ALMAR received the status of the resident of the Arctic zone of the Russian Federation. As part of the implementation of the investment project, a high-tech mining enterprise will be formed in the north of Yakutia, which will explore and develop small and medium-sized placer diamond deposits in the Leno-Anabar diamond subprovince.
The preferential regime of the Russian Arctic, in agreement with the unified development institute – the Corporation for the Development of the Far East and the Arctic, implies the volume of ALMAR’s own investments in the project in the amount of about 1.72 billion rubles. Currently, 10 enterprises in Yakutia have the status of a resident of the Russian Arctic, which in total intend to invest 2.9 billion rubles in the region’s economy. Therefore, today ALMAR will become the largest resident investor of the Arctic zone in Yakutia. The planned volume of tax revenues will amount to 1.5 billion rubles, of which a significant part will be received by the regional and local budgets of the Republic of Sakha (Yakutia) and Oleneksky ulus.
ALMAR has been exploring two placer diamond deposits in the Yakut Arctic since 2016 at the cost of shareholders’ investments. In 2021, the company held a closed subscription to shares, as a result of which it attracted 200 million rubles from private investors involved in the financial market for exploration work. In order to provide financing for the conclusion of exploration, confirmation of reserves and planning of the development of 2 placer diamond deposits, the company intends to carry out an initial placement of 15% of its shares on the St. Petersburg Stock Exchange for 700 million rubles. Earlier it was planned to be held in March-April 2022. At the moment, the deadlines are shifted to the end of spring – the beginning of summer. The company plans to become the first issuer in the new for Russia segment “St. Petersburg Juniors” of the St. Petersburg Stock Exchange, dedicated to investing in “juniors” – young, rapidly developing Russian mining companies, which will provide ALMAR with access to the financial market for sustainable financing of mining projects.
ALMAR plans to complete exploration of 2 deposits in the ALMAR license portfolio in 2022, confirmation of reserves and obtaining production licenses is expected in 2023. The start of diamond mining and sales is scheduled for 2024. It is expected that after reaching the design capacity, the total volume of diamond production will reach 1 – 1.2 million carats per year.
“Tax and administrative preferences of the Arctic zone will allow ALMAR to make the most effective use of investments and increase financial reserves for sustainable development in a period of high economic turbulence,” — Andrey Karkhu, CEO of ALMAR JSC.
The implementation of an investment project within the Arctic zone of the Russian Federation is an opportunity to use special rates for income tax and mining, property and land tax benefits, and receive subsidies for compensation of insurance premiums. And also apply the procedures of the free customs zone (FTZ) and count on a special regime of inspections by regulatory authorities and other preferences for residents of the Russian Arctic Zone.
“Obtaining the Russian Arctic Zone residency will allow ALMAR to rely not only on the current situation of rising diamond prices, but also to use favorable conditions to maximize profits and reduce the risks of the junior project. Special rates for a number of taxes will increase the attractiveness of the project, which is especially important due to the growing tax burden on the mining segment in recent years. Obtaining a residency is a proof of the availability of administrative support for start–up projects in the field of mining from the state and a good signal for investors in junior companies ” — Stanislav Yudin, analyst at ITI Capital.
The Arctic zone of the Russian Federation is the northern tip of the European and Asian parts of the Russian Federation, located along the coast of the Arctic Ocean seas: Barents, Karsc, Laptevs, East Siberian and Chukotka. A special economic development zone regime has been implemented on the territory of the Russian Arctic Zone, which implements a set of measures to support investors, creating new opportunities for doing business in the Arctic.
St. Petersburg Juniors – St. Petersburg Stock Exchange, together with the largest Russian geological exploration holding Rosgeologia and the investment company Polarctic Capital, on March 2 at the IPO congress in Moscow, presented a new segment, St. Petersburg Juniors, intended for the development of the mining industry, which is aimed at investing in young, rapidly developing Russian mining companies – the so-called “juniors”
The segment is available for juniors at two stages of development: the exploration stage and the production organization stage (field development before reaching the design capacity). Only junior residents of the Russian Federation who are developing deposits of solid minerals in Russia are allowed to be placed among qualified investors.
ITI Capital is an investment company with 20 years of experience in the Russian stock market and the highest reliability rating of AAA (NRA), the key area of activity is the brokerage business. ITI Capital is a professional participant in the securities market, a leading trading participant of the Moscow Stock Exchange.