The board of Russian mining giant Nornickel recommended dividends for 2021 as planned after record financial results even despite the company's ambitious investment programme aimed at cutting emissions and boosting production.
"To recommend to the annual general meeting of shareholders to decide on the payment of dividends on the company's ordinary shares based on the 2021 results in the amount of 1,166.22 rubles per ordinary share," the statement says.
Thus, the final dividends will reach a total of $2.4 billion at the Russian central bank's current exchange rate. Full year dividends together with interim 9 month return add up to $5.6 billion.
Fuelled by strong global demand for metals used to create advanced carbon-free technologies, highly efficient energy infrastructure and clean transport, the company manages to maintain financial stability in a challenging environment, having enough money for both immediate returns to shareholders and long-term responsible investment.
Earlier, the company announced dividends for the first three quarters in the amount of $3.2 billion at the rates of the announcement dates.
In 2021, the company's EBITDA increased 37% year-on-year to $10.5 billion. Revenue reached almost $18 billion, up 15% year-on-year. Nornickel will invest $30 billion (almost 2.5 trillion rubles) until 2030, a multifold increase from the previous decade's investment program. The company now annually invests more than 300 billion rubles.
Nornickel's 207,000 shareholders receive a stable return on investment under the terms of a shareholder agreement, which expires at the end of 2022. According to the dividend formula, the company must return 60% of EBITDA to shareholders.
Nornickel's new investment cycle is aimed at resolving environmental issues -- with the Sulfur Project being the main driver of these efforts -- as well as a significant increase in production, and, consequently, the company's capitalization.
The 2.5-trillion-rubles investment plan until 2030 will allow to double the mining and processing of ore in the Norilsk industrial region, upgrade and expand all enrichment facilities, build new metallurgical plants in the Norilsk and Murmansk regions, increase production of key metals by 25-30%, and cut Norilsk emissions by 45% by 2023 and by 95% by 2030.
The company's annual shareholders meeting will be held on June 3 via telecommunication. The register for participation in the meeting will be closed on May 11, and the register for receiving dividends on June 14.