ALROSA, the world leader in diamond production, reported its preliminary operating results for the 1 quarter of 2020. Diamond sales rose seasonally by 15% year-on-year to 9.4 million carats. The company sold 7.1 million carats of gem-quality diamonds (an increase of 19% over the previous quarter) due to a recovery in demand in the first half of the 1st quarter.
Despite this, compared with the same period last year, sales decreased by 10% due to a sharp fall in purchasing activity from the end of February of this year.
During the period under review, the company produced 8 million carats, which is 9% less than in the previous quarter, and 2% lower than last year.
The average realised prices for gem-quality diamonds in the 1st quarter decreased by 17% compared to the previous quarter, to $123 per carat.
Average diamond grade stood at 1.36 cpt, which indicates an increase of 11% achieved due to reduced production at low-grade alluvial deposits.
Ore and gravels processing seasonally decreased by 18% compared to the previous quarter and by 7% compared to 2019, to 5.9 million tons.
Diamond inventories at the end of Q1 seasonally decreased by 6%, to 21.1 million carats.
The price index decreased by 1.2% compared to the previous quarter and by 1.9% yaer-to-date.
Revenue from rough and polished diamond sales came in at $904 m (down 1% q-o-q and 10% y-o-y), including $881 m in revenue from rough diamond sales and $23 m in revenue from polished diamond sales.
In 2020, ALROSA intends to produce 34.2 million carats.
However, the company noted that the level of sales will depend on the development of the situation with the spread of COVID-19 and and respective measures taken globally.
Victoria Quiri, Correspondent of the European Bureau, Rough&Polished, Strasbourg
