Alrosa 3Q 20 Earnings Preview - Diamond market turned alive in August September
Top line: In August and September, global diamond pipeline finally turned alive. As a result, Alrosas rough diamond sales volume stood at 5.0 mct in 3Q 20e (+691% qoq). At the same time, the 3Q 20e sales volume was 21% lower yoy, being essentially delivered by two out of three months in the quarter as sales stood frozen in July. It is worth mentioning that despite a 10% like-for-like price cut delivered by Alrosa and De Beers in 3Q 20e, average realised price was only 6% lower qoq, thanks to a higher-than-ever 82% share of expensive gem-quality diamonds in the firms sales mix. Over 1H 20, the latter stood at 74%, which is pretty close to a historic average. Importantly, due to the price-over-volume strategy, the 3Q 20e diamond price was 17% higher yoy. We also expect a ca. 28% qoq hike in non-diamond revenue on a stronger economic activity in 3Q 20e.AK Alrosa PAO. AK Alrosa PAO (Aktsionernaya kompaniya ALROSA PAO or ALROSA Company PJSC), formerly AK Alrosa OAO, is a Russia-based company which is principally engaged in the exploration, mining, manufacture and sales of diamonds. Its operations include five Integrated Mining and Processing Complexes: Mirny, Udachny, Aikhal, Anabar and Nyurba located in the Sakha Republic; sorting divisions and diamond cutting and polishing division. The Company is a member of variable diamonds associations. It operates through several representative offices, branches and subsidiaries, including Alrosa-Nyurba OAO, Almazy Anabara OAO and Severalmaz OAO.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.