Alros financials

Main article: Alrosa AK

2024

Revenue cut by 26% to ₽239 billion

Alrosa's revenue in 2024 decreased by 26% and amounted to ₽239,1 billion according to international financial reporting standards (IFRS). Financial results were published on February 27, 2025.

According to Vedomosti, the company's cost of sales decreased by 11% and amounted to ₽157,5 billion. At the same time, Alrosa's net profit showed a significant drop of 77%, falling to ₽19,3 billion compared to the previous period.

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Фото: Freepik

The financial situation of the company worsened by other indicators. Alrosa's net debt almost tripled, reaching ₽107,91 billion, while at the end of 2023 this figure was ₽36,14 billion. The net debt/EBITDA ratio increased from 0,26× to 1,37× by the end of 2024, which indicates the increased debt burden of the enterprise.

Profit before tax showed a significant reduction of 3.3 times - from ₽108,2 billion to ₽32,5 billion. The gross profit of the diamond mining company decreased by 43%, amounting to ₽85,4 billion.

Despite the general decline in financial indicators, Alrosa's total assets in 2024 increased by 10% and reached ₽658,7 billion compared to ₽596,6 billion a year earlier. Non-current assets of the company grew by 4%, amounting to ₽311,9 billion, and current assets increased by more than 16% - to ₽346,9 billion.

The company has significantly strengthened its liquidity position - cash and cash equivalents reached ₽81,1 billion, which is more than twice the level of 2023, when this figure was ₽36,4 billion.

Despite the positive dynamics of assets, the capital belonging to Alrosa shareholders decreased by 2.9% and amounted to ₽370,98 billion against ₽381,85 billion in 2023. The company's liabilities increased significantly - to ₽289,8 billion, showing an increase of 37%. Long-term liabilities increased to ₽163,3 billion from ₽110,4 billion a year earlier. Significant growth was demonstrated by long-term loans and borrowings, which amounted to ₽128,7 billion, which is 61% more than in 2023 (₽79,6 billion).^[1]

Reduction in diamond production by 4.6% to 33 million carats, triple sales growth to 1,000 units

At the end of 2024, the volume of diamond production by Alrosa amounted to about 33 million carats. For comparison, a year earlier, the figure was estimated at 34.6 million carats. Thus, a decline was recorded at 4.6%. This is stated in the material with which TAdviser got acquainted in early February 2025.

According to the general director of Alrosa Pavel Marinychev, the company's production plan for 2024 has been 100% completed, despite the fact that diamond production has been declining for the second year in a row. The Company implements operational efficiency improvement projects. At the end of 2024, Alrosa performed a record volume of mining, producing almost 95 million cubic meters of rock mass.

According to the Kommersant newspaper, in 2024 Alrosa increased sales of investment-class diamonds three times in unit terms - to more than 1,000 units. In monetary terms, the volume of sales of such stones rose by 60% compared to 2023. Investment diamonds include products from 2 carats with certain characteristics of color and purity. The cost of such stones at the end of 2024 begins with 2 million rubles. The demand for investment class diamonds is growing against the background of the emerging geopolitical situation and inflation.

It is said that in 2024 Alrosa implemented projects aimed at developing diamond mining and ensuring production. This is, in particular, the beginning of the construction of the fourth launch complex of the Ayhal underground mine and the introduction of an automated system for dispatching underground mining operations on it. After the reconstruction was completed, mining from the central ore column of the Yubileiny quarry was resumed. The company received a positive opinion Glavgosexpertiza of Russia on the design documentation and the results of engineering surveys for the construction of vertical shafts of the future underground mine. "Mir-Deep"^[2]

2023

Revenue growth by 9% to 322.57 billion rubles

In 2023, Alrosa earned 322.57 billion rubles in revenue, which is 9% more than a year ago (295.44 billion rubles). At the same time, the net profit of the Russian diamond producer decreased by 15% - from 100 billion to 85.1 billion rubles. Such data in accordance with international financial reporting standards (IFRS) were published by the company at the end of February 2024.

According to TASS, citing materials from Alrosa, in 2023 the company's diamond reserve estimate reached 84.3 billion rubles (+ 60% by 2022), and the entire reserve estimate reached 181.8 billion rubles (+ 36%). The company's profit before tax for 2023 decreased by 14% compared to the previous year, to 108.2 billion rubles, and gross profit increased by 3.6%, to 149.7 billion rubles.

