Alrosa’s Diamond Prices up 7% Since Start of Year

(IDEX Online News) – Russian diamond mining monopoly Alrosa reported that it has seen “positive dynamics” in the diamond markets in the first half of the year, which have resulted in a 7 percent increase in rough diamond prices.

Diamond revenue for the second quarter was 5 percent above the comparable quarter in 2012 due to higher sales volumes of gem-quality diamonds, which offset lower prices.

The quarter also saw an increase in diamond revenues of 4 percent compared to the first quarter of the year due to positive pricing trends.

Overall, the company saw a 9-percent increase in revenue for the second quarter of 2013 compared to the comparable period in 2012.

Revenue totaled RUB42.8 billion ($1.32 billion) and resulted from increased diamond sales volumes.

The company’s net profit totaled RUB8.4 billion ($0.26 billion), which was almost two and a half times the profit level of the second quarter of 2012. It attributed the increase as being mainly due to the disposal of its 51 percent stake in the Timir iron ore project to Evraz and lower foreign exchange losses.

For the first half of 2013, revenue increased by 7 percent over the first half of 2013 to RUB82.3 billion ($2.55 billion), mainly as a result of increased sales volumes and improved demand for diamonds in the second quarter of the year.

Net profit for the first half the year decreased by 10 percent to total RUB14.6 billion ($0.45 billion). This was due to increased foreign exchange losses and high interest expenses.

Diamond revenue for the first half of the year was 12 percent higher than last year due to a 3 percent increase in diamond prices and a 34-percent increase in gem-quality diamonds sales volumes.

The results for the first half of the year were also 12 percent higher than for the second half of 2012 due to a 3 percent increase in diamond prices and a 34-percent increase in gem-quality diamonds sales volumes.