Strong Market Drives Alrosa Sales

RAPAPORT...Alrosa's revenue rose in the first quarter, driven by animproved product mix and higher average selling prices. Revenue grew 14% year on year to $1.52 billion (RUB 94.89billion) for the three months ending March 31. Profit soared 40% to $532.9million (RUB 33.18 billion) for the period due to a stronger rough market andstrict cost controls, the miner explained. Sales of rough diamonds fell 5% to 13.4 million carats. Theminer sold around 6 million carats from its stocks, it said. The average price of rough diamonds jumped 27% to $118 per carat, according to Rapaport calculations. "Alrosa's excellent financial performance in [the first quarter] islargely due to improved market conditions, which we were able to fully benefitfrom, and stringent cost control," Sergey Ivanov, Alrosa's CEO, said Wednesday. Last year, Ivanov announced plans to reduce the Russianminer's expenses through improved efficiency and cost-cutting techniques.Image: Alrosa