Norilsk Nickel (OTCMKTS: NILSY) – the biggest metals and mining group of Russia, upwardly revised its annual production guidance for beyond 2030 on Monday. The U.S. listed shares of the company are up more than 1.0% from Friday’s close.
Nornickel’s revised production guidance for the next decade
In its investor-focused Capital Markets Day, the Moscow-headquartered miner that also goes by Nornickel said it will produce up to 280 thousand tonnes of nickel per year in the next decade. Its previous forecast for annual nickel production was for 250-270 thousand tonnes after 2030.
The Russian firm also expects increased annual output of up to 170 thousand tonnes for Platinum and Palladium versus the previous guidance that topped at 160 thousand tonnes. Nornickel estimates 500-540 thousand tonnes of per-year copper production beyond 2030 – an increase from 490-530 thousand tonnes it had called for at the previous Capital Markets Day.
The stock is down nearly 30% from its year-to-date high of $38 in mid-February, making up for a good opportunity for entry.
Nornickel’s target for annual core earnings
In the short term, Nornickel said, volumes at nickel and platinum segments are likely to take a hit over the next two years on “planned furnace maintenance” at Nadezhda Smelter – a key factory for the company.
According to the newly elected COO Sergey Stepanov, volumes were also down in 2021 as flooding and the “Norilsk concentrator industrial incident” temporarily suspended operations in the first half of 2021 at two underground mines.
Stepanov forecasts Nornickel will boost its annual core earnings to more than $150 million by 2025. Other notable announcements on Monday included plans of increasing focus on operational safety.
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