Alrosa Will Pay Out $434M, Entire Free Cash Flow, for H1 Dividends

Finance and Trade
01/10/2019 23:27

Russian diamond miner Alrosa's Shareholders have decided to pay dividends for the first half of 2019 in the amount of 28.3 billion rubles ($434 million) or 3.84 rubles ($0.059) per share. Therefore, the company will allocate 100% of its free cash flow for the corresponding period to pay out dividends, the miner has stated in a press release. The six months dividend yield will be at around 5%.

Warning - gory financial details ahead

In June 2019, Alrosa’s Supervisory Board approved a new version of the company’s Dividend Policy, with the methodology for determining the amount of dividends updated as follows: if the Net Debt/LTM EBITDA ratio as at the end of the first half of the year or as at the end of the year is within the range of 0.0 to <0.5x, the semi-annual dividend payout ratio is 100% of the Free Cash Flow for the respective half of the reporting year, but not less than 50% of IFRS net profit. Further details of Alrosas Divided Policy can be found here.