IR-release: Q3 and 9M 2013 operational overview
October 11, 2013 Disclaimer
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2 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Operational overview of ALROSA
Diamond production (mln cts)
9M 2013 27.1 9M 2012 25.4
Diamonds produced (mln cts) 8.1 8.3 9.1 7.5 9.6 9.9
Ore and gravels Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 processed (mln t) 5.2 7.9 10.0 5.4 9.9 14.3
Grade 1.56 1.04 0.91 1.37 0.97 0.69 (cpt)
Q3 2013 diamond production totaled 9.9 mln cts, which Growth drivers: is 9% higher compared to Q3 2012 acquisition of OJSC Nizhne-Lenskoye ALROSA’s 9M 2013 diamond production totaled improved grade at Jubilee pipe 27.1 mln cts, which is 6% higher compared to 9M 2012 increased output from Mir underground mine
3 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Diamond production
Q3 2013 9M 2013 Q3 Q3 9M 9M ‘000 cts vs. vs. 2013 2012 2013 2012 Q3 2012 9M 2012 Aikhal Division 2,456 2,901 (15%) 8,109 6,348 28% Jubilee pipe 2,456 1,713 43% 6,628 4,542 46%
Aikhal underground mine 0 1,129 - 1,435 1,675 (14%)
Komsomolskaya pipe 0 59 - 46 131 (65%) Mirny Division 1,885 1,770 6% 5,455 6,662 (18%)
International underground mine 1,099 1,106 (1%) 3,228 4,658 (31%)
Mir underground mine 518 369 40% 1,586 1,366 16%
Alluvial and technogenic deposits 268 295 (9%) 641 638 0%
Udachny Division 480 241 99% 3,462 3,970 (13%)
Udachnaya pipe 465 241 93% 3,352 3,859 (13%) Zarnitsa pipe 15 0 - 110 111 (1%) Nyurba Division 2,022 2,430 (17%) 5,076 5,633 (10%) Nyurbinskaya pipe 1,504 2,020 (26%) 4,283 5,127 (16%) Alluvial deposits 517 410 26% 792 506 57%
Lomonosov Division (OJSC Severalmaz (hereinafter Severalmaz)) 155 152 2% 423 420 1%
Arkhangelskaya pipe 155 152 2% 423 420 1% OJSC Almazy Anabara (hereinafter Almazy Anabara) 1,553 1,592 (2%) 2,520 2,408 5% OJSC Nizhne-Lenskoye* (hereinafter Nizhne-Lenskoye) 1,397 1,227 - 2,009 1,521 - Total 9,947 9,086 9% 27,053 25,440 6%
* In 2012 and earlier Nizhne-Lenskoye results are not included into ALROSA operational results
4 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
ALROSA’s production footprint
Arkhangelsk Lomonosov Division (2%) region (2%) Arkhangelskaya pipe (2%)
Arkhangelsk
Karpinskogo-1 pipe ( – ) Russia Russia
Republic of Sakha (Yakutia) (98%) Mining methods: Underground mining (23%) Open-pit mining (55%) Almazy Anabara (9%) Alluvial mining (22%)
Nizhne-Lenskoye (7%)
Republic of Sakha (Yakutia) Udachny Division (13%) Udachnaya pipe (12%) Aikhal Division (30%) Zarnitsa pipe (less than 1%) Jubilee pipe (25%) Udachny Aikhal pipe (5%) Aikhal Nyurba Division (19%) Komsomolskaya pipe Yakutsk Nyurbinskaya pipe (16%) (less than 1%) Nyurba Botuobinskaya pipe ( – ) Mirny Division (20%) Mirny Mir pipe (6%) Alluvial deposits (3%) International pipe (12%)
Alluvial deposits (2%)
Percentage in brackets indicates the share of region/division/pipe in 9M 2013 ALROSA production
5 AIKHAL DIVISION
6 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Jubilee pipe Aikhal pipe Komsomolskaya pipe Aikhal Division overview
Division structure Almazy Anabara Processing plant No. 8 Aikhal pipe Komsomolskaya Nizhne-Lenskoye Komsomolskaya pipe pipe Processing plant No. 14 Udachny DIvision Jubilee pipe Processing plant No. 14 Udachny Capacity: 10 mln t annually Aikhal Division Aikhal
Nyurba DIvision Yakutsk Nyurba Mirny DIvision Mirny
Share in 2012 ALROSA Processing plant No. 8 0 200 400 km production: Capacity: 1.7 mln t annually 26% Jubilee pipe
Aikhal
Mining methods:
2012 Results Underground mining Diamonds Ore processed Aikhal pipe Open-pit mining produced (‘000 t) (‘000 cts)
10,526 8,945
7 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Jubilee pipe Aikhal pipe Komsomolskaya pipe Jubilee pipe
Mining method:
Open-pit mining current mining area
Commissioned: 0 m surface 1985
