ALMAR owns prospecting licenses for two placer diamond deposits Beenchime and Khatystakh in the north of Yakutia. The exploration results show a great potential for the growth of the mineral resource base, confirmation or excess of reserves in the already studied areas over the forecast ones.
Investment attractiveness of ALMAR:
- Rapid growth: at an early stage of development, the value of junior companies is discounted from the operational stage of activity to the stage of exploration and organization of production at the fields. The early stage of development, unlike mature issuers at the peak of the life cycle, gives investors an additional growth driver, regardless of the state of the financial market.
- Optimized costs: even with high inflation, the growth of production costs will not have a strong impact on the company’s activities due to the effective organization of exploration and production stage.
- Long-term sustainability and reduction of geopolitical risks: before entering the sales stage, the company has two years to adapt the distribution channels of raw materials and optimize transaction costs.
- Reliability confirmed by expert evaluation: consistent procedures for evaluating and analyzing mining projects, geological and financial audits, which are mandatory for exchange juniors, conducted by independent top-level companies at each stage of the junior’s activity, increase the reliability of the company and reduce the risks of investors.
- High marginality of the upstream segment: the diamond market is a seller’s market, where historically there has been and is predicted for a long time a shortage of diamonds, diamond mining is the highest—margin stage, where a significant part of the value of precious stones is formed.
- Promising mineral resource base: the company is developing promising small and medium-sized diamond placers in the north of Yakutia, the total number of which reaches several dozen, the exploration and production of diamonds of these placers requires less costs and allows you to make a profit faster, focusing primarily on the development of the most profitable sites.
- Lack of infrastructure risks: the company has no borrowings abroad, focuses on the domestic financial market and exchange–traded and over-the-counter sources of financing in Russia, the shareholders of the company are management, professional participants in the securities market and qualified investors – residents of the Russian Federation.
- Working in the low-volatility natural diamond market: the range of specialists in exploration and production is limited, the cost of obtaining mining licenses and the capital costs necessary for the organization of production are quite high, because the number of players in the diamond mining industry worldwide does not exceed 20 companies. There are only two of them in Russia, and only the shares of one of them – AK ALROSA (PJSC) – can be purchased by exchange investors. PJSC ALMAR will be the second such opportunity. This will allow investors to diversify their investment portfolio, reducing infrastructure risks and increasing investment potential.
ALMAR Diamonds
Up to 5 million carats of diamonds are mined annually in each washing season in the ALMAR operational region – on the Arctic placers of the Leno-Anabar subprovince, among which dozens of large stones weighing over 10.8 carats and several super–large stones weighing more than 50 carats. The most expensive diamond in the history of Russia worth $ 26.6 million was mined in this region. As a result of exploration, ALMAR produced the first 400 carats of diamonds to the end of 2022 and plans to produce 1-2 million carats per year, including large diamonds and diamonds of rare fancy colors of yellow and pink.
Public responsibility ALMAR
ALMAR develops the best practices of corporate management. The company regularly discloses financial statements and makes the business transparent and understandable for investors. ALMAR is a fast—growing company that creates a history of public juniors in Russia.