Alrosa Expects to End Year with $2.5 Billion in Sales

Alrosa’s newly appointed President, Alexander Nichiporuk, says the company expects sales this year to reach $2.5 billion and net profits at $466 - $484 million. Rough diamond sales to De Beers are around $650 million this year, he said.

If the Russian diamond miner reaches those targets it would register a fantastic year, as 2003 sales stood at $1.81 billion and net profit $358 million.

Locally, Alrosa sold to its domestic market $1 billion in rough diamonds for local polishing.

In light of the recent proposal made to the European Union, suggesting sales of $700 million in 2005, it is interesting to note that Alrosa sold “only” $650 million worth of rough, much less then the planned $800 annual sales in its five-year agreement it signed with De Beers in 2001.

As ideas are flying as to how Alrosa will market an increasing amount of rough that will not go to De Beers, Nichiporuk revealed that they expect this year’s exports to reach about $400 million, on top of the goods that are being sold to the South African giant.