“We are building a new state-of-the-art tender facility,” says Ahmed Bin Sulayem, Executive Chairman, DMCC

Ahmed Bin Sulayem certainly needs no introduction being widely popular globally as one of the leaders of modern Dubai. As the Executive Chairman of DMCC, Ahmed Bin Sulayem has played and continues to play a key role in establishing and positioning DMCC...

20 may 2019

De Beers scaling up Tracr ahead of formal launch

De Beers tracked 100 high-value diamonds along the value chain during the pilot of Tracr™, its industry blockchain platform, for the first time in May last year. A De Beers spokesperson Bianca Ruakere told Rough & Polished in an exclusive interview that...

13 may 2019

The perfect couple - platinum and diamonds

The Jewelry House of Leon Megé located in New York has long been firmly established in the jewelry market as a source of magnificent jewelry, in which platinum and diamonds often sparkle being married together and attracting everyone’s eyes, but are...

06 may 2019

The technology of growing single-crystal diamonds has now become industrial in nature

It is believed that the reserves of natural diamonds will be exhausted by the middle of the century, and therefore production of synthetic diamonds is rapidly gaining relevance. According to Business Insider India’s estimates, the global synthetic diamond...

29 april 2019

De Beers only selling Elizabeth Bay Mine in Namibia, move to sustain operations beyond 2019

Namdeb Holdings, a 50/50 joint venture between the Namibian government and De Beers is not selling Daberas, Sendelingsdrift and Southern Coastal mines in the southern African country. It had been alleged that Namdeb was planning to close and offload...

22 april 2019

ALROSA’s revenue up 9% in 2018 despite a drop in sales in carats by 8%

15 march 2019

ALROSA, the world’s leader in diamond mining, announces its IFRS financial results for 2018.
The company’s revenue during 12 months of 2018 increased by 9% to RUB 300 bn driven by higher price index and a better sales mix, despite an 8% lower sales in carats.
EBITDA grew by 23% to RUB 156 bn supported by top line growth and cost control while EBITDA margin expanded by 6 p.p. to 52%. Net profit grew to RUB 90 bn (up 15%) on stronger profitability. Free cash flow went up by 26% to RUB 92 bn following profitability expansion despite moderate capex growth. Net debt to EBITDA was at 0.4x in 2018 compared to 0.7x in the previous year.
In Q4 2018 ALROSA’s evenue decreased by 12% q-o-q to RUB 61 bn, mainly due to sales mix change with increased sales of industrial diamonds. A 1% y-o-y growth was due to increase in average selling price offsetting lower sales in carats. EBITDA in Q4 declined by 33% q-o-q to RUB 27 bn as revenue declined. On a y-o-y basis, EBITDA remained unchanged while EBITDA margin in Q4 remained flat at 44%.
Free cash flow (FCF) decreased to RUB 14.3 bn (down 11% q-o-q) as operating cash flow was 14% down q-o-q, while capex was down 20% q-o-q. On a y-o-y basis, FCF grew by 22% due to a 18% drop in capex, and 6% growth in operating cash flow. Net profit in Q4 declined to RUB 8 bn (down 67% q-o-q) due to a weaker EBITDA. A 53% reduction y-o-y was attributable to the recognition of income from the SOGAZ insurance reimbursement as other operating income for 2017, with the said reimbursement paid in full in 2018.