Alrosa sales fell in January

Alrosa’s (MCX:ALRS) sales dropped by 44% year-on-year in
January, according to a press release issued by the Russian
miner.

In detail, Alrosa said that it sold a total of $281.5 million
worth of rough and polished diamonds, with rough stones leading
most of the transactions and generating proceeds of $278.2
million.

According to the world’s top diamond producer by output,
following a busy month in December, which generated approximately
$320.4 million, it is not uncommon to see lower sales in the first
month of the following year. Yet, things were a little different
this time.

“In January, market activity was lower than usual. After active
restocking at the midstream in December 2018 (our December sales
were up 20% qoq and up 46% yoy), our January sales came lower,”
Yury Okoemov, Alrosa’s Deputy CEO, said in the media brief.

Diamond sales dropped by 44% year-on-year in January.

Okoemov explained that December 2018/January 2019 combined sales
reached a three-year average by adding up to $601.9 million,
something that wasn’t unexpected. “Sales in the diamond market
are always cyclical, and apparently, we are seeing the expected
correction after the peak values in previous periods,” he
said.

But two weeks ago, when Alrosa published its production
and sales results for 2018
, the figures also showed a fall in
sales, in that case of 6% y-o-y, with proceeds resulting in $4.5
billion. When counting carats sold, the total was of 38.1 million
carats in 2018 – a drop of 8% when compared to the previous
year

Production figures also were on the decline last year due to the
shutdown of the Mir underground mine and the completion of open-pit
mining at the Udachnaya pipe. In 2018, Alrosa produced 36.7 million
carats, 7% less than in 2017.

The post Alrosa sales
fell in January
appeared first on MINING.com.

Source: FS – Mining B.
Alrosa sales fell in January



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