July 2018 Disclaimer The information contained herein has been - - PowerPoint PPT Presentation
July 2018 Disclaimer The information contained herein has been - - PowerPoint PPT Presentation
July 2018 Disclaimer The information contained herein has been prepared for the use in this Presentation (the Presentation) and has not been independently verified. Such information is confidential and is being provided to you solely for
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Disclaimer
The information contained herein has been prepared for the use in this Presentation (the “Presentation”) and has not been independently verified. Such information is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. Certain industry, market and competitive position data contained in this Presentation come from official or third party sources believed to be reliable but ALROSA does not guarantee its accuracy or completeness. This Presentation contains statements about future events and expectations that are forward-looking statements. Any statement in this Presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause the ALROSA’s actual results, performance
- r achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Past performance
should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. ALROSA assumes no obligation to update, supplement or revise forward-looking or any other statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. ALROSA does not intend or have any duty or obligation to update or to keep current any information contained in this Presentation. The diamond resources and reserves estimates provided in this Presentation have been prepared and presented in accordance with the standards and classifications of the JORC Code (the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves as promulgated by the Australasian Joint Ore Reserves Committee), which differ in significant respects from the standards and classifications applicable to the disclosure of mineral resources and reserves under the laws and regulations of certain other jurisdictions, including the regulations of the U.S. Securities Exchange Commission (the “SEC”) with respect to registration statements and other documents filed with the SEC. Among other things, in accordance with the JORC Code, this Presentation provides certain mineral resources estimates classified as “inferred”, “indicated” or “measured”, which differ in significant respects from “probable” and “proven” mineral reserves estimates and are not disclosed in certain jurisdictions, including in SEC filings. There can be significant uncertainty as to whether mineral resources can ever be feasibly and commercially mined. For further explanation of the JORC Code, see the JORC website at www.jorc.org. This Presentation does not constitute an offer to sell, or any solicitation of any offer to subscribe for or purchase, any securities. No part of this Presentation, nor the fact of its distribution, should form any basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information in this Presentation is subject to verification, completion and change. No representation or warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the accuracy or completeness of the information or opinions contained in this Presentation. None of ALROSA nor any of its shareholders, directors,
- fficers or employees, affiliates, advisors, representatives nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this Presentation
- r its contents or otherwise arising in connection therewith.
This Presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This Presentation is not for distribution, directly or indirectly, to the public in the United States (including its territories and possessions, any State of the United States and the District of Columbia). These materials are not an offer or solicitation to purchase or subscribe for securities in the United States or any other jurisdiction. Securities may not be
- ffered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of
