In 2004, revenues from metal sales increased by 35% compared with 2003 to a total of USD 7 033 million.

During 2004 the reduction of physical sales of nickel by 19% (58 000 tons) as compared to 2003 was offset by the growth of average export selling price of the metal by 57%. As a result nickel sales grew by 26% from USD 2 824 million in 2003 to USD 3 564 million in 2004. The reduction of the physical sales volume happened due to the sale of 60 000 tons of nickel in 2003 from the stock. Net of stock sales, sales of nickel in 2004 grew by 2 000 tons compared to 2003 data.

Similarly, the decrease of physical sales of copper by 3% was offset by the growth of copper export selling prices by 60%, which resulted in the growth of copper sales by 53% to USD 1 265 million in 2004 as compared to USD 828 million in 2003. Net of stock sales, which were 17 000 tons in 2003, sales of copper grew by 1 000 tons compared to 2003 data.

Palladium sales grew by 57% from USD 640 million in 2003 to USD 1 005 million in 2004. Growth of platinum sales by 31% from USD 537 million in 2003 to USD 706 million in 2004 considering a 7% decrease in physical sales volume of metal produced by the Group in Russia, was mainly due to the consolidation of the full annual results of Stillwater for 2004 (as compared to 6 months in 2003) and the growth of average platinum selling price.

Gold sales grew by 34% and amounted to USD 493 million in 2004 as compared to USD 367 million in 2003. Growth of gold sales is mainly due to increase of gold sales in physical terms by 29% as a result of consolidation of the financial results of Lenzoloto and Matrosov Mine for the last 9 months of 2004 and the increase in the average annual selling price.

Cost of metal sales grew by 11% from USD 2 870 million in 2003 to USD 3 179 million in 2004.

"AK&M", 10/06/2005 13:20