IR-release: Q3 and 9M 2014 Operational Overview October 20, 2014
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 www.jorc.org. 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.
Operational of ALROSA 3 Diamond production (5%) 9M 27.1 mln cts 29.9 mln t 0.90 cpt 9M 2014 25.7 mln cts 28.6 mln t 0.90 cpt +21% Diamonds produced (mln cts) 7.5 9.6 9.9 9.9 7.9 8.0 9.7 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore and gravels processed (mln t) 5.4 10.2 14.3 6.4 5.4 10.3 13.0 1.37 0.94 0.69 1.55 1.47 0.78 0.75 Q3 2014 results Q3 2014 diamond production totaled 9.7 million carats, an increase of 21% q-o-q. The production increase was driven by: seasonal production growth at the alluvial deposits completion of planned annual maintenance at Processing Plant No. 8 production ramp-up at Severalmaz in line with the Company s plan 9M 2014 results 9M 2014 diamond production totaled 25.7 million carats, a decrease of 5% y-o-y. The production decrease results from the reduction in ore processing at the Udachnaya pipe. The Udachny underground mine development has been progressing with no deviation from the Company s plan
Diamond production 4 000 cts Q3 2014 Q2 2014 Q3 2014 vs. Q2 2014 9M 2014 9M 9M 2014 vs. 9M Aikhal Division 2,981 2,368 26% 8,349 8,109 3% Jubilee pipe 2,141 2,357 (9%) 6,824 6,628 3% Aikhal underground mine 743 0-1,381 1,435 (4%) Komsomolskaya pipe 97 11 8.8х 144 46 3.1х Mirny Division 621 1,552 (60%) 3,650 5,455 (33%) International underground mine 173 842 (79%) 2,327 3,228 (28%) Mir underground mine 139 498 (72%) 689 1,586 (57%) Alluvial and technogenic deposits 309 212 46% 634 641 (1%) Udachny Division 293 1,039 (72%) 2,449 3,462 (29%) Udachnaya pipe 257 1,012 (75%) 2,324 3,353 (31%) Zarnitsa pipe 36 27 33% 125 109 15% Nyurba Division 2,264 848 2.7х 5,179 5,076 2% Nyurbinskaya pipe 1,733 597 2.9х 4,397 4,288 3% Alluvial deposits 531 251 2.1х 782 788 (1%) Lomonosov Division (OJSC Severalmaz (hereinafter Severalmaz)) 524 394 33% 1,151 423 2.7х Arkhangelskaya pipe 524 394 33% 1,151 423 2.7х OJSC Almazy Anabara (hereinafter Almazy Anabara) 1,820 1,239 47% 3,059 2,521 21% OJSC Nizhne-Lenskoye (hereinafter Nizhne-Lenskoye) 1,234 584 2.1х 1,818 2,010 (10%) Total 9,737 8,024 21% 25,655 27,056 (5%)
ALROSA s production footprint 5 Mining methods: Underground mining (17%) Arkhangelsk Region (4%) Lomonosov Division (4%) Arkhangelskaya pipe (4%) Open-pit mining (58%) Alluvial mining (25%) Russia Arkhangelsk Karpinskogo-1 pipe ( ) Russia Republic of Sakha (Yakutia) (96%) Almazy Anabara (12%) Nizhne-Lenskoye (7%) Republic of Sakha (Yakutia) Udachny Division (10%) Aikhal Division (33%) Jubilee pipe (27%) Aikhal pipe (5%) Komsomolskaya pipe (less then 1%) Mirny Division (14%) Mir pipe (3%) Udachny Aikhal Nyurba Mirny Yakutsk Udachnaya pipe (9%) Zarnitsa pipe (less than 1%) Nyurba Division (20%) Nyurbinskaya pipe (17%) International pipe (9%) Alluvial deposits (2%) Botuobinskaya pipe ( ) Alluvial deposits (3%) Note: Percentage in brackets indicates the share of region/division/pipe in 9M 2014 ALROSA diamond production
AIKHAL DIVISION 6
Aikhal Division 7 Division structure Processing Plant No. 8 Aikhal pipe Komsomolskaya pipe Processing Plant No. 14 Jubilee pipe Location of operations Komsomolskaya pipe 8 km Processing Plant No. 14 Capacity: 10 mln t annually 18 km Share in ALROSA production: 33% Jubilee pipe 1 km Processing Plant No. 8 Capacity: 1.7 mln t annually Mining methods: Aikhal pipe Underground mining Open-pit mining Results vs. 2012 Diamonds produced 12,088 35% Almazy Anabara Ore processed 9,817 (7%) Nizhne-Lenskoye Tonnage Resources inclusive of reserves (1) Tonnage Reserves (1) Contained diamonds 117,227 1.04 121,578 Contained diamonds 215,804 1.01 218,694 Note: (1) According to JORC Code (as of 01.07.) 0 200 400 km Udachny Division Aikhal Division Udachny Aikhal Nyurba Division Nyurba Mirny Division Mirny Yakutsk