Current open pit depth: 315 m -315 m current open pit depth
eastern lobe
central lobe
western lobe Resources inclusive of reserves (as of 01.07.2013) according to JORC Code -720 m target open pit depth; Contained Tonnage Grade boundary of indicated diamonds (‘000 t) (cpt) resources (‘000 cts) Indicated resources Indicated Inferred resources 129,017 0.84 108,166 -1,100 m Resources not classified in boundary of inferred Inferred accordance with JORC Code* resources 65,977 0.62 40,594 -1,300 m boundary of exploration Total
194,994 0.76 148,760 * Potential resources according to the Russian State Commission for Mineral Reserves classification
8 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Jubilee pipe Aikhal pipe Komsomolskaya pipe Jubilee pipe: production overview
Q3 2013 diamond production increased by 43% Diamond production increase in Q3 2013 was driven Share in 2012 ALROSA compared to Q3 2012 by mining of ore from the central lobe with higher production: grades 18%
9M 2012 9M 2013 4,542 6,628
2,456 2,232 1,940 1,713 Diamonds produced 1,669 (‘000 cts) 1,160
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 2,350 2,474 2,395 2,405 2,375 2,040 (‘000 t)
Grade 0.49 0.67 0.72 0.81 0.94 1.20 (cpt)
9 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Jubilee pipe Aikhal pipe Komsomolskaya pipe Aikhal pipe
Period of open-pit mining: current mining area 1961-1996 0 m Open pit depth: surface 305 m
Mining method: -305 m Underground mine open pit depth
Start of underground mining operations: 2005 -500 m boundary of indicated resources south-western ore body north-eastern ore body
Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Contained -700 m Tonnage Grade diamonds boundary of inferred (‘000 t) (cpt) resources of south- (‘000 cts) western ore body Indicated resources western lobe Indicated Inferred resources eastern lobe 7,729 4.68 36,159 Resources not classified in Inferred accordance with JORC Code* -900 m 8,269 3.87 31,967 boundary of exploration
Total
15,998 4.26 68,126 * Potential resources according to the Russian State Commission for Mineral Reserves classification
10 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Jubilee pipe Aikhal pipe Komsomolskaya pipe Aikhal pipe: production overview
Ore from Aikhal underground mine was not processed in Q3 2013 due to planned maintenance works at the Share in 2012 ALROSA processing plant No.8 production: 7% 9M 2012 9M 2013 1,675 1,435
1,435 1,129 Diamonds produced (‘000 cts) 546
0 0 0
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 0 98 202 0 263 0 (‘000 t)
Grade 0.00 5.57 5.59 0.00 5.46 0.00 (cpt)
11 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Jubilee pipe Aikhal pipe Komsomolskaya pipe Komsomolskaya pipe
Mining method: Open-pit mining
Commissioned:
2000 0 m surface Current open pit depth: 335 m
Resources inclusive of reserves (as of 01.07.2013) -335 m according to JORC Code current open pit depth Contained Tonnage Grade diamonds (‘000 t) (cpt) (‘000 cts) Indicated Indicated resources -470 m 4,812 0.38 1,808 target open pit depth; boundary of indicated Total resources 4,812 0.38 1,808
12 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Jubilee pipe Aikhal pipe Komsomolskaya pipe Komsomolskaya pipe: production overview
Ore from Komsomolskaya pipe was not processed in 3Q 2013 due to planned annual maintenance works Share in 2012 ALROSA at the processing plant No. 8 production: less than 1%
9M 2012 9M 2013 131 46
72 59 Diamonds produced 44 (‘000 cts)
0 2 0
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 0 218 152 200 6 0 (‘000 t)
Grade 0.00 0.33 0.39 0.22 0.33 0.00 (cpt)
13 MIRNY DIVISION
14 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
International pipe Mir pipe Alluvial and technogenic deposits Mirny Division overview
