On January 18, 2010 ALROSA a management meeting was held by ALROSA President (CEO) Fyodor Andreev. The agenda included the Company’s targets for 2010, issues related to core product sales, current financial and production statuses.
The President instructed that the existing corporate development strategy for the period of up to 2015 should be reviewed to take account of the market changes affecting the Company’s business. The key objective of this work should be forming a goal-oriented model of the company’s long-term development, including detailed forecasting ALROSA financial and economic performance, production facilities and available mineral resources after the construction of all of the underground mines is complete. This document is to be submitted for approval of the next annual shareholders’ meeting in 2010. (NOTE: The document «ALROSA Development Guidelines for 2006–2015» was approved by the Supervisory Board on February 7, 2007).
ALROSA is contemplating a possibility of raising private investments on capital markets, also through placement of exchange-traded securities of ALROSA mining subsidiaries: OJSC ALROSA-Nyurba, OJSC Severalmaz and OJSC ALROSA-Africa, and by using OTC instruments.
The United Selling Organization of ALROSA (USO of ALROSA) has registered increasing demand for rough diamonds in the first weeks of 2010. In January the ALROSA Group expects the total proceeds from core product sales (i.e. sales of rough and polished diamonds) to amount to over USD 300 m. If this positive demand dynamics holds, ALROSA does not plan any rough sales to Gokhran of Russia in current Q1.
The President instructed the USO of ALROSA to develop a program of geographical diversification of the company’s sales operations, in particular through extended presence in dynamic new markets, primarily in India and China, and through the conversion of foreign-based ARCOS network subsidiaries into full-fledged rough and polished trading offices.
Other issues were also discussed, such as the Company’s borrowing policy (NOTE: On December 29, 2009 the ALROSA Supervisory Board approved the proposal of the Management Board on a ruble-denominated bond issue in Q2 2010 to the total of RUB 44 billion), more efficient management structure, cost reduction in material and technical procurement and social policy.