ALROSA Operational overview - The Diamond Loupe...2016/01/28 · ALROSA assumes no obligation to...

28 January 2016

IR-release: Q4 and FY 2015 Operational Overview

2Disclaimer

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.

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http://www.jorc.org/

Diamonds produced (mln cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore and gravels processed (mln t) 5.4 10.3 13.0 7.3 5.5 10.8 13.5 7.4

Grade (cpt) 1.47 0.78 0.75 1.45 1.52 0.89 0.86 1.17

2015

38.3 mln cts

37.1 mln t

1.03 cpt

2014

36.2 mln cts

35.9 mln t

1.01 cpt

Diamond production

7.9 8.09.7 10.6

8.4 9.611.6

8.6

3

2015 results

2015 diamond production totalled 38.3 million carats, an increase of 6% y-o-y

Production results were driven by the following factors:

- launch of Botuobinskaya pipe,

- diamond output growth at Karpinskogo-1 pipe of Lomonosov deposit (Severalmaz),

- growth in diamond production at the Mir underground mine as a result of measures to stabilize its hydrogeological conditions,

- the Udachny underground mine development

+6%

Operational overview of ALROSA

I. Operational

overviewII. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye

Open-pit mining (55%)

Underground mining (25%)

Alluvial mining (21%)

Arkhangelskaya pipe (2%)

Republic of Sakha (Yakutia)

Nyurbinskaya pipe (13%)

Komsomolskaya pipe (less than 1%)

Zarnitsa pipe (less than 1%)

Udachnaya pipe (10%)

Nizhne-Lenskoye (5%)

Almazy Anabara (9%)

RussiaKarpinskogo-1 pipe (3%)

Yakutsk

Botuobinskaya pipe (2%)

Aikhal

Udachny

Nyurba

Aikhal Division (32%)

Udachny Division (11%)

Nyurba Division (20%)

Lomonosov Division (5%)

Alluvial deposits (5%)

Mirny

Mining methods:

Arkhangelsk

Note: percentage in brackets indicates the share of region/division/pipe in 2015 ALROSA diamond production

Arkhangelsk

Region (5%)

Russia

Republic of Sakha

(Yakutia) (95%)

4ALROSA’s production footprint

Jubilee pipe (25%)

Aikhal pipe (7%)

Mir pipe (6%)

International pipe (11%)

Mirny Division (18%)

Alluvial deposits (2%)

I. Operational


Alluvial deposits (less than 1%)

5

AIKHAL DIVISION

Aikhal Division overview 6

I. Operational


Share in 2015 ALROSA production:

32%

Division structure

Aikhal

Yakutsk

Udachny

Nyurba

Aikhal Division

Udachny Division

Nyurba Division

Mirny Division

Nizhne-Lenskoye

Almazy Anabara

0 200 400 km

Mining methods:

Location of operations

Underground mining

Open-pit mining

Processing Plant No. 8

• Aikhal pipe

• Komsomolskaya pipe


• Jubilee pipe

Aikhal pipe

Jubilee pipe

Komsomolskaya pipe

Processing Plant No. 14Capacity: 10 mln t annually 18 km

Processing Plant No. 8Capacity: 1.7 mln t annually

1 km

8 km

MirnyResources inclusive of reserves*

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

215,804 1.01 218,694

Reserves*

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

117,227 1.04 121,578

* according to JORC Code (as of 01.07.2013)

2015 Results

2015

2015

vs.

2014

Diamonds produced (‘000 cts) 12,322 (2%)

Ore processed (‘000 t) 9,141 (4%)

201512,322 ‘000 cts

9,141 ‘000 t

1.35 cpt

201412,565 ‘000 cts

9,478 ‘000 t

1.33 cpt

7

Diamonds produced (‘000 cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 2,436 2,244 2,168 2,630 2,203 2,249 2,069 2,620

Grade (cpt)

Diamond production

3,0002,368

2,981

4,216

2,596 2,676

3,8493,201

1.181.23 1.06 1.38 1.60 1.19 1.86

2015 results

2015 diamond production was 12,322 thousand carats, down by 2% y-o-y

Lower diamond output was a result of lower production at the Aikhal underground mine, driven by longer than planned maintenance

works at Processing Plant No. 8

1.22

(2%)

