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Alrosa Sees Spike in Sales Volume
Apr 20, 2017 7:39 AM
By Rapaport News
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RAPAPORT... Alrosa’s sales far exceeded production in the first quarter, helping the mining company reduce excess inventory from 2015, it reported Thursday.
Production rose 9% year on year to 8.9 million carats during the three-month period, Alrosa said. It sold 14.1 million carats — a 17% jump from last year, according to Rapaport records.
The company benefited from abnormally strong Indian demand in the first quarter as midstream players recovered faster than expected after the demonetization reform, analysts at VTB Capital said following the report.
VTB estimated that Alrosa’s inventory had been reduced to 13 million carats, “which is close to the company’s long-term goal of 10 million carats,” the analysts wrote.
Alrosa’s inventory ballooned to 22 million carats at the end of 2015, when demand slumped due to low manufacturing profits. Demand steadily improved through 2016 and was particularly strong in the first quarter, typically a robust period for the rough diamond market.
Production growth was driven by a ramp-up of underground operations at the Aikhal, Mir, International and Udachy mines, and by the processing of higher-grade ore at the Jubilee pipe, Alrosa explained.
The company is on track to meet its production target of 39.2 million carats this year.
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Tags:
Alrosa, diamonds, Rapaport News, VTB Capital
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