Catoca, which operates Angola’s largest diamond mine, reported an increase in revenue and profit in 2016 as lower rough diamond prices influenced stronger demand for its product.
Revenue grew 2% to $593.6 million during the year as sales volume increased 6%, while the average price achieved by the mine declined by the same margin, the company reported this week. The company, which is part owned by Alrosa, did not state the average price achieved at the mine. Catoca reported an average price of $87 per carat for 2015, which means its average slipped to an estimated $82 per carat last year, according to Rapaport calculations.
Sales volume grew to an estimated 7.3 million carats, from 6.9 million carats reported in 2015. Net profit rose 16% to $134.6 million due to a change in estimates for taxes paid the previous year, the company said.
Endiama, an Angolan state-owned enterprise, owns 32.8% of the Catoca mine, with Russia’s Alrosa holding the same percentage. Chinese-owned LL International Holding and Brazil-based Odebrecht Mining Services own the rest. Earlier this year, Alrosa said it was considering raising its stake in Catoca.