Norilsk Nickel, Sumimoto, Panasonic & Co – an oppurtunity for he future?
The batteries of the Tesla Model S are Lithuim ion batteries. Beside liththium, cobalt, nickel is one of the most needed building materials. So my question to you is, do you expect an increase in the extraction of nickel?
Why nickel in particular?
The Lithium Nickel Cobalt Aluminum Battery is a version of the Lithium Ion Battery with Lithium Nickel Cobalt Aluminum Oxide (LiNixCoyAlzO2, NCA) as cathode material. This battery is characterized by high energy density (240-270 Wh/kg for cyl. cells in the 18650 format) and long life. NCA cells are produced as traction battery mainly by Tesla. So far, they have been installed in the X series or even in the Model S.
e-mobilty is coming
In the course of e-mobility, we will encounter more electric cars in the coming decades. Since most cars currently (approx. 1 billion) still use a carburetor engine, it is worth considering investing in the supply chain for battery production, like nickel. The forecast for nickel growth from 2017 (50,000 tonnes) to 2028 is 1.4 million tonnes.
Norilsk Nickel portrait WKN: A140M9
"NorNickel is the leader of the Russian mining and metallurgical industry, the largest producer of palladium and refined nickel and one of the largest producers of platinum and copper. "NorNickel also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulphur.
The Group's principal activities include prospecting, exploration, extraction, refining and processing of mineral resources, production, marketing and sale of base and precious metals. The geography of products supplies covers over three dozen countries.
The Group's production units are located in Russia - in the Norilsk industrial region, on the Kola Peninsula and the Trans-Baikal region, as well as in Finland, Australia and South Africa.
The Polar Division is NorNickel's key resource base and is located in the Taimyr Peninsula above the Arctic Circle. Transport links with other regions of the country are provided by the Yenisei River, the Northern Sea Route and by air.
In the second half of 2017, part of the Polar Division's assets was transferred to its subsidiary, LLC Medvezhy Ruchey. Bear Ruchey includes Zapolyarny mine, Norilsk Concentrator, tailing dump No. 1 and Lebyazhie tailing dump. The purpose of this separation is to separate the Talnakh site from the Bear Stream site so that the latter's increased production capacity could be financed by attracted investments.
JSC "Kola Mining and Metallurgical Company" (Kola MMC) is located on the Kola Peninsula. Kola MMC is the nickel refining center of Norilsk Nickel and one of the leading production facilities in the Murmansk region.
Zabaikalsky Krai (OOO Bystrinskoye and OOO Bugdainsky Rudnik) Bystrinskoye GRK (Bystrinsky GOK) is a 50.01% subsidiary of the company.
In October 2017, the company began commissioning work. Achievement of design capacity is expected by 2021.
OOO GRK Bystrinskoye is working on gold and iron-copper ore reserves at the Bystrinskoye deposit. OOO Bugdainsky Rudnik has been granted a licence to use the subsoil of the Bugdainsky deposit.
Norilsk Nickel Harjavalta joined the group in 2007. The plant processes the company's Russian raw materials as well as nickel-containing raw materials from third-party suppliers.
The plant has an annual capacity of 66,000 tonnes. The facility employs advanced sulphuric acid leaching technology, which ensures metal recovery rate of over 98%.
In South Africa, NorNickel owns 50% of Nkomati, which develops the nickel deposit.
Along with its production facilities, the company has its own sales network, fuel and energy and transport assets, a complex of research and design departments, as well as a unique Arctic transport fleet.
The Company's securities are one of the most liquid instruments on the Russian stock market and abroad. In Russia, shares of PJSC MMC Norilsk Nickel are included in the first tier quotation list of PJSC Moscow Exchange, as well as in the list of securities admitted to trading of PJSC St. Petersburg Exchange. ADRs are traded on the U.S. over-the-counter market, in the system of electronic trading of over-the-counter sections of the London, Berlin and Frankfurt exchanges. The company's ADRs are included in the FTSE Russia IOB index of the London Stock Exchange.
