Russian diamond mining company Alrosa has recommended its highest ever half-year dividends for shareholders, the company revealed.
The company’s supervisory board recommended at a meeting this week half-year dividends for H2 2020 amounting to RUB 70.3 billion (£674.5 million), or RUB 9.54 (£0.092) per share.
This makes for an almost 50% increase on the full-year payout for the previous year.
Alrosa CEO, Sergey Ivanov, said: “As proposed by the company’s management in March 2021, the board approved changes to the financial and dividend policies to enhance resilience and sustainability of our business.
“In particular, it increased the target minimum liquidity reserve to RUB 70 billion ((£674.5 million) and adjusted the methodology for determining the amount of dividend payout for net debt/EBITDA below 1.0x.
“In view of the changes, the supervisory board recommended distributing record high RUB 70.3 bn (£674.5 million), or 80% of free cash flow for the period as dividends for H2 2020.
“The decision confirms the company’s commitment to balancing the interests of shareholders and robust financial stability of the business.”
The general meeting of shareholders will be convened on 16 June 2021. The recommended record date for dividends is 4 July 2021, the company said.