Alrosa Allows Buyers Another Zero Buyout Month
August 18, 20
(IDEX Online) - Alrosa will again permit zero buyouts at its August tender, in the face of continued weak demand, it said today.
The Russian state-owned miner adopted the same policy last month, when rough sales plunged to just $22.7m.
Buyers will have the option of visiting Alrosa's office in person this month, travel restrictions permitting, or viewing goods online.
The miner maintains a price-over-volume policy but says it is executing "a balanced sales strategy to support the market on its recovery way".
Deputy CEO Evgeny Agureev said: "We were excited to see the green shoots in the market as it turned to recovery mode over the recent months. The global diamond trade started recovering though still below last year numbers, while mid-stream resumed operations at the reduced capacity.
"After being frozen for several months, diamond business started getting back to motion. However, it is obvious that the industry has not yet returned to the relatively stable state we enjoyed at the beginning of 2020."
Alrosa, which saw Q2 profits slump by 98 per cent to just $3.6m, is said to be seeking a $1bn rescue deal, under which it could sell its rough to Gokhran, the finance ministry's precious metals and gems repository.
Pic courtesy Alrosa