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ALROSA Sells Rough to Gokhran
Aug 15, 2012 8:10 AM
By Avi Krawitz
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RAPAPORT... ALROSA sold an undisclosed amount of rough diamonds to Russia's state-owned Gokhran in the second quarter of 2012, marking the first sale since the downturn of 2009, according to the company’s second-quarter report.
A company spokesperson declined to disclose the amount sold, but did note that ALROSA’s board had previously approved selling up to $130 million worth of rough diamonds to Gokhran.
ALROSA explained that it reduced its supply to the market and sold to Gokhran after witnessing its customers' acute financing problems during the second half of 2011, which led to the decline in demand for rough diamonds in the first half of 2012. By reducing its supply to the market, ALROSA maintains what it calls an acceptable level of price stability during a period of lower demand, the company explained.
ALROSA reported that revenue from its core business --excluding its Nyurba, Anabar, Severalmaz and Catoca subsidiaries-- rose 27 percent year on year to $2.1 billion (RUB 66.42 billion) in the first half of 2012. Net income fell 4 percent to $495 million (RUB 15.8 billion).
Diamond sales accounted for 96.4 percent of total revenue, with 27.3 percent of its diamond sales going to domestic buyers and the remainder earmarked for export, its main markets being Belgium, Israel and India.
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Tags:
Alrosa, Avi Krawitz, diamonds, Gokhran, Rapaport
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