1933, as amended. ALROSA does not intend to register any part of any offering in the United States or to conduct a public offering of any of its securities in the United States. By attending a meeting where this Presentation is made or reviewing this Presentation you acknowledge and agree to be bound by the foregoing.
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ALROSA is a global leader in rough diamond output with the largest reserve base globally and superior financial profile
Financial results summary
- ~30% of rough diamond production globally
- Largest reserves sufficient to support production for
~30 years
- Competitive position on the global cost curve
- Sustainably high profitability margins ~2x exceeding
industry average
- Strong FCF generation and balance sheet capability
- ffer solid foundation for shareholder returns
RUB bn
Loans and borrowings
$ m
1,621 1,493 1,026 323 128 703 Total Debt Cash and cash equivalents Net Debt Total Debt Cash and cash equivalents Net Debt
As of 31 March 2018 As of the end of 2017 Margin
85 35 24 35 61 27 17 12 96 48 33 41 20 40 60 80 100 120 140 Revenue EBITDA Net Profit Free Cash Flow* Q1 2017 Q4 2017 Q1 2018
50% 44% 35% 28% * excl. M&A proceeds
11 15 66 39 10 20 30 40 50 60 70 2014 2015 2016 2017
Dividend payments
RUB bn RUB per share
8.93 1.47 2.09
28% 41%
5.24
4
Global diamond jewelry market
World diamond jewelry sales grew by 4% annually
+4% CAGR Diamond jewelry market, $ bn
62 69 76 78 81 79 79 83 50 100 2010 2011 2012 2013 2014 2015 2016 2017
Source: Company’s estimates Source: AWDC Bain report “The Global Diamond Industry 2017” (December 2017)
Outlook for world diamond jewelry demand
1% 3% 2% 1% 1% 4% 7% 4% 4% 4% 5 10 US India China Other Total Base case scenario Optimistic scenario
- US, India and China key drivers for diamond jewelry
demand in the long-term are:
- USA
(50% total market): continued real disposable income growth;
- China: economic growth and expansion of the
Chinese middle class;
- India: the ongoing expansion of bridal diamond
jewelry and the middle class.*
- Demand for natural diamonds is supported by DPA
marketing activities
* According to AWDC Bain report “The Global Diamond Industry 2017” (December 2017)
CAGR 2016-2030F
- N. America,
Asia-Pacific region and India ~ 80%
- World diamond jewelry sales increase by 4% annually
since 2010
- In 2017, global diamond jewelry sales grew by 5% yoy
across all regions ex.Japan (due to high base effect in 2016)
5
Global rough diamond market
Rough diamond sales grew by 2% (CAGR)
358 388 554 310 463 353 283 256 306 326 326 228 499 533 550 396 277 384 200 400 600 800 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018
+2% CAGR
$ bn
Sources: AWDC Bain report “The Global Diamond Industry 2017” (December 2017) , Company’s estimates
- Rough diamond sales follow trend of demand for diamond jewelry and are
influenced by midstream inventories
- Midstream inventories returned to normal levels
- In Q2 gem-quality rough diamonds price were up driven by better diamond
market demand
Average realized price for ALROSA’s gem-quality rough diamonds
$/ct
Source: Company’s estimates 123 197 194 175 172 170 149 136 117 138 169 139 154 164 +60% (2%) (10%) (2%) (1%) (12%) (9%) (21%) +18%+22% (18%) +11% +6%
- 220%
- 170%
- 120%
- 70%
- 20%
30% 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 50 100 150 200 250 300 350
price change
3 5 2013 2014 2015 2016 2017E Source: AWDC Bain report “The Global Diamond Industry 2017” (December 2017)
Midstream inventories dynamics
midstream inventory surplus globally, $ bn
Inventory decline due to decreased rough diamond sales by mining companies Stable inventory due to increased rough diamond sales back to normal levels 28% 28% 29% 32% 31% 28% 29% 30% ~12 ~15 ~15 ~15 ~16 ~12 ~15 ~14 5 10 15 20 2010 2011 2012 2013 2014 2015 2016 2017E ALROSA Other producers
Monthly diamond sales revenue dynamics
$ m
9 7 6 6 6 4 4
Diavik Ekati Argyle Nyurbinskaya Catoca Finsch Orapa
Development process Development process + dewatering
