ALROSA, the global leader in rough diamond production, announced the IFRS results for 9M 2017.
The company’s revenue in 9M 2017 amounted to RUB 214.5 bn, EBITDA to RUB 100.0 bn, net profit to RUB 61.9 bn, and free cash flow to RUB 61.8 bn.
Weaker financial performance in 9M 2017 vs 9M 2016 was caused by a 15% ruble appreciation against the US dollar and a 12% decrease in the average price of diamonds sold mainly as a result of changes in the diamond mix.
The company’s net income was adversely affected by an impairment of RUB 7.4 bn in fixed assets lost in accident at the Mir underground mine.
"ALROSA’s 9M 2017 results remained subdued by macroeconomic and market factors beyond the company’s control. At the moment, we are witnessing a moderate resurgence in the diamond market. Implementing our efficiency improvement initiatives has helped to cut unit production costs," said Sergey Ivanov, Chief Executive Officer of ALROSA.