GMK Noril'skiy Nikel' PAO
VSE:MNOD
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
G
|
GMK Noril'skiy Nikel' PAO
VSE:MNOD
|
RU |
GMK Noril'skiy Nikel' PAO
GMK Noril'skiy Nikel' PAO, better known as Norilsk Nickel, is a mining and metals company that extracts, processes, and refines non-ferrous metals from ore in Russia. Its core products are nickel, palladium, platinum, copper, and other metal by-products that are used in industrial manufacturing. The company controls the full chain from mining to smelting and refining, which lets it turn ore into marketable metal products. Its main customers are large industrial users and metal traders that need these materials for stainless steel, vehicle catalysts, electronics, chemicals, and other heavy manufacturing uses. Norilsk Nickel makes money by selling refined metals and concentrates, usually through contract-based and market-priced sales. Because these metals are essential inputs for other industries, the company sits at an important point in the global metals supply chain. What makes the business stand out is its focus on a small set of valuable base and precious metals rather than a broad mix of commodities. It is especially important in palladium and nickel supply, and its integrated operations give it tight control over quality and delivery. For investors, it is best understood as a large upstream materials producer whose earnings are tied to demand for industrial metals and the prices of those metals.
GMK Noril'skiy Nikel' PAO, better known as Norilsk Nickel, is a mining and metals company that extracts, processes, and refines non-ferrous metals from ore in Russia. Its core products are nickel, palladium, platinum, copper, and other metal by-products that are used in industrial manufacturing. The company controls the full chain from mining to smelting and refining, which lets it turn ore into marketable metal products.
Its main customers are large industrial users and metal traders that need these materials for stainless steel, vehicle catalysts, electronics, chemicals, and other heavy manufacturing uses. Norilsk Nickel makes money by selling refined metals and concentrates, usually through contract-based and market-priced sales. Because these metals are essential inputs for other industries, the company sits at an important point in the global metals supply chain.
What makes the business stand out is its focus on a small set of valuable base and precious metals rather than a broad mix of commodities. It is especially important in palladium and nickel supply, and its integrated operations give it tight control over quality and delivery. For investors, it is best understood as a large upstream materials producer whose earnings are tied to demand for industrial metals and the prices of those metals.
Revenue: Norilsk Nickel said 2012 revenue fell 15% to $12 billion, mainly because lower nickel, copper and PGM prices hit the top line.
Profitability: EBITDA came in at $4.9 billion with a strong 41% margin, helped by only modest cash cost inflation.
Cash flow: Operating cash flow was about $4.5 billion, reinforcing management’s view that the company remains cash-generative even in a weak price environment.
CapEx: Capital spending rose 20% to $2.7 billion in 2012, and the company indicated 2013 CapEx should be around $2.5 billion and generally in the $2 billion-plus range.
Balance sheet: Net debt was around $5 billion and net debt to EBITDA stayed below 1, which management described as a comfortable level.
Shareholder returns: The board will decide the 2012 dividend in two to four weeks; management also said distribution policy remains a board matter.
Strategy: Management said it is reviewing the investment program to focus on the highest-return projects, but it denied that this means broad cuts to production investment.
One-offs: Net profit was hit by almost $1 billion of non-cash write-offs, mainly tied to Inter RAO UES and impairments in Botswana, Australia and Nkomati.
