ALROSA says to use 100% of FCF to pay dividends if debt low

MOSCOW, Jun 25 (PRIME) -- The supervisory board of Russian diamond mining giant ALROSA has adjusted the company’s dividend policy, and it would pay 100% of free cash flow in dividends if the ratio of net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) is below 0.5x, the company said in a statement on Tuesday.

If the ratio amounts from 0.5x to 1x, then the company will pay 70–100% of its free cash flow in dividends, the company said, adding that the ratios will be taken as of the end of a first half of a year or as of the end of a year.

The Federal State Property Management Agency owns 33.0256% in ALROSA, while the republic of Yakutia owns 25.0002%, regions of Yakutia where the company operates own a total of 8.0003%, and free-float is 33.9739%.

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