Division structure Almazy Anabara Processing plant No. 3 Mir pipe International pipe Nizhne-Lenskoye Vodorazdelniye Galechniki placer Udachny Division Processing plant No. 3 Udachny Tailings of Processing plant Aikhal Division Capacity: 2 mln t annually Aikhal No. 5 Dredges No. 201, 202, 203 Nyurba Division Yakutsk Nyurba Irelyakhskaya placer Mirny Division Mirny
Mirny Vodorazdelniye Galechniki placer Share in 2012 ALROSA production: 0 200 400 km
25% Mir pipe
International Dredges No. 201, 202, 203 pipe 2012 Results Capacity: 4 mln t annually Mining methods: Ore processed at processing plant No.3 2,161 Irelyakhskaya Underground mining (‘000 t) placer Alluvial mining Gravels processed at dredges No. 201, 202, 203 3,193 (‘000 t)
Ore and gravels processed 5,354 (‘000 t)
Diamonds produced 8,707 (‘000 cts)
15 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
International pipe Mir pipe Alluvial and technogenic deposits International pipe
Period of open-pit mining: 0 m 1971-1981 surface Period of open pit development: 2005-2011
Open pit depth: 310 m -310 m open pit depth Mining method:
Underground mining current mining area
Start of underground mining operations: 1999
Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Contained Tonnage Grade diamonds Indicated resources (‘000 t) (cpt) (‘000 cts) Inferred resources Indicated -1,085 m Resources not classified in boundary of indicated accordance with JORC Code* 4,208 8.73 36,739 resources Inferred -1,215 m 1,542 7.98 12,304 boundary of inferred resources Total -1,475 m boundary of exploration 5,750 8.53 49,043 * Potential resources according to the Russian State Commission for Mineral Reserves classification
16 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
International pipe Mir pipe Alluvial and technogenic deposits International pipe: production overview
Q3 2013 diamond production decreased by 1% Diamond production in Q3 2013 was in line with Share in 2012 ALROSA compared to Q3 2012 the Company’s plan production: 17%
9M 2012 9M 2013 4,658 3,228
2,347
Diamonds produced 1,205 (‘000 cts) 1,106 1,082 1,047 1,099
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 299 133 124 130 118 113 (‘000 t)
Grade 7.85 9.06 8.92 8.32 8.87 9.73 (cpt)
17 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
International pipe Mir pipe Alluvial and technogenic deposits Mir pipe
Period of open-pit mining: current mining area 1959-2001
Open pit depth: 0 m 525 m surface
Mining method: Underground mining
Start of underground mining operations: -525 m 2009 open pit depth -545 m upper boundary of indicated resources
dry shutdown Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Contained Indicated resources Tonnage Grade diamonds (‘000 t) (cpt) (‘000 cts) Inferred resources Indicated -950 m boundary of indicated 29,211 3.55 103,782 resources Inferred
10,913 3.11 33,940 -1,235 m boundary of exploration Total
40,124 3.43 137,722
18 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
International pipe Mir pipe Alluvial and technogenic deposits Mir pipe: production overview
Q3 2013 diamond production increased by 40% Diamond production grew in Q3 2013 due to Share in 2012 ALROSA compared to Q3 2012 increase in ore processing along with the production: Company’s plan and improved grade 5%
9M 2012 9M 2013 1,366 1,586
597 518 504 493 471 Diamonds produced 369 (‘000 cts)
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 127 135 111 144 184 154 (‘000 t)
Grade 3.97 3.65 3.32 3.27 3.24 3.36 (cpt)
19 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
International pipe Mir pipe Alluvial and technogenic deposits Alluvial and technogenic deposits Deposits Q3 2013 diamond production decreased by 9% Diamond production decreased in Q3 2013 due to Vodorazdelniye Galechniki compared to Q3 2012 planned processing of lower quality gravels placer Irelyakhskaya placer Tailings of processing plant 9M 2012 9M 2013 No. 5 638 641
