KPMG due diligence audit of Norilsk Nickel activities completed

Mineweb.com reports that KPMG has returned results of an audit of sales and insurance contracts for Norlisk Nickel’s production entities and international sales network.

The story is quoted as saying:

The key findings included in the report are:  The majority of MMC Norilsk Nickel products are sold on international markets.The main profit accumulation centres of the Company, excluding the operations of NNI and Stillwater, are its production entities based in Russia;ased on the selection of MMC Norilsk Nickel customers that was subject of the analysis. No “fixed price” arrangements have been identified, i.e. all contracted prices were linked to LME price.On average the actual sales prices for base metals were above the LME average cash seller price for the period.Available sources provided no evidence of affiliation with the Company’s staff and shareholders.  All risks identified as critical by management of MMC Norilsk Nickel for which insurance is available on the market are 100% insured. Analysis of the most significant insurance contracts and the next best offers obtained by MMC Norilsk Nickel during the tender process indicates that the Company selected the offers primarily based on lowest insurance premiums.

To access the full story, click here.