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Russian diamond giant ALROSA recommends all-time high dividend

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(Kitco News) - Russia's ALROSA, the leader of the world's diamond mining industry, reported Wednesday that its supervisory board recommended allocating all-time high half-year dividends for H2 2020 amounting to RUB 70.3 bn (~$942 million), or RUB 9.54 per share, a 47% increase over full year 2019 payout.

"As proposed by the company's management, in March 2021, the board approved changes to the financial and dividend policies to enhance resilience and sustainability of our business. In light of these changes, the supervisory board recommended distributing record high RUB 70.3 bn, or 80% of free cash flow for the period as dividends for H2 2020. The decision confirms the company's commitment to balancing the interests of shareholders and robust financial stability of the business," said CEO Sergey Ivanov.

ALROSA's H2 2020 free cash flow amounted to RUB 87.8 bn, with 2020 free cash flow at RUB 79.5 bn. 2020 net profit was RUB 32.2 bn, and Net Debt / EBITDA at the end of the year standing at 0.4x. ALROSA paid no dividends for H1 2020 due to a negative free cash flow.

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