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Tuesday, 19th April 2005 (4119 views)

Norilsk Nickel has revealed it is going to spin off and float its gold assets.<br/><br/>The Russian metals giant is to put its gold assets, including its 20 per cent share in South Africa's Gold Fields and Polyus, into a new company, which could be the first of its kind in Russia's promising gold sector.<br/><br/>"It is the intention of the board of Norilsk Nickel that [the new company] would seek both domestic and international listings as soon as practicable following the transaction," the company said.<br/><br/>The company already revealed earlier in April that it wanted to enter global capital markets after 2007.<br/><br/>According to the company once complete the transaction should "create a new large independent gold major with the potential for substantial organic growth and a window into one of the world's most prospective gold regions: Russia".<br/><br/>Polyus is estimated to be worth over $3 billion and analysts expect it to grow further as it explores Russia and expands its reserve base. <br/><br/>It is looking to boost gold reserves by 100 tonnes per year as it develops existing mines and explores new areas.<br/><br/>Booming gold prices are thought to have encouraged the nickel and palladium producer to focus more on the yellow metal.<img alt="track" src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=8308181"/>

 

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