Alrosa’s first quarter of the fiscal year ended with a 5 percent decline in revenue, totaling $1.06 billion (29.6 billion rubles) despite rising rough diamond prices. Net profit for the period, however, increased by 42 percent to $431 million (12.04 billion rubles). The miner’s operating profit reached $454.2 million (12.7 billion rubles), a 25 percent increase over the first quarter of 2010, while adjusted EBITDA grew 78 percent to $502 million (14 billion rubles).
Diamond production for the first quarter totaled 10 million carats, a 16 percent increase in volume compared to the 8.6 million carats produced in the first quarter of 2010.
Sales, however, fell 28 percent to 9.1 million carats compared to a total of 12.7 million carats, in the first quarter of 2010. The company said the difference in sales volume can be attributed to the fact that in the first quarter of 2010, it sold stockpiled good accumulated during to 2009.
Increasing rough diamond prices, which were up some 34 percent, helped to balance the drop in the volume of diamonds sold. The average price increased from $76 per carat in 2010 (p/c) to $102 p/c.
The company's net debt for the first quarter dropped 13 percent to $3.1 billion (86.9 billion rubles) while short-term debt fell 86 percent to $438.8 million (12.3 billion rubles).
In addition, Alrosa reported that after mining 10 million carats in the quarter, it was the largest diamond producer globally, piping De Beers to second place with a production figure of 7.4 million carats.
In related news, Alrosa recently held its first online auction. According to reports in the Russian press, the company sold $11 million worth of diamonds in the sale, in which it offered 108 lots.
Some 30 Russian and non-Russian companies were invited to take part in the auction, Alrosa said in a statement, adding that it plans to hold regular auctions starting in the fourth quarter of 2011.