Alrosa Revenue Drops, Catoca Sale Props up Profits
August 06, 25
(IDEX Online) - Russian diamond miner Alrosa reported a 24 per cent drop in revenue for the first half of 2025, blaming international sanctions, new traceability requirements and the overall geopolitical and economic climate.
Earnings for the six months to 30 June were RUB 116bn (USD 1.568bn) down from RUB 153bn (USD 1.983bn), according to its interim financial statements and review report, published last Friday (1 August).
Despite the sharp decrease in revenue, Alrosa said profits for the period had increased by over 12 per cent to RUB 39.03bn (USD 489m), primarily due to its sale of a 41 per cent share in Catoca, Angola's state-controlled diamond miner.
The transaction - completed in May in response to Angolan government claims that the sanctioned miner was a "toxic partner " - is estimated to have brought in over RUB 30bn (USD 372m), according to the Interfax news agency. Alrosa's profit would likely have fallen, in line with the sharp drop in sales, without the Catoca sale.
Alrosa has suspended operations at low-margin mines, warned of major job losses and had been offloading rough stockpiles to Gokhran, the state repository of precious metals and gemstones.
In a translated statement, Alrosa said: "In the reporting period, the company's operating indicators were negatively affected by persistent restrictions on the export of Russian diamonds to a number of countries, as well as the implementation of an international traceability system for precious stones.
"Reduced sales volumes and lower price levels were the main factors in the decline of revenue compared to the previous year."
Pic shows Catoca mine, Angola.