On October 4, 2010 President (CEO) of ALROSA Fyodor Andreev held a working meeting with the senior management of ALROSA. The items on the agenda were implementation of the investment plan, construction of underground mines, ALROSA’s current financial status and the corporate distribution policy.
For the period of nine months of 2010 the Company expects to post the net profit of over RUB 5.630 billion. Fyodor Andreev underscored that it was essential to accurately fulfill the schedule of construction of new underground mines, and at the same time ensure the implementation of the cost reduction program. Over the past nine-month period the costs of works and services performed by ALROSA were cut down by RUB 400 million.
Over the same nine-month period ALROSA sold USD 2.787 billion worth of rough and polished diamonds. The company’s core product sales at the end of the year are planned to reach USD 3.459 billion.
On October 1 in Orel, at the sidelines of a local economic forum, a framework agreement providing for the development of housing construction in the Orel Region was signed by the administration of the Orel Region, ALROSA and OJSC OrelStroy.
In this connection the ALROSA President issued instructions that a cost reduction program be elaborated that would translate in lower average per square meter price of housing built for the Company retirees to be resettled from Western Yakutia after retirement. According to Fyodor Andreev, it is necessary that all the required tender procedures be complied with and the company’s retirees be provided with cheaper, but comfortable housing. Only in this case this program could be implemented.
Along with the other issues, restructuring the Company’s debt portfolio and reducing its consolidated debt was also discussed.