IR-release: Q3 and 9M 2017 Operational Overview. 23 October 2017

Transcription

1 IR-release: and Operational Overview 23 October

2 Disclaimer 2 The below applies to the presentation (the Presentation ) following this important notice, and you are therefore advised to read this important notice carefully before reading, accessing or making any other use of this Presentation. This Presentation contains statements about future events and expectations that are forward-looking statements. Any statement herein (including, without limitation, a statement regarding our financial position, strategy, management plans and future objectives) that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause ALROSA s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding the future performance. The information and opinions contained in this document are provided as at the date hereof (unless indicated otherwise) and are subject to change without notice. ALROSA assumes no obligation to update, supplement or revise the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. The diamond resources and reserves estimates provided in this Presentation have been prepared and presented in accordance with the standards and classifications of the JORC Code (the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves as promulgated by the Australasian Joint Ore Reserves Committee), which differ in significant respects from the standards and classifications applicable to the disclosure of mineral resources and reserves under the laws and regulations of certain other jurisdictions, including the regulations of the U.S. Securities Exchange Commission (the SEC ) with respect to registration statements and other documents filed with the SEC. Among other things, in accordance with the JORC Code, this Presentation provides certain mineral resources estimates classified as inferred, indicated or measured, which differ in significant respects from probable and proven mineral reserves estimates and are not disclosed in certain jurisdictions, including in SEC filings. There can be significant uncertainty as to whether mineral resources can ever be feasibly and commercially mined. For further explanation of the JORC Code, see the JORC website at This Presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire any securities in any jurisdiction or an inducement to enter into any investment activity. The contents hereof should not be construed as investment, legal, tax, accounting or other advice, and investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such issuer and the nature of the securities and consult their own advisers as to legal, financial, tax and other related matters. This Presentation has not been independently verified. No representation or warranty or undertaking, express or implied, is made as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation. None of ALROSA nor any of its shareholders, directors, officers or employees, affiliates, advisors, representatives nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness. This Presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons in whose possession this Presentation and/or such information may come are required to inform themselves about and to observe such restrictions. Some numerical figures included in this Presentation have been subject to rounding adjustments. By reviewing and/or attending this Presentation you acknowledge and agree to be bound by the foregoing.

3 I. Operational overview II. Aikhal division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara and Operational overview of ALROSA 3 Diamond production 27.9 mln cts 31.0 mln t 0.90 cpt +6% 29.5 mln cts 31.9 mln t 0.93 cpt Diamonds produced (mln cts) Ore and gravels processed (mln t) Grade (cpt) results diamond production was 29,541 thousand carats. diamond production growth by 6% was driven by increase in processing volumes of gravels from alluvial placers of the Nyurba division, growth in processing volumes of ore from the Udachny underground mine and processing of higher grade ore from Karpinskogo-1 pipe of the Lomonosov division.

4 I. Operational overview II. Aikhal division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara and ALROSA s production footprint 4 Mining methods: Underground mining (25%) Open-pit mining (49%) Arkhangelsk Region (6%) Arkhangelsk Lomonosov Division (6%) Arkhangelskaya pipe (3%) Alluvial mining (26%) Russia Karpinskogo-1 pipe (3%) Russia Republic of Sakha (Yakutia) (94%) Almazy Anabara and (17%) Aikhal Division (27%) Jubilee pipe (22%) Aikhal pipe (4%) Komsomolskaya pipe (1%) Mirny Division (21%) Mir pipe (9%) International pipe (10%) Alluvial deposits (2%) Republic of Sakha (Yakutia) Udachny Aikhal Yakutsk Mirny Nyurba Udachny Division (9%) Udachnaya pipe (6%) Zarnitsa pipe (2%) Alluvial deposits (1%) Nyurba Division (20%) Nyurbinskaya pipe (10%) Botuobinskaya pipe (4%) Alluvial deposits (6%) Note: percentage in brackets indicates the share of region/division/pipe in ALROSA diamond production

5 AIKHAL DIVISION 5

6 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara and Aikhal Division structure and operational overview 6 Diamond production 8, cts 7, t 1.15 cpt (3%) 8, cts 6, t 1.26 cpt Diamonds produced ( 000 cts) 2,686 2,763 2,854 3,925 3,039 3,850 1,200 Ore processed ( 000 t) 2,595 2,620 2,024 2,711 2,619 2,623 1,160 Grade (cpt) Structure of operations results Jubilee pipe 8 km Processing Plant No. 14 Capacity: 10 mln t annually 18 km Komsomolskaya pipe diamond production was 8,089 thousand carats. decrease in diamond production by 3% was due to planned lower ore processing volumes and maintenance works at the Processing plant No km Processing Plant No. 8 Capacity: 1.7 mln t annually Mining methods: Aikhal pipe Underground mining Open-pit mining

