Alrosa, AK
Since 1992
Russia
Siberian Federal District of the Russian Federation
Central Federal District of the Russian Federation
Top managers:
Marinychev Pavel Alekseevich
Owners:
Federal Agency for State Property Management (Federal Property Management Agency) - 33%
Ministry of Land and Property Relations of the Republic of Sakha (Yakutia) - 25%
8 uluses (districts) of the Republic of Sakha (Yakutia) - 8% in free circulation - 34%
data at the end of 2023.
Performance indicators
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.
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[1]
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.
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. | |
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.[2]
Information Technology and Digitalization in Alrosa
Main article: Information technology in Alrosa
History
2024
Bankruptcy of the Belgian "daughter"
At the end of August 2024, the representative office of the Russian diamond mining company Alrosa in Belgium - Alrosa Belgium - declared bankruptcy and closed. This step was taken in connection with the expansion of European sanctions against Alrosa.
| | The board takes into account the possible impact of future sanctions, which could lead to significant uncertainty regarding further activities, Alrosa Belgium said in its financial report. | |
Purchase from Polyus of the Degdekanskoye field for $100 million
The diamond mining company ALROSA acquired the Degdekan gold deposit from Polyus for an amount estimated by experts at $100 million. The transaction, which became known on July 1, 2024, was made through the subsidiary "ALROSA" - "Diamonds Anabar." Read more here.
2023
The EU has included Alrosa and its general director Pavel Marinichev in the sanctions list
Main article: EU sanctions against Russia
In January 2024 EU , he included the Russian company Alrosa, the world's largest in terms of diamond production, and its general director Pavel Marinichev on the sanctions list in response to the ongoing special operation Russia on. To Ukraine
The inclusion announced on January 3 is part of the G7 ban on imports of Russian diamonds, which entered into force on January 1. The ban does not apply to Russian diamonds processed in third countries, but this exception will be gradually lifted by September 1 this year.
By including Alrosa and its head in the list, the EU seeks to "deprive Russia of this important source of income," wrote EU Foreign Minister Josep Borrell. Alrosa's assets in the block will be frozen along with those of its head, who will also be subject to a travel ban.
A unique diamond weighing 390.7 carats was found at the Mayat mine
In September 2023, the Russian diamond giant Alrosa found the largest jewelry stone mined in Russia over the past decade.
The combination of mass, shape and colour makes the stone unique, "it said. A stone weighing 390.7 carats was found at the Mayat mine in Yakutia.
Construction of a mine with 173.5 million carats of diamond reserves
Alrosa has begun construction of the Mir-Gluboky mine facilities in the Mirninsky district of Yakutia. The press service of the regional government announced this on September 4, 2023. Read more here.
Appointment of Pavel Marinychev as CEO
In mid-May 2023, it became known about the appointment of Pavel Marinychev as the new general director of Alrosa instead of Sergei Ivanov. Ivanov's new place of work is unknown, but the company says that he will continue to work on its supervisory board. Read more here.
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.
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.[3][4][5][6]
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.
Anton Siluanov re-elected head of the Supervisory Board
In July 2020, the Supervisory Board of AK Alrosa again elected the head of the Ministry of Finance of the Russian Federation Anton Siluanov as its chairman.
Investigation into the theft of diamonds worth 300 million rubles
Investigators have finished investigating a high-profile diamond theft case. Elena Kanunnikova, chief specialist of the world's largest diamond producer Alrosa, has been wearing 300 million rubles worth of diamonds in underpants since 2006.
The woman went with full panties of diamonds to the territory of the enterprise and back. She carried cheap stones of small size to the warehouse, and replaced them back with larger and more expensive diamonds.
The woman was detained on June 6, 2019 by FSB officers when she carried another batch of diamonds worth 22 million rubles into her underwear.
In addition to the lady in the case, there are five defendants, two of whom fully admitted their guilt and entered into pre-trial agreements with the prosecutor on cooperation, within the framework of which they testified against accomplices. Kanunnikova, her friend Vladimir Tabidze and the unemployed Vladimir Gordinsky do not admit guilt.
