Alrosa Cuts Profit Forecast by 90% to $51 Million

Russian mining company Alrosa adjusted its annual net profit forecast to 1.422 billion rubles ($51.2 million), a result of the drop in rough diamond sales and prices in the fourth quarter.

In an announcement posted on its web site, Alrosa said its biggest challenge is to preserve production at current levels. The company announced last month that it will decrease its sales to the diamond industry by up to 40 percent, selling the goods to state repository Gokhran instead.

Alrosa posted a net profit of Rbs14.13 billion in 2007, the expected 2008 results represent a dramatic 89.93 percent cut.

The diamond miner will review salaries, but continue with underground expansion plans.