ALROSA posts Q1 2014 production results and preliminary sales

ALROSA produced 7.9 million carats of diamonds in the first quarter of 2014, an increase of 6% compared to the first quarter of 2013.
The production increase was primarily driven by improved diamond grade at the Jubilee mine, growth of diamond production at the Aikhal and International underground mines, as well as by increased ore processing at the Arkhangelskaya diamond mine, the company said in a press release received by Rough&Polished.
ALROSA’s Aikhal Division extracted 3 million carats of diamonds increasing production by 51% year-over-year. The increase was due to higher diamond grade at the Jubilee and Aikhal mines. The Aikhal Division processed 2.436 million tons of ore in the first quarter of 2014 against 2.605 million tons in the first quarter of 2013.
Production at the Mirny Division went down 18% to 1.477 million carats (from 1.792 million in the first quarter of 2013). The decrease was due to difficult mining and geological conditions at the Mir mine. The division processed 0.469 million tons of ore (vs 0.516 million tons in the first quarter of 2013).
The Udachny Division produced 1.117 million carats of diamonds in the first quarter of 2014, down 30% against the first quarter of 2013 (1.598 million carats). The slump was caused by a lower diamond grade and reduced ore processing at Udachny. Totally, the Udachny Division processed 1.57 million tons of ore against 1.65 million tons in the first quarter of 2013.
The Nyurba Division produced 2.067 million carats of diamonds, up 4% over the first quarter of last year (1.978 million carats). The increase was due to higher-grade ore mined at Nyurba. The division processed 0.41 million tons of ore (against 0.4 million tons in the first quarter of 2013).
The Lomonosov Division extracted 0.233 million carats of diamonds. In the first quarter of 2013, it produced 0.126 million carats. The increase in production was 85%. The output growth in the first quarter of 2014 was due to increased ore processing after commissioning Module No. 2 at the concentrating factory. The Lomonosov Division processed 0.481 million tons of ore (vs 0.272 million tons in the first quarter of 2013).
Almazy Anabara and Nizhne-Lenskoye did not mine diamonds in the first quarter of 2014 due to their seasonal pattern of operation.
According to preliminary data, revenue from rough diamond sales in the first quarter of 2014 grew by 24% year-on-year and amounted to no less than $1.5 billion.
ALROSA sold 12.7 million carats of diamonds in the first quarter of 2014, including 9.5 million carats of gem-quality diamonds at an average price of $155 per carat and 3.2 million carats of industrial diamonds at an average price of $12 per carat.
The Company noted positive dynamics in the diamond market during the first quarter of 2014 and said rough prices went up about 4% since the beginning of this year.
ALROSA Group is the world's largest producer of diamonds in terms of carats. ALROSA Group is engaged in the exploration, production and sale of diamonds. The Group is mining diamonds in the Republic of Sakha (Yakutia) and in the Arkhangelsk Region. The Group produced 36.9 million carats of diamonds earning RUB 168.5 billion in 2013.