Operational of Aikhal Division 8 Diamond production 3% 8,109 9M 2014 8,349 9M 2014 +26% Diamonds produced 1,984 3,669 2,456 3,978 3,000 2,368 2,981 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 2,605 2,644 2,040 2,528 2,436 2,244 2,168 0.76 1.39 1.20 1.57 1.23 1.06 1.38 Q3 2014 results 9M 2014 results Q3 2014 diamond production totaled 2,981 thousand carats, which is 26% higher compared to Q2 2014 Diamond production increase was due to the resumption of ore processing at the Aikhal underground mine in Q2 2014, the ore was not processed due to planned overhaul at Processing Plant No. 8 9M 2014 diamond production totaled 8,349 thousand carats, which is 3% higher y-o-y Diamond production increase was driven by mining and processing of higher grade ore from the central lobe of the Jubilee pipe
Jubilee pipe 9 Mining method: Open-pit mining current mining area Commissioned: 1985 0 m surface Current open pit depth: 340 m -340 m current open pit depth eastern lobe central lobe western lobe Resources inclusive of reserves (as of 01.07.) according to JORC Code Tonnage Indicated Contained diamonds 129,017 0.84 108,166 Inferred 65,977 0.62 40,594 Total 194,994 0.76 148,760 Indicated resources Inferred resources Resources not classified in accordance with JORC Code (1) Note: (1) Potential resources according to the Russian State Commission for Mineral Reserves classification -720 m target open pit depth; boundary of indicated resources -1,100 m boundary of inferred resources -1,300 m boundary of exploration
Jubilee pipe: production 10 24% Share in ALROSA production Q3 2014 diamond production decreased by 9% vs Q2 2014 due to planned maintenance works at Processing Plant No. 14 in September 2014 Diamond production increase in 9M 2014 by 3% vs 9M was driven by mining of higher grade ore from the pipe s central lobe 3% 6,628 9M 6,824 9M 2014 (9%) 1,940 2,232 2,456 2,347 2,325 2,357 2,141 Diamonds produced Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 2,405 2,375 2,040 2,221 2,225 2,215 1,783 0.81 0.94 1.20 1.06 1.04 1.06 1.20
Aikhal pipe 11 Period of open-pit mining: 1961-1996 current mining area Open pit depth: 305 м 0 m surface Mining method: Underground mine Start of underground mining operations: 2005-305 m open pit depth south-western ore body -500 m boundary of indicated resources north-eastern ore body Resources inclusive of reserves (as of 01.07.) according to JORC Code -700 m boundary of inferred resources of southwestern ore body Tonnage Contained diamonds western lobe eastern lobe Indicated 7,729 4.68 36,159 Inferred 8,269 3.87 31,967 Total 15,998 4.26 68,126 Indicated resources Inferred resources Resources not classified in accordance with JORC Code (1) Note: (1) Potential resources according to the Russian State Commission for Mineral Reserves classification -900 m boundary of exploration
Aikhal pipe: production 12 8% Share in ALROSA production In Q2 2014 no ore processing was taking place due to planned overhaul at Processing Plant No. 8 Diamond production decrease in 9M 2014 by 4% vs 9M was due to the processing of lower grade ore (4%) 1,435 9M 1,381 9M 2014 1,435 1,627 Diamonds produced 639 743 0 0 0 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 0 263 0 297 116 0 147 0.00 5.46 0.00 5.48 5.51 0.00 5.05
