On March 2010 ALROSA President Fyodor Andreev held a regular working management meeting. The President briefed the executive team on the Company’s financial results in Q1 2010. According to the preliminary data, ALROSA expects a net profit of circa RUB 2 billion. Its sales revenues have amounted to RUB 27.144 billion. The company has produced some 8.6 million carats of rough diamonds. The rough diamond sales totaled USD 925 million. Over the reported period ALROSA has made no sales to Gokhran of the Russian Federation. In Q1 the Company has been working consistently to implement the resolution of the ALROSA Supervisory Board that provides for putting in place a system of supplying large customers through long-term contracts, and for geographic diversification of its distribution and sales.
In Q2 2010 ALROSA plans to sell USD 900 million worth of rough and polished diamonds.
In Q1 2010 the Company has managed to reduce its aggregate corporate debt by USD 170 million. At the same time, due to lower interest rates on its borrowings granted to it by its creditors, ALROSA has ensured RUB 860 million in savings. In March 2010 ALROSA began preparations for the placement of the first tranche of its corporate bond issue. In H 1 2010 ALROSA plans to issue a total of RUB 26 billion Ruble-denominated corporate bonds maturing in 5 years.
For more details about the ALROSA Q1 2010 financial results please go to the attached file.