Nornickel announces increase in net debt in first half of 2021 as environmental damage weighs heavily
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(Kitco News) – Russian mining giant Norilsk Nickel (Nornickel), the world’s largest palladium and high-grade nickel and a major producer of platinum and copper, today announced that for the six-month period ended 30 June 2021 (H1 2021), the company’s consolidated revenue increased 33% year-on-year to $ 8.9 billion.
The company attributed its higher revenues in the first half of 2021 to higher metal prices and increased sales volumes of palladium, which more than made up for production losses caused by the temporary suspension of the Oktyabrsky mines. and Taimyrsky due to their flooding and the Norilsk concentrator, following an incident last February. year.
Nornickel’s EBITDA tripled year-on-year to $ 5.7 billion due to higher revenue and lower base effect in the first half of 2020, when an environmental provision of 2.1 billion USD related to the diesel fuel spill in the Norilsk industrial zone in May 2020 has been accounted for.
The company’s free cash flow decreased 48% year-on-year to $ 1.4 billion, due to environmental damages reimbursements amounting to $ 2.0 billion and increased capital spending.
Net debt increased 64% year-on-year to $ 7.7 billion due to lower free cash flow, final dividend payment for 2020 and share buyback, with a net debt / EBITDA ratio slightly increased to 0.7x as of June 30, 2021.
Nornickel is a diversified mining and metallurgical company, the world’s largest producer of high-grade palladium and nickel, and a major producer of platinum and copper. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulfur and other products. The production units of Norilsk Nickel Group are located in the industrial district of Norilsk, on the Kola Peninsula and Zabaykalsky Krai in Russia as well as in Finland.
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