295 261 268 239 Diamonds produced Share in 2012 ALROSA (‘000 cts) 134 production: 82 3% Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Gravels processed (‘000 t) 92 1,152 1,808 242 818 1,865 Grade 0.89 0.23 0.16 0.99 0.16 0.14 (cpt)
2012 Results Gravels Diamonds Grade processed produced (cpt) (‘000 t) (‘000 cts)
4,136 0.23 936
Resources and reserves of Mirny Division alluvial placers were not included into JORC Code valuation
20 UDACHNY DIVISION
21 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Udachnaya pipe Zarnitsa pipe Udacnhy Division overview
Division structure Almazy Anabara Processing plant No. 12 Udachnaya pipe Zarnitsa pipe Nizhne-Lenskoye
Udachny Division Udachny Aikhal Division Aikhal Zarnitsa pipe Nyurba Division Yakutsk Nyurba
Mirny Division Udachnaya Mirny pipe
Share in 2012 ALROSA 0 production: 200 400 км 17%
Mining method:
Processing plant No. 12 Open-pit mining Capacity: 12 mln t annually
2012 Results Diamonds Ore processed produced (‘000 t) (‘000 cts)
4,619 5,845
22 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Udachnaya pipe Zarnitsa pipe Udachnaya pipe
Mining method:
Open-pit mining current mining area Ore stockpile (measured resources) Commissioned:
1971 0 m surface
Current open pit depth: 640 m
-640 m current open pit depth
Resources inclusive of reserves (as of 01.07.2013) according to JORC Code -890 m boundary of indicated Contained Tonnage Grade resources diamonds (‘000 t) (cpt) (‘000 cts) western lobe
Measured eastern lobe 4,820 1.52 7,329 Measured resources Indicated Indicated resources 82,297 1.49 122,278 Inferred resources Inferred -1,390 m boundary of inferred 78,305 1.25 98,157 resources
Total
165,422 1.38 227,764
23 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Udachnaya pipe Zarnitsa pipe Udachnaya pipe: production overview
Share in 2012 ALROSA In Q3 2013 diamond production increased 1.9 times compared to Q3 2012, ore processing increased 3 times production: due to lower grade at eastern ore lobe of Udachnaya pipe 16% 9M 2012 9M 2013 3,859 3,352
2,050
1,568 1,557 Diamonds produced 1,330 (‘000 cts)
465 241
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 1,308 1,008 150 1,400 1,563 447 (‘000 t)
Grade 1.57 1.56 1.61 1.11 0.85 1.04 (cpt)
24 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Udachnaya pipe Zarnitsa pipe Zarnitsa pipe
Mining method:
Open-pit mining current mining area
Commissioned:
1999 0 m surface
Current open pit depth: -90 m current open pit depth 90 m
-200 m boundary of indicated resources
-400 m target open pit depth
Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Contained Tonnage Grade diamonds (‘000 t) (cpt) Indicated resources (‘000 cts) Resources not classified in Indicated accordance with JORC Code* 58,554 0.21 12,007 -700 m boundary of exploration Total
58,554 0.21 12,007 * Estimated reserves and potential resources according to the Russian State Commission for Mineral Reserves classification
25 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Udachnaya pipe Zarnitsa pipe Zarnitsa pipe: production overview
In Q3 2013 diamond production at Zarnitza pipe totaled 15 thousand cts Share in 2012 ALROSA production: In 9M 2013 diamond production reached 110 thousand cts, which is in line with production in 9M 2012 Ore from Zarnitsa pipe was not processed in Q3 2012 due to planned maintenance works at the processing less than 1% plant No.12 9M 2012 9M 2013 111 110
69 53 Diamonds produced 42 42 (‘000 cts)
15 0
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 320 200 0 250 295 150 (‘000 t)
Grade 0.22 0.21 0.00 0.17 0.18 0.10 (cpt)
26 NYURBA DIVISION
27 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Nyurbinskaya pipe Botuobinskaya pipe Alluvial deposits Nyurba Division overview
Division structure Almazy Anabara Processing plant No. 15