The Company considers it a prerequisite for sustainable and efficient business development to adhere to the principles of social and environmental responsibility. In its activities, NorNickel is guided by its social mission and adheres to the principles of corporate social responsibility in building effective relationships with society as a whole, with local communities in the regions where it operates and with its employees.
As Russia's largest mining and metals company, NorNickel is one of the country's most responsible employers and sees its tasks as caring for the health and safety of its employees and protecting the environment in full compliance with the standards and requirements of Russian legislation. The company provides wide opportunities for self-realization of young specialists and professionals and supports the desire of employees to invest in their qualification. "NorNickel provides mobility and opportunities to move specialists within the group's enterprises.
The Company's commitment to social responsibility principles is implemented in practical initiatives aimed, in particular, at sustainable development of the regions where it operates. One of the largest is the New Opportunities World charity programme, which aims to create favourable conditions and opportunities in the Krasnoyarsk and Transbaikal regions and Murmansk region. The Program is aimed at supporting and encouraging community initiatives, developing social partnerships, introducing new social technologies and developing social competencies of local communities.
Supporting sports of excellence, developing mass sports and promoting healthy lifestyles are an important part of the Company's social policy. "NorNickel is a partner of the International University Sports Federation (FISU), the Russian Olympic Committee, the Mini-football Association of Russia and the all-Russian project "Mini-football to School".
The Group's principal activities include prospecting, exploration, extraction, refining and processing of mineral resources, production, marketing and sale of base and precious metals. The geography of products supplies covers over three dozen countries.
The Group's production units are located in Russia - in the Norilsk industrial region, on the Kola Peninsula and the Trans-Baikal region, as well as in Finland, Australia and South Africa.
The Polar Division is NorNickel's key resource base and is located in the Taimyr Peninsula above the Arctic Circle. Transport links with other regions of the country are provided by the Yenisei River, the Northern Sea Route and by air.
In the second half of 2017, part of the Polar Division's assets was transferred to its subsidiary, LLC Medvezhy Ruchey. Bear Ruchey includes Zapolyarny mine, Norilsk Concentrator, tailing dump No. 1 and Lebyazhie tailing dump. The purpose of this separation is to separate the Talnakh site from the Bear Stream site so that the latter's increased production capacity could be financed by attracted investments.
JSC "Kola Mining and Metallurgical Company" (Kola MMC) is located on the Kola Peninsula. Kola MMC is the nickel refining center of Norilsk Nickel and one of the leading production facilities in the Murmansk region.
Zabaikalsky Krai (OOO Bystrinskoye and OOO Bugdainsky Rudnik) Bystrinskoye GRK (Bystrinsky GOK) is a 50.01% subsidiary of the company.
In October 2017, the company began commissioning work. Achievement of design capacity is expected by 2021.
OOO GRK Bystrinskoye is working on gold and iron-copper ore reserves at the Bystrinskoye deposit. OOO Bugdainsky Rudnik has been granted a licence to use the subsoil of the Bugdainsky deposit.
Norilsk Nickel Harjavalta joined the group in 2007. The plant processes the company's Russian raw materials as well as nickel-containing raw materials from third-party suppliers.
The plant has an annual capacity of 66,000 tonnes. The facility employs advanced sulphuric acid leaching technology, which ensures metal recovery rate of over 98%.
In South Africa, NorNickel owns 50% of Nkomati, which develops the nickel deposit.
Along with its production facilities, the company has its own sales network, fuel and energy and transport assets, a complex of research and design departments, as well as a unique Arctic transport fleet.
The Company's securities are one of the most liquid instruments on the Russian stock market and abroad. In Russia, shares of PJSC MMC Norilsk Nickel are included in the first tier quotation list of PJSC Moscow Exchange, as well as in the list of securities admitted to trading of PJSC St. Petersburg Exchange. ADRs are traded on the U.S. over-the-counter market, in the system of electronic trading of over-the-counter sections of the London, Berlin and Frankfurt exchanges. The company's ADRs are included in the FTSE Russia IOB index of the London Stock Exchange.
