Meeting of ALROSA Executive Committee

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On November 24, 2011, the Executive Committee of the Company met in Mirny chaired by ALROSA’s President Fyodor Andreev.

The Executive Committee discussed the implementation of ALROSA’s consolidated budget for the nine months of 2011.

Three quarters of the year were characterized by uneven development of the rough and polished diamond market. Robust demand for rough diamonds was observed from January to July. Starting from August, purchases of diamonds in the world market slightly reduced, what is explained by traditional slowdown in business activity in August-October, unstable world economy, liquidity slump and, as a consequence, reduction of speculative component, as well as increased rough diamond stocks in cutting centers and reduced prices for polished diamonds. Nevertheless, ALROSA Group sold rough diamond products for USD 3,555.1 mln. and reached high sales volumes over the nine months of 2011.

For the first nine months of 2011 ALROSA Group (OJSC «ALROSA», OJSC «ALROSA-Nyurba», OJSC «Almazy Anabara», OJSC «Severalmaz») rough diamond production reached 26,238,100 carats.

Net profit of ALROSA Group for nine months under RAS:
OJSC «ALROSA» — RUB 23,882.6 mln.
OJSC «Almazy Anabara» — RUB 2,531.3 mln.
OJSC «Severalmaz» — RUB 20.3 mln.
OJSC «ALROSA-Nyurba» — RUB 5,612.7 mln.

The excess net profit of OJSC «ALROSA», OJSC «Almazy Anabara» and OJSC «Severalmaz» was RUB 1,574.2 mln., RUB 178.0 mln., and RUB 16.8 mln., accordingly.

The actual indebtedness on credits and loans as at September 30, 2011, was USD 3,314.2 mln. The ratio of short-term to long-term liabilities is 30% and 70%, accordingly.

ALROSA allocated some RUB 3,200 mln. for geological prospecting and exploration works.

The Executive Committee discussed the results of navigation in 2011. 403,000 tons of materials and equipment were delivered in total, of which 13,000 tons in excess of the plan. Delivery volume increased more than 20% as compared to the crisis period (2009–2010).

The Executive Committee also discussed the results of procurement for the nine months of 2011.

Over the accounting period, ALROSA purchased goods, works and services for the total amount of some RUB 27 bln. 600 mln. The increased share of purchases made on the basis of competitive bidding allowed the Company to save by reducing the prices from the initially proposed commercial offers of some RUB 1 bln.

Other matters of the Company’s activities were also discussed at the meeting.

This page was last updated on 24 November 2011 at 10.56