Alrosa reports 49% fall in profit in 2020
Russian state-controlled diamond producer Alrosa on Tuesday reported a 49% fall in 2020 net profit to 32.2 billion roubles ($432 million) on lower sales and a weaker rouble.
The world’s largest producer of rough diamonds, which competes with Anglo American unit De Beers, said output fell by 22% to 30 million carats as it suspended mining at less profitable mines amid the pandemic.Its revenue fell by 7% to 221.5 billion roubles.
A fourth-quarter recovery in global demand for diamonds, primarily driven by demand for jewellery, helped, the miner said.
“At the end of 2020 and during the Christmas holiday season, sales in the key markets – the United States and China – were growing at double-digit rates year on year,” Chief Financial Officer Alexey Philippovskiy said in a statement.
Alrosa expects to produce 31.5 million carats in 2021 and plans capital expenditure of 25 billion roubles, down 4 billion from its previous guidance but up from the 17 billion it spent in 2020.
Its diamond stockpile stood at 20.7 million carats at the end of 2020.
($1 = 74.5300 roubles)
Reuters