It's pay-off season for investors who took the time to put money into Russian mining companies. According to Bloomberg, several mining companies recently distributed dividends to their shareholders from the accumulated $8.3 billion cash and equivalents at the end of 2014.

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Russian-based metals exporters piled up cash after the ruble's value decreased as much as half its value. The weakened ruble did, however, benefited the Russian metal resource companies based on their revenues in dollars and euros. These companies include OAO Novolipetsk Steel, OAO GMK Norilsk Nickel, and four of Russia's largest metals and mining companies. Earlier in 2014, these companies had a cumulative revenue of $5.7 billion, and the nearly $3 billion increase at the end of the year proved that the exports industry remained strong despite the ruble's defeat.

These companies are taking advantage of the economic constraint by distributing money to their shareholders and shifting their gaze from debt repayments. China's decelerating economic growth lowered the price for major materials, as in the case of nickel that's priced at its lowest in 6 years. Though Russia might be looking at its first recession in 6 years, European sanctions are benefiting the country's oil-based economy, since consumer demands are as high as ever.

Bloomberg added that steel and nickel prices are falling more than 20 percent in the past year, with copper dropping at least 9 percent. Still, Russian producers are seeking the help of foreign investors for cost cutting purposes. A report by Investor Intel stated that the Russian Government is planning ways on how to make the country's prolific gold sources as a means to attract foreign investors. According to the report, the government is revising a state plan that allows more gold production, leading to a sustainable increase of gold in the next years.

The chairman of the Russian Union of Gold Producers, Sergey Kaszuba, said that 2015 will particularly be a stellar year for Russian gold. Estimated gold production is expected to amount to 298.2 tons, 3 percent higher than 2014's production rate. The decreased value of ruble has also allowed gold mining companies to lessen their costs of production.

It looks like foreign investors are paying attention to this move. Denis Hramov, the Deputy Minister of Natural Resources, asserts that Chinese and a handful of North American countries are already thinking of establishing their own mining exploration companies in Russian territories. As a result, foreign companies will instantly present solutions to the country's current shortage of modern mining machinery.

Canada's Kinross Gold Corp., in particular, is showing an apparent interest, as stated by Russia's ambassador to Canada, Alexander Darchiev. "The company plans to expand its operations in Russia, through the participation in new gold mining projects in the country. Kinross Gold Corp. also hopes that the Canadian government will not impose sectoral sanctions against Russia that may significantly complicate its further development in the country," said Darchiev.

Amur Minerals Corporation (LSE:AMC), a junior mining exploration company focusing on 9 nickel deposits in its Kun-Manie mine in the Amur Oblast region, is nearing its production stage. Once the company secures approval from Russian Prime Minister Dmitry Medvedev, the company will shift from being an exploration company to an actual production company. By this time, the Russian economy would have recovered, and the prices of semi-precious metals should be stabilized. 

Steel giant Novolipetsk Steel released a statement saying that they are revising their dividend policy, as they may double distributions and add free cash flow for payouts. Novolipetsk made huge financial improvements when it cut its debt ratio last year, reducing it to among the lowest in the industry. "In the coming years, we are well positioned to start returning capital to our shareholders," said Oleg Bagrin, Chief Executive Officer of Novolipetsk.

TagsChina's economic growth, Metals, mining companies, Amur Minerals, Kinross Gold Corp, Novolipetsk Steel