Nornickel's Finland operations
MOSCOW - Russian miner Nornickel said on Wednesday it had cut its 2023 investment forecast to $3.5-billion to $3.8-billion from $4.7-billion, as it reported a 20% year-on-year drop in first-half revenue after key metals prices declined.
Nornickel is the world's largest producer of palladium and refined nickel. While it has not been directly targeted by Western sanctions over the conflict in Ukraine, it has faced problems importing equipment and transporting goods abroad.
Chief Financial Officer and Senior Vice-President Sergey Malyshev said the investment forecast cut was due to the weakening rouble and revised schedules for a number of projects.
"The unfavourable geopolitical background has created new risks for Nornickel's operations," Malyshev said.
In 2022, investment was $4.3-billion and Nornickel had planned for a similar capex level through to 2025.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 30% year-on-year to $3.4-billion on lower revenue of $7.2-billion in January-June.