Operational overview of Aikhal Division

I. Operational


current mining area

8

Commissioned:

1985

Current open pit depth:

370 m

Mining method:

Open-pit mining

Resources inclusive of reserves

(as of 01.07.2013)

according to JORC Code

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

129,017 0.84 108,166

Inferred

65,977 0.62 40,594

Total

194,994 0.76 148,760

0 msurface

-370 mcurrent open pit depth

-1,300 mboundary of exploration

-720 mtarget open pit depth;

boundary of indicated

resources

-1,100 mboundary of inferred

resources

eastern lobe

central lobe

western lobe

Indicated resources

Inferred resources

Resources not classified in accordance with JORC Code*

* potential resources according to the Russian State Commission for Mineral Reserves classification

Jubilee pipe

I. Operational


2014

9,122 ‘000 cts

8,506 ‘000 t

1.07 cpt

2015

9,405 ‘000 cts

8,355 ‘000 t

1.13 cpt

Jubilee pipe: production overview

Share in 2015 ALROSA production25%

9

2,325 2,357

2,141

2,2982,383 2,381 2,416

2,225


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 2,225 2,215 1,783 2,283 2,174 2,190 1,721 2,270

Grade (cpt) 1.101.04 1.06 1.20 1.01 1.09 1.40 0.98

+3%

• Increase in diamond production in 2015 by 3% y-o-y was driven by mining of higher grade ore from the pipe’s central lobe

I. Operational


current mining area

10

Open pit depth:

305 m

Start of underground mining

operations:

2005

Mining method:

Underground mine

Period of open-pit mining:

1961-1996


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

7,729 4.68 36,159

Inferred

8,269 3.87 31,967

Total

15,998 4.26 68,126

south-western ore body

north-eastern ore body

western lobe

eastern lobe

-305 mopen pit depth

-500 mboundary of indicated

resources

-700 mboundary of inferred

resources of south-

western ore body

0 msurface

-900 mboundary of exploration


Indicated resources

Inferred resources


Aikhal pipe

I. Operational


2015

2,841 ‘000 cts

526 ‘000 t

5.40 cpt

2014

3,292 ‘000 cts

589 ‘000 t

5.59 cpt

Aikhal pipe: production overview

639

0

743

1,910

213 296

1,406

926Diamonds produced (‘000 cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 116 0 147 326 29 59 261 177

Grade (cpt)

7%

11

Share in 2015 ALROSA production

5.51 0.00 5.05 5.86 7.34 5.01 5.39

• Decrease in diamond output in 2015 by 14% y-o-y was a result of lower production, driven by longer than planned maintenance works at Processing Plant No. 8 in

2015

5.23

(14%)

I. Operational


12

current mining areaCommissioned:

2000


337 m

Mining method:

Open-pit mining


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

4,812 0.38 1,808

Total

4,812 0.38 1,808 Indicated resources




resources

0 msurface

Komsomolskaya pipe

I. Operational


2014

152 ‘000 cts

383 ‘000 t

0.40 cpt

2015

77 ‘000 cts

260 ‘000 t

0.30 cpt

36

11

97

80 0

27

50

Komsomolskaya pipe: production overview


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 95 29 238 21 0 0 87 173

Grade (cpt) 0.00

13

Share in 2015 ALROSA production

0.38 0.38 0.41 0.37 0.00 0.31

• Decrease in diamond production in 2015 by 50% y-o-y was driven by planned maintenance works at Processing Plant No. 8 from mid-January to June 2015

0.29

(50%)

less than 1%

I. Operational


14

MIRNY DIVISION

15Mirny Division overview

I. Operational


Processing Plant No. 3• Mir pipe• International pipe• Vodorazdelnye Galechniki placer• Tailings of Processing Plant No. 5Dredges No. 201, 202, 203• Irelyakhskaya placer• Gornoye placer


18%

Aikhal Division

0 200 400 km

Mining methods:

Processing Plant No. 3Capacity: 2 mln t annually

VodorazdelnyeGalechniki placer

Irelyakhskaya placerGornoye placer

Internationalpipe

Dredges No. 201, 202, 203Capacity: 4 mln t annually

Mir pipe

10 km

4 km

16 km

Underground mining

Alluvial mining

Division structure Location of operations

Aikhal

Yakutsk

Udachny

Mirny

Nyurba

Udachny Division

Nyurba Division

Mirny Division

Nizhne-Lenskoye

Almazy Anabara


2015 Results

2015

2015

vs.

