Russian mining giant Alrosa has issued its financial performance reports for the first half of 2017. According to Gem Konnect, Alrosa’s revenue fell 3.6% to $2.7 billion year-on-year. Net profit fell 66.2% to $836.4 million.
According to the company, the drop in revenue was driven by “market and macroeconomic factors such as the 18% ruble appreciation against the US dollar and a 15% drop in the average price of the diamonds sold as a result of changes in the diamond mix”. Additionally, the company said that the average price of diamonds sold grew by 20% year-on-year in Q2.
During H1, diamond production rose 14%, along with “a 12% increase in the cost of goods sold accompanied by a 12% growth in diamond sales volumes”.
“ALROSA’s H1 2017 results were influenced by macroeconomic factors beyond the company’s control,” Chief Executive Sergey Ivanov said. The company maintained its guidance of producing 39.2 million carats this year. “Production volumes impacted by the accident at the Mir underground mine in 2017 will be set off by higher diamond output at other mines, primarily the Jubilee pipe”, Ivanov added.
