Executive Board Meeting

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On April 10, 2009 a meeting of ALROSA Co. Ltd. Executive Board took place under the chairmanship of its President and CEO Sergey Vybornov in Mirny, Republic of Sakha (Yakutia).

President of Sakha (Yakutia) Vyacheslav Shtyrov took part in the meeting.

The Executive Board approved a draft of Annual Report for 2008 to be presented to the Supervisory Board and to the Sahreholders’ Meeting of ALROSA for subsequent approval.

Major Financial and Economic Indicators of draft Annual Report for 2008:

  • Consolidated rough diamond production (including the production of OJSC ALROSA-Nyurba)- USD 2 361.6 m;
  • Rough diamond production by ALROSA Co. Ltd. — USD 1 823.1 m;
  • Revenues from core product sales, total — USD 2 932.1 m

including:

  • sales by ALROSA Co. Ltd. — USD 2 336.4 m;
  • sales of rough diamonds — USD 2 178.8 m;
  • sales of polished diamonds — USD 157.6 m;
  • sales by OJSC ALROSA-Nyurba — USD 595.7 m;
  • Revenues from sales of products (works and services) (inclusive of revenues from sales of products (works and services) of OJSC ALROSA-Nyurba) — RUB 88 902.0 m;
  • Profit from sales of products (work and services) (inclusive of profit from sales of products (works and services) generated by OJSC ALROSA-Nyurba) — RUB 26 717.3 m;
  • Net profit (inclusive of net profit generated by OJSC ALROSA-Nyurba) — RUB 3 784.9 m.

The Executive Board voted for adjustments of the Company’s tentative targets for 2009 to be proposed to the Supervisory Board.

The proposed adjustments of ALROSA targets for the current year are required to be made due to a number of material factors, including a considerable reduction in diamond sales and fluctuations in the ruble to US dollar exchange rate.

Adjusted ALROSA Targets for 2009 Proposed by the Executive Board:

  • Consolidated rough diamond production (including the production of OJSC ALROSA-Nyurba)- USD 1 870.1 m;
  • Rough diamond production by ALROSA Co. Ltd. — USD 1 533.1 m;
  • Revenues from core product sales, total — USD 2 108.8 m,

including:

  • sales by ALROSA Co. Ltd. — USD 1 736 m;
  • sales of rough diamonds — USD 1 636 m;
  • sales of polished diamonds — USD 100 m;
  • sales by OJSC ALROSA-Nyurba — USD 372.8 m;
  • Revenues from sales of products (works and services) (inclusive of revenues from sales of products (works and services) of OJSC ALROSA-Nyurba) — RUB 93 545.3 m;
  • Profit from sales of products (works and services) (inclusive of profit from sales of products (works and services) generated by OJSC ALROSA-Nyurba) — RUB 38 811.2 m;
  • Net profit (inclusive of net profit generated by OJSC ALROSA-Nyurba — RUB 2 180.3 m;
  • Capital expenditures — RUB 12 824.1 m;
  • Prospecting and Exploration budget (exclusive of on-site exploration) — RUB 3 069.6 m;
  • R&D expenditures — RUB 198.1 m.

ALROSA President Sergey Vybornov briefed the Board and the President of Sakha (Yakutia) on measures to ensure rough diamond sales on the markets hit by the crisis.

The Board was also informed and held discussions on the results of diamond exploration in Namibia and supervisory control of hydrocarbon exploration works in Angola in 2008.

The Board approved a package of materials to be presented to the traditional annual meeting of ALROSA senior management and employees to be held in Mirny on 11 April, 2009.

Other matters relating to the Company’s current and future activities were also discussed.

This page was last updated on 10 April 2009 at 16.35