Didier Giard: Stiff competition among the diamantaires is one of the factors of the price war

On September 9, 2019, the French Association of Gemmology (l’Association Française de Gemmologie, AFG) held its regular Paris Gemmological Rendez-Vous. Its organizer, Didier Giar, the head of the AFG kindly agreed to answer questions from Rough&Polished...

16 september 2019

“The industry is under some pressure, and as we all know, diamonds are formed under great pressure!”, says Dr Martin Leake

A veteran in the field of precious stones, Dr Martin Leake a doctorate geologist had worked for 22 years with BHP Billiton; and also set up a world-class marketing unit for Grib Diamonds in Antwerp. Later, as an Independent Consultant, Dr Martin Leake...

09 september 2019

Recovery of diamond industry within a year if end-consumer demand holds – Zimnisky

An independent diamond industry analyst and consultant said the natural diamond industry will be in a better position within a year time if end-consumer demand holds. Paul Zimnisky, CFA told Rough & Polished’s Mathew Nyaungwa in an exclusive interview...

02 september 2019

Working according to one’s weaknesses and strengths

Canon Jhaveri grew up watching his diamond-dealer father and uncle working with diamonds. The sparkles of the diamonds fascinated the young boy, who became more intrigued every time he visited his father’s office. After graduating in 2002, Canon Jhaveri...

26 august 2019

The diamond business is yet bright and has a good future in the coming days

Hitesh Patel, Managing Director of Dharmanandan Diamonds Pvt. Ltd., joined the family business in 1997 to help his father Laljibhai Patel, the founder of Dharmanandan Diamonds Pvt. Ltd. Egged on by its success, Hitesh set up the overseas presence of...

19 august 2019

In anticipation of ALROSA shareholders meeting: Results of 2018 and prospects for 2019

17 june 2019

What dividends per share the ALROSA’s shareholders will get based on the results of 2018

At the end of June 2019, a General Meeting of Shareholders will be held, where the results of 2018 will be summed up and the ALROSA’s shares dividends for 2018 will be decided on. Taking into account the interim dividends paid for the first half of the last year in amount of ₽43.7 bn, or ₽5.93 per share, the money will be allocated for dividend payments based on the H2 2018 results. The Supervisory Board of ALROSA recommended the General Meeting of Shareholders to allocate 100% of the free cash flow for the dividend payments, which makes ₽30.3 bn, or ₽4.11 per share.

Totally, ₽73.9 bn, or ₽10.04 per share, can be allocated for dividend payments, which will be the record sum ever paid by ALROSA Company.

Thus, the Republic of Sakha (Yakutia) will receive their dividends in the sum of ₽7,575 mn and 8 districts of the diamond province will get ₽2,425 mn. Totally, Yakutia will receive ₽10 bn to their budget from ALROSA Company.

It is proposed to set July 15, 2019 as the dividend record date.

Dividends per one ALROSA’s share in 2009-2018

analyt_17062019_eng_1.png


Prospects for 2019

Comparative data on the rough and polished diamond sales by ALROSA Group in January-April 2019, to the respective period of 2018

analyt_17062019_rus_2.png
   

2019 started with a steep decline in the ALROSA Group diamond product sales. The drop in rough diamond sales over 4 months was 34.1%, while that in the whole diamond product was 34.2%. Even sharper decline was seen in the polished diamond sales over the January-April period – by 41.6%, but taking into consideration that the share of the polished diamonds in the total goods sales is small (about 2%), this does not have a significant effect on the ALROSA’s economic performance.

For the whole 2019 year, taking into account the seasonal decrease in the rough diamond sales in summer, ALROSA Group can get into difficulties and tax remissions to the budgets will decrease, and based on the H1 results, hardly any dividends will be paid. So, the Republic of Sakha (Yakutia) should start preparing for the significant budget cut right now.

Yury Danilov, Ph. D., Lead Research Fellow at Subsoil Use Innovative Economics Laboratory of the North-Eastern Federal University