanwhile, according to him, Nornickel has managed to adapt to challenges and restrictions caused by the stoppage of equipment deliveries by some foreign suppliers and continues the execution of large investment projects focused both on environment improvement and production growth.
“I would like to highlight that due to ‘the ideal storm’ caused by the high interest rates and lack of access to global capital markets our absolute priorities become financial stability and conservative approach to debt management while meeting all social obligations to the employees and the state,” Potanin added.
Theodor Lisovoy, Managing Editor, Rough&Polished
