IR-release: Q Operational Overview. 20 April 2017

Transcription

1 IR-release: Q Operational Overview 20 April 2017

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 +9% Diamonds produced (mln cts) Q Q Q Q Q Ore and gravels processed (mln t) Grade (cpt) Q results In line with 2017 production plan of 39.2 mln carats (+5% y-o-y increase), 9% y-o-y growth in production in Q is driven by ramping up diamond mining at Aikhal, Mir, International, Udachny underground mines and also by processing of higher grade ore from the Jubilee pipe.

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 (32%) Open-pit mining (65%) Arkhangelsk Region (6%) Arkhangelsk Lomonosov Division (6%) Arkhangelskaya pipe (2%) Alluvial mining (3%) Russia Karpinskogo-1 pipe (4%) Russia Republic of Sakha (Yakutia) (94%) Almazy Anabara ( ) ( ) Aikhal Division (34%) Jubilee pipe (29%) Aikhal pipe (4%) Komsomolskaya pipe (1%) Mirny Division (24%) Mir pipe (12%) International pipe (12%) Alluvial deposits (less than 1%) Republic of Sakha (Yakutia) Udachny Aikhal Yakutsk Mirny Nyurba Udachny Division (11%) Udachnaya pipe (8%) Zarnitsa pipe (2%) Alluvial deposits (1%) Nyurba Division (25%) Nyurbinskaya pipe (16%) Botuobinskaya pipe (7%) Alluvial deposits (2%) Note: percentage in brackets indicates the share of region/division/pipe in Q 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 operational overview 6 Diamond production +13% Diamonds produced ( 000 cts) 2,686 2,763 2,854 3,925 3,039 Q Q Q Q Q Ore processed ( 000 t) 2,595 2,620 2,024 2,711 2,619 Grade (cpt) Structure of operations Q results Komsomolskaya pipe Q diamond production was 3,039 thousand carats. Jubilee pipe 8 km Processing Plant No. 14 Capacity: 10 mln t annually 18 km In Q1 2017, increase in diamond production by 13% y-o-y was due to processing of higher grade ore from the Jubilee pipe and planned higher processing volumes from Aikhal underground mine. 1 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 2016 ALROSA production In Q1 2017, increase in diamond production by 12% y-o-y was due to extraction of ore with a relatively higher grade. Diamonds produced ( 000 cts) 2,290 2,358 2,260 2,323 2, % Ore processed ( 000 t) 2,214 2,206 1,680 2,350 2,210 0% Grade (cpt) % Aikhal underground mine 7% share in 2016 ALROSA production In Q1 2017, increase in diamond production by 32% y-o-y was due to planned higher processing volumes. Diamonds produced ( 000 cts) , % Ore processed ( 000 t) % Grade (cpt) (7%) Komsomolskaya pipe 1% share in 2016 ALROSA production Q diamond production remained flat y-o-y totaling 124 thousands carats. Diamonds produced ( 000 cts) % Ore processed ( 000 t) % Grade (cpt) (4%)

