By just about any measure - with the exception of last month - Alrosa's diamond sales in May 2020 scraped rock bottom as the Russian miner enabled its long-term clients to postpone their purchases in an attempt to lower the pressure on the market. Alrosa expects buying activity to improve in the middle of the third quarter.
Alrosa reports its first E-sight, offering long-term clients the possibility to purchase on a stone-by-stone basis was a success, “demonstrating market demand for rough diamonds and a willingness to purchase via online channels.”, says Alrosa deputy CEO Evgeny Agureev.
In a second tender, currently going on, the miner is tendering 700 rough stones from 5 to 10ct batches, open for purchase to long-term clients, as well as Alrosa’s spot and auction customers.
Alrosa announced that it is currently offering its long-term customers over 800 rough diamonds in the 5 to 10ct range, the largest volume the company has ever put on its digital platform. Since the implementation of the system, Alrosa has made several improvements to the platform, and now allows its customers to bid on a stone by stone basis in a semi-automated bidding process.
Rapaport reports that the Russian precious metals and gemstones repository, the Gokhran, may buy up part of the Russian miner's diamond stockpile, for an amount that ranges anywhere between $500 million and $1.7 billion. Rough sales have dropped dramatically as a consequence of the COVID-19 pandemic, as the miner offered its clients maximum flexibility in purchasing obligations. During past crises, notably in 2009, the state repository alleviated the company in a similar way, at that time buying $1 billion worth of diamonds.
Alrosa announced today it will temporarily put its Aikhal underground mine and Zarya open pit operation in care and maintenance starting May 15 in response to the decreased demand and sales of diamonds caused by the COVID-19 pandemic. The Aikhal underground mine is scheduled to reopen at the end of September, while the Zarya mine will remain closed to the end of the year, with regular reassessment of market conditions. Combined, the two operations produced 2.6m carats last year.
Russian diamond mining giant Alrosa has suspended operations of its diamond polishing plants until the end of summer due to falling demand, CEO Sergei Ivanov said in an interview to RCB television channel broadcast on Wednesday. The miner also announced today (April 30) it is granting its rough diamond clients "maximum flexibility" for the May trading session and has not set an "obligatory buyout limit", adding that "deferred goods will be offered during future sales periods. Clients interested in purchasing rough are free to request and get the goods they need.”
Russian diamond mining major Alrosa went ahead with its March rough diamond sale despite the global pandemic virtually shutting down the industry, so the modest results they booked were anticipated. Alrosa sold $148.7 million in rough diamonds last month, representing a 57% decline from their February sale ($342.3 million) and a 60% decline from March of 2019 ($369.2 million). Rough sales for the first quarter fell by 11% to 881 million from $988 million a year ago.
Russian diamond miner Alrosa will allow its long-term contracted clients to defer !00% of their April supply to later this year, a spokesperson has told us. "The spread of coronavirus and counter-pandemic measures implemented around the globe have severely affected the diamond industry. With this in mind, Alrosa supports its long-term clients with a full flexibility for the April 2020 trading session, lifting mandatory buyout requirements."
In an effort to tackle difficulties caused by travel restrictions in the framework of the COVID-19 crisis, the Russian miner Alrosa has decided to cancel its special size auction and has set up a digital tender for a number of large rough diamonds, running from March 23 to April 6. Interested buyers will be able to see a full digital scan of the rough, making it easier to decide whether or not to make a bid.
Russian diamond miner Alrosa is offering greater flexibility to its long-term customers at its March trading session, taking "further action to support long-term customers amid global market uncertainty," the company wrote in a press release. Given the current market developments, they say, the company has decided that, starting this week, it will let customers lower their minimum purchase to 40% of their initially-contracted volume and carry the remaining part over to the end of May 2020.
Russian diamond miner Alrosa earned less at its February rough sale than in January but defied expectations somewhat by limiting the damage despite the nervousness pervading the indsutry. The miner's February rough diamond sales totaled $342.3 million, representing a 12% decline from January sales of $390.2 million and no change (+0.5%) from February 2019. Total sales for the month fell 14% to $346.4 million from $405 million last month due to a 74% decline in polished diamond sales, which fell to $4.1 million from $14.8 million in January.
Russian diamond miner Alrosa has published its financial results for 2019, and while the totality is not pretty, there was reason for optimism to close out the year. As expected, Alrosa’s performance in 2019 was subject to pressure from external factors, and while the miner took steps to respond accordingly, it could not prevent its profit from falling 31% for the year, to 90.4 billion rubles ($1.26 billion) to 62.7 billion rubles ($876 million). For the full details, click 'Read the full article'.
Russian diamond miner Alrosa met in Antwerp with its long-term clients and representatives of the Antwerp World Diamond Center (AWDC) to discuss the current market situation and potential scenarios, as well as the needs of rough diamond buyers - the key issue for whom was to receive assurances of purchasing flexibility.
