Mineweb reported that Norilsk Nickel’s (MCX:GMKN) main shareholders have agreed to perhaps lower the company’s dividend for 2013 and 2014. Norilsk was expected to pay at least $3 billion in dividends for each of those years.
As quoted in the market news:
Norilsk, the world’s largest nickel and palladium miner, will now pay 2013 and 2014 dividends equal to 50 percent of its earnings before interest, taxation, depreciation and amortisation (EBITDA), but not less than $2 billion per year, Rusal said in a statement.
In respect of 2015 and to be paid in 2016, Norilsk will pay an amount equal to 50 percent of EBITDA, plus the difference between $7 billion and the actual amount of dividends paid in 2014 and 2015, provided that Norilsk may reduce the resulting 2015 dividend by no more than 20 percent.
For 2016 it would return to shareholders half of its EBITDA, plus the amount of dividend reduction made in respect of 2015, if any; and in respect of 2017 and subsequent years in an amount equal to 50 percent of EBITDA, Rusal said.
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