Komsomolskaya pipe 13 Mining method: Open-pit mining Commissioned: 2000 0 m surface Current open pit depth: 337 m -337 m current open pit depth Resources inclusive of reserves (as of 01.07.) according to JORC Code Tonnage Indicated Contained diamonds 4,812 0.38 1,808 Total 4,812 0.38 1,808 Indicated resources -460 m target open pit depth; boundary of indicated resources
Komsomolskaya pipe: production 14 less than 1% Share in ALROSA production Q3 2014 diamond production increased 8.8 times vs Q2 2014 due to overhaul at Processing Plant No. 8 in Q2 2014 Diamond production increased 3.1 times in 9M 2014 vs 9M as Processing Plant No.8 was loaded with ore from the Jubilee pipe in 3.1х 46 9M 144 9M 2014 8.8х 97 Diamonds produced 44 2 0 4 36 11 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 200 6 0 10 95 29 238 0.22 0.33 0.00 0.40 0.38 0.38 0.41
MIRNY DIVISION 15
Mirny Division 16 Division structure Processing Plant No. 3 Mir pipe International pipe Vodorazdelnye Galechniki placer Tailings of Processing Plant No. 5 Dredges No. 201, 202, 203 Irelyakhskaya placer Location of operations Vodorazdelnye Galechniki placer 10 km Share in ALROSA production: 20% 16 km Processing Plant No. 3 Capacity: 2 mln t annually 4 km Dredges No. 201, 202, 203 Capacity: 4 mln t annually International pipe Mir pipe Irelyakhskaya placer Mining methods: Underground mining Alluvial mining Results vs. 2012 Diamonds produced 7,361 (15%) Ore and gravels processed, incl.: 5,347 0% Processing Plant No.3 2,256 4% Almazy Anabara Nizhne-Lenskoye Dredges 201, 202, 203 3,091 (3%) Tonnage Reserves (1) Contained diamonds 34,141 3.92 133,815 Udachny Division Udachny Aikhal Division Aikhal Nyurba Division Nyurba Yakutsk Tonnage Resources inclusive of reserves (1) Contained diamonds 45,874 4.07 186,765 0 200 400 km Mirny Division Mirny Note: (1) According to JORC Code (as of 01.07.)
Operational of Mirny Division 17 Diamond production (33%) 5,455 9M 2014 3,650 9M 2014 (60%) Diamonds produced 1,792 1,778 1,885 1,907 1,477 1,552 621 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 516 1,383 2,135 1,313 469 1,329 1,474 3.47 1.29 0.88 1.45 3.15 1.17 0.42 Q3 and 9M 2014 results Q3 2014 diamond production totaled 621 thousand carats, which is 60% lower compared to Q2 2014 9M 2014 diamond production totaled 3,650 thousand carats, which is 33% lower y-o-y Diamond production decrease was due to planned annual maintenance works at Processing Plant No. 3 in August-September 2014
International pipe 18 Period of open-pit mining: 1971-1981 0 m surface Period of open pit development: 2005-2011 Open pit depth: 315 m -315 m open pit depth Mining method: Underground mining current mining area Start of underground mining operations: 1999 Resources inclusive of reserves (as of 01.07.) according to JORC Code Tonnage Indicated Contained diamonds 4,208 8.73 36,739 Inferred 1,542 7.98 12,304 Total 5,750 8.53 49,043 Indicated resources Inferred resources Resources not classified in accordance with JORC Code (1) Note: (1) Potential resources according to the Russian State Commission for Mineral Reserves classification -1,085 m boundary of indicated resources -1,215 m boundary of inferred resources -1,475 m boundary of exploration