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Фото: Unsplash

It follows from the reports of Alrosa that in 2023 the company transferred a windfall tax in the amount of 1.49 trillion rubles. The company's net cash flow from operating activities in 2023 decreased by 25%, to 65.85 billion rubles. The cost of sales increased by 14%, amounting to 175.63 billion rubles.

As of the end of 2023, Alrosa is mining in the Republic of Sakha (Yakutia) and the Arkhangelsk Region. The Company conducts exploration, production and sale, as well as cutting of diamond raw materials. By the end of 2023, the state is the main shareholders - the Russian Federation (33.03%), Yakutia (25%), the administration of the districts where production is carried out (8%). At that time, about 34% of the company's shares were in free float.

In 2023, the company mined 34.6 million carats of diamonds against 35.6 million carats a year earlier. According to the general director of Alrosa Pavel Marinychev, the production plan has been 100% completed^[3]

Revenue in the first half of $1.9 billion

The company's revenue in the first half of 2023 was $1.9 billion, but profit reportedly decreased by 35% compared to the same period last year.

2022: Reduced exports due to sanctions while maintaining revenue

Russian diamond mining companies, due to the sanctions of the United States and their satellite countries against the background of the conflict in Ukraine, lose export volumes, but do not lose in revenue from the sale of diamond raw materials, follows from the statistics of the largest importing countries. According to the Ministry of Industry and Trade of India (the largest global market for rough diamonds, 90% of stones are cut there), in March 2022, imports of rough and non-industrial diamonds, of which diamonds are produced, amounted to 209 thousand carats - half as much as in March 2021. From January to March, Russia delivered 718 thousand carats to India against 1.3 million for the same period last year. At the same time, in monetary terms, the cost of imports in March increased by 27%, to $78 million.

Supplies of Russian diamonds to Europe in March also decreased in volumes, but not in value. According to Eurostat, Russian imports to the EU (Belgium) amounted to 1.5 million carats, which is three times less than March 2021. However, the cost of all imports in March is €185 million against €162 million a year ago. ALROSA, which accounts for 27% of the world and 95% of Russian diamond production, does not publish sales data.

2021: 1.5-fold increase in diamond and diamond sales, to $4.17 billion

Alrosa in 2021 increased sales of diamonds and diamonds by 1.5 times compared to 2020 - up to $4.17 billion. The company announced this on January 13, 2022.

According to TASS with reference to the Deputy General Director of Alrosa Yevgeny Agureev, sales of diamond products increased due to the restoration of demand for jewelry with diamonds in the main sales markets in North America and Asia.

In the United States and China, Alrosa notes double-digit growth rates relative to 2019. The European jewelry market, the third largest in the world, is also becoming more active.

Against this background, we see still high demand for diamond raw materials from the border sector. The diamond price index returned to 2018 levels, and diamond prices exceeded the average for that period, Agureev notes.

In general, we positively assess the future dynamics of demand for diamond raw materials, given the low levels of reserves in the diamond-diamond chain and the preservation of high demand from end consumers of jewelry products, he said.

Alrosa increased sales of diamonds and diamonds by 1.5 times

Agureev also added that the stocks of finished products at Alrosa from mid-2021 remain at their minimum values.

At the end of 2021, Alrosa sold diamonds worth $3.98 billion, which is 50% higher than a year ago. In the diamond market, the company's revenue increased by 28% to $192 million.

At the same time, stocks of raw materials in the border sector are kept at optimal levels for the company, Alrosa points out, and in some categories they are completely minimal. In August, Alrosa reported that the demand for diamonds in some markets in the summer of 2021 had already exceeded the level of 2019. According to the company, prices for diamond raw materials reached dock-like (COVID-19) levels by early August.

By the end of 2021, Alrosa was mining in the Republic of Sakha (Yakutia) and the Arkhangelsk Region. The Company conducts exploration, production and sale, as well as cutting of diamond raw materials.