2014

Diamonds produced (‘000 cts) 6,908 +13%

Ore and gravels processed

(‘000 t), incl.:5,706 +16%

Processing Plant No.3 2,205 +14%

Dredges No. 201, 202, 203 3,501 +18%

Resources inclusive of reserves*

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

45,874 4.07 186,765

Reserves*

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

34,141 3.92 133,815

20156,908 ‘000 cts

5,706 ‘000 t

1.21 cpt20146,088 ‘000 cts

4,903 ‘000 t

1.24 cpt


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore and gravels processed (‘000 t) 469 1,325 1,479 1,630 486 1,693 1,918 1,609

Grade (cpt)

Operational overview of Mirny Division

Diamond production

1,477 1,553

621

2,4381,941 1,922

1,509 1,536

3.15

16

1.17 0.42 1.50 3.99 1.14 0.79

2015 results

2015 diamond production totalled 6,908 thousand carats, an increase of 13% y-o-y

Growth in diamond production was due to a 50% increase in output at the Mir underground mine, which resulted from measures to

decrease water inflow in the mine detected in Q1 2014

0.95

+13%

I. Operational


0 msurface


-1,085 mboundary of indicated

resources



resources

17International pipe

current mining area

Open pit depth:

315 m


operations:

1999

Mining method:

Underground mining


1971-1981


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

4,208 8.73 36,739

Inferred

1,542 7.98 12,304

Total

5,750 8.53 49,043

Period of open pit

development:

2005-2011


Indicated resources

Inferred resources


I. Operational


2015

4,024 ‘000 cts

486 ‘000 t

8.29 cpt

2014

3,862 ‘000 cts

445 ‘000 t

8.68 cpt

18International pipe: production overview


1,312

777

173

1,5341,397

1,139


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 151 97 21 176 171 134 84 96

Grade (cpt) 8.69 8.01 8.24 8.71 8.17 8.53 8.04

• Increase in diamond production in 2015 by 4% y-o-y was driven by longer than planned maintenance works at Processing Plant No. 3 in 2014 and the replacement

of a number of the underground mine’s skip shaft components in May–July 2014

8.41

+4%

I. Operational


19Mir pipe

current mining area

Open pit depth:

525 m


operations:

2009

Mining method:

Underground mining


1959-2001


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

29,211 3.55 103,782

Inferred

10,913 3.11 33,940

Total

40,124 3.43 137,722

Indicated resources

Inferred resources

0 msurface


dry shutdown

-545 mupper boundary of indicated

resources



resources

I. Operational


2014

1,463 ‘000 cts

481 ‘000 t

3.04 cpt

2015

2,198 ‘000 cts

647 ‘000 t

3.40 cpt

20Mir pipe: production overview


52

480

139

774

488559

633518


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 20 141 64 256 145 182 176 144

Grade (cpt) 3.372.60 3.40 2.17 3.03 3.07 3.60

• Growth in diamond production in 2015 by 50% y-o-y resulted from measures to mitigate the increased water inflow in the underground mine detected in Q1 2014,

as well as from higher grade ore processing

3.60

+50%

I. Operational


2015

686 ‘000 cts

4,574 ‘000 t

0.15 cpt

2014

764 ‘000 cts

3,978 ‘000 t

0.19 cpt

21Alluvial and technogenic deposits

2015 Results

Gravels

processed

(‘000 t)

Grade

(cpt)

Diamonds

produced

(‘000 cts)

