ALROSA: PRODUCTION RISES BUT SALES FALL IN FIRST SIX MONTHS
Russian mining giant Alrosa has reported its diamond production and sales performance for the second quarter of 2019 and the first six months of the year.
In Q2 2019, Alrosa’s production rose 14% year-on-year to 9.7 million carats, “primarily due to seasonal return to production at alluvial deposits”. In the first six months of the year, production rose 10% year-on-year to 17.6 million carats.
Q2 2019 diamond sales went down 8% year-on-year to 8.3 million carats, including 6 million carats of gem-quality diamonds (down 5% year-on-year). Alrosa attributes to drop to “declining demand due to excessive stocking of rough and polished diamonds by cutters and retailers, and continued difficulties faced by India’s cutting business in securing affordable financing”. In the first six months of the year, diamond sales went down 16% year-on-year to 18.9 million carats.
In Q2 2019, average realised prices for gem-quality diamonds went down 21% year-on-year to $130/carat. Q2 diamond sales in value terms decreased 25% year-on-year to $796 million. In the first six months of the year, diamond sales in value decreased 32% to $1.784 billion.