Top diamond miner ALROSA says diamond sales were up 65% in Q1 2021
(Kitco News) - Russia’s ALROSA, a global leader in diamond production, reports Q1 2021 diamond production of 7.5 million carats and sales of 15.5 million carats. Diamond production grew 6% compared to Q4 2020 and was down 6% compared to Q1 2020, driven by increased ore and gravels processing. Diamond sales were up 65% compared to Q1 2020.
Diamond grade decreased 9% q-o-q (down 3% y-o-y) to 1.31 cpt primarily due to a larger share of ore processed from the Jubilee pipe and V.Munskoye deposit (lower grade deposits).
Average realised prices for gem-quality diamonds grew to $113/ct, up 25% q-o-q (down 8% y-o-y) on the back of a higher price index and a better sales mix.
Average price index gained 7% q-o-q, rising 9% YTD and coming closer to the pre-COVID-19 levels of early 2020.
ALROSA’s proceeds from rough and polished diamond sales in Q1 came in at $1,159 million (down 5% q-o-q and up 28% y-o-y), including $1,126 million in revenue from rough diamond sales and $33 m in revenue from polished diamond sales.
The company said that diamond jewellery demand remains sustainably high at all the key markets. Supply of rough diamonds is constraint by production capacities of the mining companies, and global production in the mid-term is expected to remain ~20% below its pre-COVID levels. Mid-stream stocks of rough and polished remain balanced.
ALROSA is the leader of the world diamond mining industry, a Russian partially state-owned diamond mining company. ALROSA operates across nine countries and ten regions of Russia.