Alrosa Expects To Post a Net Profit of $111.66 Million

Alrosa expects to end 2008 with a net profit of Rub 4 billion ($111.66 million), according to unofficial reports. While most diamond producers scaled back mining operations to near zero at the end of the year, Alrosa tried to maintain its production, selling the output to the state repository Gokhran.

According to an Itar-Tass report, Vyacheslav Shtyrov, the president of the Republic of Sakha (Yakutia) where Alrosa mines most of its diamonds, told reporters about the results, adding that Alrosa will pay dividends for the year.

Alrosa faced problems mainly with its “external” sales, according to Shtyrov.

If Shtyrov’s estimate is accurate, Alrosa’s sales fell 71.7 percent compared to 2007 when it posted a RUB 14.133 billion ($598 million) net profit.