4,574 0.15 686


113

296 309

130

56

224199 207

Diamonds produced

(‘000 cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Gravels processed

(‘000 t)298 1,087 1,394 1,199 169 1,378 1,658 1,369

Grade (cpt) 0.38 0.27 0.22 0.11 0.33 0.16 0.12

• Decrease in diamond production in 2015 by 10% y-o-y was driven by processing of lower grade gravels from tailings of

Processing Plant No. 5 and placers

0.15

(10%)

Resources and reserves of Mirny Division

alluvial placers were not included into JORC

Code valuation

Deposits

• Vodorazdelnye Galechniki

placer

• Irelyakhskaya placer

• Gornoye placer

• Tailings of Processing Plant

No. 5

I. Operational


22

UDACHNY DIVISION

Udacnhy Division overview 23

I. Operational



• Udachnaya pipe

• Zarnitsa pipe

• Delluvialny placer

• Ruchey Piropovy placer


11%

Division structure

0 200 400 km

Aikhal DivisionAikhal

Yakutsk

Udachny

Mirny

Nyurba

Udachny Division

Nyurba Division

Mirny Division

Nizhne-Lenskoye

Almazy Anabara



Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

223,976 1.07 239,771

Reserves*

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

150,642 0.88 132,358

2015 Results

2015

2015

vs.

2014


Ore processed (‘000 t) 5,377 +12%

Zarnitsa pipe

Udachnaya pipe

2 km

21 km

Delluvialny placer

Ruchey Piropovy placer

Processing Plant No. 12Capacity: 12 mln t annually Mining method

Underground mining

Open-pit mining

Alluvial mining


20143,679 ‘000 cts

4,814 ‘000 t

0.76 cpt

20154,297 ‘000 cts

5,377 ‘000 t

0.80 cpt


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore and gravels processed (‘000 t) 1,570 1,226 455 1,563 1,575 1,583 570 1,649

Grade (cpt)

Operational overview of Udachny Division

Diamond production

0.860.71

24

0.85

1,117 1,039

293

1,229 1,349 1,454

362

1,132

0.64 0.79 0.92 0.64

2015 results

2015 diamond production was 4,297 thousand carats, up by 17% y-o-y

Growth in diamond production was due to the launch of production at the Udachny underground mine and new placers

Dellyuvialnaya and Ruchei Piropovy, as well as increased planned processing of higher grade stockpiles from the western ore lobe of

the Udachnaya pipe

0.69

+17%

I. Operational


current mining area

25

Commissioned:

1971


640 m

Mining method:

Open-pit and

underground mining


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

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


operations:

2014

Ore stockpile

(measured resources)



resources


resources

western lobe

eastern lobe

Indicated resources

Measured resources

Inferred resources

I. Operational


Udachnaya pipe

2015

3,515 ‘000 cts

3,250 ‘000 t

1.08 cpt

2014

3,390 ‘000 cts

3,710 ‘000 t

0.91 cpt


1,055 1,012

269

1,065

1,290 1,378

222


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 1 180 1 055 305 1,170 1,234 1,201 200 615

Grade (cpt)0.89

26

0.96 0.88 0.91 1.05 1.15 1.11

• Growth in diamond production in 2015 by 4% y-o-y was a result of increased planned processing of higher grade stockpiles from the western ore lobe

1.02

+4%

Udachnaya pipe: production overview

I. Operational


2015

413 ‘000 cts

262 ‘000 t

1.58 cpt

2014

114 ‘000 cts

89 ‘000 t

1.28 cpt


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 0 0 0 89 0 0 50 212

Grade (cpt)

0 0 0

114

0 0

77

336

0.000.00

27

0.00 0.00

1% Share in 2015 ALROSA production

1.28 0.00 1.54

• The Udachny underground mine is developing in line with the Company’s plan; for 2015, the plan implied processing of 262 thousand tonnes of ore and

production of 413 thousand carats of diamonds

1.58

3.6x

I. Operational


Udachny underground mine: production overview

Zarnitsa pipe

current mining area

28

Commissioned:

1999


90 m

Mining method:

