Stillwater Mining Co. shares drop
The shares of Stillwater Mining Co., the USA’s only palladium producer, which has controlling interest, is soon to be bought by the Russian company Norilsk Nickel, dropped by 5.1% Thursday. Bloomberg informs that investors think that the price to be paid for the company is too low. As a result of the trades at the New York Stock Exchange, the shares closed with the price of 7.03 dollars per share. At that, the shares of Norilsk Nickel jumped 2.9% to 21.3 dollars per share within a day; now, Norilsk Nickel shares are the leaders of the RTS trades.
PRAVDA.Ru has reported that Norilsk Nickel negotiated the purchase of 51% shares of Stillwater Mining Co. For 7.5 dollars per share. At that, the Russian company will pay 100 million dollars in cash and the rest of the sum will be paid in palladium.
The purchase of the controlling interest of Stillwater Mining Co. is an important step towards the stabilization of the world’s palladium market, Norilck Nickel Director General Mikhail Prokhorov said at a press-conference Thursday in Moscow. He added the following: “We have great reserves for palladium production, and Stillwater has a sales network in the USA and the largest industrial consumers, such as Ford, General Motors, and Mitsubishi. The deal will not only raise the level of consumer trust in palladium supplies, it will also increase the volume of these supplies to the market.”
According to Mikhail Prokhorov, the purchase of the controlling interest of the American company will allow Norilsk Nickel to considerably reduce its palladium accumulated since the middle of 2001, when the Russian company refused to sell the metal on the market because of the negative price conjuncture.
For reference: Norilsk Nickel is the world’s largest producer of palladium and metals of the platinum group. Norilsk Nickel produces about 20% of the world’s production of nickel, 10% of cobalt, 3.1% of copper, about 60% of palladium. and 20% of platinum.
Akhtyam Akhtyrov PRAVDA.Ru
Translated by Maria Gousseva
Read the original in Russian: http://economics.pravda.ru/economics/2002/7/21/64/3378_NorNikel.html
A US-based TV channel named curious details about the trials of the new Russian missile, such as, for example, the failed launch in October 2017
During the recent Helsinki summit, Russian President Vladimir Putin offered to hold a referendum in the Donbass. Trump asked not to voice this idea at the press conference
The International Olympic Committee is ready to take Russia back, the head of the organization Thomas Bach said