Nornickel board calls on shareholders to discuss proposed change to dividend policy
MOSCOW – The board of Russia's Norilsk Nickel called on shareholders to discuss a proposed change to its dividend policy as the palladium and nickel producer looks to invest more in production and environmental protection after a major fuel spill in the Arctic.
Nornickel, the world's largest producer of palladium and a leading producer of nickel, has been fined $2-billion for the damage caused by the spill last year in the country's worst environmental disaster in the Arctic.
Nornickel's dividend policy is set under an agreement between Interros Holding, controlled by businessman and Nornickel chief executive Vladimir Potanin, and aluminium producer Rusal.
The statement indicates that no final decisions have been made on Monday, when Nornickel's board met to discuss its 2030 investment programme and dividend targets.
The meeting was initiated by Interros, which last week proposed changing Nornickel's dividend policy in a move that would lower payouts to help fund planned investment in production growth and improving its environmental footprint.
Interros proposed minimising the final dividend for 2020 and linking future payments to free cash flow (FCF) instead of earnings before interest, tax, depreciation and amortisation (EBITDA).
Nornickel said in the statement that its management presented to the board a financial model, which assumes that if Nornickel choose to start paying 50-75% of its FCF in dividends, this would ensure Nornickel's sustainability in the longer term.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation