Competitive position

Competitive position

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1. Global leader in diamond mining

ALROSA is the world’s largest producer of diamonds with a 27% share of the global market.

Top Diamond Mining Companies in 2021 (% of global production)

Source: companies’ reports, Kimberley Process

2. The largest owner of diamond resources globally​

ALROSA boasts 1,064 m ct in resources, including 628 m ct of reserves. Given the limited global resource base, the company has sufficient rough diamond resources to sustain production for 30 years. ​​

Resources ofthe largest rough diamond miners, m ct

3. A company with best in class operational standards and a focus on best manufacturing practices

  • A culture of continuous improvement
  • Highly motivated workforce
  • Digital strategy to attain operational excellence and safety
  • Large-scale improvements in operational efficiency
  • An experienced management team, world-class experts

4. Industry leadership in profitability and free cash flow generation

  • Average profitability of about 50%, 2х higher than the industry average
  • A robust free cash flow generation through the cycle, cash returned to shareholders

5. A transparent financial policy and industry highest credit ratings

  • 0.4х net debt / EBITDA in 2020​
  • Investment-grade ratings from all the key rating agencies
  • TOP3 the most creditworthy companies in Russia according to S&P Global Ratings

6. Focus on shareholder returns​

  • Leadership among global rough diamond producers as regards growth of total shareholder return since 2013
  • Up to 100% of cash flow paid as dividends semi-annually
  • Average dividend yield at 11%​
Accumulated total shareholder return in USD post IPO in 2013, %
Source: Bloomberg as of 15 October 2020.
1. Luxury goods manufacturers: LVMH, Hermès, Richemont, Kering, Swatch, Prada, Tiffany, Tapestry, Burberry, Ralph Lauren, Capri, Moncler, Tod‘s.
2. Mining companies, including other rough diamond producers: Anglo American, Rio Tinto, BHP, Glencore, Vale, Gem Diamonds, Petra Diamonds, LucaraDiamond, Firestone Diamonds, Mountain Province Diamonds, Stornoway Diamonds.
All indices are weighted by daily capitalisation.

7. Sustainable business with high-quality corporate governance practices

  • Compliance with high corporate governance standards as a strategic priority
  • The National Corporate Governance Rating confirmed at 8 (Advanced Corporate Governance Practices) by the Russian Institute of Directors in 2020
  • Adherence to sustainability principles and international standards of corporate social responsibility: ALROSA features in the ratings of MSCI ESG, Sustainalytics, CDP, S&P Global CSA, FTSE4Good and WWF Russia, and contributes towards the United Nations Sustainable Development Goals