ALROSA Meets Long-Term Clients; Declares 9% Production Increase for Q1 2017 Y-o-Y
PJSC ALROSA recently organised an extraordinary business meeting with the Company’s long-term clients focussed on the new contract period.
ALROSA President, Sergey Ivanov, participated in the meeting attended by representatives of more than 70 companies from both Russia and abroad. The discussions covered “diamond market trends, existing market environment, plans for the near future, and the Company’s sales structure”, ALROSA said.
“A new 3-year contract period 2018-2020 is to start next year,” ALROSA explained. “The list of applicants for long-term agreements will be formed with due account for clients’ relevant applications, completeness of submitted data and based on the analysis of results of trade cooperation between ALROSA and applicants in the period 2015-September 2017.”
The Company also informed clients present that assortment and volume of goods under a three-year agreement will be formed on an annual basis. “The core aim of these innovations is to take account of our customers’ assortment preferences,” ALROSA said.
“The heart of ALROSA’s sales policy – sale of the major part of rough diamonds through the system of long-term agreements – will not change. We also intend to preserve all the best practices in our sales system,” emphasised Ivanov, speaking at the event. “You may rest assured that our sales policy will be improved with due account of our customers’ opinions and market views.”
Meanwhile, in another statement, ALROSA announced its Q1 2017 production and preliminary trading performance.
Diamond production for the period totalled 8.9 million carats, which marked an increase of 9% year-on-year. These figures, the Company said, are in line with the 2017 production plan of 39.2 million carats (+5% y-o-y increase) defined by it. “The growth in production is driven by ramping up diamond mining at Aikhal, Mir, International, Udachny underground mines and also by processing of higher grade ore from the Jubilee pipe,” ALROSA said.
ALROSA sold around 14.1 million carats of diamonds in Q1 2017. This includes 11.0 million carats of gem-quality diamonds at an average price of US$ 117 per carat and 3.1 million carats of industrial diamonds at an average price of US$ 7 per carat.
“In Q1 2017, revenue from rough diamond sales amounted to at least US$ 1,309 million,” ALROSA announced. “Revenue from polished diamond sales totalled at least US$ 32 million.”