Russian diamond miner Alrosa has unearthed the first colored rough diamond at its new Verkhne-Munskoye deposit in Yakutia, which started operations in 2018. The exceptional stone is a bright yellow gem-quality diamond weighing 17.44 carats, recovered in mid-February from the Zapolyarnaya kimberlite pipe, a part of the Verkhne-Munskoye deposit.
Russian diamond miner Alrosa announced on Tuesday that it has sold a 6.21-carat cushion cut Fancy Intense Pink Purple diamond to Larry West, owner of one of the world's largest collections of exceptionally rare fancy-colored diamonds, for an undisclosed price. Alrosa cut and polished the diamond from a 20.18-carat stone found in Yakutia, a region in northeastern Siberia, in August 2018.
Russian diamond mining giant Alrosa last month had its largest sale of rough diamonds in well over a year, earning $390.2 million at its January sale and adding another $14.8 million in polished goods for a total of $405 million. The last time the miner sold more rough goods in a single month was back in April of 2018.
Russian diamond miner Alrosa has decided to relocate its March auctions for rough and polished diamonds from Hong Kong to other trading centers. The move follows the decision of the Hong Kong Trade Development Council (HKTDC) to reschedule the Hong Kong trade shows from March until May in response to the coronavirus epidemic.
In what could turn out to be a pivotal development in rough diamond financing for Alrosa's long-term clients, Antwerp-based international company Dali Diamond has signed a loan agreement with Eximbank of Russia (part of the Russian Export Center Group) for the financing of rough diamond purchases from Alrosa. Financing for the purchase of rough diamonds has been a major concern in recent years as several banks have reduced their exposure to the diamond market or withdrawn from it altogether.
One of the larger Indian diamond manufacturers, importer/exporter and De Beers Sightholder M. Suresh has opened a diamond cutting and polishing center equipped with high-end technology in the Free Port of Vladivostok, says the Ministry for the Development of the Russian Far East. Russian miner Alrosa will supply them with rough diamonds for polishing.
Russian diamond miner Alrosa, the largest rough producer in the world, raised its output 5% to 38.5 million carats from 36.7 million carats in 2018 despite lower market demand which pushed their total diamond sales down 12% to 33.4 million carats. The combination of more production and softer sales increased their rough inventories by 5.6 million carats (+33%) to 22.6 million carats. The Russian giant's 2019 rough sales fell 26% to $3.27 billion as the average realised prices for gem-quality rough fell 19% to $133 per carat from $164 per caat last year.
The government of Russia’s Yakutia region, a major shareholder in diamond producer Alrosa, has proposed that precious metals and gems repository Gokhran buy $0.5-$1 billion of the firm’s rough diamonds in the event of diminished demand, Interfax news agency reported. Based on reporting from Reuters, the proposal was made to President Vladimir Putin and Russia’s finance ministry, which is responsible for Gokhran within the government, Interfax quoted Aysen Nikolaev, the head of Yakutia region, as saying.
Russian diamond miner Alrosa has started drilling at the Mir kimberlite pipe as part of the company's investigation into the safety and economic feasibility of restarting production at its unique diamond deposit, the miner announced last week. The company said it will commence its studies at the depth of 1,200 – 1,600 meters below the surface in an effort to define more precisely the pipe’s dimensions, its position, diamond quality and grades, as well as geological conditions and hydrogeology of the deposit. Total exploration costs are estimated at $32.5 million (RUB 2 billion).
Russian diamond miner Alrosa ended a challenging 2019 on a high note, with December rough diamond sales increasing 7.4% year-over-year to $352.1 million, good for their second largest monthly haul of 2019. The company also sold $11.6 million in polished diamonds last month, an increase of 132% over December 2018 and also representing their highest monthly earnings for polished diamonds last year. These end-of-year improvements, however, were not enough to correct the significant downturn in sales that typified 2019.
Russian diamond mining giant Alrosa plans to hold 34 international auctions for special size rough diamonds (weighing over 10.8 carats) in 2020, the comapany recdently announced. They plan to hold seven auctions in the first quarter (Q1), eight in Q2, seven in Q3 and 12 in Q4. The schedule is available here.
Russian diamond miner Alrosa unearthed a 191-carat diamond on Christmas day at the Botuobinskaya kimberlite pipe in Yakutia. According to estimations made by Alrosa’s experts on site, the rough diamond is of high quality. They estimate the age of the stone at about 2 billion years. Further mineralogical analysis will reveal more precise numbers. "Surely, such findings are very remarkable," said Evgeny Agureev, Deputy CEO of Alrosa. The rough diamond will be sent to the United Selling Organization for a detailed evaluation.
The Supervisory Board of Alrosa has approved the miner's three-year strategy for developing and streamlining its diamond cutting and polishing units for 2020-2022, as well as the plan to integrate the recently-acquired manufacturer Kristall into the Alrosa Group. The plan includes a set of measures focused on improving product mix efficiency, production cycle optimization and the creation of a consolidated sales system for polished diamonds, a strategy they believe will improve the operational efficiency of Alrosa’s consolidated diamond cutting activities.