7 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara and Aikhal Division operational overview 7 Jubilee pipe 25% share in ALROSA production decrease in diamond production by 5% was due to conduction of planned maintenance works at the Processing plant No. 14. Diamonds produced ( 000 cts) 2,290 2,358 2,260 6,908 2,323 2,557 2,985 1,035 6,577 (5%) Ore processed ( 000 t) 2,214 2,206 1,680 6,100 2,350 2,210 2, ,236 (14%) Grade (cpt) % Aikhal underground mine 7% share in ALROSA production diamond production growth by 13% was due to processing of higher grade ore. In there was no processing volumes of ore from the Aikhal underground mine scheduled for production in line with the Company s production plan. Diamonds produced ( 000 cts) ,023 1, ,155 13% Ore processed ( 000 t) % Grade (cpt) % Komsomolskaya pipe 1% share in ALROSA production diamond production decrease by 4% resulted from processing of relatively lower grade ore. Diamonds produced ( 000 cts) (4%) Ore processed ( 000 t) % Grade (cpt) (8%)

8 MIRNY DIVISION 8

9 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Mirny Division structure and operational overview 9 Diamond production 5, cts 3, t 1.51 cpt +3% 5, cts 3, t 1.52 cpt Diamonds produced ( 000 cts) 1,808 2,123 1,759 2,118 2,156 2,289 1,406 Ore and gravels processed ( 000 t) 496 1,558 1,722 1, ,512 1,836 Grade (cpt) Structure of operations Vodorazdelnye Galechniki placer results diamond production was 5,851 thousand carats. 10 km increase in diamond production by 3% was due to processing of relatively higher grade ore from the Mir underground mine. 16 km Processing Plant No. 3 Capacity: 2 mln t annually 4 km Dredges No. 201, 202, 203 Capacity: 4 mln t annually On 4 th August diamond production at the Mir underground mine was suspended as a result of the accident. Mir pipe Mining methods: International pipe Irelyakhskaya placer Gornoye placer Underground mining Alluvial mining

10 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Mirny Division operational overview 10 International underground mine 11% share in ALROSA production decrease in diamond production by 2% was due to processing of lower grade ore. Diamonds produced ( 000 cts) 1,043 1, ,873 1,075 1,084 1, ,811 (2%) Ore processed ( 000 t) % Grade (cpt) (17%) Mir underground mine 9% share in ALROSA production diamond production growth by 9% resulted from processing of relatively higher grade ore. Diamonds produced ( 000 cts) , , ,539 9% Ore processed ( 000 t) (2%) Grade (cpt) % Alluvial and technogenic deposits 1% share in ALROSA production growth of diamond production by 3% was driven by minor increase in processing volumes of gravels. Diamonds produced ( 000 cts) % Gravels processed ( 000 t) 143 1,178 1,409 2, ,083 1,617 2,749 1% Grade (cpt)

11 UDACHNY DIVISION 11

12 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Udacnhy Division structure and operational overview 12 Diamond production 2, cts 3, t 0.56 cpt +29% 2, cts 4, t 0.60 cpt Diamonds produced ( 000 cts) 1, ,004 1, Ore and gravels processed (mln t) 1,770 1, ,936 1,730 1,485 1,474 Grade (cpt) Structure of operations Zarnitsa pipe results Udachnaya pipe diamond production was 2,833 thousand carats. 2 km 21 km increase in diamond production by 29% was due to higher processing volumes of ore and gravels from all production sites of the Udachny Division. Processing Plant No. 12 Capacity: 12 mln t annually Delluvialny placer Ruchey Piropovy placer Mining method Underground mining Open-pit mining Alluvial mining

13 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Udachny Division operational overview 13 Udachny open pit mine 2% share in ALROSA production diamond production growth by 13% was driven by planned increase in processing volumes of ore. Diamonds produced ( 000 cts) % Ore processed ( 000 t) , ,296 13% Grade (cpt) Udachny underground mine 4% share in ALROSA production diamond production growth by 43% was due to planned increase in processing volumes of ore. Diamonds produced ( 000 cts) % Ore processed ( 000 t) % Grade (cpt) % Zarnitsa pipe 2% share in ALROSA production diamond production growth by 34% resulted from planned increase in processing volumes of ore. Diamonds produced ( 000 cts) % Ore processed ( 000 t) ,760 1, ,063 17% Grade (cpt) % Alluvial placers less than 1% share in ALROSA production diamond production growth by 39% was due to planned increase in processing volumes of ore. Diamonds produced ( 000 cts) % Gravels processed ( 000 t) % Grade (cpt) %

