"ALROSA" plans to reduce the volume of production at the alluvial deposits in 2016, said Chief Financial Officer Igor Kulichik in a conference call.
"We have decided to reduce the mining plan for 2016 - up to 37 million to 39 million carats. However, it does not require a reduction in production, the closure of the company's main production facilities. Indicators will be achieved by reducing the production of the alluvial deposits ", - said Kulichik.
He also noted that ALROSA is possible to painlessly reduce production volumes, possibly in subsequent years.
"Due to the alluvial deposits of the company can vary the level of annual production of +/- 10%, without increasing the cost and long-term effects on production", - said Kulichik.
In addition, the CFO said that due to the favorable situation of ALROSA in the first quarter of this year was able to significantly reduce the amount of residues in the diamond reserves - about 4 million carats, to slightly below 18 million carats. Their value today, according to company estimates, is about $ 1.8 billion. At the end of 2015 the volume of wastewater was 22 million carats.
"During the current year, we expect that the dynamics of a smooth decline of this indicator will continue, but this growth realization sinks in the first quarter, you will not see" - said Kulichik, adding that in January-March, there was a significant deficiency in the lapidary enterprises amounting to more than $ 3 billion.
According to him, ALROSA expects fairly stable continuation of the year both in sales volumes and prices for rough diamonds. "Most likely, we will not observe the sharp fluctuations until the end of the year, sales and do not see any reason for the significant change in the price upwards or downwards. We get positive feedback from our customers. So far, the changes do not expect ", - said Kulichik.
ALROSA plans to soon agree on debt refinancing in the amount of approximately $ 700 million, he said in a conference call Kulichik.
"We are actively working on this issue, we hope to conclude an agreement to refinance in the near future. As a result, we want to get a comfortable debt maturity curve - $ 300 million in 2017, 600 million in 2018 to 700 million in 2019 and $ 1 billion in 2020 ", - said Kulichik.
Thus, according to him, the company is debt repayments can be funded through its current revenues.
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