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ALROSA Plans 6% Rise in Production
Jan 25, 2017 4:48 AM
By Rapaport News
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RAPAPORT... ALROSA said it expects rough-diamond production to increase significantly
this year amid optimism in the rough market.
The miner anticipates it will recover 39.2 million carats in
2017, the company said in a presentation to investors, implying a rise of 6
percent over the 37 million carats that were planned for 2016.
The latest guidance is still a 2 percent reduction from an
earlier plan of 39.9 million carats for this year. Lowering the outlook was an
executive business decision approved by the Russian company’s board, an ALROSA spokesperson
said.
The expected increase comes amid a recovery in the rough
market, with De Beers reporting a 32 percent jump in sales at its
January sight mainly due to manufacturers’ post-holiday restocking. Analysts at VTB Capital
forecast ALROSA’s revenue will increase 2 percent to $5.46 billion (RUB 323.33
billion) in 2017, driven by a resurgence in the sector.
“Robust demand for rough in the first half of 2017 is set to
support revenue-growth momentum for ALROSA, as a result of which our full-year
2017 forecasts might prove conservative,” the Russian investment bank said.
ALROSA’s rough production is projected to rise to 39.9
million in 2018 and to peak at 41.5 million in 2019, according to company projections.
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Tags:
Alrosa, Production, Rapaport News, Rough Production, VTB Capital
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