Nyurbinskaya placer Processing plant No. 15 Capacity: 0.5 mln t annually Botuobinskaya placer* Nizhne-Lenskoye Processing plant No. 16 Udachny Division Nyurbinskaya pipe Processing plant No. 16 Udachny Capacity: 1.4 mln t annually Aikhal Division Botuobinskaya pipe* Aikhal
Nyurbinskaya placer Nyurba Division Yakutsk Nyurba * Pre-construction activities and waste Mirny Division Mirny stripping are in progress
Share in 2012 ALROSA 0 200 400 km production: 23% Nyurbinskaya placer
Botuobinskaya Nyurbinskaya placer pipe
Mining method:
2012 Results Underground mining Diamonds Ore processed Open-pit mining produced Botuobinskaya (‘000 t) (‘000 cts) pipe Alluvial mining
2,105 7,956
28 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Nyurbinskaya pipe Botuobinskaya pipe Alluvial deposits Nyurbinskaya pipe
Mining method: Open-pit mining
current mining area Commissioned: 2001 0 m surface Current open pit depth: 265 m
-265 m current open pit depth
Resources inclusive of reserves (as of 01.07.2013) according to JORC Code -570 m Contained target open pit depth; Tonnage Grade diamonds boundary of indicated (‘000 t) (cpt) (‘000 cts) resources
Indicated -750 m 12,264 4.13 50,661 boundary of exploration; Indicated resources boundary of inferred Inferred resources Inferred resources 1,192 5.42 6,465 Resources not classified in Total accordance with JORC Code*
13,456 4.25 57,126 * Potential resources according to the Russian State Commission for Mineral Reserves classification
29 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Nyurbinskaya pipe Botuobinskaya pipe Alluvial deposits Nyurbinskaya pipe: production overview
Q3 2013 diamond production decreased by 26% Diamond production decreased in Q3 2013 due to Share in 2012 ALROSA compared to Q3 2012 lower volumes of processed ore caused by grown production: gravels involvement into processing at the processing plant No.16 as scheduled along with 21% the Company’s plan 9M 2012 9M 2013 5,127 4,283
2,020 1,978 1,756 1,504 1,351 Diamonds produced (‘000 cts) 801
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 400 220 415 400 124 285 (‘000 t)
Grade 4.39 6.14 4.87 4.95 6.46 5.28 (cpt)
30 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Nyurbinskaya pipe Botuobinskaya pipe Alluvial deposits Botuobinskaya pipe
Commence of waste stripping: December 2012
0 m surface -75 m depth of ore body bedding
overburden
Resources inclusive of reserves -580 m (as of 01.07.2013) target open pit depth; according to JORC Code boundary of indicated Contained resources Tonnage Grade diamonds (‘000 t) (cpt) (‘000 cts) -780 m Indicated resources boundary of inferred Indicated resources 13,679 5.19 71,044 Inferred resources Resources not classified in Inferred accordance with JORC Code* -980 m 2,685 5.14 13,790 boundary of exploration Total
16,364 5.18 84,834 * Potential resources according to the Russian State Commission for Mineral Reserves classification
31 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Nyurbinskaya pipe Botuobinskaya pipe Alluvial deposits Alluvial deposits
Deposits Q3 2013 diamond production increased by 26% Diamond production increase in Q3 2013 was Nyurbinskaya placer compared to Q3 2012 driven by increased volumes of gravels mined as scheduled along with the Company’s plan Botuobinskaya placer
9M 2012 9M 2013 506 792
517 410
Diamonds produced 275 Share in 2012 ALROSA (‘000 cts) production: 96 2% 0 0 Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Gravels processed (‘000 t) 0 201 410 0 251 520 2012 Results Grade Gravels Diamonds 0.00 0.48 1.00 0.00 1.10 0.99 Grade (cpt) processed produced (cpt) (‘000 t) (‘000 cts)
679 1.00 680
Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Contained Tonnage Grade diamonds (‘000 t) (cpt) (‘000 cts)
13,668 1.68 22,989
32 LOMONOSOV DIVISION (SEVERALMAZ)
