Russian pgm giant Norilsk Nickel has seen its profits rise in its latest quarterly results.

The precious metals industry heavyweight said that net profit to International Accounting Standards (IAS) rose to $460 million in the first quarter of 2004.

The profits represent a significant improvement from $109 million a year ago, as high metals prices and the Stillwater acquisition began to pay dividends. Metal sales generated $1.583 billion, rising from $1.134 billion.

"The main reasons for the revenues rise were increased average quarterly metals sales prices, as well as the inclusion of Stillwater financial results in the report for the first quarter of 2004," the statement said.

Norilsk bought out the Stillwater firm last year, landing a majority stake for $100 million in cash and around 877,000 ounces of palladium.

Yesterday Norilsk began work on its Eurobond issue, appointing investment banks Citigroup and Morgan Stanley as lead managers.