ALROSA’s 1H rough diamond sales drop 22%: quick take

Avi Krawitz

2Q operations update.
ALROSA sold 18 million carats of rough diamonds for $2.1 billion in the first half of 2015, representing a significant decline from a year earlier. The mining company sold 21.1 million carats for $2.7 billion in the first six months of 2014.

• ALROSA noted a continued slowdown in the diamond market during the second quarter of this year.

• The miner’s rough prices declined by 3 percent during the three months ended June 30 and by 6 percent in the first half of the year.

• The company sold 5.4 million carats of gem-quality diamonds at an average price of $176 per carat during the second quarter, and 3.4 million carats of industrial diamonds for an average $11 per carat.

• Second-quarter production grew 20 percent year on year to 9.6 million carats, while production through the first half increased 13 percent to 18 million carats.

• The average grade achieved improved to 1.11 carats per tonne for the six-month period, up from 1.02 carats per tonne a year earlier.

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Source Rapaport