MMC Norilsk Nickel: NORILSK NICKEL BOARD OF DIRECTORS APPROVES PRODUCTION AND
FINANCIAL TARGETS AND NEW DIVIDEND POLICY
Moscow, October 1, 2013 - MMC Norilsk Nickel (hereinafter, NN or the Company),
the largest global nickel and palladium producer, announces that its Board of
Directors today has approved the Company's key production and financial
targets for 2014-2018, which have been developed on the basis of its new
strategy. The production and investment targets are based on the development
of the Company's brownfield and higher-margin greenfield upstream projects,
with a focus on the "Tier I" assets of Norilsk Nickel's Polar division, and
the completion of the roll-out of the Company's new investment governance
system in 2014.
The Board of Directors also approved the Company's new dividend policy, which
the Company believes will provide NN with one of the most attractive dividend
yields in the mining industry. Under this policy, annual dividends in respect
of the financial years ending 2013 and 2014 will be calculated as 50% of
EBITDA for the relevant year, but in any event not less USD 2.0 billion; the
annual dividend payment in respect of the financial year ending 2015, will
comprise 50% of EBITDA for 2015 plus the difference between USD 7.0 billion
and the sum total of the actual dividend payments in 2014 and 2015 (with a
potential deferral in payment of up to 20% of such amount until the following
year); and, in respect of financial years after 2015, 50% of EBITDA for the
relevant year. Additionally, any proceeds received by the Company from the
disposal of Norilsk Nickel's non-core assets will be paid out in 2014-2015 as
a special dividend in an aggregate amount of up to USD 1.0 billion.
Norilsk Nickel will seek to provide a comprehensive overview of its new
strategy and key development targets at its forthcoming "Unveiling New
Strategy" events in London (October 4, 2013) and New York (October 7, 2013).
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ABOUT MMC NORILSK NICKEL:
MMC Norilsk Nickel, a company incorporated under the laws of the Russian
Federation, is the world's largest producer of nickel and palladium and one of
the world's largest producers of platinum, rhodium, copper and cobalt. In
addition to this, MMC Norilsk Nickel produces a large number of other
by-products, including gold, silver, tellurium, selenium, iridium and
The key production units of the Company's group in Russia are at the Polar and
Kola Peninsulas. Norilsk Nickel international assets include operations in
Finland, Australia, Botswana and South Africa.
MMC Norilsk Nickel's shares are traded on the Moscow Exchange. ADR's on the
Company's shares are traded on the other the counter market in the US and on
the London and Berlin stock exchanges.
Forward looking statements
This announcement may contain "forward-looking statements" concerning Norilsk.
Generally, the words "will", "may", "should", "could", "would", "can",
"continue", "opportunity", "believes", "expects", "intends", "anticipates",
"estimates" or similar expressions identify forward-looking statements. The
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those expressed in the
forward-looking statements. Forward-looking statements include statements
relating to business and management strategies and the expansion and growth of
Norilsk's operations. Many of these risks and uncertainties relate to factors
that are beyond Norilsk's ability to control or estimate precisely and
therefore undue reliance should not be placed on such statements which speak
only as at the date of this announcement. Norilsk assumes no obligation in
respect of, and does not intend to update, these forward-looking statements,
except as required pursuant to applicable law.
This announcement is distributed by Thomson Reuters on behalf of Thomson
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applicable laws; and
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information contained therein.
Source: MMC Norilsk Nickel via Thomson Reuters ONE
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