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Russian mining company Alrosa bids for new discovery to bring sales boost with 80% YOY drop in July

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Russian diamond mining company Alrosa has reported a 79% year-on-year drop in takings from sales in the month of July, but hopes that its recent discovery of Russia’s largest ever natural rough colour diamond will bring the numbers back up in the near future.

This comes from its financial report yesterday, covering July as well as the first seven months of the year as a whole.

In July of this year, Alrosa reported $35.8 million (£27 million) in sales, down from over $170 million (£130 million) in the same month last year.

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Looking at 2020 so far, January-July, total rough and polished diamond sales accounted for $1,027 million (£784 million).

Alrosa deputy CEO, Evgeny Agureev, commented: “Given the situation in the diamond value chain is challenging, specifically at the midstream, we kept supporting with unprecedented measures our long-term clients, offering them an opportunity to refrain from buying contracted volumes of rough diamonds in July.

“Furthermore, we decided, as a measure of support amidst extremely challenging market conditions, to provide our clients with an additional flexibility.

“Nevertheless, we see the market’s interest in expensive goods, such as special size and large diamonds of high color and quality characteristics.”

This is perhaps in reference to a “236-ct rough diamond of intense yellow-brown color” that Alrosa found recently. It is largest natural color rough diamond ever found in Russia.

“As for the terms of the August trading session,” Agureev continued, “and the possibility of offering our clients an option to defer purchases, the decision has not been taken yet.”

He noted that the company would continue doing everything needed to reach the market supply and demand balance as soon as possible.

Tags : AlrosaDiamondsRussia
Sam Lewis

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