Alrosa's profit jumps on higher prices

The world's largest producer of rough diamonds, which competes with Anglo American unit De Beers, is gradually restoring output after last year's 22% reduction to 30-million carats when global diamond sales were hit by the Covid-19 pandemic.

Net profit in the same quarter last year was a mere 300-million roubles ($4-million) because of the pandemic.

Demand for diamond jewellery continued to recover in the second quarter of this year, Alrosa finance chief Alexey Philippovskiy said in a statement.

"Our outlook for the end-consumer market remains positive. The market is recovering faster than we predicted," he said, adding that diamond supply remains 20% below pre-pandemic levels and global production is unlikely to bounce back in the medium term.

Alrosa said it was on track to produce 31.5-million carats this year, with "an optimistic scenario" of additional growth of 5% growth.

The miner also cut its 2021 capital expenditure estimate by four-billion roubles to 21-billion roubles, it said, adding that the board would recommend a dividend payment this month.