80 115 150 150 125 2014 2017F 2020F 2023F 2027F 2030F
Supply of diamonds is constrained by lack and complexity of new diamond discoveries and significant time required to ramp-up production
6
World diamond production
m ct
Gahcho Kue Grib Renard Argyle Diavik
Discovery-to-production period, years
1954- 1956 1960 1969 1974- 1975 1994 1996 2006
I II III
Aikhal International Jubilee Botuobinskaya Nyurbinskaya Mayskaya
Host rocks Sandstones Kimberlite pipes 60 m 9 m 80 m 70 m
Year of discovery
Discovery and development of new kimberlite pipes are much more challenging now No less than 4 years is required to ramp-up full scale production on a diamond mine
Source: Company’s estimates
Mir
Source: diamond mining companies’ forecast
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ALROSA’s assets concentrated in Russian Far East (93%), over ½ of mining are open pits
1,030 m ct
Total resources, including reserves
653 m ct
Total reserves
Geography of production assets
Republic of Sakha (Yakutia) Arkhangelsk Region Russian Federation Severalmaz
Arkhangelskaya pipe Karpinskogo-1 pipe
7% 2.6
m ct
Aikhal Division
Aikhal UG mine Jubilee pipe Komsomolskaya pipe
33% 13.0
m ct
Nyurba Division
Nyurbinskaya pipe Botuobinskaya pipe Alluvial deposits
19% 7.7
m ct
18% Mirny Division
International UG mine Alluvial deposits Mir UG mine*
7.2
m ct
10% Udachny Division
Udachny UG mine Zarnitsa pipe Zapolyarnaya Pipe (Verkhne-Munskoye deposit) Alluvial deposits
3.8
m ct
13% Almazy Anabara & Nizhne-Lenskoye
Alluvial deposits
5.2
m ct
93% 7%
Angola ALROSA owns 32.8%
- f Catoca Ltd (Angola)
* production suspended in August 2017 as a result of the accident
Share of division in 2017 diamond production
(incl. 2.8 mln ct from Mir pipe)
Note: the amount of total resources, including reserves are as of July 1, 2016 In expansion mode Share of open-pit mining from 9 mines in 2017 Share of underground mining from 4 mines in 2017 Share of alluvial mining from alluvial deposits in 2017
53% 27% 20%
Production and capex outlook
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m ct ALROSA’s diamond production to stabilize at 37-38 m carats RUB bn
Note: detailed ALROSA’s production plan is disclosed in the Appendix (slide 18)
Capex to trend down to RUB 28 bn by 2021
25.1 23.9 24.3 21.5 22.3 21.0 20.3 2.2 1.5 2.2 3.2 2.8 9.0 9.1 9.4 9.2 10.2 8.2 5.9 0.6 1.6 2.0 2.2 2.6 3.3 3.8 0.1 0.4 1.3 1.6 3.9 5.7 0.1 0.2 1.8
2013 2014 2015 2016 2017 2018F 2019F
Verkhne-Munskoye Udachny UG mine Severalmaz Jubilee pipe Mir UG mine (stopped from Aug'17) Other
36.9 36.2 38.3 37.4 39.6 36.6 ~37.5 – 37.7 Total
26.5 25.6 25.7 23.4 20.5 20.1 22.6 23.7 5.1 2.6 1.5 0.2 0.7 6.6 7.9 6.5 5.1 2.7 2.1 1.7 2.6 0.5 3.3 3.7 9.2 1.4 1.7
2013 2014 2015 2016 2017 2018F 2019F 2020F
Verkhne-Munskoye Udachny UG mine Severalmaz Other
38.2 36.1 34.2 31.8 26.9 31.6 26.4 28.0 Total
9
~70% ~98%
ALROSA’s sales are driven by gem-quality diamonds sold in parcels based on gemological characteristics
Share of gem-quality diamonds in... value volume Gem-quality diamonds (˃1.5 mm) Non-gem quality diamonds (≤1.5 mm) 5-10CT Stones & Shapes Yellow 5-10CT Rejections Brown 5-10CT Black Makeable White 26 sizes 16 shapes 5 clarity categories 34 colours
204 rough diamond boxes 8,013 classification positions
10
ALROSA has a diverse distribution platform based on long-term agreements with its clients
Currently ALROSA has 65 clients under long-term contracts, which accounted for 77% in 2017 rough diamond sales ALROSA sells rough diamonds to world major diamond trading and polishing centers
77% Long-term contracts 16% Tenders 51% Belgium 16% India 10% Russia 7% UAE 2% Other 7% Spot sales 10% Israel 4% China
rough diamond sales channel breakdown geography of sales
11
ALROSA’s EBITDA margin is at 50’s, FCF is positive, management is committed to control costs
2017 2016 Y-o-Y change FX Production, mln cts 39.6 37.4 6% Run-of-mine ore, mln m3 77.7 72.1 8% Sales, mln cts 41.2 40.0 3% Sales above/(below) production, mln cts 1.6 2.6 (38%) Revenue 275,381 317,090 (13%) COGS (110,118) (105,083) 5% SG&A (13,969) (13,835) 1% Other operating income and expenses (24,404) (21,754) 12% EBITDA 126,890 176,418 (28%) EBITDA margin 46% 56%
