Norilsk Nickel brought down by the market
The world’s biggest producer of nickel, the Norilsk Nickel company, sees a major drop in revenues as metal prices and its stock index are free falling. On Monday, the industrial giant was the biggest loser of all on the RTS exchange with a 37,7 percent drop.
Over the last six months, Norilsk Nickel succumbed to rampant inflation in Russia and a 40 percent decline in the price of the metal, the Moscow Times reports. In the first half of the year the company’s net profit fell by one-third. The company stock on the MICEX exchange fell 17,7 percent Friday, falling further than the 6,1 percent decline on the MICEX mining and metals index. The shares have fallen more than 60 percent from their November 2007 high. Today, Monday, the development continues with a dramatic fall at the RTS exchange. The company’s index dropped as much as 37,7 percent. Nickel is trading 70 percent below its record 51,800 USD per ton peak of May 2007 Norilsk Nickel has the main part of its production around Norilsk in the Taimyr Peninsula in Western Siberia. The company also has key parts of its facilities in the Kola Peninsula.