In 2021, there was a shortage of diamond raw materials, and the situation was aggravated by the spread of new strains of the coronavirus COVID-19, which negatively affected the work of enterprises in South Africa and Australia (they account for up to 15% of global diamond production), Sergei Grishunin, managing director of the NRA rating service, told Vedomosti. According to him, the prices of rough diamonds have increased greatly even in comparison with the pre-pandemic 2019.^[4]

2020

Decrease in revenue by 7%, to 221.5 billion rubles, profit - by 49%, to 32.2 billion rubles

According to the results of work in 2020, Alrosa's revenue according to international financial reporting standards (IFRS) amounted to 221.5 billion rubles, which is 7% less than a year ago, equal to 238.2 billion rubles. Net profit during this time decreased by 49%, to 32.2 billion rubles.

As a representative of Alrosa told RIA Novosti, at the end of 2020, the Russian company for the first time bypassed De Beers in terms of revenue from the sale of natural diamonds and diamonds. In dollars, Alrosa's revenue reached $2.8 billion against De Beers' $2.78 billion.

In a commentary on the reporting, Deputy General Director of Alrosa Alexei Phillipovsky noted that the company sees a recovery in demand for the main products, and this is primarily due to the steady demand for jewelry with diamonds from end consumers.

Alrosa's sales were hit hard after countries imposed quarantine and blocked borders due to the COVID-19 coronavirus pandemic. According to the deputy general director of Alrosa, Yevgeny Agureev, this limited, and in some cases completely blocked, trade.

In 2020, Alrosa sold diamonds in the amount of 32.1 million carats, which is 4% less compared to 2019. Sales of jewelry quality diamonds decreased by 2%, to 23.8 million carats, and technical quality - by 11%, to 8.2 million carats.

At the end of 2020, Alrosa remained in the top three largest diamond mining companies in the world, its share in world production is 25%. Another 6% falls on the Angolan enterprise Catoca, in which Alrosa has 41%.

By the end of December 2020, Alrosa's net debt amounted to 31.2 billion rubles, down 61% year-on-year. The company's free cash flow grew by 67%, to 79.5 billion rubles.^[5][6][7][8]

Sale of NPF Almaznaya Autumn to the Gazfond Pension Savings Fund for 2.15 billion rubles

On November 10, 2020, Interfax reported that the Alrosa diamond mining company sold the Diamond Autumn NPF to the Gazfond Pension Savings fund for 2.15 billion rubles. This follows from the report of the buyer's fund on OSBU. Read more here.

2010: Mining of 97% of Russia's diamonds

In 2010, ALROS produces 97% of all diamonds in Russia.

Forecast reserves of AK ALROSA account for about one third of the global diamond reserves.

Diamonds of jewelry and near-union quality make up 95% of the total production of AK ALROSA (in terms of cost).

AK "ALROSA" has its own modern geological exploration complex, which ensures the maintenance and expansion of the volume of explored reserves.

The Concept for the Sale of Natural Rough Diamonds in the Domestic and Foreign Markets and the Regulation on the Procedure and Conditions for the Sale of Diamond Raw Materials in AK ALROSA (CJSC) were approved.

AK ALROSA has created and is developing a sales system that combines long-term partnership with large buyers, regional diversification and promotion to the retail sector.

2009: World's largest diamond miner: 34.7 million carats

In 2009, the company became the largest diamond miner in the world, producing 34.7 million carats. For comparison, De Beers Corporation, formerly the largest diamond producer in the world, has produced 24.6 million carats. The share of AK ALROSA in the world diamond production is 25% in terms of production costs (in 2002 - 18%).

In 2009, ALROS delivered more India than half a billion worth of diamonds to border enterprises, dollars which accounted for half of the company's export sales. The main trading partners of ALROS remain India and Belgium^[9]

For 2010, the total sales of the monopoly is planned at $3.3 billion, Interfax notes.

2008: $2.3 billion diamond mining, $1 billion loss

• In 2008, AK ALROSA, together with OJSC ALROSA-Nyurba, mined diamonds for $2361.6 million, the volume of diamond sales amounted to $2774.5 million.

• In 2008, the company produced diamonds worth $157.6 million.

• In 2008, ALROS received a loss of a billion dollars at the end of the year.

• The technological base of the company's production is based on the best world achievements in science and technology and unique technical experience in the harsh climatic conditions of northern Russia.

• The company has developed a strategy for the development of the company until 2015.

Notes