Russia's Nornickel draws on credit lines to build cash buffer
Reuters - Russian mining giant Norilsk Nickel (GMKN.MM) has drawn on some of its credit lines to build a cash position of $5 billion to protect it against market volatility caused by the coronavirus outbreak and ahead of a $1.2 billion dividend payment.
As lockdowns to slow the spread of the new coronavirus have had a drastic impact on demand for natural resources, some oil companies and miners, including in Russia, have delayed dividends.
Nornickel is a special case. Its major shareholders, which include businessman Vladimir Potanin, who owns 34.6%, and aluminium producer Rusal (0486.HK), with 27.8%, have an agreement that sets a minimum dividend the company must pay.
In April, Nornickel’s board recommended a final 2019 dividend of 88.2 billion roubles ($1.2 billion).