Profits Plunge 77% at Sanctioned Alrosa
March 04, 25
(IDEX Online) - Sanctioned Russian miner Alrosa reported a 77 per cent plunge in net profit for 2024, as it was forced to stockpile diamonds or offload them to Gokhran, the state repository.
Consolidated revenue for the year fell 25.9 per cent to RUB 239.1bn ($2.67 bn), net debt soared by 67 per cent to RUB 107.91bn ($1.24bn) and net profit was down to RUB 19.3bn ($223m).
The G7 and EU nations imposed phased sanctions on Russian diamonds from 1 January 2024. On 1 March 2024 the restrictions were expanded to include all goods of 1.0-ct or more, regardless of where they were processed and on 1 September 2204 the threshold dropped to 0.50cts.
Alrosa said in November that production during 2024 slipped by 4.6 per cent.
It also said it would suspend some of its less profitable activities, and lay off some of its 35,000 workers in a move designed to save 10 per cent on its labor budget.
"We are currently in a rather difficult situation," said CEO Pavel Marinychev at the time. "Our task is to endure and wait out this period, to wait for prices to start rising again."
Alrosa has not published sales data - detailing destinations, carats, prices and more - since 2022, the year Russia invaded Ukraine.
It said reserves for the year at the end of 2024 were valued at RUB 129.9bn ($1.17bn) up 35 per cent on the end of 2023. Alrosa has also confirmed it has offloaded part of its inventory to Gokhran, the Russian State Precious Metals and Gemstones Repository. but did not provide details.
Pic shows Alrosa's Udachnaya mine