OJSC MMC Norilsk Nickel, the largest nickel and palladium producer in the world, has announced unaudited interim financial results for 6 months ended June 30th 2012, prepared in accordance with International Financial Reporting Standards.

 

In the first half of 2012 nickel sales accounted for 48% of revenue from metal sales. Nickel sales decreased in the reporting period by 27% from USD 3,654 million in the first half of 2011 down to USD 2,680 million in the first half of 2012. This was mainly driven by decrease of the average sales price for nickel sold by the Russian entities of the Group by 28% from USD 25,782 per tonne in the first half of 2011 down to USD 18,650 per tons in the same period of 2012.

In the first half of 2012, the volume of sales of refined nickel produced by the Russian entities increased by 1% (or 1 thousand tons) to 115,000 tons as compared to 114,000 tons in the first half of 2011.

The physical volume of sales of nickel produced by the Norilsk Nickel Harjavalta nickel refinery for 6 months of 2012 declined by 2 thousand tons to 21,000 tons as compared to 23 thousand tons in the same period of 2011, while all metal produced in the first half of 2012 was sold. The slight decrease in sales volumes in the first half of 2012 as compared to the same period of 2011 is due to the sale in the previous reporting period of earlier accumulated stock in the amount of 3,000 tons.
In the meantime, the physical volume of sales of nickel in semi products produced by entities of Norilsk Nickel International (excluding Norilsk Nickel Harjavalta and the joint venture Nkomati) increased by 3 thousand tons mostly due to the re launch of Australian operations of the Group.