Alrosa Rakes in $326 Million from Diamond Sales in Q1 2021
Russian mining giant Alrosa announced net profits of $326 million in the first quarter of the year – a 13% rise compared to Q4 2020. However, quarter-on-quarter revenue dropped 8% to $1.23 billion, and quarter-on-quarter sales dropped 9% to 15.5 million carats, IDEX Online reports.
Alrosa’s year-on-year performance “hugely exceeded that of 2020”, according to the report, as “net profits increased almost eightfold and sales volumes rose by 65%”. Alrosa’s production forecast for the year remains unchanged at 31.5 million carats.
Alexey Philippovskiy, ALROSA’s CFO, said: “Q1 saw a continued increase in demand for diamond jewelry from end consumers across all key markets, mainly in the US and China […] in particular, the US market demonstrated a double-digits growth even against the 2019 results”. He added: “Our outlook for the end consumer market remains positive. The market is recovering faster than expected. Meanwhile, diamond supply is still 20 per cent below the pre-COVID levels and the production is unlikely to bounce back in the mid-term.”