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 operational overview 9 Diamond production +19% Diamonds produced ( 000 cts) 1,808 2,123 1,759 2,118 2,156 Q Q Q Q Q Ore and gravels processed (mln t) 496 1,558 1,722 1, Grade (cpt) Structure of operations Vodorazdelnye Galechniki placer Q results Q diamond production was 2,156 thousand carats. 10 km In Q1 2017, increase in diamond production by 19% y-o-y was due to processing of higher grade ore from the Mir underground mine. Processing Plant No. 3 Capacity: 2 mln t annually 4 km 16 km Dredges No. 201, 202, 203 Capacity: 4 mln t annually 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 2016 ALROSA production In Q1 2017, increase in diamond production by 4% y-o-y was due to planned higher processing volumes. Diamonds produced ( 000 cts) 1,043 1, ,075 1,084 +4% Ore processed ( 000 t) % Grade (cpt) (15%) Mir underground mine 9% share in 2016 ALROSA production In Q1 2017, increase in diamond production by 47% y-o-y was due to processing of higher grade ore Diamonds produced ( 000 cts) , % Ore processed ( 000 t) % Grade (cpt) % Alluvial and technogenic deposits 1% share in 2016 ALROSA production In Q1 2017, decline in diamond production by 47% y-o-y was driven by a planned decrease in processing volumes of gravels at Processing Plant No.3 and processing of additional volumes of ore from the Mir and International underground mines. Diamonds produced ( 000 cts) (47%) Gravels processed ( 000 t) 143 1,178 1, (66%) 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 operational overview 12 Diamond production (8%) Diamonds produced ( 000 cts) 1, ,004 Q Q Q Q Q Ore and gravels processed (mln t) Grade (cpt) 1,770 1, ,936 1, Structure of operations Zarnitsa pipe Q results Udachnaya pipe Q diamond production was 1,004 thousand carats. 2 km Processing Plant No. 12 Capacity: 12 mln t annually Delluvialny placer Ruchey Piropovy placer 21 km Mining method Underground mining Open-pit mining Alluvial mining In Q1 2017, decrease in diamond production by 8% y-o-y was due to the mining termination at the Udachny open pit, and processing of lower grade ore from the Zarnitsa pipe and alluvial placers. In Q1 2017, diamond production was 404 thousand carats at Udachny underground mine in accordance with longterm development plan of ALROSA.

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 2016 ALROSA production In Q1 2017, decrease in diamond production by 68% y-o-y was due to processing of ore with a relatively lower grade. Diamonds produced ( 000 cts) (68%) Ore processed ( 000 t) (42%) Grade (cpt) (45%) Udachny underground mine 4% share in 2016 ALROSA production Udachny underground mine is developing in line with the Company s plan. In Q1 2016, there were no ore processing volumes scheduled for production. Diamonds produced ( 000 cts) Ore processed ( 000 t) Grade (cpt) Zarnitsa pipe 2% share in 2016 ALROSA production In Q1 2017, surge in diamond production by 67% y-o-y was driven by planned increase in ore processing volumes resulting from the open pit ramp-up project and due to processing of ore with a relatively higher grade. Diamonds produced ( 000 cts) % Ore processed ( 000 t) , % Grade (cpt) % Alluvial placers less than 1% share in 2016 ALROSA production In Q1 2017, increase in diamond production by 21% y-o-y was driven by processing of higher grade gravels. Diamonds produced ( 000 cts) % Gravels processed ( 000 t) (3%) 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 operational overview 15 Diamond production +4% Diamonds produced ( 000 cts) 2,160 1,156 1,673 1,804 2,242 Q Q Q Q Q Ore and gravels processed (mln t) Grade (cpt) Structure of operations Processing Plant No. 15 Capacity: 0.5 mln t annually Q results Q diamond production was 2,242 thousand carats. 5 km Processing Plant No. 16 Capacity: 1.4 mln t annually In Q increase in diamond production by 4% y-o-y was due to planned higher processing volumes from the Botuobinskaya pipe. 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 2016 ALROSA production In Q1 2017, decrease in diamond production by 12% y-o-y was due to a planned decrease in processing volumes of ore and extraction of ore with a relatively lower grade. Diamonds produced ( 000 cts) 1, ,207 1,466 1,477 (12%) Ore processed ( 000 t) (5%) Grade (cpt) (7%) Botuobinskaya pipe 2% share in 2016 ALROSA production In Q1 2017, increase in diamond production by 28% y-o-y was due to due to planned higher processing volumes. Diamonds produced ( 000 cts) % Ore processed ( 000 t) % Grade (cpt) (3%) Alluvial deposits 3% share in 2016 ALROSA production Diamond production at alluvial deposits is developing in line with the Company s plan. In Q1 2016, there were no gravels processing volumes scheduled for production. Diamonds produced ( 000 cts) Gravels processed ( 000 t) Grade (cpt)

