Investment Thesis
Norilsk Nickel (NILSY) is a low-cost producer of many key metals needed in the electrification and hybridisation of vehicles, as well as complying with tightening emission standards for petrol engines. The company owns the best mining asset in the base and precious metals industry, and is increasing CapEx to increase output. Dividends will be lowered from 2022-25 to fund projects and maintain an investment-grade balance sheet. I believe in the long run this will be beneficial. Once the new projects enter cash-generation phase and leverage will be brought down to lower