International pipe: production 19 12% Share in ALROSA production Q3 2014 diamond production decreased by 79% vs Q2 2014 due to planned annual maintenance works at Processing Plant No. 3 in August- September 2014 Diamond production decrease in 9M 2014 by 28% vs 9M was driven by planned annual maintenance works at Processing Plant No. 3 in August-September 2014 and the replacement of a number of the underground mine s skip shaft components in May-July 2014 (28%) 3,228 9M 2,327 9M 2014 1,082 1,047 1,099 1,150 1,312 842 (79%) Diamonds produced 173 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 130 118 113 128 151 97 21 8.32 8.87 9.73 8.98 8.69 8.68 8.24
Mir pipe 20 Period of open-pit mining: 1959-2001 current mining area Open pit depth: 525 m 0 m surface Mining method: Underground mining Start of underground mining operations: 2009-525 m open pit depth -545 m upper boundary of indicated resources dry shutdown Resources inclusive of reserves (as of 01.07.) according to JORC Code Tonnage Indicated Contained diamonds 29,211 3.55 103,782 Inferred 10,913 3.11 33,940 Total 40,124 3.43 137,722 Indicated resources Inferred resources -950 m boundary of indicated resources -1,235 m boundary of exploration
Mir pipe: production 21 6% Share in ALROSA production Q3 2014 diamond production decrease by 72% vs Q2 2014 and 9M 2014 diamond production decrease by 57% y-o-y was due to planned annual maintenance works at Processing Plant No. 3 in August-September 2014 (57%) 1,586 9M 689 9M 2014 471 597 518 565 498 (72%) Diamonds produced 52 139 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 145 184 154 156 20 141 64 3.25 3.24 3.36 3.62 2.60 3.53 2.17
Alluvial and technogenic deposits 22 Deposits Vodorazdelnye Galechniki placer Irelyakhskaya placer Tailings of Processing Plant No. 5 2% Share in ALROSA production Q3 2014 diamond production increased by 46% vs Q2 2014 due to higher grade gravels processing Diamond production in 9M 2014 stayed almost flat y-o-y (1%) 641 9M 634 9M 2014 46% Diamonds produced (mln cts) 239 134 268 192 113 212 309 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Gravels processed (mln t) 242 1,081 1,868 1,029 298 1,091 1,389 0.99 0.12 0.14 0.19 0.38 0.19 0.22 Results Gravels processed Diamonds produced 3,957 0.21 833 Resources and reserves of Mirny Division alluvial placers were not included into JORC Code valuation
UDACHNY DIVISION 23
Udacnhy Division 24 Division structure Processing Plant No. 12 Udachnaya pipe Zarnitsa pipe Location of operations Zarnitsa pipe Udachnaya pipe 21 km 2 km Share in 2012 ALROSA production: 13% Processing Plant No. 12 Capacity: 12 mln t annually Mining methods: Underground mining Open-pit mining Results vs. 2012 Diamonds produced 4,892 (16%) Almazy Anabara Ore processed 5,825 26% Nizhne-Lenskoye Tonnage Tonnage Reserves (1) Resources inclusive of reserves (1) Contained diamonds 150,642 0.88 132,358 Contained diamonds 223,976 1.07 239,771 Note: (1) According to JORC Code (as of 01.07.) Udachny Division Udachny Aikhal Division Aikhal Nyurba Division Nyurba Mirny Division Mirny 0 200 400 km Yakutsk
Operational of Udachny Division 25 Diamond production (29%) 3,462 9M 2014 2,449 9M 2014 (72%) Diamonds produced 1,598 1,383 1,430 1,117 1,039 480 293 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 1,650 1,858 597 1,720 1,570 1,226 455 0.97 0.74 0.80 0.83 0.71 0.85 0.64 Q3 and 9M 2014 results Q3 2014 diamond production totaled 293 thousand carats, which is 72% lower compared to Q2 2014 9M 2014 diamond production totaled 2,449 thousand carats, which is 29% lower y-o-y Diamond production decrease was driven by the reduction in ore processing at the Udachnaya pipe in accordance with the Company's plan for the transition to underground mining at the deposit