Alrosa, Tencent and Everledger are launching a new WeChat Mini Program e-commerce solution for Chinese retailers. The pilot will employ blockchain technology to enable full traceability of diamonds from mine to consumer, providing full transparency of their origin, characteristics and ownership history.
Russian diamond miner Alrosa said on Wednesday that it planned to start trial mining at a new section of its Luaxe deposit in Angola by mid-2020. Luaxe is Angola's newest and largest diamond deposit, as well as one of the few major diamond mines to be developed in the past decade.
Russian diamond mining giant Alrosa reported a rise in rough-diamond sales for the second straight month, selling $282.1 million in November, which is a 6% increase over November 2018 ($266.6 million) and an 11% increase over last month ($253.9 million). The miner's polished-diamond sales fell to $5.8 million from $10.4 million last month and $7.4 million in November 2019. Total sales of $287.8 million worth of rough and polished diamonds represent a 5% increase year-over-year.
ALROSA USA, the rep office of the Russian mining giant sold 255 polished diamonds, total weight 435ct and a mix of different cuts, and including 21 fancy colored diamonds, to companies from various countries. Total revenue of the auction amounted to US$4.8 million, exceeding the US$3 million of the first auction held in New York last summer.
The sale of the "in-house" manufactured diamonds through auctions, as well as the expansion and active presence of the company in key consumer markets like the US is in line with ALROSA's approach to expand its scope beyond mere mining.
Alrosa sold 93 rough diamonds with a total weight of 1,560 carats, and earned $11 million in sales revenue at an auction for special size rough diamonds (weighing over 10.8 carats) held in New York. At approximately $7,050 per carat, the miner says it is the best result achieved in the last few months. There were 95 participants from the US, Belgium, India, Israel, UAE, Russia and Hong Kong.
Teaming up with Sarine Diamond Technologies, Alrosa has launched a pilot program to provide digital mapping of its rough diamonds on tender so buyers can better assess the polished output and lower their purchasing risk. In a press release, the Russian miner said it provided the Digital Tenders information for the first time during the October 2019 trading period, offering its clients a full digital scan of each rough diamond for detailed analysis.
While Russian diamond mining giant Alrosa's October rough diamond sales remained steady at $253.9 million and even outpaced by $20 million their sales in the same month last year, Q3 (July-Sept.) saw a significant downturn as the market remained difficult and sales volumes declined. Meanwhile, the miner got a bit of sparkle from their polished diamond sales during the month, earning $10.4 million, good for their best polished results of the year by over $2 million. The miner says supply and demand have shown signs of regaining their balance.
Russia's Alrosa, the leading diamond producer in the world by volume, has recovered its largest gem-quality rough stone in three years: 232.4 carats. The massive diamond was was unearthed at Udacnhaya kimberlite pipe on October 19.
Russian diamond miner Alrosa served as a co-organizer of the ‘Russian-African Collaboration in the Diamond Industry’ panel session at the Russia-Africa Economic Forum business program in Sochi, the company announced today. Russia and African countries together account for about 75% of the global rough diamond production and are truly interested in the sustainable development of the global industry.
Russian diamond mining giant Alrosa increased its Q3 diamond production by 15% year-over-year while the volume and value of carats sold declined, leading to the miner holding 40% more diamonds in stock than at this time last year. However, they write, globally, the second half of Q3 2019 saw an upward trend in rough diamond sales and a turning point in destocking in the midstream, creating a basis for the market recovery in the future.
Russian diamond miner Alrosa saw its September sales of rough diamonds make a modest recovery after a slow summer, selling $256.5 million, which represents a 42% increase over the $180.2 million sold in August. The company acknowledged, however, that market demand for rough diamonds is still low, as this past month's sale was 27% lower than in September 2018, when they moved $331.6 million of rough goods. Adding $2.2 million in polished-diamond sales (-69% y-o-y), total sales for September were $258.7 million.
Russian diamond miner Alrosa has made an unusual find in Yakutia - a diamond with another diamond moving freely inside, making it resemble a traditional Russian Matryoshka doll. According to the experts who have studied the find, this is the first such diamond in the history of global diamond mining. The diamond was mined at the Nyurba mining and processing division.
Russian diamond miner Alrosa's Shareholders have decided to pay dividends for the first half of 2019 in the amount of 28.3 billion rubles ($434 million) or 3.84 rubles ($0.059) per share. Therefore, the company will allocate 100% of its free cash flow for the corresponding period to pay out dividends, the miner has stated in a press release. The six months dividend yield will be at around 5%.
Warning - gory financial details ahead
The Minerals Marketing Corporation of Zimbabwe (MMCZ) says it will conduct another diamond auction before the end of the year, and is aiming to sell between 400,000 and 500,000 carats. Two weeks ago, the MMCZ conducted its third auction this year, where they auctioned 316,000 carats and attracted 25 companies from around the world.