14 м 14 NYURBA DIVISION

15 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Nyurba Division structure and operational overview 15 Diamond production 4, cts 1, t +14% 5, cts 1, t 3.48 cpt 4.54 cpt Diamonds produced ( 000 cts) 2,160 1,156 1,673 1,804 2,242 1,148 2,299 Ore and gravels processed (mln t) Grade (cpt) Structure of operations results Processing Plant No. 15 Capacity: 0.5 mln t annually diamond production was 5,689 thousand carats. Processing Plant No. 16 Capacity: 1.4 mln t annually increase in diamond production by 14% was driven by planned higher processing volumes of ore from the Botuobinskaya pipe and gravels from alluvial placers. 5 km 2 km Botuobinskaya placer Nyurbinskaya pipe Mining methods: Botuobinskaya pipe Nyurbinskaya placer Open-pit mining Alluvial mining

16 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Nyurba Division operational overview 16 Nyurbinskaya pipe 13% share in ALROSA production decline in diamond production by 20% was due to a planned decrease in ore processing volumes. Diamonds produced ( 000 cts) 1, ,207 3,535 1,466 1, ,821 (20%) Ore processed ( 000 t) (19%) Grade (cpt) (2%) Botuobinskaya pipe 2% share in ALROSA production increase in diamond production by 2.5 times was driven by planned higher ore processing volumes. Diamonds produced ( 000 cts) , х Ore processed ( 000 t) х Grade (cpt) (11%) Alluvial deposits 3% share in ALROSA production diamond production growth by 72% was due to planned increase in gravels processing volumes. Diamonds produced ( 000 cts) ,077 1,657 72% Gravels processed ( 000 t) х Grade (cpt) (36%)

17 СЕВЕРАЛМАЗ 17 LOMONOSOV DIVISION (SEVERALMAZ)

18 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Lomonosov Division (Severalmaz) structure and operational overview 18 Diamond production 1, cts +21% 1, cts 2, t 0.78 cpt 3, t 0.51 cpt Diamonds produced ( 000 cts) Ore processed (mln t) 919 1,072 1, Grade (cpt) Structure of operations Results Karpinskogo-1 pipe diamond production was 1,883 thousand carats. 2 km Processing Plant No. 1 In, diamond output growth by 21% was mainly driven by processing of higher grade ore from the Karpinskogo-1 pipe. Module No. 2 Capacity: 3 mln t annually 3 km Module No. 1 Capacity: 1 mln t annually Mining method: Arkhangelskaya pipe Open-pit mining

19 I. Обзор деятельности II. Айхальский ГОК III. Мирнинский ГОК IV. Удачнинский ГОК V. Нюрбинский ГОК VI. Ломоносовский ГОК VII. АО «Алмазы Анабара» и АО «Нижне-Ленское» Lomonosov Division operational overview 19 Arkhangelskaya pipe 3% share in ALROSA production In, decline in volumes of ore processing by 26% caused insignificant diamond output decrease by 2% due to extraction of higher grade ore. Diamonds produced ( 000 cts) (2%) Ore processed ( 000 t) , ,305 (26%) Grade (cpt) % Karpinskogo-1 pipe 3% share in ALROSA production In, increase in diamond production by 49% was due to extraction of ore with a higher grade. Diamonds produced ( 000 cts) ,027 49% Ore processed ( 000 t) , ,097 (14%) Grade (cpt) %

20 ALMAZY ANABARA AND NIZHNE-LENSKOYE

21 I. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Almazy Anabara and operational overview 21 17% share in ALROSA production 5, cts 11, t 0.43 cpt +1% 5, cts 12, t 0.40 cpt Diamonds produced ( 000 cts) 3,488 3, , ,257 Gravels processed ( 000 t) 0 3,948 7, ,184 9,716 Grade (cpt) Results diamond production was 5,197 thousand carats. increase in diamond production by 1% resulted from slightly higher volumes of ore processing.

22 Appendix 22

23 Diamond production cts 2015 Aikhal Division 12,322 12,228 2,686 2,763 2,854 8,303 3,925 3,039 3,850 1,200 8,089 Jubilee pipe 9,405 9,231 2,290 2,358 2,260 6,908 2,323 2,557 2,985 1,035 6,577 Aikhal underground mine 2,841 2, ,023 1, ,155 Komsomolskaya pipe Mirny Division 6,908 7,808 1,808 2,123 1,759 5,690 2,118 2,156 2,289 1,406 5,851 International underground mine 4,024 3,948 1,043 1, ,873 1,075 1,084 1, ,811 Mir underground mine 2,198 3, , , ,539 Alluvial and technogenic deposits Udachny Division 4,297 3,167 1, , ,004 1, ,833 Udachnaya pipe 3, Udachnaya underground mine 413 1, Zarnitsa pipe Alluvial deposits Nyurba Division 7,510 6,793 2,160 1,156 1,673 4,989 1,804 2,242 1,148 2,299 5,689 Nyurbinskaya pipe 5,010 5,001 1, ,207 3,535 1,466 1, ,821 Botuobinskaya pipe ,211 Alluvial deposits 1,726 1, ,077 1,657 Lomonosov Division (Severalmaz) 1,950 2, , ,883 Arkhangelskaya pipe 861 1, Karpinskogo-1 pipe 1, ,027 Almazy Anabara and 5,273 5,145-1,657 3,488 5, ,257 3,940 5,197 Total 38,260 37,358 8,189 8,736 10,957 27,882 9,476 8,930 10,357 10,255 29,541