Udachnaya pipe 26 Mining method: Open-pit mining current mining area Commissioned: 1971 Current open pit depth: 640 m Ore stockpile (measured resources) 0 m surface -640 m current open pit depth Resources inclusive of reserves (as of 01.07.) according to JORC Code western lobe -890 m boundary of indicated resources Tonnage Contained diamonds eastern lobe Measured 4,820 1.52 7,329 Indicated 82,297 1.49 122,278 Inferred 78,305 1.25 98,157 Total 165,422 1.38 227,764 Measured resources Indicated resources Inferred resources -1,390 m boundary of inferred resources
Udachnaya pipe: production 27 13% Share in ALROSA production Q3 2014 diamond production decreased by 75% vs Q2 2014 due to planned annual maintenance works at Processing Plant No. 12 in May-September 2014 Diamond production decrease in 9M 2014 by 31% vs 9M was driven by the reduction in ore processing in accordance with the Company's plan for the transition to underground mining at the deposit. The Udachny underground mine development has been processing with no deviation from the Company s plan (31%) 3,353 9M 2,324 9M 2014 1,557 1,330 1,382 1,055 1,012 (75%) Diamonds produced 466 257 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 1,400 1,563 447 1,415 1,180 1,055 305 1.11 0.85 1.04 0.98 0.89 0.96 0.84
Zarnitsa pipe 28 Mining method: Open-pit mining current mining area Commissioned: 1999 Current open pit depth: 90 m 0 m surface -90 m current open pit depth -200 m boundary of indicated resources; target open pit depth Resources inclusive of reserves (as of 01.07.) according to JORC Code Tonnage Contained diamonds -700 m boundary of exploration Indicated 58,554 0.21 12,007 Total 58,554 0.21 12,007 Indicated resources Resources not classified in accordance with JORC Code (1) Note: (1) Potential resources according to the Russian State Commission for Mineral Reserves classification
Zarnitsa pipe: production 29 less than 1% Share in ALROSA production Q3 2014 diamond production increased by 33% vs Q2 2014 due to higher grade ore processing Diamond production growth in 9M 2014 by 15% vs 9M was driven by increased volumes and higher grades of ore processed 15% 109 9M 125 9M 2014 Diamonds produced 42 53 14 48 62 27 33% 36 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 250 295 150 305 390 171 150 0.17 0.18 0.09 0.16 0.16 0.16 0.24
м 30 NYURBA DIVISION
Nyurba Division 31 Division structure Location of operations Processing Plant No. 15 Nyurbinskaya placer Botuobinskaya placer (1) Processing Plant No. 16 Nyurbinskaya pipe Botuobinskaya pipe (1) Nyurbinskaya placer Note: (1) Pre-construction activities and waste stripping are in progress 5 km Processing Plant No. 15 Capacity: 0.5 mln t annually Processing Plant No. 16 Capacity: 1.4 mln t annually 2 km Share in ALROSA production: 20% Botuobinskaya placer Nyurbinskaya pipe Mining methods: Botuobinskaya pipe Nyurbinskaya placer Open-pit mining Alluvial mining Results vs. 2012 Diamonds produced 7,407 (7%) Almazy Anabara Ore and gravels processed 2,040 (3%) Nizhne-Lenskoye Tonnage Reserves (2) Contained diamonds 30,087 4.09 123,178 Udachny Division Udachny Aikhal Division Aikhal Nyurba Division Nyurba Yakutsk Tonnage Resources inclusive of reserves (2) Contained diamonds 47,329 3.72 175,945 0 200 400 km Mirny Division Mirny Note: (2) According to JORC Code (as of 01.07.)