- Net profit
78,616 133,471 (41%) ОСF 100,464 143,138 (30%) Capex (26,944) (31,752) (15%) Free cash flow 73,520 111,386 (34%)
Financial results summary
Note: degree of FX exposure ( low / medium / high) based on Company`s estimates
- ALROSA’s revenue is supported by sales of rough diamonds
from accumulated inventories
- Revenue is exposed to RUB/USD as diamond prices are set in
USD, major parts of OPEX and CAPEX are linked to RUB, financial costs are naturally hedged as borrowing currency is mostly USD
- Due to management efforts costs per carat and per cubic meter
- f rock mass excluding one-off elements and non-production
related items went down in 2017 by 2% and 7% respectively
RUB m, unless otherwise stated 2017 2016 Y-o-Y change Wages, salaries and other staff costs (43,554) (43,686) (<1%) Mineral extraction tax (21,782) (22,188) (2%) Fuel and energy, including: (12,686) (14,493) (12%) gain from electricity costs reduction 2,106
- Materials
(13,287) (13,592) (2%) Services (7,955) (7,714) 3% Transport (2,178) (2,215) (2%) Other (1,313) (588) 1.3х Movement in inventory of ores and concentrates (2,044) 2,006 (1.0x) Movement in inventory of diamonds (5,303) (1,850) 2.9x Cost of diamonds for resale (16) (763) (98%) Cost of sales (excluding depreciation) (110,118) (105,083) 5% SG&A (13,969) (13,835) <1% Exploration expenses (8,761) (8,202) 7% Social costs (5,973) (6,485) (8%) Taxes other than income tax, extraction tax and payments to social funds (5,451) (5,718) (5%) Contribution to DPA (1,491) (279) 4.3х Losses from idle production facilities due to accident at the Mir underground mine (1,101)
- Other
(1,627) (1,070) 52% Other operating income and expenses (24,404) (21,754) 12% Total expenses (148,491) (140,672) 6% Non-production related items (43,426) (40,070) 8% Total expenses, net of non-production related items (105,065) (100,602) 4% Total expenses, RUB per carat 2,650 2,693 (2%) Total expenses, RUB per m3 1,325 1,424 (7%) non-production related items
Expenses
RUB m, unless otherwise stated
12
Operational excellence program added RUB 6.5 bn of gains in 2017
Operational excellence program is rolled across all functions and divisions:
- Technological solutions: RUB 5.0 bn as a result of
introducing dense-medium modules at Udachny’s and Aikhal’s processing plants, which ensured higher diamond extraction and integrity at the early stages of
- re processing
- Labour cost reduction: RUB 1.0 bn as a result of
capping labour resources in ALROSA's construction and geological exploration operations, with the headcount reduced accordingly
- Transporation:
RUB 0.5 bn as a result
- f
- ther
initiatives, including the replacement of supersize mine trucks with road trains to transport ore from Udachny Division's Zarnitsa pit Efficiencies achieved in 2017 amounted to RUB 6.5 bn
Administrative costs Production development Maintenance Energy use Organizational structure Ore beneficiation Mining Transport Automation
- Sale of non-core assets (gas) and minority stakes lead to
additional gain of ~RUB 30 bn, drop in head-count, simplification of the corporate structure
- Focus on core-operations related to production and sale
- f diamonds:
- consolidation of stakes in ALROSA Nyurba;
- development of marketing capabilities.
Streamlining of the asset portfolio
13
Economic efficiency of underground mining is fostered by block caving mining method
Next production level Production level Backfilled production level Next production level
Block caving method Traditional cut-and-fill mining
Mir underground mine International underground mine Aikhal underground mine Udachny underground mine
Cut-and-fill mining method at Udachny underground mine would have required more than 330 thousand tons of cement a year (~ RUB 1 bn in current prices), which is an equivalent of total cement output in the Republic of Sakha (Yakutia).