Open-pit mining


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

58,554 0.21 12,007

Total

58,554 0.21 12,007



resources; target open pit

depth


0 msurface


Indicated resources


I. Operational


2014

176 ‘000 cts

1,015 ‘000 t

0.17 cpt

2015

225 ‘000 cts

993 ‘000 t

0.23 cpt

Zarnitsa pipe: production overview

62

27 24

50 5342

64 66


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 390 171 150 304 253 195 320 225

Grade (cpt) 0.16

29

0.16 0.16 0.16 0.21 0.21 0.20

• Increase in diamond production in 2015 by 28% y-o-y was due to processing of higher grade ore

0.29

+28%

I. Operational


Share in 2015 ALROSA productionless than 1%

2015

145 ‘000 cts

872 ‘000 t

0.17 cpt

30

0 0 0 0 6

34

0

106


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Gravels processed (‘000 t) 0 0 0 0 88 187 0 597

Grade (cpt)0.00 0.070.00 0.00 0.00 0.18 0.00

• In Q1 2015, mining at new alluvial placers in the Udachniy Division was launched

• In Q3 2015, no gravels were proccessed in line with the Company's production plan

0.18

Deposits

• Dellyuvialnaya placer

• Ruchei Piropovy placer

Alluvial placers

I. Operational


Share in 2015 ALROSA productionless than 1%

31м

NYURBA DIVISION

32Nyurba Division overview

I. Operational


Processing Plant No. 15• Nyurbinskaya placer• Botuobinskaya placer*Processing Plant No. 16• Nyurbinskaya pipe• Botuobinskaya pipe• Nyurbinskaya placer


20%

Division structure

0 200 400 km


* pre-construction activities and waste stripping

are in progress

Processing Plant No. 16 Capacity: 1.4 mln t annually

Nyurbinskaya

pipe

2 km

Processing Plant No. 15Capacity: 0.5 mln t annually

Nyurbinskaya

placer

Botuobinskaya

placer

Botuobinskaya

pipe

5 km

Mining methods:

Open-pit mining

Alluvial mining

** according to JORC Code (as of 01.07.2013)

Resources inclusive of reserves**

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

47,329 3.72 175,945

Reserves**

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

30,087 4.09 123,178

2015 Results

2014

2014

vs.

2013


Ore and gravels processed

(‘000 t)2,040 +2%

Aikhal DivisionAikhal

Yakutsk

Udachny

Mirny

Nyurba

Nyurba Division

Mirny Division

Nizhne-Lenskoye

Almazy Anabara

Udachny Division

20157,510 ‘000 cts

2,040 ‘000 t

3.68 cpt

20147,363 ‘000 cts

2,000 ‘000 t

3.68 cpt

Diamonds produced

(‘000 cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 410 375 763 452 351 444 775 470

Grade (cpt)

Operational overview of Nyurba Division

Diamond production

2,067

848

2,264 2,184 2,084

1,152

2,064 2,245

5.04

33

I. Operational


2.26 2.97 4.83 5.84 2.59 2.66

2015 results

Diamond production in 2015 was 7,510 thousand carats, up 2% y-o-y

Increase in diamond production was caused by the launch of production at the Botuobinskaya pipe and by processing of higher grade

gravels

4.78

+2%

-750 mboundary of exploration;

boundary of inferred

resources


resources

-450 mtarget open pit depth

34

current mining area

Commissioned:

2001


300 m

Mining method:

Open-pit mining


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

12,264 4.13 50,661

Inferred

1,192 5.42 6,465

Total

13,456 4.25 57,126

0 msurface



Indicated resources

Inferred resources


Nyurbinskaya pipe

I. Operational



Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 410 113 305 427 304 121 194 360

Grade (cpt)

2015

4,809 ‘000 cts

978 ‘000 t

4.92 cpt

2014

6,542 ‘000 cts

1,255 ‘000 t

5.21 cpt

35Nyurbinskaya pipe: production overview

I. Operational



2,067

597

1,7762,144

1,735

526

1,008

1,539

5.04 5.28 5.82 5.02 5.16 4.35 5.20

• Decrease in diamond production in 2015 by 26% y-o-y was in line with loading of Processing Plant No. 16 with ore from the Botuobinskaya pipe and sands from the

