JOHANNESBURG (miningweekly.com) – Improved market conditions and cost controls have seen diamond miner Alrosa deliver strong first-quarter financial results, with net profit doubling to 33.2-billion rouble.
Earnings before interest, taxes, depreciation and amortisation increased by 78% on the preceding quarter to 48-billion rouble. Revenue increased by 58% quarter-on-quarter to 96-billion rouble, driven by an improved product mix and higher average selling prices.
Alrosa sold 13.4-million carats in the March quarter, which is 43% more than the fourth quarter’s sales, boosted by six-million carats from the company’s stock. Production decreased by 26% quarter-on-quarter in the period under review.
Free cash flow rose 3.5 times quarter-on-quarter, reaching 41.1-billion rouble in the first quarter.
Net debt fell to 18.6-billion rouble on the back of stronger free cash flow and proceeds from the sale of its gas assets.
"Alrosa’s excellent financial performance in the first quarter is largely due to improved market conditions, which we were able to fully benefit from, and stringent cost control," COE and chairperson Sergey Ivanov reported on Wednesday.