Russian diamond mining giant ALROSA reported that revenue for the first half of 2016 soared 42% on the year to RUB 186.7 billion ($2.88 billion). The miner, which accounts for 25% of global supply, also reported that earnings before interest, taxes, depreciation, and amortization surged by 58% from the first half of 2015 to RUB 111.3 billion ($1.72 billion), with EBITDA margins surging to 60%. Net income and free cash flow doubled on the year to RUB 90.4 billion ($1.40 billion) and RUB 78.7 billion ($1.21 billion) respectively.
ALROSA CEO Andrey Zharkov commented: “The company’s H1 financial results were affected by the moderately steady diamond market and ruble depreciation against US dollar compared to H1 2015. ALROSA maintains a conservative outlook on the diamond market and executes permanent costs control.”
ALROSA reported last month that diamond production in the first half of this year was down 6% on the year to 16.9 million carats, although (preliminary) revenue climbed to at least $1.2 billion, up 19 percent from the value reported a year earlier, driven by a higher volume of gem-quality goods.