33 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Arkhangelskaya pipe Karpinskogo-1 pipe Lomonosov Division (Severalmaz) overview
Division structure Processing plant No. 1* Arkhangelskaya pipe Karpinskogo-1 pipe** Lomonosov Division * Development in progress, construction of module No. 2 ** Waste stripping in progress Arkhangelsk Karpinskogo-1 pipe Processing plant No. 1
0 250 500 km Share in 2012 ALROSA Module No. 1 Module No. 2 production: Capacity: 1 mln t annually Capacity: 3 mln t annually 2%
Mining method: Arkhangelskaya pipe Open-pit mining
2012 Results Diamonds Ore processed produced (‘000 t) (‘000 cts)
1,100 559
34 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Arkhangelskaya pipe Karpinskogo-1 pipe Arkhangelskaya pipe
Mining method: Open-pit mining current mining area Commissioned: 0 m 2005 surface
Current open pit depth:
114 m -114 m current open pit depth
-348 m target open pit depth
Resources inclusive of reserves -460 m boundary of indicated (as of 01.07.2013) resources according to JORC Code Contained Tonnage Grade diamonds (‘000 t) (cpt) (‘000 cts) Indicated
56,226 0.77 43,406 Indicated resources
Inferred Inferred resources 39,408 0.98 38,623 -940 m boundary of inferred Total resources
95,634 0.86 82,029
35 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Arkhangelskaya pipe Karpinskogo-1 pipe Arkhangelskaya pipe: production overview
Q3 2013 diamond production increased by 2% Diamond production increased in Q3 2013 due to Share in 2012 ALROSA compared to Q3 2012 higher grades production: 2% 9M 2012 9M 2013 420 423
152 155 148 142 120 126 Diamonds produced (‘000 cts)
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Ore processed 272 279 285 272 279 281 (‘000 t)
Grade 0.44 0.53 0.53 0.46 0.51 0.55 (cpt)
36 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Arkhangelskaya pipe Karpinskogo-1 pipe Karpinskogo-1 pipe
Current open pit depth:
44 m 0 m surface Commence of waste stripping: -44 m 2009 current open pit depth
overburden
-262 m target open pit depth
-462 m boundary of indicated resources
Resources inclusive of reserves (as of 01.07.2013) according to JORC Code -662 m Contained boundary of inferred Tonnage Grade diamonds resources (‘000 t) (cpt) (‘000 cts) Indicated resources
Indicated Inferred resources 24,988 1.08 26,960 Resources not classified in accordance with JORC Code* Inferred -942 m 5,168 1.26 6,512 boundary of exploration Total
30,156 1.11 33,472 * Potential resources according to the Russian State Commission for Mineral Reserves classification
37 ALMAZY ANABARA
38 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Almazy Anabara
Deposits Q3 2013 diamond production decreased by 2% Diamond production decreased in Q3 2013 due to Morgogor placer compared to Q3 2012 lower grades and increased volumes of gravels processed Istok placer Holomolokh placer
Ebelyakh placer 9M 2012 9M 2013 Gusinaya placer 2,408 2,520 41 Ruchey placer Kurung-Yuryakh placer 1,592 1,553
Diamonds produced 967 816 (‘000 cts) Share in 2012 ALROSA production: 7% 0 0 Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Gravels processed (‘000 t) 0 1,801 3,967 0 1,874 4,876 2012 Results Grade Gravels Diamonds 0.00 0.45 0.40 0.00 0.52 0.32 Grade (cpt) processed produced (cpt) (‘000 t) (‘000 cts)
5,768 0.42 2,408
Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Contained * In JORC report as of 01.07.2013 the Tonnage Grade diamonds resources of Solur-Vostochnaya placer (‘000 t) (cpt) was excluded from the calculation of (‘000 cts) Almazy Anabara resources and reviewed independently by MICON 36,816 0.80 29,597
39 NIZHNE-LENSKOYE
40 I. Operational II. Aikhal Division III. Mirny Division IV. Udachny Division V. Nyurba Division VI. Lomonosov Division VII. Alamazy Anabara VIII. Nizhne-Lenskoye overview
Nizhne-Lenskoye
