Coronavirus: Alrosa's 2020 Production Target Remains Unchanged

By John Jeffay / April 18, 2020 / www.idexonline.com / Article Link

(IDEX Online) - Russian mining giant Alrosa aims to meet its full-year production target for 2020, despite coronavirus.

It recovered 8m cts in the first quarter, a drop of nine per cent on Q1 2019, but says the outlook for the whole year remains at 34.3m cts. That figure that was reduced late in 2019 from 38.7m cts.

State-owned Alrosa produces around 25 per cent of diamonds globally, and almost 30 per cent by dollar value (compared to De Beers 23 per cent and 34 per cent).

It cautioned that despite stable production, sales could be affected by COVID-19.  It also said it was trying to offer improved flexibility to customers, after a previous announcement that buyers could defer up to 60 per cent of rough purchases.

Quarterly diamond sales increased by 15% q-o-q to 9.4 m cts, amid demand recovery in the first half of Q1, although markets saw a sharp drop in consumer activity from mid-February.

March sales of rough and polished diamonds in March were down 56 per cent on February and it has been auctioning large stones (over 10.8 carats) online rather than at physical tenders.

Revenue from rough and polished diamond sales was $904m (down one per cent q-o-q and 10 per cent y-o-y).

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