Nyurbinskaya placer

4.28

(26%)

0 msurface




resources


resources

overburden


36

current mining area

Commencement of waste

stripping:

December 2012


92 m


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

13,679 5.19 71,044

Inferred

2,685 5.14 13,790

Total

16,364 5.18 84,834

Indicated resources

Inferred resources



Botuobinskaya pipe

I. Operational


2015

942 ‘000 cts

135 ‘000 t

6.98 cpt

37Botuobinskaya pipe: production overview

I. Operational


0 0 0 0

313

039

590

Diamonds produced

(‘000 cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 0 0 0 0 47 0 12 76

Grade (cpt) 10.160.00 0.00 0.00 0.00 0.00 3.22

• On 10 March 2015 ALROSA started ore mining at the Botuobinskaya pipe

• In Q1 2015, Processing Plant No. 16 handled the first round of ore from the Botuobinskaya pipe


7.81

2014

821 ‘000 cts

745 ‘000 t

1.10 cpt

2015

1,759 ‘000 cts

927 ‘000 t

1.90 cpt

38Alluvial deposits


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

13,668 1.68 22,989


0

251

488

39 0

626

1,017

116

Diamonds produced

(‘000 cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Gravels processed

(‘000 t)0 262 458 25 0 323 569 35

Grade (cpt)

I. Operational


Deposits

• Nyurbinskaya placer

• Botuobinskaya placer

0.00 0.96 1.07 1.57 0.00 1.94 1.79

• Increase in diamond production in 2015 by 2.1 times y-o-y was due to the planned processing of higher grade gravels

3.31

2.1x

39СЕВЕРАЛМАЗ

LOMONOSOV DIVISION (SEVERALMAZ)

40Lomonosov Division (Severalmaz) overview

I. Operational


Processing Plant No. 1• Arkhangelskaya pipe• Karpinskogo-1 pipe

Arkhangelsk

0 200 400 km

Lomonosov Division


Module No. 1Capacity: 1 mln t annually

Module No. 2Capacity: 3 mln t annually

Mining method:

Open-pit miningArkhangelskaya

pipe

Karpinskogo-1

pipe

2 km

3 km



Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

125,790 0.92 115,501

Reserves*

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

75,525 0.85 64,107

2015 Results

2015

2015

vs.

2014


Ore processed (‘000 t) 3,988 +21%


5%

Division structure Location of operations

20141,639 ‘000 cts

3,309 ‘000 t

0.50 cpt

20151,950 ‘000 cts

3,988 ‘000 t

0.49 cpt

Operational overview of Lomonosov Division

Diamond production

41

Diamonds produced

(‘000 cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 481 808 1,022 998 885 1,021 1,079 1,003

Grade (cpt)

233

394

523 488 450 488 514 498

I. Operational


0.48 0.49 0.51 0.49 0.51 0.48 0.48

2015 results

In 2015, production totalled 1,950 thousand carats, up 19% y-o-y

Diamond production growth was due to higher volumes of ore processed after the processing plant's second module was launched

and diamond production at Karpinskogo-1 pipe commenced

0.50

+19%

0 msurface



resources



resources

42

current mining area

Commissioned:

2005


135 m

Mining method:

Open-pit mining


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

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

Arkhangelskaya pipe

I. Operational


20141,373 ‘000 cts

2,793 ‘000 t

0.49 cpt

2015

861 ‘000 cts

1,903 ‘000 t

0.45 cpt

233

394

523

222175 163

232291

43Arkhangelskaya pipe: production overview

I. Operational




Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 481 808 1,022 482 330 539 502 531

Grade (cpt) 0.48 0.49 0.51 0.46 0.53 0.30 0.46

• Diamond production slowdown in 2015 by 37% y-o-y was caused by the planned reduction of ore processing as a result of the launch of Karpinskogo-1 pipe and

processing of lower grade ore

0.55

(37%)


resources


0 msurface


overburden

-662 mboundary of inferred resources


44

current mining area

Commencement of waste

stripping:

2009


98 m


(as of 01.07.2013)


