OREANDA-NEWS. October 21, 2009. Open Joint Stock Company (“OJSC”) Mining and Metallurgical Company Norilsk Nickel (“MMC Norilsk Nickel”, or the “Company”) and its subsidiaries (the “Group”) issued interim condensed consolidated financial statements (the “financial statements”) as at 30 June 2009 and for the six months then ended in compliance with International Accounting Standard IAS 34 Interim Financial Information (“IAS 34”), reported the press-centre of Norilsk Nickel.  

The financial statements have been reviewed in accordance with the International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by Independent Auditor of the Entity by Deloitte and Touche who have issued a review report without any qualifications.

REVENUE
In the first six months of 2009 Group reported revenue USD 4,078 million, or 51% lower than compared to the same period in 2008. In the first six months of 2009, revenue from metal sales declined by 54% to USD 3,289 million mostly due to the global commodity market prices being significantly below prior year levels.

The physical volume of nickel sales (excluding sales of metal purchased from third parties) produced in the Russian Federation increased by 4%, which was supported by 41% increase of physical volume of nickel sales produced by Norilsk Nickel International assets. Revenue from nickel sales contributed 50% of total metal sale revenue and decreased to USD 1,647 million compared to USD 3,922 million in the first six months of 2008, mainly due to a significant decrease in the adjusted average selling price of nickel by 61%.

Revenue from copper sales amounted to 24% of metal sales revenues and totaled USD 793 million compared to USD 1,588 million in the first six months of 2008, mainly due to significant decrease in adjusted average selling price of copper by 51%, which was partially compensated by 6% increase in the physical volume of copper salesproduced in the Russian Federation and by 167 % increase of physical volume of nickel sales by Norilsk Nickel International.

Sales of platinum contributed 13% of metal sales for the Group during the first six months of 2009. Revenue from platinum sales decreased from USD 837 million in the first six months of 2008 to USD 415 million in the first six months of 2009. The decrease is primarily driven by a 42% average price decline coupled with lower physical volumes of platinum sales produced in the Russian Federation of 8%. Revenue from sales of platinum produced by Stillwater Mining Company decreased by 59%. The decrease in revenue is explained by a decrease in the adjusted average sales price and decline in physical volumes of sales by 37%.

Sales of palladium contributed 11% of metal sales of the Group, but decreased from USD 796 million in the first six months of 2008 to USD 373 million in the first six months of 2009. The decrease is mostly explained by decline of adjusted average selling price by 46% and also lower physical volumes of palladium sales produced in the Russian Federation of 11%. Revenue from sales of palladium produced by Stillwater Mining Company decreased by 37%.

The decrease in revenue is explained by decrease in the adjusted average sales price and decrease in physical volumes of sales by 23%.

Sales of gold decreased by 9% from USD 67 million in the first six months of 2008 to USD 61 million in the first six months of 2009. The decrease of gold sales is mostly explained by decrease of sales volumes of gold produced by the Group in Russian Federation, which was partially compensated by increase in sales price.

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