Deposits Situated in Bulunsky and Anabarsky municipal Acquired by Almazy Anabara in 2013 Molodo placer districts of the Republic of Sakha (Yakutia) close to Q3 2013 diamond production totaled 1.4 mln carats the existing production facilities of Almazy Anabara Billyakh placer
9M 2012 9M 2013 1,521 2,009
1,397 1,227
Diamonds produced 612 (‘000 cts) 294
0 0
Q1 2012 Q2 2012 Q3 2012 Q1 2013 Q2 2013 Q3 2013 Gravels processed (‘000 t) 0 890 2,849 0 1,786 3,552 Grade 0.00 0.33 0.43 0.00 0.34 0.39 (cpt)
2012 Results* Gravels Diamonds Grade processed produced (cpt) (‘000 t) (‘000 cts) 3,739 0.41 1,521
* In 2012 and earlier Nizhne-Lenskoye results are not included into ALROSA operational results
41 Appendix
42 Diamond production
Q1 Q2 Q3 9M Q4 Q1 Q2 Q3 9M ‘000 cts 2011 2012 2012 2012 2012 2012 2012 2013 2013 2013 2013
Aikhal Division 5,262 8,945 1,160 2,287 2,901 6,348 2,597 1,984 3,669 2,456 8,109
Jubilee pipe 3,589 6,272 1,160 1,669 1,713 4,542 1,730 1,940 2,232 2,456 6,628
Aikhal underground mine 1,306 2,520 0 546 1,129 1,675 845 0 1,435 0 1,435
Komsomolskaya pipe 367 153 0 72 59 131 22 44 2 0 46
Mirny Division 8,138 8,707 2,933 1,959 1,770 6,662 2,045 1,792 1,778 1,885 5,455
International underground mine 5,912 5,916 2,347 1,205 1,106 4,658 1,258 1,082 1,047 1,099 3,228
Mir underground mine 1,321 1,855 504 493 369 1,366 489 471 597 518 1,586
Alluvial and technogenic deposits 905 936 82 261 295 638 298 239 134 268 641
Udachny Division 10,583 5,845 2,119 1,610 241 3,970 1,875 1,598 1,383 480 3,462
Udachnaya pipe 10,374 5,642 2,050 1,568 241 3,859 1,783 1,557 1,330 465 3,352
Zarnitsa pipe 209 203 69 42 0 111 92 42 53 15 110
Nyurba Division 7,478 7,956 1,756 1,447 2,430 5,633 2,323 1,978 1,076 2,022 5,076 Nyurbinskaya pipe 6,950 7,276 1,756 1,351 2,020 5,127 2,149 1,978 801 1,504 4,283
Alluvial deposits 528 680 0 96 410 506 174 0 275 517 792
Lomonosov Division (Severalmaz) 557 559 120 148 152 420 139 126 142 155 423
Arkhangelskaya pipe 557 559 120 148 152 420 139 126 142 155 423
Almazy Anabara 2,534 2,408 0 816 1,592 2,408 0 0 967 1,553 2,520
Nizhne-Lenskoye* 1,506 1,521 0 294 1,227 1,521 0 0 612 1,397 2,009 Total 34,552 34,420 8,088 8,266 9,086 25,441 8,980 7,478 9,627 9,947 27,053
* In 2012 and earlier Nizhne-Lenskoye results are not included into ALROSA operational results
43 Ore and sands processing
Q1 Q2 Q3 9M Q4 Q1 Q2 Q3 9M ‘000 t 2011 2012 2012 2012 2012 2012 2012 2013 2013 2013 2013
Aikhal Division 11,165 10,526 2,350 2,790 2,749 7,889 2,637 2,605 2,644 2,040 7,289 Jubilee pipe 9,833 9,627 2,350 2,474 2,395 7,219 2,408 2,405 2,375 2,040 6,820
Aikhal underground mine 231 432 0 98 202 300 132 0 263 0 263
Komsomolskaya pipe 1,101 467 0 218 152 370 97 200 6 0 206
Mirny Division 3,184 5,354 518 1,420 2,043 3,981 1,373 516 1,120 2,132 3,768
International underground mine 747 711 299 133 124 556 155 130 118 113 361
Mir underground mine 339 507 127 135 111 373 134 144 184 154 482
Alluvial and technogenic deposits 2,098 4,136 92 1,152 1,808 3,052 1,084 242 818 1,865 2,925
Udachny Division 6,350 4,619 1,628 1,208 150 2,986 1,633 1,650 1,858 597 4,105
Udachnaya pipe 5,350 3 619 1,308 1,008 150 2,466 1,153 1,400 1,563 447 3,410
Zarnitsa pipe 1,000 1 000 320 200 0 520 480 250 295 150 695
Nyurba Division 2,100 2,105 400 421 825 1,646 459 400 375 805 1,580 Nyurbinskaya pipe 1,350 1,426 400 220 415 1,035 391 400 124 285 809
Alluvial deposits 750 679 0 201 410 611 68 0 251 520 771
Lomonosov Division (Severalmaz) 1,066 1,100 272 279 285 836 264 272 279 281 832
Arkhangelskaya pipe 1,066 1,100 272 279 285 836 264 272 279 281 832
Almazy Anabara 5,961 5,768 0 1,801 3,967 5,768 0 0 1,874 4,876 6,750
Nizhne-Lenskoye* 3,604 3,739 0 890 2 849 3,739 0 0 1,786 3,552 5,338
Total 29,826 29,472 5,168 7,919 10,019 23,106 6,366 5,443 9,936 14,283 29,662
* In 2012 and earlier Nizhne-Lenskoye results are not included into ALROSA operational results
44 Thank you!
ALROSA IR-team contacts: IR@alrosa.ru