Earnings Report /
Russia

Alrosa: November sales: strong numbers signaling healthy jewelry demand – POSITIVE

  • ALROSA reported $334 mn of rough diamonds sales for November which is 8% up vs October

  • Rough diamond stocks in the midstream remain low suggesting competition for volumes in the market

  • We reiterate our positive view on ALROSA, the stock remains one of our top picks in the M&M sector

Boris Krasnozhenov
Boris Krasnozhenov

Head of Research (Managing Director)

Follow
Yulia Tolstykh
Yulia Tolstykh

Analyst, Metals & Mining

Follow
Alfa
10 December 2021
Published byAlfa

ALROSA (ALRS.RX, O/W, RUB 159.1/share) reported $334 mn of rough diamonds sales for November which is 8% up vs October and down 14% y/y due to limited stock availability. ALROSA continues to see diamond jewelry demand growing in double-digits in key markets. The positive trend is expected to continue in 2022 as 1Q22 sales are already taking shape. Rough diamond stocks in the midstream remain low suggesting competition for volumes in the market. November rough diamond sales were characterized by last minute preparations for US holiday season sales and Chinese New Year festivities while polishers and cutters in India were celebrating Diwali. According to Rappaport, polished prices remained high due to supply shortages, especially for large stones. We reiterate our positive view on ALROSA, the stock remains one of our top picks in the M&M sector.