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5 September 2011
Alrosa sells $3.15 bln in diamonds in Jan-Aug, eyes $5 bln for year

MOSCOW. Sept 5 (Interfax) - Alrosa (RTS: ALRS), Russia's diamond monopoly, sold some $3.15 billion worth of cut and uncut diamonds in January-August, and reckons to sell about $5 billion worth in 2011 as a whole, the company said.

Alrosa sees a "certain correction" in prices for a number of diamond assortments. In the company's opinion, the correction is most of all associated with a sharp drop in speculative pressure on the market. "However, overall demand volume is stable, which gives Alrosa grounds to maintain is sales forecast at $5 billion," the company statement says.

Initially, Alrosa planned to sell up to $3.5 billion worth of diamonds based on expected extraction of 34.438 million carats worth. In mid-June, that forecast was increased to $4.7 billion. The company has not revised its expected production volume for the year.

As reported, the Alrosa group mined 19,326,200 carats worth of diamonds in the first half of this year, which was a 10% increase from H1 2010. The group posted H1 2011 net profits to Russian Accounting Standards (RAS) of 21.916 billion rubles, 310% more year-on-year. Sales of cut and uncut diamonds during the six-month period came to $2.2 billion, or 7.5% more for the same period last year.