24 Ore and sands processing t 2015 Aikhal Division 9,141 9,950 2,595 2,620 2,024 7,239 2,711 2,619 2,623 1,160 6,402 Jubilee pipe 8,355 8,450 2,214 2,206 1,680 6,100 2,350 2,210 2, ,236 Aikhal underground mine Komsomolskaya pipe 260 1, Mirny Division 5,706 4, ,558 1,722 3,776 1, ,512 1,836 3,843 International underground mine Mir underground mine Alluvial and technogenic deposits 4,574 3, ,178 1,409 2, ,083 1,617 2,749 Udachny Division 5,377 5,837 1,770 1, ,901 1,936 1,730 1,485 1,474 4,689 Udachnaya pipe 3,250 1, , ,296 Udachnaya underground mine Zarnitsa pipe 993 2, ,760 1, ,063 Alluvial deposits Nyurba Division 2,040 1, , ,635 Nyurbinskaya pipe 979 1, Botuobinskaya pipe Alluvial deposits Lomonosov Division (Severalmaz) 3,988 4, ,072 1,058 3, ,402 Arkhangelskaya pipe 1,903 2, , ,305 Karpinskogo-1 pipe 2,086 1, , ,097 Almazy Anabara and 10,862 11,906-3,948 7,958 11, ,184 9,716 12,900 Total 37,114 38,071 6,139 10,799 14,033 30,971 7,100 6,132 10,055 15,684 31,870

25 Resources inclusive of reserves according to JORC Code as of July 1, (1/2) 25 Deposit Resource category Tonnage ('000 t) Resource grade (cpt) Contained diamonds ('000 cts) Udachny division Measured 13, ,812 Udachnaya Pipe Indicated 83, ,801 Inferred 53, ,978 Zarnitsa Pipe Indicated 27, ,858 Verkhne-Munskoe Deposit Indicated 46, ,616 Inferred 17, ,857 Alluvial deposits Indicated 2, Inferred 1, Aikhal division Measured 18, ,815 Jubilee Pipe Indicated 88, ,401 Inferred 57, ,352 Measured 4, ,666 Aikhal Pipe Indicated ,168 Inferred 1, ,966 Komsomolskaya Pipe Indicated 3, ,494 Zaria Pipe Indicated 12, ,515 Inferred 27, ,583 Mirny division Mir Pipe International Pipe Alluvial deposits Solur-Vostochnaya placer Measured 20, ,521 Indicated 16, ,525 Inferred 1, ,339 Measured 1, ,888 Indicated 3, ,848 Measured 17, ,379 Indicated 22, ,322 Inferred Indicated 5, ,903 Inferred

26 Resources inclusive of reserves according to JORC Code as of July 1, (2/2) 26 Deposit Nyurba division Nyurbinskaya Pipe Botuobinskaya Pipe Maiskoye Kimberlite Body Alluvial deposits Lomonosov division (Severalmaz) Arkhangelskaya Pipe Karpinsky-1 Pipe Pionerskaya Pipe Lomonosov Pipe Almazy Anabara Total for ALROSA Group of Companies Resource category Tonnage ('000 t) Resource grade (cpt) Contained diamonds ('000 cts) Measured 1, ,905 Indicated 7, ,623 Inferred 1, ,767 Measured 3, ,827 Indicated 10, ,814 Inferred 2, ,778 Indicated 1, ,426 Inferred 1, ,278 Measured Indicated 6, ,094 Inferred 4, Measured 18, ,764 Indicated 29, ,184 Inferred 39, ,941 Measured 6, ,501 Indicated 6, ,893 Inferred 8, ,993 Indicated 58, ,530 Inferred 42, ,502 Indicated 32, ,230 Inferred 42, ,530 Indicated 38, ,373 Inferred 9, ,621 Indicated 10, ,075 Inferred 16, ,661 Measured 105, ,811 Indicated 515, ,291 Measured + Indicated 620, ,102 Inferred 330, ,629 Total 951, ,029,731

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