Operational of Nyurba Division 32 Diamond production 2% 5,076 9M 2014 5,179 9M 2014 2.7х Diamonds produced 1,978 1,076 2,022 2,331 2,067 848 2,264 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 400 375 805 460 410 375 763 4.95 2.87 2.51 5.07 5.04 2.26 2.97 Q3 and 9M 2014 results Q3 2014 diamond production totaled 2,264 thousand carats, which is 2.7 times higher compared to Q2 2014 9M 2014 diamond production totaled 5,179 thousand carats, which is 2% higher y-o-y Diamond production increase results from higher volumes of ore processed at the Nyurbinskaya pipe
Nyurbinskaya pipe 33 Mining method: Open-pit mining Commissioned: 2001 Current open pit depth: 287 m current mining area 0 m surface -287 m current open pit depth -450 m target open pit depth Resources inclusive of reserves (as of 01.07.) according to JORC Code -570 m boundary of indicated resources Tonnage Indicated Contained diamonds 12,264 4.13 50,661 Inferred 1,192 5.42 6,465 Total 13,456 4.25 57,126 Indicated resources Inferred resources Resources not classified in accordance with JORC Code (1) Note: (1) Potential resources according to the Russian State Commission for Mineral Reserves classification -750 m boundary of exploration; boundary of inferred resources
Nyurbinskaya pipe: production 34 18% Share in ALROSA production Q3 2014 diamond production increased 2.9 times vs Q2 2014 due to planned annual maintenance works at Processing Plant No.16 in April 2014 Diamond production increase in 9M 2014 by 3% vs 9M was driven by higher volumes of ore processed 3% 4,288 9M 4,397 9M 2014 Diamonds produced 1,978 801 1,509 2,303 2,067 597 2.9х 1,733 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 400 124 285 438 410 113 305 4.95 6.46 5.29 5.26 5.04 5.28 5.68
Botuobinskaya pipe 35 Current open pit depth: 60 m Commencement of waste stripping: December 2012 0 m surface -60 m current open pit depth -75 m depth of ore body bedding overburden Resources inclusive of reserves (as of 01.07.) according to JORC Code Tonnage Indicated Contained diamonds 13,679 5.19 71,044 Inferred 2,685 5.14 13,790 Total 16,364 5.18 84,834 Indicated resources Inferred resources Resources not classified in accordance with JORC Code (1) Note: (1) Potential resources according to the Russian State Commission for Mineral Reserves classification -580 m target open pit depth; boundary of indicated resources -780 m boundary of inferred resources -980 m boundary of exploration
Alluvial deposits 36 Deposits Nyurbinskaya placer Botuobinskaya placer 2% Share in ALROSA production Q3 2014 diamond production increased 2.1 times vs Q2 2014 due to started gravels processing at the seasonal Processing Plant No. 15 in late May 2014 Diamond production in 9M 2014 stayed almost flat y-o-y (1%) 788 9M 782 9M 2014 513 2.1х 531 Diamonds produced (mln cts) 0 275 28 0 251 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Gravels processed (mln t) 0 251 520 22 0 262 458 0.00 1.10 0.99 1.27 0.00 0.96 1.16 Resources inclusive of reserves (as of 01.07.) according to JORC Code Tonnage Contained diamonds 13,668 1.68 22,989
СЕВЕРАЛМАЗ 37 LOMONOSOV DIVISION (SEVERALMAZ)
