High-tech trend is most promising for industries using diamonds

Synthesis Technology is a leading diamond producer in Russia. The company produces carbon single crystals - lab-grown diamonds and single-crystal wafers. The diamonds completely identical to natural ones are ‘grown’ at the laboratory using advanced HPHT...

25 february 2020

Diamex Lab: Our technology allows you to trace the history of the origin of each stone

Gleb Sverdlov, CEO of Diamex Lab told Rough & Polished in his interview below about the development of IT technologies for the market of rough and polished diamonds and jewelry.

17 february 2020

The future of the market goes hand in hand with gemology

After 2019, a challenging year for the global diamond industry, we asked Yuri Shelementyev, head of the Moscow State University (MSU) Gemmological Center and president of the National Gemological Association (NGA), to share his views...

10 february 2020

Diamond industry in healthier position going into 2020

The diamond industry is in a healthier position going into 2020 due to actions taken last year, according to De Beers. Group spokesperson David Johnson told Rough & Polished’s Mathew Nyaungwa that the actions taken included reducing rough diamond production...

03 february 2020

Ethical sourcing and Diamonds Standards Organization

The diamond sector is ready to embrace a new decade and overcome some of its historical challenges. Ethical sourcing has proven to be undoubtedly one of the main aspects that industry professionals need to address. Antonio Cecere, President of Geneva...

27 january 2020

In 2019, ALROSA's financial results continue to decline

08 november 2019

alrosa_logo.jpgALROSA, the world leader in diamond mining, reported its IFRS financial results for Q3 2019.
The company's revenue for the 3rd quarter decreased by 20% compared with the previous quarter, to 46 billion rubles from 57.4 billion rubles due to a 23% decrease in sales volumes compared to the previous quarter, which was partially offset by an increase in average selling prices.
A 35% decrease in revenue y-o-y is associated with a 5% decrease in sales volumes compared to the previous year and an increase in the share of small stones.
The miner's EBITDA amounted to 21 billion rubles, having decreased by 16% compared to the previous quarter and by 47% compared to the previous year amid a decrease in revenue, while the EBITDA margin increased by 2 percentage points compared with the second quarter and amounted to 46%. However, such a result indicates a year-on-year decrease of 11% pp. Free cash flow grew by 4%, to 2.5 billion rubles, against 2.4 billion rubles during the previous quarter.
The company's net profit remained flat and amounted to 13 billion rubles.
However, on an annual basis its net profit decreased by 44%. The company's net debt grew to 0.6x (Q2 2019 - 0.3x).
In 9 months of 2019, the company's sales decreased by 13% compared to the same period in 2018, to 25.3 million carats. ALROSA revenue for the same period fell by 27%, to 173.6 billion rubles from 283.3 billion rubles. EBITDA also fell by 40%, to 77.5 billion rubles from 129.1 billion rubles.
In addition, ALROSA reported that in October this year it sold $264.4 million worth of diamond products, which shows a slight increase of 2.16% compared to the previous month when $ 258.7 million worth of diamond products was sold.
Sales of rough diamonds in value terms amounted to $ 253.9 million, polished diamonds - $ 10.4 million, while in September the company sold significantly less polished diamond products - only for  $ 2.2 million, and rough diamond sales amounted to $ 256.5 million.
In total, in January-October 2019, ALROSA sold rough diamonds worth $ 2,686.6 million. The value of rough sold for ten months of 2019 amounted to $ 2,639.4 million, polished diamonds - $ 47.2 million, while last year over 10 months, the company sold $ 3.905 billion worth of diamonds, $ 3.822 billion worth of rough diamonds and $ 83.0 million worth of polished diamonds, which exceeds the current year results.
Evgeny Agureev, Deputy CEO of ALROSA noted that in 2019 the diamond market was influenced by an oversupply of diamonds, as well as the difficult situation in the financial sector in India.
However, "a gradual decrease in the level of surplus stocks among cutters in India indicates a gradual restoration of the supply and demand balance in the diamond pipeline," he added.
In 2019, ALROSA intends to produce 38.5 million carats of diamonds and sell 32-33 million carats of diamond goods.

Victoria Quiri, Correspondent of the European Bureau, Rough&Polished, Strasbourg