According to the company's preliminary operating data, first-half diamond production fell 22% to 13.7 million carats, while sales went down 47% to 10.1 million carats versus the first half of last year. Diamond production in the second quarter was down 42% year-on-year, to 5.7 million carats.The miner’s revenue from sales of rough and polished goods in the first six months reached $ 991 million (against $ 1,784 million in 2019). In the second quarter, sales were $ 87 million (-90% QoQ and -89% YoY).
ALROSA also reported that at the end of the second quarter its diamond stocks increased by 25% QoQ, to 26.3 million carats.
In a commentary on its performance, ALROSA notes that “most mining companies halted diamond production due to the pandemic and subsequent lockdowns between March and April/May, and several deposits remain closed pending the recovery of market activity. In the face of uncertainty, some companies withdrew their 2020 production plans, while others lowered their forecasts by 7–22%.”
“On the back of weak demand, ALROSA remains committed to its “price-over-volume” policy and satisfies only the real demand while maintaining a stable price. The policy is aimed at supporting long-term customers and the entire diamond industry,” the commentary says.