During searches in the apartments of the accused, officers of the TFR and the FSB found about 500 unprocessed natural diamonds with a total weight of more than 2 thousand carats and 11 diamonds for a total amount of more than $3 million, as well as more than $2 million and €500 thousand, already earned for the stolen. In addition, jewelry products of well-known world brands were found, including more than 30 watches encrusted with diamonds, in which, according to investigators, attackers may have invested money received from the sale of diamonds.
Two-tube production halt as prices collapse
In May 2020, it became known that Alrosa will suspend production on two pipes due to the collapse of global demand for diamonds of the coronavirus pandemic.
Alrosa, the world's largest carat diamond miner, decided to stop work from May 15 to September at the Aihal mine and until the end of the year at the Zarya quarry.
The global quarantine due to the pandemic brought down Alrosa's March sales 2.2 times by February to $152.8 million and 2.5 times by March last year.
2019: Project in Zimbabwe
Key projects of Russian-Zimbabwean cooperation are the development of one of the world's largest metal deposits of the Darvendale platinum group near Harare and the activities of AK Alrosa unfolding in several areas of Zimbabwe.
Based on the intergovernmental agreement of 2014, the joint venture with the participation of the Russian investment and industrial group Vi Holding is engaged in the development of the field. The construction of a mining and processing complex is planned.
Alrosa began work in Zimbabwe to develop the highest-level agreements reached during an official visit to Moscow in January 2019 by President Emmerson Mnangagwa. In June [established] together with the National Diamond Mining Company of Zimbabwe JV to develop diamond deposits.
2018
In 2018, the Company produced 36.7 million carats of diamond raw materials, revenue from sales of diamond and diamond products in 2018 amounted to $4.5 billion.
2017
- ALROSA Group increased diamond production in 2017 by 6% to 39.6 million carats.
- Sales of the group's diamonds in 2017 increased by 2.7% to 41.2 million carats from 40.1 million carats in 2016.
- Revenue from diamond sales amounted to $4.2 billion, revenue from the sale of diamonds - $96.9 million.
The volume of total diamond reserves, taking into account exploration deposits in accordance with the GKZ standards, increased by 57.8 million carats over the year (excluding the repayment of reserves). As of January 1, 2018, it amounted to 1.182 billion carats,[7] group reported[7]
In 2017, ALROSA allocated a total of almost 8 billion rubles for exploration and exploration work.
In 2017, ALROSA and its subsidiaries carried out geological exploration work in the Republic of Sakha (Yakutia), in the Arkhangelsk Region and Angola (Kvango concession).
In Russia, exploration work was focused in the 8 most promising areas, 7 of which are located in Yakutia. In particular, ALROSA was searching for diamond-bearing kimberlites in the southern regions of Western Yakutia, assessing work on the Syuldyukarskaya tube, on placers of the Srednemarkhinsky and Malobotuobinsky districts.
The increase in reserves is associated with the exploration and assessment of the deep horizons of the Internatsionalnaya tube (in the depth interval of 1190-1650 m), the calculation of the reserves of the deep horizons of the Yubileinaya tube (to the horizon of -680 m), as well as the completion of assessment work on the 3rd stage of the buried placer Nyurbinskaya.
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[8]
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.
1992: Creation of AK "Alrosa"
AK "ALROSA" was created in accordance with the Decree of the President of the Russian Federation "On the formation of the joint-stock company" Diamonds of Russia - Sakha "" dated February 19, 1992 No. 158S.
ALROSA is the successor to those included in its composition:
- enterprises, organizations and other divisions of PNO Yakutalmaz (a former Soviet state diamond mining company);
- parts of the divisions of the Committee on Precious Metals and Precious Stones under the Ministry of Finance of the Russian Federation (which were engaged in sorting, preparation for sending and sending diamonds);
- V/O "Almazyuvelirexport."
Notes
- ↑ Net profit of Alrosa under IFRS in 2023 amounted to 85.1 billion rubles
- ↑ ALROSA presents sales results for 2021
- ↑ ALROSA Group's financial results for 4 sq. and 12M 2020 according
- ↑ [https://www.kommersant.ru/doc/4654824 to ALROSA
- ↑ IFRS
- ↑ for the first time beat De Beers in revenue for the year]
- ↑ 7,0 7,1 [http://www.vestifinance.ru/articles/98590 the ALROSA Diamond Reserves
- ↑ Russia will sell diamonds to India for half a billion dollars.
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