Lomonosov Division (Severalmaz) 38 Division structure Processing Plant No. 1 Arkhangelskaya pipe Karpinskogo-1 pipe (1) Notes: (1) Waste stripping in progress Location of operations Karpinskogo-1 pipe 2 km Processing Plant No. 1 Share in ALROSA production: 2% Module No. 2 Capacity: 3 mln t annually Arkhangelskaya pipe 3 km Module No. 1 Capacity: 1 mln t annually Mining method: Open-pit mining Results vs. 2012 Diamonds produced 636 14% Ore processed 1,193 8% Tonnage Reserves (2) Contained diamonds 75,525 0.85 64,107 Arkhangelsk Lomonosov Division Tonnage Resources inclusive of reserves (3) Contained diamonds 125,790 0.92 115,501 Note: (2) According to JORC Code (as of 01.07.) 0 200 400 km
Arkhangelskaya pipe 39 Mining method: Open-pit mining Commissioned: 2005 Current open pit depth: 122 m current mining area 0 m surface -122 m current open pit depth -324 m target open pit depth -460 m boundary of indicated resources Resources inclusive of reserves (as of 01.07.) according to JORC Code Tonnage Contained diamonds Indicated 56,226 0.77 43,406 Inferred 39,408 0.98 38,623 Total 95,634 0.86 82,029 Indicated resources Inferred resources -940 m boundary of inferred resources
Arkhangelskaya pipe: production 40 2% Share in ALROSA production Q3 2014 diamond production increase by 33% vs Q2 2014 and 9M 2014 diamond production increase 2.7 times y-o-y were driven by higher volumes of ore processed following the launch of the second module of the site s processing plant 2.7х 423 9M 1,151 9M 2014 33% 394 524 Diamonds produced 126 142 155 213 233 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Ore processed 272 279 281 361 481 808 1,022 0.46 0.51 0.55 0.59 0.48 0.49 0.51
Karpinskogo-1 pipe 41 Current open pit depth: 69 m Commencement of waste stripping: 2009 0 m surface -69 m current open pit depth overburden -262 m target open pit depth -462 m boundary of indicated resources Resources inclusive of reserves (as of 01.07.) according to JORC Code -662 m boundary of inferred resources Tonnage Contained diamonds Indicated 24,988 1.08 26,960 Inferred 5,168 1.26 6,512 Total 30,156 1.11 33,472 Indicated resources Inferred resources Resources not classified in accordance with JORC Code (1) Note: (1) Potential resources according to the Russian State Commission for Mineral Reserves classification -942 m boundary of exploration
ALMAZY ANABARA
Almazy Anabara 43 Deposits Morgogor placer Istok placer Holomolokh placer Ebelyakh placer Gusinaya placer Ruchey 41 placer Kurung-Yuryakh placer 7% Share in ALROSA production Q3 2014 diamond production increased by 47% vs Q2 2014 due to seasonal production growth Diamond production increase in 9M 2014 by 21% vs 9M was driven by the commissioning of higher grade Ebelyakh and Gusinaya placers 2,521 9M 21% 3,059 9M 2014 47% Diamonds produced (mln cts) 967 1,554 1,239 1,820 Diamonds produced Gravels processed Results vs. 2012 2,521 5% 6,750 17% 0 0 0 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Gravels processed (mln t) 0 1,874 4,876 0 0 2,200 3,404 0.00 0.52 0.32 0.00 0.00 0.56 0.53 Tonnage Reserves (1) Contained diamonds 36,319 0.74 26,749 Resources inclusive of reserves (1) Tonnage Contained diamonds 36,816 0.80 29,597 Note: (1) According to JORC Code (as of 01.07.)
