ALROSA’s senior managers held another of their regular meetings in Mirny on 26 April.

The management approved the company’s 2003 Annual Report, financials, P & L statement, net profit spending. Measures to implement proposals and criticisms voiced at the Meeting of ALROSA Management and Employee Activists, and a number of minor issues were also on the agenda.

Vice President Valentina Potrubeiko presented the company’s performance figures for 2003. Last year ALROSA’s total diamond sales amounted to US $1697.3 m, or 101.9 per cent of the plan target, with polished diamond sales accounting for US $123.4 m. The surplus was due to the growing demand and increasing rough diamond prices throughout the year. Sales proceeds amounted to 56 752.3 m RUR.

Rock mass extraction was 102 per cent of the plan, which exceeds the 2002 figure by 1569.5 thousand cubic meters. Diamond production was US $ 1648.9 m, or (in percentage) 105 per cent of the plan. If compared with 2002 level, there was a growth of US $ 182.7 m in terms of value.

Capex were 104.6 per cent of the target figure. Construction and assembly expenses amounted to 7191.3 m RUR. Geological exploration expenses totaled 1146.8 m RUR.

Net profit received amounted to 9663.2 m RUR. Net profit was spent on capex, long-term investment, geological exploration, R & D.

800 m RUR of net profit will be paid in dividends, which, on approval by the Supervisory Board and Annual General Meeting of shareholders, may amount to 4 thousand RUR per share.

2003 saw the improvement of the company’s financial standing confirmed by the growing              quick and current liquidity ratios.

As key targets for 2004 aimed at implementing proposals and criticisms voiced at the March Management and Employee Activists Meeting the implementation of the diamond production target of US $1856 m, total diamond sales of US $ 2047 m, polished diamond sales of US $137.1 m, capital construction target of 11.6 bn  RUR were announced.

Besides in Q3 the first unit of the Svetlinskaya electric power station and No. 203. Dredge will be commissioned, the construction of underground mines will be continued, and certain measures to improve performance in diamond production and sales, geological exploration and capital construction will be implemented.

Appropriate decisions were taken as far as the minor items on the agenda are concerned.