Nornickel has released its financial results for the first half of 2024, showing a significant decline in revenue and profits. According to the report, the company’s revenue dropped by 22% to $5.6 billion, while net income fell by 23% to $829 million. Free cash flow also saw a sharp decrease of 61%, totaling $525 million, the company said in the statement published on its website
The decline in revenue is primarily attributed to falling prices for precious metals in the global market. For instance, palladium prices fell from $1,077 per troy ounce in January to $894 in June. Additionally, logistical challenges, including shipping restrictions in the Red Sea, led to the accumulation of copper and nickel stocks, further impacting the company’s financial performance.
Despite the headwinds, Nornickel managed to reduce its investment in various projects by 34%, bringing it down to $1 billion. This reduction was achieved through optimized settlements with contractors and improved efficiency in project execution. The company also reported a 9% decrease in cash operating costs, which fell to $2.4 billion, driven by lower metal prices, reduced mineral extraction tax payments, and the implementation of an operational efficiency improvement program.
The miner maintained its production targets for 2024, reaffirming its plans to produce 184,000-194,000 tons of nickel, 334,000-354,000 tons of copper, 2.296-2.451 million troy ounces of palladium, and 567,000-605,000 troy ounces of platinum. 
