Rough diamond production by ALROSA decreased by 8% QoQ but went up by 22% YoY. In a press release distributed today, the company also said its sales reached 11.4 million carats in the reporting period (including 4.5 million carats from stocks) fetching $1.2 billion in revenue.
Rough sales in the reporting quarter decreased by 26% QoQ due to a strong Q1 base (Q1 sales were 15.5 million carats, including 8 million carats from stocks). Gem-quality diamond sales totaled 7.5 million carats.
The average selling price of gem-quality diamonds reached $145/carat, +28% QoQ due to an increase in the price index and normalization of the sales structure (due to lack of influence from the sale of “inexpensive” stocks accumulated in previous periods). The -27% YoY decline was driven by a higher share of large stones sold in Q2 2020 within the total sales of 0.6 million carats.
Diamond grade in Q2 reached 0.96 ct/t, -27% QoQ (+24% YoY) due to seasonal growth in alluvial mining. At the end of the second quarter, the company’s diamond stocks stood at 8.4 million carats. Diamond ore and sand reserves reached 14.4 million tons.
The company noted that demand for jewelry goods remains strong in all key markets. “At the same time, against the background of a structural decline in diamond production at a number of diamond fields, the stocks of mining companies approached their minimum values; the Company estimates that mining companies' ability to scale up production is limited. There is a decrease in the levels of rough and polished stocks in the diamond manufacturing sector,” ALROSA said.
Vladimir Malakhov, Rough&Polished
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