Color diamonds are more valuable and desirable and a better investment

In 1993, Eyal Cohen started his career as a diamond cutter, sitting by his father’s side as an apprentice. 4 years later, he was recruited by a jewelry firm, where he learned to appreciate natural colored diamonds. In 2003, Eyal opened his own company...

17 september 2018

Debate on the main issues affecting the diamond business is absolutely critical - Ernie Blom

Having taken part in the fruitful discussions with the world leaders at the Asian Summit held recently in Vladivostok, Ernie Blom, President, World Federation of Diamond Bourses (WFDB) now looks forward to taking the worthy inputs received at...

10 september 2018

Reflecting the nature of the industry, US jewellery market is significantly seasonal with great ‘ebb and flow’ in demand, opines Vin Lee

Vin Lee, CEO of Beverly Hills-based Grand Metropolitan, a privately-held luxury goods holding company had migrated from Canada as a child. And one can see that it did not take him long to ascend the US luxury world, establishing himself as a formidable...

27 august 2018

Vladimir Zboykov: New times have come for jewelers

How a personal collection of minerals was thrown on the scrap-heap, who is behind the destruction of gemstone consumption culture in Russia and why jewelers will soon have to choose between business and prison – all this was told to Rough & Polished...

20 august 2018

Changing preconceptions in the diamond and financial markets

Eli Avidar is a man on the move…literally. In April, the former Israeli diplomat stepped away from the CEO’s office at the Israel Diamond Exchange, a position he had held for more than two years, and from the Israel Diamond Institute, where he had been...

13 august 2018

ALROSA’s Supervisory Board approves key parameters of its new dividend policy

28 june 2018
On June 21, 2018 the Supervisory Board of ALROSA, the world’s largest diamond producer, approved key parameteres of its new dividend policy presented by the management. The new dividend policy based on these parameters will be submitted for the Supervisory Board approval by the end of 3Q 2018.
New parameters of the dividend policy, proposed by Company’s management, introduce a new basis for dividends’ calculation, set the minimum level of dividends, and change the frequency of dividend payments.
Frequency: In line with the new dividend policy, dividends will be paid twice a year (for the first 6 months and for 12 months of the year net of dividends for the first 6 months paid previously). Current practice is to pay dividends once a year based on the Company’s annual performance.
Basis for dividends calculation: Free cash flow (FCF ) representing the IFRS operating cash flow net of CAPEX is proposed to be used as a new basis for calculating dividend payments. When calculating dividend payments, company’s leverage will also be considered.
The minimum dividend payout ratio: The Supervisory Board has also approved the proposal to formalise the recent practice by setting a minimum dividend payout ratio at 50% of IFRS net income paid in case the actual and or estimated Net Debt / EBITDA ratio is below 1.5x.
The new version of the dividend policy with the parameters approved by the Supervisory Board on 21 June 2018 including a more detailed description of the methodology for calculating the the amount of free cash flow to be paid as dividends will be submitted for Supervisory Board approval in September 2018.
Sergey Ivanov, Chief Executive Officer – Chairman of the Executive Committee at ALROSA:
“In recent years, the Company has been delivering strong financial performance while retaining its global industry leadership both in profitability and financial health. As a public company, ALROSA is committed to improving its transparency and ensuring a clear and reasonable dividend policy that strikes a balance between shareholders’ interests, financial resilience at any market conditions, and capability to ensure sustainable development of our business.
 Low leverage coupled with a prudent investment strategy, focus on development of only our core assets, and a consistent approach to operational efficiency improvements delivers positive free cash flow, which will be used to pay dividends.
 To ensure optimal leverage in the mid- and long-term, we plan to keep the target Net Debt / EBITDA ratio between 0.5x and 1.0x.”