OREANDA-NEWS. October 22, 2014. ALROSA reports Q3 and 9M 2014 production results and preliminary sales results.

Production results

ALROSA’s Q3 2014 diamond production totaled 9.7 million carats, which is 21% higher compared to Q2 2014. The production increase was driven by the seasonal production growth at the alluvial deposits, increase in volumes of ore processing at the Aikhal underground mine following the completion of Processing Plant No. 8 overhaul, and the production ramp-up at Severalmaz in accordance with the Company's plan.

ALROSA’s 9M 2014 diamond production totaled 25.7 million carats, which is 5% lower y-o-y. The production decrease was mainly driven by the reduction in ore processing at the Udachnaya pipe in line with the Company's plan for the transition to underground mining at the deposit. The Udachny underground mine development has been processing with no deviation from the Company’s plan.

The Company notes a 2.7 times production growth to 1.2 million carats in 9M 2014 at Severalmaz following the launch of the second module of the site’s processing plant, and confirms the mining guidance of 36 million carats for ALROSA in 2014.

Preliminary sales results

According to preliminary data, in 9M 2014 ALROSA sold 28.8 million carats of diamonds, revenue from rough diamond sales grew by 8% y-o-y and reached no less than USD3.7 billion.

During Q3 2014, ALROSA sold 7.6 million carats of diamonds, including 5.3 million carats of gem-quality diamonds with an average price of USD 182 per carat, and 2.3 million carats of industrial diamonds with an average price of USD 16 per carat.

The Company notes a positive performance of the diamond market during 9M 2014 with rough diamond prices going up by around 7% since the beginning of the year.