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) operational overview 18 Diamond production +10% Diamonds produced ( 000 cts) Q Q Q Q Q Ore processed ( 000 t) 919 1,072 1, Grade (cpt) Structure of operations Q results Karpinskogo-1 pipe Q diamond production was 489 thousand carats. 2 km Processing Plant No. 1 In Q1 2017, diamond output growth by 10% y-o-y was driven by the 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. Operational overview II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Almazy Anabara and Lomonosov Division operational overview 19 Arkhangelskaya pipe 3% share in 2016 ALROSA production In Q1 2017, decrease in diamond production by 48% y-o-y was due to processing of ore with a relatively lower grade. Diamonds produced ( 000 cts) (48%) Ore processed ( 000 t) (24%) Grade (cpt) (32%) Karpinskogo-1 pipe 3% share in 2016 ALROSA production In Q1 2017, increase in diamond production by 2.3х y-o-y was due to extraction of ore with a relatively higher grade. Diamonds produced ( 000 cts) х Ore processed ( 000 t) % 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 21 Almazy Anabara 9% share in 2016 ALROSA production In Q1 2017, no gravels were processed due to seasonality of gravel mining. Diamonds produced ( 000 cts) 2,218 1, Q Q Q Q Q Gravels processed ( 000 t) 0 1,764 3, Grade (cpt) % share in 2016 ALROSA production In Q1 2017, no gravels were processed due to seasonality of gravel mining. 1,270 Diamonds produced ( 000 cts) Q Q Q Q Q Gravels processed ( 000 t) 0 2,184 4, Grade (cpt)

22 Appendix 22

23 Diamond production cts Q Q Q Q Q Aikhal Division 12,565 12,322 12,228 2,686 2,763 2,854 3,925 3,039 Jubilee pipe 9,122 9,405 9,231 2,290 2,358 2,260 2,323 2,557 Aikhal underground mine 3,292 2,841 2, , Komsomolskaya pipe Mirny Division 6,088 6,908 7,808 1,808 2,123 1,759 2,118 2,156 International underground mine 3,862 4,024 3,948 1,043 1, ,075 1,084 Mir underground mine 1,463 2,198 3, ,045 Alluvial and technogenic deposits Udachny Division 3,679 4,297 3,167 1, ,004 Udachnaya pipe 3,390 3, Udachnaya underground mine , Zarnitsa pipe Alluvial deposits Nyurba Division 7,363 7,510 6,793 2,160 1,156 1,673 1,804 2,242 Nyurbinskaya pipe 6,542 5,010 5,001 1, ,207 1,466 1,477 Botuobinskaya pipe Alluvial deposits 821 1,726 1, Lomonosov Division (Severalmaz) 1,639 1,950 2, Arkhangelskaya pipe 1, , Karpinskogo-1 pipe Almazy Anabara 3,059 3,309 3,421-1,203 2, ,818 1,964 1, , Total 36,212 38,260 37,358 8,189 8,736 10,957 9,476 8,930

24 Ore and sands processing t Q Q Q Q Q Aikhal Division 9,478 9,141 9,950 2,595 2,620 2,024 2,711 2,619 Jubilee pipe 8,506 8,355 8,450 2,214 2,206 1,680 2,350 2,210 Aikhal underground mine Komsomolskaya pipe , Mirny Division 4,903 5,706 4, ,558 1,722 1, International underground mine Mir underground mine Alluvial and technogenic deposits 3,978 4,574 3, ,178 1, Udachny Division 4,814 5,377 5,837 1,770 1, ,936 1,730 Udachnaya pipe 3,710 3,250 1, Udachnaya underground mine Zarnitsa pipe 1, , , Alluvial deposits Nyurba Division 2,000 2,040 1, Nyurbinskaya pipe 1, , Botuobinskaya pipe Alluvial deposits Lomonosov Division (Severalmaz) 3,309 3,988 4, ,072 1, Arkhangelskaya pipe 2,793 1,903 2, Karpinskogo-1 pipe 516 2,086 1, Almazy Anabara 5,604 5,222 5,300-1,764 3, ,814 5,640 6,606-2,184 4, Total 35,922 37,114 38,071 6,139 10,799 14,033 7,100 6,132

25 Resources inclusive of reserves according to JORC Code as of July 1, 2016 (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, 2016 (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

27 Thank you! Corporate Finance Investor Relations 24/1 Ozerkovskaya emb., Moscow Russia Tel.: