Alrosa Stockpiles $1.8bn Rough as it Posts H1 Loss

(IDEX Online) - Alrosa attributed its first-half net loss to a weak global diamond market, a strong ruble and slow sales, as unsold rough piled up to record levels, according to full financial results released on August 26.

It said inventories of unsold rough now amounted to a stockpile valued at over 150 billion rubles (USD 1.83 billion).

Russia's state-controlled diamond miner reported a net loss of 9.5 billion rubles (USD 115 million) for the six months ended June 30, a sharp reversal from a 39.03 billion ruble (USD 474 million) profit in the same period last year.

The loss reflects a 36% drop in revenue to 74.16 billion rubles (USD 901 million) and a collapse in gross profit to 4.62 billion rubles (USD 56 million) from 29.16 billion rubles (USD 354 million).

In its initial H1 update on August 15, Alrosa disclosed the loss and revenue decline.

The fuller financial package, released on August 26, added detail on inventories, which swelled to 150.8 billion rubles (USD 1.83 billion) by the end of June, highlighting the scale of unsold rough and potential cash-flow pressure.

Operating profit turned into a 5 billion ruble (USD 61 million) loss compared with 19.2 billion ruble (USD 233 million) in H1 2025, while pre-tax loss reached 14.08 billion rubles (USD 171 million) against a 46.6 billion ruble (USD 566 million) pre-tax profit a year earlier.

Alrosa pointed to geopolitical and macroeconomic uncertainty, a strong ruble, high interest rates and inflation in Russia, and slower sales of rough and polished diamonds as factors behind the weak performance.

The results come as the industry braces for an 8 percent export duty on unprocessed rough diamonds over 0.45 carats, which Russia has postponed from September 1, 2026 to March 1, 2027.

Alrosa says the duty will reduce its profit by about 3.12 billion rubles (USD 38 million) when it takes effect.

It is facing its toughest market in years, with the first half marking its first loss in six years.

Pic courtesy Alrosa