Cost of underground production per carat is close to open-pit mining due to higher grade at underground mines
14
- Underground mining cost of production per ton of ore is
higher than open-pit mining cost of production
- Due to the fact that underground mining average grade
is also higher vs. open-pit mining, underground mining cost of production per carat is close to open-pit mining
Cash cost of production per ton of ore Cash cost of production per carat
Aikhal UG mine Open-pit mines
~28 ~39
Aikhal UG mine Open-pit mines
~161 ~45
ALROSA total
~42 ~19
Alluvials ALROSA total
~42 ~44
Alluvials
$/ct $/t t ct
0.42 1.19 5.83 6.89
Alluvials Open-pit mines Aikhal underground mine International underground mine
1.01
ALROSA total
Range of average mined diamond grade ct/t
~286
International UG mine
~42
International UG mine
14
In March 2018 ALROSA repaid $600 m of bank loans from gas assets disposal proceeds
15
Debt position Debt breakdown Debt maturity profile
$ m 2% Bank loans 98% Borrowings (incl. Eurobonds) 98% US dollar-denominated debt 100% Long-term debt $ m 4,217 3,496 3,057 2,344 1,621 1,026 2013 2014 2015 2016 2017 31.03.2018
Total debt/ EBITDA 2.0x 2.1х 1.9x 0.8x 0.7х 0.4х
2% RUB-denominated debt Net debt / EBITDA as of 31.03.2018 0.1x 1 1,021 2 2 2018 2019 2020 2021 2022 2023
Bank loans Borrowings (incl. Eurobonds)
ALROSA’s dividend policy is to distribute not less than 35% of net profit as dividends, over last years payout ratio was 50% of net profit driven by robust free cash flow
Operating cash flow, capital expenditures, free cash flow, net profit attributable to shareholders and dividends
RUB bn RUB per share
2015
75.5 41.3 30.7 15.4 (34.2)
Operating cash flow CAPEX FCF Net profit attributable to shareholders Dividends
5.61 2.09 4.17
2014
78.1 42.1 (17.9) 10.8 (36.1)
Operating cash flow CAPEX FCF Net profit attributable to shareholders Dividends
5.71 1.47 2.44
2016
143.1 111.4 131.4 65.8 (31.8)
Operating cash flow CAPEX FCF Net profit attributable to shareholders Dividends
8.93 17.85 15.12
16
2017
100.5 73.5 77.1 38.6 (26.9)
Operating cash flow CAPEX FCF Net profit attributable to shareholders Dividends
10.47 9.98 5.24
17
Appendix
- Production forecast
- Diamond pipeline structure
- Environmental and social responsibility
- Management team overview
- Supervisory Board overview
- Resources inclusive of reserves according to
JORC Code
18
ALROSA’s production forecast
Type of mining Grade, ct/t Price per carat, $ Cash costs per carat, $ Diamond production forecast, ‘000 ct 2017 2017 2018F 2019F 2020F Aikhal Division Jubilee pipe
- pen-pit
1.33 141 26 10,160 8,207 5,885 5,410 Aikhal underground mine underground 5.83 47 28 2,480 2,723 2,725 2,708 Komsomolskaya pipe
- pen-pit
0.36 239 187 370 370 352 421 Zaria pipe
- pen-pit
0.28 244 234
- 13
75 Mirny Division International underground mine underground 6.89 210 42 3,699 3,693 ~3 m cts ~3 m cts Mir underground mine underground 3.71 131 46 2,772
- Alluvial and technogenic deposits
alluvial 0.19 201 69 760 692 886 885 Udachny Division Udachnaya pipe
- pen-pit
0.63 90 42 1,046
- Udachny underground mine
underground 1.87 103 78 1,615 3,872 5 695 5,673 Zarnitsa pipe
- pen-pit
0.28 165 110 786 995 711 843 Verkhne-Munskoe deposit
- pen-pit
1.07 126 67 80 175 1,804 1,827 Alluvial deposits alluvial 0.26 89 97 295 246 115
- Nyurba Division
Nyurbinskaya pipe
- pen-pit
4.80 98 44 4,774 4,195 3,780 3,365 Botuobinskaya pipe
- pen-pit
6.12 98 44 1,211 1,100 2,139 1,866 Alluvial deposits alluvial 1.97 98 44 1,728 2,056 1,402 2,151 Severalmaz Arkhangelskaya pipe
- pen-pit
0.70 54 31 1,283 1,503 2,135 2,336 Karpinskogo-1 pipe
- pen-pit
0.95 55 31 1,359 1,817 1,688 1,862 Almazy Anabara alluvial 0.40 74 38 5,197 4,977 4,973 4,999 ALROSA 1.01 117 42 39,614 36,620 >37.5 m cts ~37.5 m cts underground 4.11 135 45 10,566 10,288 ~12 m cts ~12 m cts
- pen-pit
1.19 118 39 21,069 18,361 18.5 m cts 18.0 m cts alluvials 0.42 92 44 7,979 7,971 7.4 m cts 8.0 m cts
26% 22% 14% 5% ALROSA DeBeers Rio Tinto Catoca
