“Get Diamonds” platform will soon be available in Russian, Hindi, Arabic and any other languages as per demand from any countries

A first-generation diamantaire Yoram Dvash, currently serving as the Acting President at World Federation of Diamond Bourses (WFDB) and the President of the Israel Diamond Exchange (IDE), launched his diamond manufacturing and trading...

25 may 2020

Sustainability is the only way forward - Rahul Jauhari

Rahul Jauhari, Sr Vice President of Global Sales & Marketing, Star Rays, has forged ahead professionally for more than 14 years garnering experience in Business Development, Luxury Lifestyle Consultancy, Market Analysis, Global Fashion / Luxury trend...

18 may 2020

Keeping global supply chains functioning vital – De Beers

Diamond giant, De Beers has said that it is essential to keep global supply chains functioning in view of the substantial impact of Covid-19 on the industry. Group spokesperson David Johnson told Rough & Polished’s Mathew Nyaungwa in an exclusive interview...

11 may 2020

Gabon courts foreign investors to grow fledgling diamond sector

Diamond production in Gabon, which has been a member of the Kimberley Diamond Certification Process since 2018, is currently dominated by artisanal miners. The artisanal miners are producing about 300 carats per month, according to Gabon’s director of...

05 may 2020

TaTe Diamonds - a Namibian diamond company specialized in Namibian rough

Armed with degrees in Economics and Commerce and an MBA - specialized in Strategic Planning & Business Development, taShi Shiimi-ya-Shiimi is an executive, possessing many years of global experience in Information Technology and Strategic Management...

27 april 2020

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