Alrosa reports 9% production drop in Q1

Sorting diamonds. Image from Alrosa.

Russian diamond miner Alrosa reported on Thursday diamond production of 8 m carats in Q1 2020, a 9% drop in comparison to the previous quarter, but 2% growth year-over-year.

Alrosa said the drop was due to lower production at the Aikhal underground mine and the Botuobinskaya pipe. The company attributed the 2% growth y-o-y to increased production at the Aikhal and Udachnaya underground mines.

Diamond sales, excluding polished diamonds, increased up 15% by 1.2 m carats q-o-q to 9.4 m carats

Diamond sales, excluding polished diamonds, increased up 15% by 1.2 m carats q-o-q to 9.4 m carats, with sales of gem-quality diamonds improving by 1.1 m carats to 7.1 m carats (up 19% q-o-q) amid a gradual recovery in diamond demand in the first half of Q1.

Industrial diamond sales went up by 5% q-o-q to 2.4 m carats and accounted for 25% of Q1 sales.

Gem-quality diamond sales were down by 10% year-over-year against the backdrop of the covid-19 spread starting mid-February while industrial diamond sales declined by 13% y-o-y.

Alrosa reported a 60% fall in March sales versus a year earlier, citing the spread of the coronavirus for the fall in demand.

Sales of rough and polished diamonds totalled $904 million in Q1.