The Company considers it a prerequisite for sustainable and efficient business development to adhere to the principles of social and environmental responsibility. In its activities, NorNickel is guided by its social mission and adheres to the principles of corporate social responsibility in building effective relationships with society as a whole, with local communities in the regions where it operates and with its employees.
As Russia's largest mining and metals company, NorNickel is one of the country's most responsible employers and sees its tasks as caring for the health and safety of its employees and protecting the environment in full compliance with the standards and requirements of Russian legislation. The company provides wide opportunities for self-realization of young specialists and professionals and supports the desire of employees to invest in their qualification. "NorNickel provides mobility and opportunities to move specialists within the group's enterprises.
The Company's commitment to social responsibility principles is implemented in practical initiatives aimed, in particular, at sustainable development of the regions where it operates. One of the largest is the New Opportunities World charity programme, which aims to create favourable conditions and opportunities in the Krasnoyarsk and Transbaikal regions and Murmansk region. The Program is aimed at supporting and encouraging community initiatives, developing social partnerships, introducing new social technologies and developing social competencies of local communities.
Supporting sports of excellence, developing mass sports and promoting healthy lifestyles are an important part of the Company's social policy. "NorNickel is a partner of the International University Sports Federation (FISU), the Russian Olympic Committee, the Mini-football Association of Russia and the all-Russian project "Mini-football to School".
Fact Sheet
Fundamental (In US-Dollar)
Earnings per share
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| 7,26 | 7,50 | 5,23 | 5,21 | 5,82 | 7,33 | 8,57 |
price-earning ratio
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| 33,92 | 11,20 | 11,65 | 10,53 | 13,53 | 9,84 | 8,33 |
Dividend yield year-end (in %)
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| 6,82 | 13,67 | 7,75 | 7,21 | 5,73 | 10,69 | 8,59 |
Equity ratio (in %)
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| 51,22 | 36,26 | 16,75 | 23,23 | 25,99 | 21,14 | 19,57 |
Debt ratio (in %)
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| 48,09 | 63,55 | 83,08 | 76,31 | 72,00 | 77,20 | 77,99 |
Net sales
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| 11.489,01 | 11.869,01 | 8.257,10 | 8.188,57 | 9.202,17 | 11.603,32 | 13.565,94 |
Change in sales compared to previous year (in %)
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| -4,77 | 3,31 | -30,43 | 0,83 | 12,38 | 26,09 | 16,91 |
Operating result
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| 3.184,00 | 4.862,00 | 3.582,64 | 3.307,14 | 3.743,83 | 5.402,38 | 6.964,73 |
Change of Operating result (in %)
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| -22,72 | 52,70 | -26,31 | -7,69 | 13,20 | 44,30 | 28,92 |
Balance sheet total
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| 18.781 | 13.149 | 13.344 | 16.353 | 16.646 | 15.273 | 19.409 |
Change Balance sheet total (in %)
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| -10,46 | -29,99 | 1,48 | 22,55 | 1,79 | -8,25 | 27,08 |
### Opinion
In my opinion, Norilsk Nickel is a good investment, as the dividend is over 11% and is paid in stable US dollars. But since Tesla already has Panasonic as a battery supplier, I think that there is no exact reciprocal effect. Japan already mines many industrial metals itself anyway, but I think that in the long run (and I think Elon Musk and other automotive executives are so smart) global supply chains will be diversified or, if possible, limited to countries' internal imports. A major political danger at Norilsk Nickel, however, is its proximity to the Russian government. Those who are not exactly a fan of Putin will probably also distance themselves from Norilsk Nickel. NorNickel contributes, among others, about 9% to the Russian gross domestic product (GPD). I personally will place an order within the next months. In the comments you can let me know if you want to know more about the development of the order.
What about Sumimoto, Panasonic & co.
Would you be interested to compare the companies? Please just tell me in the comments. I am defitnly interested in your opinions.
Thanks for reading, giving advises and voting.
Sincerly