New CEO Ivanov Committed to Diamond Miner ALROSA's Strategy

Mining and Exploration
17/03/2017 16:07

The new chief executive of diamond miner ALROSA, Sergei Ivanov, said he would remain committed to the Russian state-controlled company's strategy, which has focused on mining, selling non-core assets and increasing production organically. Ivanov, who was officially elected to the top position at the diamond miner earlier this week, made the announcement on Thursday during a conference call to discuss the IFRS financial results for 2016. According to Reuters, the appointment of Ivanov as the new head of the world's largest producer of rough diamonds has prompted some analysts to ask whether he would start diversifying into diamond polishing or other commodities. "I would like to assure you that I am committed to this strategy and intend to make every effort to deliver it," Ivanov told the conference call. 

ALROSA this week announced that 2016 revenue increased by 41% y-o-y and totaled $5.45 billion (RUB 317.1bn), leading to a fourfold increase in its 2016 net profit to $2.3 billion (RUB133.5 billion) thanks to higher sales and a weaker rouble. Earnings before interest, taxation, depreciation and amortisation (EBITDA) up 49 percent to 176.4 billion roubles. Igor Kulichik, Alrosa's Chief Financial Officer, told the call that the group had cut its diamond stockpile by 3 million carats to 19 million carats worth $1.8 billion in 2016 and does not plan to reduce it further in 2017.