Weak ruble helps Norilsk Nickel offset metal prices

The fall in metal prices is now more than offset by the ruble slump in Russia, allowing Norilsk Nickel to maintain margins despite lower foreign exchange earnings.

Vladimir Potanin, president and co-owner of Norilsk Nickel, said that if metal prices remain at current levels, Norilsk Nickel's foreign currency revenues in 2015 will decline to $ 10 billion from a year earlier. But he added that the decline in metal prices will not affect the company's profits.

Many Russian companies have been hit by the economic downturn, low oil prices and Western sanctions, but exporters have been enjoying the fall in the ruble since late last year.

Nickel, which accounts for the bulk of Norilsk Nickel's sales, has fallen more than 40 percent since May last year to $ 14,700 a tonne, while copper prices hit a low of $ 5,548 a tonne last week.

Potanin said Norilsk Nickel's strategy is to sell non-core assets to focus on large, low-cost Arctic production projects. At the same time, no changes are planned in the dividend policy after the fall of the ruble. Norilsk Nickel is not subject to Western sanctions and still has access to international capital markets.

He also said the company, whose mines produce 14 percent of the world's nickel and 40 percent of palladium, may consider buying small amounts of shares to support the price.