Alrosa - Weakish Production but Strong Pricing in 1Q18
Alrosa reported fairly weak production numbers for 1Q18. Output totaled 7.4 mln cts, down 17% y-o-y and 26% Q-o-Q. The Q-o-Q decline was attributable to processing lower-grade ore from the Jubilee pipe and the termination of the processing of ore from the Udachny open pit. The latter is due to open-pit mining having been wrapped up there. Nevertheless, the company reiterated its production guidance of 36.6 mln cts for 2018, which assumes that 80% of the total for the year will come in the final three quarters. This is doable, given that alluvials will start to contribute already in 2Q18. Alluvial output was 5.2 mln cts in 2017. Additionally, Alrosa confirmed that its expansion projects, the Udachny underground mine and the Severalmaz mine, were performing well.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.
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