Business model

Business model

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ALROSA’s business model is aimed at strengthening its leading position in the global diamond market, maintaining stable production volumes and revenue in the long term, and increasing shareholder value. ALROSA not only uses existing competitive advantages, but also pays great attention to innovative development and the use of modern technologies to improve operational efficiency and profitability of the business.

Resources

Natural
Mineral raw material base
  • 1,1 bln carats1 - rough diamond reserves
  • 69 licenses2 to use the subsoil for diamond mining
Production
Production capacity
  • 6 mining and processing complexes
  • 7 open pit mines
  • 3 underground mines
  • alluvial deposits
  • 3 diamond polishing companies
  • Proprietary jewelry manufacture
Financial
Investment project
  • RUB 19.0 bln
    capital investments
Intellectual
Innovative technology
  • ALROSA Video Viewer service for remote showing of rough diamonds
  • Digital transformation of production
Human
Professional collective
  • Over 31,000 employees
  • 12% of our employees are members of indigenous peoples
Social and reputational
Unchallenged International Reputation
  • Participation in international and Russian ESG ratings
  • Partnership agreements with regional authorities
  • Largest taxpayer in the Republic of Sakha (Yakutia)

ALROSA group activities

Creating value for the group
and stakeholders

Financial value
  • RUB 332 bln

    revenue from sales of
    rough and polished diamonds

  • RUB 139.5 bln

    EBITDA

  • RUB 70.1 bln

    tax deductions
    and mandatory payments

  • RUB 5.5 bln

    interest payments

  • RUB 105.9 bln

    net cash flow

  • RUB 91.3 bln

    net profit

  • RUB 135 bln

    dividends3

  • 0,4х

    Net debt / EBITDA

Non-financial value
  • 2.1%

    share of social
    expenses in revenue4

  • RUB 137,000

    average salary of an ALROSA Group employee

  • 2%

    share of environmental expenses in revenue

  • Around 92%

    share of renewable sources
    in electricity consumption

  • Over 500

    projects and initiatives
    in support of local communities and charities

  • Sustainability Program

1 According to JORC

2 Licenses to use the subsoil related to the exploration, assessment, geological survey and mining of diamonds

3 Dividends approved in 2021 based on the results for 2020 and 1H2021

4 Social expenses include the Company’s withholdings to NPF Almaznaya Osen