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

Indicated

24,988 1.08 26,960

Inferred

5,168 1.26 6,512

Total

30,156 1.11 33,472

Karpinskogo-1 pipe

I. Operational



Indicated resources

Inferred resources


2014

266 ‘000 cts

516 ‘000 t

0.51 cpt

45Karpinskogo-1 pipe: production overview

I. Operational



2015

1,089 ‘000 cts

2,086 ‘000 t

0.52 cpt

0 0 0

266 275

325282

206


Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ore processed (‘000 t) 0 0 0 516 555 482 577 472

Grade (cpt) 0.00 0.00 0.00 0.500.52 0.67 0.49

• On 6 October 2014, Severalmaz launched production at Karpinskogo-1

pipe

• In line with the pipe development plan, 2.1 thousand tonnes of ore

was processed and 1.1 thousand carats of diamonds was produced

in 2015

4.1x

0.44

ALMAZY ANABARA

Diamonds produced

(mln cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Gravels processed

(mln t)0 2,200 3,404 0 0 1,898 3,324 0

Grade (cpt)

2015

3 309 ‘000 cts

5 222 ‘000 t

0,63 cpt

2014

3 059 ‘000 cts

5 604 ‘000 t

0,55 cpt

47Almazy Anabara


0

1,239

1,820

0 0

1,386

1,923

0

0.00

I. Operational


Deposits

• Morgogor placer

• Istok placer

• Holomolokh placer

• Ebelyakh placer

• Gusinaya placer

• Ruchey 41 placer

• Kurung-Yuryakh placer


Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

36,816 0.80 29,597

Reserves*

Tonnage

(‘000 t)

Grade

(cpt)

Contained

diamonds

(‘000 cts)

36,319 0.74 26,749

2015 Results

2015

2015

vs.

2014

Diamonds produced

(‘000 cts)3,309 +8%

Gravels processed

(‘000 t)5,222 (7%)


0.56 0.53 0.00 0.00 0.73 0.58

• In Q1 and Q4 2015, no gravels were proccessed due to seasonality of gravel mining

• Diamond production growth in 2015 by 8% y-o-y resulted from processing of higher grade gravels from Gusinaya and

Ebelyakh placers

0.00

+8%

НИЖНЕ-ЛЕНСКОЕ 48

NIZHNE-LENSKOYE

2015

1,964 ‘000 cts

5,640 ‘000 t

0.35 cpt

2014

1,818 ‘000 cts

5,814 ‘000 t

0.31 cpt

0

584

1,234

0 0

551

1,413

0

49Nizhne-Lenskoye


I. Operational


Deposits

• Molodo placer

• Billyakh placer

• Ruchey Shlihovoy placer

2015 Results

2015

2015

vs.

2014

Diamonds produced

(‘000 cts)1,964 +8%

Gravels processed

(‘000 t)5,640 (3%)

Diamonds produced (mln

cts)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Gravels processed

(mln t)0 2,080 3,734 0 0 1,888 3,752 0

Grade (cpt) 0.00 0.28 0.33 0.00 0.00 0.29 0.38

• In Q1 and Q4 2015, no gravels were proccessed due to seasonality of gravel mining

• Diamond production growth in 2015 by 8% y-o-y resulted from processing of higher grade gravels

0.00

+8%

50

Appendix

51Diamond production

‘000 cts 2014 2015Q1

2014

Q2

2014

Q3

2014

Q4

2014

Q1

2015

Q2

2015

Q3

2015

Q4

2015

Aikhal Division 12,565 12,322 3,000 2,368 2,981 4,216 2,596 2,676 3,849 3,201

Jubilee pipe 9,122 9,405 2,325 2,357 2,141 2,298 2,383 2,381 2,416 2,225

Aikhal underground mine 3,292 2,841 639 0 743 1,910 213 296 1,406 926

Komsomolskaya pipe 152 77 36 11 97 8 0 0 27 50

Mirny Division 6,088 6,908 1,477 1,553 621 2,438 1,941 1,922 1,509 1,536

International underground mine 3,862 4,024 1,312 777 173 1,534 1,397 1,139 678 810

