The Grib Diamond Mine: Geology, Ecology and Industrial Safety

Gennady Piven, First Deputy General Manager of AGD Diamonds JSC, talks about his work at the diamond fields in Yakutia and in the Arkhangelsk Province.

10 december 2018

I have a dream to see India become a world leader in high-end jewellery manufacturing - Sanjay Kothari

An industry leader who needs no introduction to the gem and jewellery industry is Sanjay Kothari…the former chairman of the GJEPC of India has held various positions in the Council including being Convener-Exhibitions for many years before becoming Convener-Promotions...

03 december 2018

Style always reflects culture

Reena Ahluwalia is a multifaceted artist …an award-winning jewelry designer, diamond painter, professor, speaker and a community builder and more. Recognized as one of the Top Masters of Jewelry Design and art in Canada, she has been creating jewelry...

26 november 2018

Botswana Diamonds’ Campbell on Alrosa exit: no exploration JV lasts forever

Botswana Diamonds is currently in talks with a major diamond producer interested in taking over a stake in Sunland Minerals previously owned by Alrosa. The Sunland joint venture was established in 2014 to test existing Alrosa exploration technology on...

19 november 2018

If real gems are replaced by artificial stones, it is not the difference in value that sellers may cheat you out, but the very idea that you are to obtain along with a jewelry piece made from a genuine stone

Elena Titova is the Director of the All-Russian Decorative Art Museum. The museum, which she heads, was founded fairly recently (less than 40 years ago), but it is one of the most popular and stylish museums of Moscow, famous, among other things...

12 november 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.”