ALROSA announced on Friday that rough diamond production in Q4 2021 reached 9.1 million carats, up 29% QoQ 2020 due to increased ore processing (Severalmaz and Aikhal) and higher grades at the International mine.
The company's diamond production for the full year of 2021 was 32.4 million carats, which is 8% more than in 2020. Growth in diamond output was mainly due to higher production at the Verkhne-Munskoye Diamond Field and Nyurba Mining and Processing Division.
In the fourth quarter of 2021, ALROSA sold 9.4 million carats of rough, including 0.5 million carats purchased from Gokhran in the third quarter. The company attributed the 45% decline in sales to a high base effect in the fourth quarter of 2020 and the lowest level of diamond inventory available for sale since mid-2021. Diamond sales revenue in the fourth quarter was $895 million (-5% QoQ and -27% YoY), including $844 million from rough sales and $51 million from polished sales.
For the full year of 2021, the company's sales amounted to 45.5 million carats, including 1.4 million carats purchased from Gokhran and 11.7 million carats from previously accumulated stocks. Revenue for the year increased 49% to $4,169 million, including $3,977 million from rough sales and $192 million from polished sales.
“Demand for rough diamonds outstrips the supply. Following the completion of the Diwali celebration, cutters in India have ramped up production to prepare for jewelry companies' restocking in Q1 2022 on the heels of the Christmas season sales. The decline in diamond supply since mid-2021 due to inventories reaching minimum levels and producers’ limited capacity (mid-term production volumes are estimated at 110–120 m ct vs the pre-pandemic levels of 140–150 m ct) coupled with high jewelry demand is a boon for prices,” the company said in a commentary on the results.
Vladimir Malakhov, Rough&Polished
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