Alrosa set to Increase 2021 Production by 1.5m carats

By John Jeffay / August 16, 2021 / www.idexonline.com / Article Link

(IDEX Online) - Alrosa says it could increase production "marginally" this year, to address a surge in demand and shortfall in supply.In its Q2 & 6M IFRS Results, the miner suggests a possible increase of five per cent for 2021, from 30m cts to about 31.5m cts. That's slightly higher than actual production last year, of 30m cts.It said rough diamond sales for the first half of the year ($1.1bn, 11/4m cts) had exceeded production, resulting in historically low stock levels of just 8.4m cts (down 68 per cent year-on-year).Alrosa has warned previously of long period of supply deficit, and now says diamond supply remains 20 per cent below pre-COVID levels."Our outlook for the end consumer market remains positive. The market is recovering faster than we predicted," said Alexey Philippovskiy, the company's CFO."Meanwhile, diamond supply is still 20 per cent below the pre-COVID-19 levels, and the global production is unlikely to bounce back in the midterm."Pic courtesy Alrosa

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