НИЖНЕ-ЛЕНСКОЕ 44 NIZHNE-LENSKOYE
Nizhne-Lenskoye 45 Deposits Molodo placer Billyakh placer Ruchey Shlihovoy placer 5% Share in ALROSA production Q3 2014 diamond production increased 2.1 times vs Q2 2014 due to seasonal production growth Diamond production decrease in 9M 2014 by 10% vs 9M was driven by processing of lower grades gravels; larger volumes of gravels processing was driven by the commissioning of the Shlikhovoy placer (10%) 2,010 9M 1,818 9M 2014 1,398 2,1х 1,234 Diamonds produced (mln cts) 0 612 0 0 584 Q1 Q2 Q3 Q4 Q1 2014 Q2 2014 Q3 2014 Gravels processed (mln t) 0 1,786 3,552 0 0 2,080 3,734 0.00 0.34 0.39 0.00 0.00 0.28 0.33 Results Diamonds produced 2,010 Gravels processed 5,338
Appendix 46
Diamond production 47 000 cts Q1 Q2 Q3 9M Q4 Q1 2014 Q2 2014 Q3 2014 9M 2014 Aikhal Division 12,088 1,984 3,669 2,456 8,109 3,978 3,000 2,368 2,981 8,349 Jubilee pipe 8,975 1,940 2,232 2,456 6,628 2,347 2,325 2,357 2,141 6,824 Aikhal underground mine 3,062 0 1,435 0 1,435 1,627 639 0 743 1,381 Komsomolskaya pipe 50 44 2 0 46 4 36 11 97 144 Mirny Division 7,361 1,792 1,778 1,885 5,455 1,907 1,477 1,552 621 3,650 International underground mine 4,378 1,082 1,047 1,099 3,228 1,150 1,312 842 173 2,327 Mir underground mine 2,151 471 597 518 1,586 565 52 498 139 689 Alluvial and technogenic deposits 833 239 134 268 641 192 113 212 309 634 Udachny Division 4,892 1,598 1,383 480 3,462 1,430 1,117 1,039 293 2,449 Udachnaya pipe 4,735 1,557 1,330 466 3,353 1,382 1,055 1,012 257 2,324 Zarnitsa pipe 157 42 53 14 109 48 62 27 36 125 Nyurba Division 7,407 1,978 1,076 2,022 5,076 2,331 2,067 848 2,264 5,179 Nyurbinskaya pipe 6,591 1,978 801 1,509 4,288 2,303 2,067 597 1,733 4,397 Alluvial deposits 816 0 275 513 788 28 0 251 531 782 Severalmaz 636 126 142 155 423 213 233 394 524 1,151 Arkhangelskaya pipe 636 126 142 155 423 213 233 394 524 1,151 Almazy Anabara 2,521 0 967 1,554 2,521 0 0 1,239 1,820 3,059 Nizhne-Lenskoye 2,010 0 612 1,398 2,010 0 0 584 1,234 1,818 Total 36,914 7,478 9,627 9,949 27,056 9,860 7,894 8,024 9,737 25,655
Ore and sands processing 48 000 t Q1 Q2 Q3 9M Q4 Q1 2014 Q2 2014 Q3 2014 9M 2014 Aikhal Division 9,817 2,605 2,644 2,040 7,289 2,528 2,436 2,244 2,168 6,848 Jubilee pipe 9,041 2,405 2,375 2,040 6,820 2,221 2,225 2,215 1,783 6,223 Aikhal underground mine 560 0 263 0 263 297 116 0 147 263 Komsomolskaya pipe 216 200 6 0 206 10 95 29 238 362 Mirny Division 5,347 516 1,383 2,135 4,034 1,313 469 1,329 1,474 3,272 International underground mine 489 130 118 113 361 128 151 97 21 269 Mir underground mine 638 145 184 154 483 156 20 141 64 225 Alluvial and technogenic deposits 4,220 242 1,081 1,868 3,191 1 029 298 1,091 1,389 2,778 Udachny Division 5,825 1,650 1,858 597 4,105 1,720 1,570 1,226 455 3,251 Udachnaya pipe 4,825 1,400 1,563 447 3,410 1,415 1,180 1,055 305 2,540 Zarnitsa pipe 1,000 250 295 150 695 305 390 171 150 711 Nyurba Division 2,040 400 375 805 1,580 460 410 375 763 1,548 Nyurbinskaya pipe 1,247 400 124 285 809 438 410 113 305 828 Alluvial deposits 793 0 251 520 771 22 0 262 458 720 Severalmaz 1,193 272 279 281 832 361 481 808 1,022 2,311 Arkhangelskaya pipe 1,193 272 279 281 832 361 481 808 1,022 2,311 Almazy Anabara 6,750 0 1,874 4,876 6,750 0 0 2,200 3,404 5,604 Nizhne-Lenskoye 5,338 0 1,786 3,552 5,338 0 0 2,080 3,734 5,814 Total 36,310 5,443 10,199 14,286 29,928 6,382 5,366 10,262 13,020 28,648
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