Russian miner ALROSA said that sales of rough diamonds in Q1 2017 are estimated at US$ 1,250 mn, a drop by about 6% compared to sales of US$ 1,325 mn in the same period a year ago. The projected figure for Q1 2017 was part of the presentation done by Company officials at the Investor Day meet yesterday.

As previously reported, the Company sold 37.4 million carats in 2016 and planned to increase this to 39.2 million carats in 2017, and subsequently to reach 40.4 million carats in 2021. It is now the largest rough producer in the world by volume, with a 29% market share. Revenue rose by a massive 41% and EBITDA by 49% as a result of both higher sales and currency fluctuations. The Company also benefited from the September 2016 decision of the government to withdraw the 6.5% export duty on rough diamonds, as it kept price levels for overseas clients unchanged.

The Company said that while the market is expected to be balanced in the mid-term, demand is expected to exceed supply after major diamond producers sell off inventories accumulated prior to 2015. ALROSA is reported to have reduced its stockpile by 2.6 mn cts last year and now holds about 19 million carats in inventory.

According to related media reports, the Company’s new CEO Sergey Ivanov confirmed that there would be no change in the defined long-term business strategy.