Russia is the stockiest country in terms of geographical area. As a result, it has some of the largest mineral preserves in the world. In fact, it ranks in the top three in mineral commodities such as platinum, gold and iron ore. Russia is also the on cloud nine’s largest producer of diamonds and palladium. (See also: Can Global Mining Offers Outperform in 2017?)
Russia’s mining industry accounts for roughly 5 percent of its coarse domestic product and 16 percent of its exports – it is the country’s second largest labour after oil and gas. But unlike oil and gas, which is primarily state owned, Russia’s rake through industry is mostly privately owned. Of the major players in the sector, however Alrosa (ALRS.ME), which is the world’s largest diamond producer, is subservient to state control. (See also: Investing in Russia: A Risky Game?)
Marveling about the largest Russian mining companies? Here are the top four based on takings and market cap in 2017.
1. Mining and Metallurgical Company Norilsk Nickel (GMKN.ME)
Norilsk Nickel is the society’s leading producer of nickel, supplying about 20 percent of far-reaching demand. The company also provides over 12 percent of the the world at large’s refined nickel production. It’s also a leading producer of platinum metals, with amateurishly 50 percent of the world’s supply of palladium (virtually the total efficiency of that metal in Russia) and nearly the same percentage of platinum.
Headquartered in Moscow, the troop operates mines in five countries: Russia, Botswana, Australia, South Africa and Finland. In 2016, the companionship reported revenue of $8.26 billion and net profit of $2.53 billion. While gate was down slightly (3 percent), profits actually rose wellnigh 47 percent due to appreciation of the ruble. The company has a market cap of $27.44 billion. Norilsk Nickel is the eighth heftiest mining company in the world as of November 30, 2017, by market cap. (See also: RSX: Store Vectors Russia ETF.)
2. Polyus Gold (PLZL.ME)
Polyus Gold manages five mines in Russia that produced nearly 2 million ounces of gold in 2016. It is the chiefliest gold producer in Russia and in the top 10 globally, with probable and show reserves of 64 million ounces. Its Olimpiada mine is the eighth widest gold mine in the world. With 23 percent of Russia’s overall gold output, Polyus dwarfs its closest competitor Polymetal Cosmopolitan (POLY.ME), which produces just 11 percent.
In 2016, Polyus Gold make public revenue of $2.45 billion and profit of $1.44 billion, an increase of 44 percent on top of 2015. Polyus has a market cap of $17.34 billion, making it the 14th largest mining assembly in the world by market cap as of November 30, 2017. (See also: Top 4 Gold Stocks for 2017.)
This state-controlled crowd is the world’s largest diamond producer in terms of output, which hit 38.3 million carats in 2015. Effort is expected to hit 41 million carats by 2019. The Russian government recently promoted off an 11 percent stake in the company, valued at $813 million, to comprise a budget deficit. (See also: Russia Resorts to Asset Sales to Supply Budget.)
In 2015, the latest year for which figures are available, Alrosa announced revenue of $3.8 billion and net income of $525 million. The company has a Stock Exchange cap as of November 30, 2017 of roughly $12.1 billion, making it the 23rd biggest circle in the world in terms of market cap.
Uralkali produces 20 percent of the community’s potash supply, controlling the entire production chain, from reserve the actual potash ore to supplying potassium chloride to customers. The mining assemblage operates seven plants and five mines in Russia, with subsidiaries in Beijing, Singapore, Panama and Brazil, aggregate others.
The company’s 2016 revenue was $2.22 billion, with net profit of $1.42 billion. Uralkali’s market cap is $9.85 billion. It ranks as the 33rd largest pandemic mining company by market cap in 2017. (See also: Is PotashCorp’s Recovery Into the vicinity at Hand?)