Nornickel - Strong 1H19 Financials Across the Board; BUY Reiterated
Nornickel has reported strong 1H19 financial results that were in line with our estimates and slightly ahead of the consensus. We remain positive on the stock, as we believe there are special drivers (covered here) in place for both palladium and nickel, in contrast to other industrial metals, which are vulnerable to deterioration in the US-China standoff and the global economic slowdown. At a nickel price of $16,000/tonne and USD/RUB rate of 67, Nornickel is trading at an undemanding 2020E EV/EBITDA of 5.4, 10% leveraged FCF yield and 13.5% dividend yield. We reiterate our BUY rating.MMC Norilsk Nickel PJSC is a global producer of nickel, palladium, platinum and copper. Co. also produces by-products, such as cobalt, chromium, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulfur. Co. is involved in prospecting, exploration, extraction, refining and metallurgical processing of minerals, as well as in production, marketing and sale of base and precious metals. Co.'s production facilities are located in five countries: Russia, Australia, Botswana, Finland, and South Africa. Co.'s production units are integrated and include: the Polar Division (the Taimyr Peninsula); and the Kola Mining and Metallurgical Company (Kola MMC or the Kola Peninsula).
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.