Rough diamond production is dominated by few mining companies with the highest margins across diamond pipeline, where ALROSA benefits from leading market share of 28%
Source: AWDC Bain report “The Global Diamond Industry 2017”
Margins Players Top 5 players control ~ 70%
- f the market
~ 5,000 players > 10,000 players Major retailers control ~ 35%
- f the market
27‒28% 1‒4% 2‒4% 3‒11%
Diamond pipeline structure
~ 100 players 1‒4% Rough diamond production
Major global diamond producers
Sources: Diamond producers’ data, Company’s estimates, Kimberley Process statistics 19
46% 25% 41% 44% Sales of rough diamonds from major producers Cutting & polishing
- f diamonds
Diamond jewelry manufacturing Retail sales of diamond jewelry
EBITDA margin Share in global production
20
ALROSA’s low environmental impact, as well as efficient information disclosure are acknowledged by ESG ratings
3rd place (out
- f
33) in the “First rating
- f
environmental performance of mining companies in Russia” (held by the WWF and the Ministry of Natural Resources and Environment of Russian Federation) Rated among top-10 Russian companies with transparent corporate reporting according to Transparency International-Russia research
15.2 11.3 2012 2016
Water intake
(26%) 2,853 1,080 2012 2016
Area of annually disturbed land
(62%) 0.19 0.10 2012 2016
LTIFR
number of lost time injuries per 1 m hours worked (47%) ha m m3
21
Management team is fully committed to deliver on ALROSA’s development plans
Operational Team Executive Team CEO Sergey Ivanov Chief Executive Officer
- Joined the Company in 2017
- Senior Vice President at Sberbank of Russia (2016‒2017)
- Chairman of the Management Board of SOGAZ (2011‒2016)
- Top management positions at Gazprombank (2005‒2011)
COO Igor Sobolev First Deputy CEO – Chief Operating Officer
- Joined the Company in 2007
- Head of Capital construction division, mining & metallurgical directorate
at Norilsk Nickel (2000‒2007)
CFO Alexey Philippovskiy Deputy CEO – Chief Financial Officer
- Joined the Company in 2017
- CFO of Siberian Generating Company (2015–2017)
- CFO of Sibur (2004–2013)
- Consultant at McKinsey & Co. (2001-2004)
Sales Yuri Okoyomov Deputy CEO for Sales
- Joined the Company in 1993
- Vice President of ALROSA for marketing and sales since August 2009
Mirny division
Alexey Kovalenko Director, Mirny mining and processing division
- Joined the Company in 1996
- Over 20 years of industry experience
Udachny division
Alexander Makhrachev Director, Udachny mining and processing division
- Joined the Company in 1979
- Over 38 years of industry experience
Aikhal division
Ravil Sanatulov Director, Aikhal mining and processing division
- Joined the Company in 1986
- Over 30 years of industry experience
Nyurba division
Anatoliy Platonov Director, Nyurba mining and processing division
- Joined the Company in 1992
- Over 25 years of industry experience
Almazy Anabara
Pavel Marinychev CEO Almazy Anabara
- Joined the Company in 2016
- First deputy Prime Minister of the Republic of Sakha (Yakutia) (2014‒2016)
- Deputy Prime Minister of the Republic of Sakha (Yakutia) (2010‒2014)
Severalmaz
Andrey Pismenny CEO Severalmaz
- Joined the Company in 1997
- Over 20 years of industry experience
- Chief engineer of ALROSA in 2010‒2015
22 Anton Siluanov First Deputy Chairman of the Government of the Russian Federation Yegor Borisov State Counsellor of the Republic of Sakha (Yakutia) Nikolay Alexandrov First Deputy Head of Suntarsky Ulus Municipal District of the Republic of Sakha (Yakutia) Evgeny Chekin Chairman of the Government of the Republic of Sakha (Yakutia) in 2016-2018 Nominated by: the Russian Federation Nominated by: the Republic of Sakha (Yakutia) Nominated by: Municipal Districts of the Republic of Sakha (Yakutia) Nominated by: the Republic of Sakha (Yakutia) Previously held positions include:
- 2005-2011 – Deputy Minister of
Finance of the Russian Federation
- Since 2011 – Minister of Finance of the
Russian Federation
- Since 2018 – First Deputy Chairman of
