Alrosa ups profits 5-fold, says IPO no longer necessary
BusinessWeek reports Alrosa says it mined more diamonds than global rival De Beers in 2009, 2010 and the first half of 2011 and is benefiting from prices for rough diamonds of $109 – up 30% over last year.
Alrosa accounts for more than a quarter of world output and for 2011 predicts $5 billion in revenue. The secretive firm has been feeding the market more information recently in anticipation of a 2012 public offering, but now says the record financial performance may reduce the need to sell new shares.
Businessweek reports Alrosa accounted for 26 percent of global diamond production in 2010, according to its presentation. De Beers was responsible for 25 percent and Rio Tinto Group for 10 percent.
Bloomberg reported on Wednesday De Beers said prices of the gems may “stick” at current levels after demand from India and China spurred a rally of more than 35% this year. The private company also expects production to be the same or slightly higher than last year’s 33 million carats.
Diamonds.net reported on Monday Rio Tinto expects its share of diamond production to reach 13 million carat for the full year, which would be 6 percent below output in 2010.