Annual report 2013

Economic Activity Indices

Against a background of multi-directional trends in the world production indices of nickel, copper, and the platinum metal group, MMC Norilsk Nickel has retained the position of world leader in nickel and palladium production and is one of the leading world producers of platinum, cobalt, and copper.

In the reporting year, the Group’s enterprises produced 285,300 tonnes of commercial nickel (a decrease in 0.5% compared with 2012) and 371,100 tonnes of copper (an increase of 2.0%). In the period under report, the Company produced 2,662,000 ounces of palladium and 651,000 ounces of platinum.

In 2013, the Group’s profit amounted to USD765 million and its assets to USD18.8 billion (see Appendix 2).

The reduction in prices for base and precious metals (apart from palladium) with a certain drop in the sale of nickel and platinum metals led to a decrease of 8% in earnings from the sale of metals in 2013 compared with the previous year and amounted to USD10.4 billion.

In 2013, the total net cost of metal production rose by 2% compared with the previous year—to USD5.5 billion. The increase was mainly generated by the significant changes in metal supplies (the cumulative effect amounted to USD303 million), while monetary operating expenditures (before counting the sale of secondary products) dropped by 6% over the year to USD4.7 billion.

Net profit for 2013 decreased by USD1.4 billion to USD765 million as a result of the non-monetary deductions of capital assets in the amount of USD841 million (including the capital assets of the ore-enrichment capacities of Kola MMC of USD307 million), as well as USD728 million during re-evaluation of financial assets, including shares in energy companies.


Despite the drop in overall earnings by 7% to USD11.5 billion, the expenditure optimisation measures supported EBITDA, which amounted to USD4.2 billion, with a profitability of 37%.

The net monetary flow from operating activity rose by 20% and amounted to USD4.1 billion due to the circulating capital optimisation efforts.

Net profit (not counting non-monetary deductions) reached USD2.6 billion, which was 15% less than in 2012.

Production of Commercial Metals by the Group, thou. tonnes or as indicated