the Government of the Russian Federation Previously held positions include:
- 2003-2010 – Chairman of the
Government of the Republic of Sakha (Yakutia)
- 2010-2014 – President of the Republic
- f Sakha (Yakutia)
- 2014-2018 – Head of the Republic of
Sakha (Yakutia)
- 2018 – State Counsellor of the Republic
- f Sakha (Yakutia)
Previously held positions include:
- 2009-2015 – Specialist, Senior
Specialist, Leading Specialist, Head of water transport Department of Ministry
- f Transport and Road Infrastructure of
the Republic of Sakha (Yakutia)
- 2015-2016 – General Director of the
state-run enterprise of the Republic of Sakha (Yakutia) “Arctic Transportation Company”
- Since 2017 – First Deputy Head of
Suntarsky Ulus Municipal District of the Republic of Sakha (Yakutia) Previously held positions include:
- 2011-2012 – Head of public-private
partnership Department of the Ministry
- f Economy and Industrial Policy of the
Republic of Sakha (Yakutia)
- 2012-2016 – Deputy Minister of
Economy of the Republic of Sakha (Yakutia)
- 2016-2018 – Chairman of the
Government of the Republic of Sakha (Yakutia) Alexey Chekunkov CEO of Far East and Baikal Region Development Fund Kirill Dmitriev CEO of Russian Direct Investment Fund Oleg Fedorov Independent director of the Supervisory Board, ALROSA Maria Gordon Independent director of the Supervisory Board, ALROSA Nominated by: the Russian Federation Nominated by: the Russian Federation Nominated by: minority shareholders as an independent director Nominated by: minority shareholders as an independent director Previously held positions include:
- 2009-2011 – Head of New Nations
Capital Investment Company
- 2011-2013 – Director, member of the
board, member of investment committee of the Russian Direct Investment Fund
- Since 2014 – General Director of the
Far East Development Fund Previously held positions include:
- 2007-2011 – Development Director,
President of Icon Private Equity Limited Representative Office
- Since 2011 – CEO of Russian Direct
Investment Fund Previously held positions include:
- 2009-2012 – Head, Department of
Investment and Banking, VTB Capital
- 2012-2014 – Adviser to the Head of the
Federal Agency for State Property Management
- Since 2013 – Independent director of
the Supervisory Board of ALROSA Previously held positions include:
- 1998-2010 – Goldman Sachs,
investment activity
- 2010-2014 – PIMCO, investment
activity
- Since 2015 – Independent director of
the Supervisory Board of ALROSA
Supervisory Board overview (1/2)
2 1 6 3 4 5 7 8
Evgenia Grigorieva Minister of Property and Land Relations of the Republic of Sakha (Yakutia) Sergey Ivanov Chief Executive Officer of ALROSA Dmitry Konov Member of the Board of Directors, Chairman of the Management Board at SIBUR Holding Valentina Lemesheva Independent director of the Supervisory Board, ALROSA Nominated by: the Republic of Sakha (Yakutia) Nominated by: the Russian Federation Nominated by: the Russian Federation as an independent director Nominated by: the Republic of Sakha (Yakutia) as an independent director Previously held positions include:
- 2007-2011 – First Deputy Minister of
Property Relations of the Republic of Sakha (Yakutia)
- Since 2011 – Minister of Property and
Land Relations of the Republic of Sakha (Yakutia) Previously held positions include:
- 2011-2016 – Chairman of the
Management Board of AO SOGAZ
- 2016-2017 – Senior Vice President,
Head of Wealth Management at Sberbank of Russia
- Since 2017 – CEO of ALROSA
Previously held positions include:
- 2011-2016 – CEO of SIBUR
- Since 2007 – Member of the Board of
Directors, Chairman of the Management Board (since 2009) at SIBUR Holding Previously held positions include:
- 2002-2014 – Chair of the State
Committee for Pricing Policy – Regional Energy Commission of the Republic of Sakha (Yakutia)
- Since 2015 – Independent director of
