IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Russian MMC Norilsk Nickel, the world’s largest producer of nickel and palladium, announced today its unconsolidated financial results in 2012.
According to the Russian Accounting Reporting Standard, the company’s net profit decreased roughly 37%, from 112.19 billion rubles (approximately US $3.61 billion) in 2011 to 70.14 billion rubles (approximately US $2.25 billion) in 2012.
Revenues from metals sales decreased from 318.91 billion rubles (approximately US $10.25 billion) to 273.49 billion rubles (approximately US $8.79 billion), or 14%.
Revenue from nickel operations slumped 24%, from 127.74 billion rubles (approximately US $ 4.11 billion) to 97.52 billion rubles (approximately US $ 3.13 billion). Revenues from copper, platinum and palladium businesses of Norilsk Nickel decreased 6, 7 and 9% correspondingly.
The only winner is the company’s gold business, which enjoyed a 2012 revenue increase of 9%.
Production costs of sold metals increased by 6%, from 92.07 billion rubles (~ US $ 2.96 billion) to 97.52 billion rubles (~ US $3.13 billion).
Full financial report in Russian disclosed here.
