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ALROSA's 4Q Production +10%

Production Reaches 37M Carats in 2013

Jan 30, 2014 3:46 AM   By Deena Taylor
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RAPAPORT... ALROSA’s diamond production rose 10 percent year on year to 9.9 million carats in the fourth quarter that ended on December 31. The company noted that improved output was driven by higher grades at the Jubilee pipe, along with the acquisition of Nizhne-Lenskoye and the Aikhal underground mine reaching its target capacity.

ALROSA reported that the amount of ore processed during the quarter decreased 2 percent to 6.3 million tonnes, while the average grade achieved rose 11 percent to 1.57 carats per tonne.

Production at the Aikhal division, which consists of the Jubilee pipe, Aikhal underground mine and Komsomolskaya pipe, grew 53 percent to 3.978 million carats. The Mirny division, which includes the International and Mir underground mines and various alluvial deposits, recorded a production decline of 7 percent to 1.907 million carats.

The Udachny division, including the Udachnaya and Zarnitsa pipes, reported a production decrease of 24 percent to 1.430 million carats, while the Nyurba division's production remained flat at 2.331 million carats. Production at the Lomonosov division jumped 53 percent to 213,000 carats, while production at  Almazy Anabara and  Nizhne-Lenskoye ceased during the quarter due to seasonality of gravel mining.

ALROSA sold 10.8 million carats during the quarter, including 6.7 million carats of gem-quality diamonds for an average price of $192 per carat and 4.1 million carats of industrial diamonds with an average price of $7 per carat.

The company noted neutral dynamics of the diamond market during the fourth quarter and remained moderately optimistic going into 2014.

For the full year 2013, ALROSA’s total production grew 7 percent to 36.9 million carats. Production at the Aikhal division rose 35 percent to 12.088 million carats, while production at the Mirny division fell 15 percent to 7.361 million carats.

Output at the Udachny division dropped 16 percent to 4.892 million carats, with Nyurba production declining 7 percent to 7.407 million carats. Production at the Lomonosov division grew 14 percent to 636,000 carats, while production at  Almazy Anabara rose 5 percent to 2.521 million carats. ALROSA noted that while production results for  Nizhne-Lenskoye were not included in the company's 2012 operational results, the mine produced 2.010 million carats in 2013.

ALROSA sold 38 million carats of diamonds in 2013. Sales included 26.7 million carats of gem-quality diamonds for an average price of $176 per carat and 11.3 million carats of industrial diamonds for an average price of $9 per carat.

The company anticipates its 2013 revenue will grow around 10 percent year on year to  $4.66 billion (RUB 165 billion). ALROSA maintained its 2014 production target at 36 million carats and expects sales to total 38 million carats, including 2 million carats from inventory.

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Tags: Aikhal, Alrosa, Deena Taylor, diamond, diamonds, Lomonosov OJSC Almazy Anabara, Mirny, Nyurba, OJSC Nizhne-Lenskoye, Udachny
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