the Supervisory Board of ALROSA Sergey Mestnikov CEO of Trust Fund for Future Generations of the Republic of Sakha (Yakutia) Alexey Moiseev Deputy Minister of Finance of the Russian Federation Ilya Yelizarov Assistant Head of the Federal Agency for State Property Management (Rosimushchestvo) Nominated by: the Republic of Sakha (Yakutia) Nominated by: the Russian Federation Nominated by: the Russian Federation Previously held positions include:
- 2010-2012 – Deputy Head, Head,
Secretariat of Chairman of the Government
- f the Republic of Sakha (Yakutia)
- 2012-2016 – First Deputy Minister of
Property and Land Relations of the Republic of Sakha (Yakutia)
- Since 2016 – CEO of Trust Fund for Future
Generations of the Republic of Sakha (Yakutia) Previously held positions include:
- 2001-2010 – Senior Economist, Deputy
Head of Analytical Department of Renaissance Capital - Financial Consultant
- 2010-2012 – Deputy Head of
Department, Head of Division at VTB Capital
- Since 2012 – Deputy Minister of
Finance of the Russian Federation Previously held positions include:
- 2010-2012 – Referent of
the Department of the Presidential Experts' Directorate, Assistant Head of Presidential Administration
- 2012-2015 – Assistant Chairman of the
Government of the Russian Federation
- Since 2017 – Assistant Head of the
Federal Agency for State Property Management (Rosimushchestvo) 23
Supervisory Board overview (2/2)
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Resources inclusive of reserves according to JORC Code as of July 1, 2016 (1/2)
Deposit Resource category Tonnage ('000 t) Resource grade (cpt) Contained diamonds ('000 cts) Udachny division Udachnaya Pipe Measured 13,646 1.16 15,812 Indicated 83,524 1.53 127,801 Inferred 53,991 1.28 68,978 Zarnitsa Pipe Indicated 27,131 0.25 6,858 Verkhne-Munskoe Deposit Indicated 46,914 0.65 30,616 Inferred 17,168 0.57 9,857 Alluvial deposits Indicated 2,447 0.49 599 Inferred 1,176 0.63 373 Aikhal division Jubilee Pipe Measured 18,420 0.86 15,815 Indicated 88,138 0.74 65,401 Inferred 57,821 0.63 36,352 Aikhal Pipe Measured 4,361 4.97 21,666 Indicated 690 3.14 2,168 Inferred 1,716 4.06 6,966 Komsomolskaya Pipe Indicated 3,943 0.38 1,494 Zaria Pipe Indicated 12,392 0.28 3,515 Inferred 27,347 0.13 3,583 Mirny division Mir Pipe Measured 20,104 3.71 74,521 Indicated 16,538 3.36 55,525 Inferred 1,072 3.11 3,339 International Pipe Measured 1,448 8.21 11,888 Indicated 3,544 8.71 30,848 Alluvial deposits Measured 17,509 0.39 3,379 Indicated 22,273 0.21 2,322 Inferred 440 0.40 88 Solur-Vostochnaya placer Indicated 5,982 1.97 5,903 Inferred 959 1.80 865
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Deposit Resource category Tonnage ('000 t) Resource grade (cpt) Contained diamonds ('000 cts) Nyurba division Nyurbinskaya Pipe Measured 1,432 4.12 5,905 Indicated 7,095 4.32 30,623 Inferred 1,217 5.56 6,767 Botuobinskaya Pipe Measured 3,172 5.30 16,827 Indicated 10,139 5.90 59,814 Inferred 2,762 5.71 15,778 Maiskoye Kimberlite Body Indicated 1,231 6.03 7,426 Inferred 1,768 2.99 5,278 Alluvial deposits Measured 187 7.85 734 Indicated 6,897 4.67 16,094 Inferred 4,762 3.01 377 Lomonosov division (Severalmaz) Arkhangelskaya Pipe Measured 18,231 0.97 17,764 Indicated 29,689 1.08 32,184 Inferred 39,407 1.24 48,941 Karpinsky-1 Pipe Measured 6,971 1.08 7,501 Indicated 6,915 1.72 11,893 Inferred 8,615 1.16 9,993 Pionerskaya Pipe Indicated 58,330 0.47 27,530 Inferred 42,875 0.52 22,502 Lomonosov Pipe Indicated 32,523 0.50 16,230 Inferred 42,250 0.46 19,530 Almazy Anabara Indicated 38,160 1.33 25,373 Inferred 9,366 0.77 3,621 Nizhne-Lenskoye Indicated 10,793 0.57 3,075 Inferred 16,068 0.58 4,661 Total for ALROSA Group of Companies Measured 105,482 1.82 191,811 Indicated 515,285 1.09 563,291 Measured + Indicated 620,767 1.22 755,102 Inferred 330,779 0.83 274,629 Total 951,546 1.08 1,029,731
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Resources inclusive of reserves according to JORC Code as of July 1, 2016 (2/2)
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Thank you!
24 Ozerkovskaya emb. Moscow 115184 Russia
- Tel. +7 495 745 58 72
IR@alrosa.ru
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