Nornickel reports first half 2018 interim consolidated IFRS financial results

Moscow — PJSC MMCMining and Metallurgical CompanyPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel"Go to the glossaryGo to the glossary Norilsk Nickel, one of the largest refined nickel and palladium producer in the world, today reports interim IFRSInternational Financial Reporting StandardsGo to the glossary financial results for six months ended June 30, 2018.

1H2018 HIGHLIGHTS

  • Consolidated revenue increased 37% y-o-y to USD 5.8 billion on the back of higher realized metal prices, growth in copper and PGMPlatinum group metals taken as a whole or in any combination of platinum, palladium, rhodium, ruthenium, osmium and iridiumGo to the glossarys production volumes and sales of palladium from earlier accumulated stocks;
  • EBITDA increased 77% y-o-y to USD 3.1 billion driven by higher metal revenue and operational efficiency gains;
  • EBITDA margin increased from 41% to 53%, reaching one of the highest levels in the global metals and mining industry;
  • CAPEX was down 25% y-o-y to USD 0.5 billion following the completion of active construction phase of Bystrinsky (Chita) project, completion of the modernization of Talnakh Concentrator and a number of energy infrastructure projects in 2017;
  • Net working capital reduced 20% (or USD 430 mln) to USD 1.7 billion mostly owing to the sale of palladium from stock accumulated in 2017 and optimization of capital structure;
  • Free cash flow increased more than 5-fold to USD 2.6 billion;
  • Net debt/EBITDA ratio almost halved to 1.1x as of 30 June 2018;
  • In January 2018, Moody’s rating agency raised NornickelPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel” and its subsidiariesGo to the glossary credit rating to the investment grade level, “Baa3”, and changed the outlook from “Stable” to “Positive”. As result, Nornickel is currently assigned investment grade credit ratings by all three major international rating agencies, Fitch, Moody’s and S&P Global.
  • The Company paid final dividend for the full year 2017 of RUB 607.98 (approximately USD 9.63) per share for the total amount of about USD 1.5 billion

Full name and position of person making the announcement — Vladimir Zhukov, Vice — president, Investor Relations

ABOUT THE COMPANY
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” GroupPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel” and its subsidiariesGo to the glossary 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 “MMC “NORILSK NICKEL” shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges. PJSC “MMC “NORILSK NICKEL” ADRAmerican Depositary Receipt; a security representing partial ownership in deposited securities of a foreign company certified by receipts issued by a US depositary bankGo to the glossarys trade over the counter in the US and on the London and Berlin Stock Exchanges.

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