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Alrosa Sales Fall Amid Lower Supply
Jul 23, 2018 9:17 AM
By Rapaport News
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RAPAPORT... Alrosa’s sales dropped in the second quarter as the closure of the
Mir underground mine resulted in a lower supply of rough diamonds.
Revenue from rough stones declined 7% to $1.06 billion for
the three months ending June 30, the Russian miner said Monday. By volume,
sales fell 12% to 9 million carats as the average price of gem-quality diamonds
grew 18% to $164 per carat, reflecting a shift to higher-value goods. Sales of
gem-quality rough slid 22% to 6.3 million carats.
Alrosa’s production fell 18% year on year to 8.5 million
carats during the quarter, after a fatal flood at the Mir mine in August 2017
forced the company to suspend the operation. The processing of lower-grade ore
from the Jubilee pipe and Aikhal assets, as well as the recovery of lower
diamond grades from Alrosa’s International mine, also impacted output.
Alrosa has used some of its inventory over the past year to
offset the lower production. As a result, stock levels have fallen 23% to 11
million carats as of June 30 compared with a year earlier.
Alrosa maintained its forecast of an 8% decline in
production to 36.6 million carats this year, compared with 39.6 million carats
last year.
The company’s polished-diamond sales climbed 15% to $26.2
million in the second quarter.
Image: Alrosa
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Tags:
Aikhal, Alrosa, International mine, Jubilee pipe, Mir, Mir underground mine, Rapaport News
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