Mir underground mine 1,463 2,198 52 480 139 774 488 559 633 518

Alluvial and technogenic deposits 764 686 113 296 309 130 56 224 199 207

Udachny Division 3,679 4,297 1,117 1,039 293 1,229 1,349 1,454 362 1,132

Udachnaya pipe 3,390 3,515 1,055 1,012 269 1,065 1,290 1,378 222 624

Udachnaya underground mine 114 413 - - - 114 0 0 77 336

Zarnitsa pipe 176 225 62 27 24 50 53 42 64 66

Alluvial deposits - 145 - - - - 6 34 0 106

Nyurba Division 7,363 7,510 2,067 848 2,264 2,184 2,048 1,152 2,064 2,245

Nyurbinskaya pipe 6,542 4,809 2,067 597 1,766 2,144 1,735 526 1,008 1,539

Botuobinskaya pipe - 942 - - - - 313 0 39 590

Alluvial deposits 821 1,759 0 251 488 39 0 626 1,017 116

Lomonosov Division (Severalmaz) 1,639 1,950 233 394 524 488 450 488 514 498

Arkhangelskaya pipe 1,373 861 233 394 524 222 175 163 232 291

Karpinskogo-1 pipe 266 1,089 - - - 266 275 325 282 206

Almazy Anabara 3,059 3,309 0 1,239 1,820 0 0 1,386 1,923 0

Nizhne-Lenskoye 1,818 1,964 0 584 1,234 0 0 551 1,413 0

Total 36,212 38,260 7,894 8,033 9,736 10,555 8,385 9,629 11,635 8,612

52Ore and sands processing

‘000 t 2014 2015Q1

2014

Q2

2014

Q3

2014

Q4

2014

Q1

2015

Q2

2015

Q3

2015

Q4

2015

Aikhal Division 9,478 9,141 2,436 2,244 2,168 2,630 2,203 2,249 2,069 2,620

Jubilee pipe 8,506 8,355 2,225 2,215 1,783 2,283 2,174 2,190 1,721 2,270

Aikhal underground mine 589 526 116 0 147 326 29 59 261 177

Komsomolskaya pipe 383 260 95 29 238 21 0 0 87 173

Mirny Division 4,903 5,706 469 1,325 1,479 1,630 486 1,693 1,918 1,609

International underground mine 445 486 151 97 21 176 171 133 84 96

Mir underground mine 481 647 20 141 64 256 145 182 176 144

Alluvial and technogenic deposits 3,978 4,574 298 1,087 1,394 1,199 169 1,378 1,658 1,369

Udachny Division 4,814 5,377 1,570 1,226 455 1,563 1,575 1,583 570 1,649

Udachnaya pipe 3,710 3,250 1,180 1,055 305 1,170 1,234 1,201 200 615

Udachnaya underground mine 89 262 - - - 89 0 0 50 212

Zarnitsa pipe 1,015 993 390 171 150 304 253 195 320 225

Alluvial deposits - 872 - - - - 88 187 0 597

Nyurba Division 2,000 2,040 410 375 763 452 351 444 775 470

Nyurbinskaya pipe 1,255 978 410 113 305 427 304 121 194 360

Botuobinskaya pipe - 135 - - - - 47 0 12 76

Alluvial deposits 745 927 0 262 458 25 0 323 569 35

Lomonosov Division (Severalmaz) 3,309 3,988 481 808 1,022 998 885 1,021 1,079 1,003

Arkhangelskaya pipe 2,793 1,903 481 808 1,022 482 330 539 502 531

Karpinskogo-1 pipe 516 2,086 - - - 516 555 482 577 472

Almazy Anabara 5,604 5,222 0 2,200 3,404 0 0 1,898 3,324 0

Nizhne-Lenskoye 5,814 5,640 0 2,080 3,734 0 0 1,888 3,752 0

Total 35,922 37,114 5,366 10,258 13,024 7,274 5,500 10,775 13,487 7,351

Thank you!

Corporate Finance and AnalyticsInvestor Relations

1-st Kazachy Per., 10-12 Moscow 119017 Russia

Tel.: +7 495 745 [email protected]

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