|Average realised prices of metals produced by Norilsk Nickel in Russia from its own feed
|Palladium, USD/oz t
|Platinum, USD/oz t
|Gold, USD/oz t
|Rhodium, USD/oz t
|Consolidated Revenue (USD m)
|Revenue from metal sales, USD m
|Revenue from other sales
|Total revenue, USD million
Nickel remained the largest contributor to the Company’s revenue comprising a 38% of total metal sales in 2015 down from 43% in 2014 as nickel price fell the most within the Company’s commodity basket and so did the sales of the physical metal owing to the one-off allocation of saleable metal into metal reserves.
In 2015, the nickel revenue decreased by 35% y-o-y (or USD 1,626 million) to USD 3,010 million primarily due to lower nickel price (-USD 1,325 million) and decrease in nickel sales volumes (-USD 372 million). Additional revenue of USD 71 million came from the sale of nickel purchased from third parties to meet contractual obligations with strategic customers.
The average realized nickel price of metal produced in Russia from own feed decreased by 30% y-o-y from USD 17,072 per tonne to USD 11,962 per tonne.
Sales volume of nickel produced by Norilsk Nickel in Russia from own feed decreased 12% y-o-y (or 27 thousand tons) from 222 thousand tons to 195 thousand tons. The decrease in sales volumes was driven by lower production (-3 thousand tons) and accumulation of temporary metal stock to smooth out the transition to the new configuration of smelting and refining capacities (shutdown of Nickel Plant, increased shipments of nickel matte for processing to Kola MMC and to Harjavalta in Finland) scheduled in 2016, which is expected to result in a one-off increase in work-in-progress in transit and lower output of saleable metals.
The amount of nickel sales from purchased semi-products was down by 4 thousand tons following the reduction of low-margin tolling operations at Kola MMC.
Sales volume of nickel produced by Norilsk Nickel Harjavalta increased by 2% y-o-y to 43 thousand tons in 2015 driven by a marginal increase of third party nickel concentrate processing under tolling arrangements and processing of Russian feed.
In 2015, copper sales accounted for 24% of the Company’s total metal sales, down 22% y-o-y (or USD 552 million) from USD 2,468 million to USD 1,916 million primarily due to the lower average realized copper price (-USD 477 million) and decrease in sales volumes (-USD 75 million).
The average realized copper price was down 19% y-o-y from USD 6,931 to USD 5,585 per tonne.
Physical volume of copper sales from Russian feed decreased by 7 thousand tons to 340 thousand tons in 2015, while the copper production was up 2% that year. The decrease in sales volumes was driven primarily by the one-off allocation of saleable metal into metal reserves, created to smooth out the transition to the new configuration of smelting and refining capacities (shutdown of Nickel Plant, increased shipments of nickel matte for processing to Kola MMC and to Harjavalta in Finland) scheduled in 2016, which is expected to result in a one-off increase in work-in-progress in transit and lower output of saleable metals.
Sales of copper produced from third party materials declined by 6 thousand tons from 9 thousand to 3 thousand tons in 2015. This was primarily driven by reduction of low-margin tolling operations at Kola MMC.
In 2015, palladium sales accounted for 23% of the Group’s total metal revenue. The Group’s palladium revenue decreased by 19% (or by USD 414 million) from USD 2,221 million to USD 1,807 million in 2015. This was driven by both the decrease in palladium sales volumes (-USD 141 million) and lower realized palladium price (-USD 289 million). Additional USD 95 million of palladium revenue in 2015 came from the re-sale of metal purchased in the open market to fulfil the Company’s contractual obligations comparing to USD 79 million in 2014.
Sales of palladium produced in Russia from own feedstock decreased by 19% y-o-y from USD 2,084 m to USD 1,691 m. The decline was driven by both lower realised palladium price (down 14% y-o-y) from USD 804 per troy ounce in 2014 to USD 695 per troy ounce in 2015 and reduced sales volumes of palladium (down 6% y-o-y) in 2015 primarily by the one-off allocation of saleable metal into metal reserves.
In 2015, platinum sales accounted for 8% of the Group’s total metal sales. The platinum revenue reduced by 27% y-o-y (USD 238 million) from USD 869 million in 2014 to USD 631 million in 2015 primarily due to the reduction of platinum sales volume (by USD 41 million) and the platinum price (by USD 205 million). In 2015, in order to fulfil contractual obligations, the Company realized platinum purchased from third parties for a consideration of USD 8 million.
The revenue from platinum produced in Russia from own feedstock decreased 26% y-o-y from USD 827 m to USD 609 m in 2015. The reduction was driven by a 24% y-o-y decline in the average realised platinum selling price (from USD 1,388 per troy ounce in 2014 to USD 1,057 per troy ounce in 2015) as well as the one-off allocation of saleable metal into metals reserve (for details see above).
The revenue from other metals was down 32% y-o-y (or by USD 155 million) to USD 326 million due to the decline in revenue from sale of gold (-38%), cobalt (-28%), rhodium (-27%) and silver (-30%) driven lower physical volumes (USD 77 million) and realized price (USD 78 million).
In 2015, the revenue from the sales of semi-products (copper cake and nickel concentrate) decreased by 13% y-o-y (or USD 28 million) to USD 193 million, and accounted for 2% of the Group’s total metal sales revenue. The decrease was mainly driven by lower realized prices and the divestiture of Tati Nickel.
In 2015, the revenue from other sales decreased by 32% y-o-y to USD 659 million mainly due to Russian rouble depreciation against US dollar (a negative impact of USD 325 million) as major part of these operations are nominated in Russian roubles.
The decrease of other sales was additionally driven by lower sales in non-core operations, of which largest negative factor was a USD 36 million reduction in revenue from fuel and gas condensate sales on the back of lower market prices.