OJSC AK ALROSA intends to reduce its debt load 1.5 times to $2.7 billion by the end of 2012, according to a recent statement by the diamond mining company’s CFO Igor Kulichik at teleconference, PRIME reported.
Total debt of ALROSA as of May 2012 stands at $4.054 billion, average interest rate per debt obligations is 6.57%. At present time midterm and long-term instruments account for 59% of ALROSA’s debt portfolio.
Igor Kulichik noted that significant reduction of the level of debt shall be backed primarily by the proposed sale of 51% share in Timir iron ore project to Evraz Plc as well as disposal of ALROSA’s gas assets. This will be also facilitated by positive cash flow of ALROSA which is expected to be equal to the corresponding levels of 2011.
Meanwhile Kulichik stated that should the transactions on sale of the above assets be aborted, ALROSA might proceed with refinancing of its short-term debt in Autumn, this year.
“The probability of these developments is relatively low, and later in Autumn it will be clear whether we shall do that or not,” – Kulichik added.
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