https://www.miningweekly.com

Russian diamond miner Alrosa's net income inches higher in Q2

24th August 2018

By: Reuters

  

Font size: - +

MOSCOW – Alrosa, the world's largest producer of rough diamonds in carat terms, said on Friday its second-quarter net profit rose about 1 percent year on year as higher prices helped offset a sales drop.

State-controlled Alrosa and Anglo American's De Beers produce about half of the world's rough diamonds. In 2017, Alrosa was hit by a shutdown at its Siberian underground Mir mine, which had accounted for 9% of its annual diamond output before it was partly flooded in August 2017.

The company said on Friday its net income in April-June grew to 25.4-billion roubles ($379.3-million) from 25.2-billion a year earlier, while core profit, or EBITDA, rose 10% to 41.3-billion roubles.

Revenue was up 2% year-on-year to 72.2-billion roubles thanks to an increase in average selling prices. Sales volumes dropped 11% on the back of an 18% decrease in production.

The company said on Friday its 2018 sales forecast was 39-million to 40-million carats, in line with its previous guidance. Alrosa said previously it expected 2018 production of 36.6-million carats with sales of about 40-million carats - higher than production due to sales from the stockpile in early 2018.

Free cash flow expanded 33% year-on-year in the second quarter and net debt fell 83% from last year.

Alrosa is currently considering ways to resume production at the Mir mine with the project's feasibility study expected to be ready in 2019.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION