Norilsk Nickel shares up 4.7% after Investor Day

Norilsk Nickel shares up 4.7% after Investor Day

Investing.com — Norilsk Nickel (MCX: GMKN) shares gained more than 4.7% in trading on Wednesday after the Investor Day..

During a meeting with the investment community, the company's management announced its intention to increase investments in the development of the mining base and processing facilities to $ 27 billion by 2030, which will allow to increase metal production by more than 30% over 10 years in relation to the base year 2017, including including nickel and copper — by 20-30%, and for platinum group metals — by 40-50%.

This is significantly higher than the goals that the company set in the development program adopted in 2019, says Alexey Kalachev, analyst of the FINAM stock analysis department..

During this time, Norilsk Nickel wants to radically update production facilities, about 60% of all energy infrastructure facilities, and significantly expand the resource base.

The digitalization of the company will continue: next year, up to 20% of metal sales will be carried out through digital transactions. The Atomyze digital platform is being built in partnership with IBM (NYSE: IBM). The company does not abandon the idea of ​​placing tokens backed by the metals of the group.

«Global transition to „green“ The economy will require large volumes of nickel, copper, palladium and platinum, so we are investing in sustainable growth. We intend to be absolutely transparent and convenient for our clients through modern digital solutions», — said the head of the company Vladimir Potanin.

This year's accidents led the management of Norilsk Nickel to an idea to significantly reduce the harmful impact on the environment. For these purposes, according to Potanin, it is planned to spend about 5.5 billion, of which $ 3.6 billion — on «Sulfur project».

In addition, pollution of previous years will be eliminated, namely, dismantling of abandoned buildings, collection and processing of scrap metal, sanitary treatment of land.

The mining and metals giant expects to maintain an EBITDA margin of 50% and above, and a dividend yield of shares in the region of 10%.

The text was prepared by Alexandra Shnitnikova