Outlook
About us
We are building a world-class company, and our strategy aims both at leadership in terms of production volumes and at implementing the highest international standards in all ALROSA’s operations
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Our business
ALROSA’s business relies on a strong resource base, efficient production processes, innovative technologies and international business standards
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Sustainability
We strive to create a sustainable future by striking a balance between commercial and public interests
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Investors
ALROSA aims at increasing its investment attractiveness by building open and respectful relationships with shareholders and the investment community
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Clients
We guarantee the transparent and fair terms of access to rough diamonds for all customers
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ALROSA Diamonds
Only natural diamonds and unmatched cut quality
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Diamond jewelry
Only natural diamonds in exquisite jewelry pieces
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Media
We are always happy to talk about our activities and answer reporters’ questions
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Outlook

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ALROSA production outlook:


  • Production in 2022 may exceed 34 million carats (2021: 32.4 million carats).

  • The medium-term production outlook is 35–36 million carats.

  • The carat content of ore is expected to remain stable at about 1 carat per 1 ton of ore.


The long-term conditions for the diamond industry remain strong:


  • Preliminary estimates of diamond jewelry sales in 2021 exceed USD 90 billion, which is a record level. According to Bain estimates, in monetary terms, demand for diamond jewelry in the medium and long term will grow in line with the average GDP growth rate, or 2–3% per year.  

  • As of the beginning of 2022, product stocks in all segments of the diamond market are at minimum levels.

  • Since 2022, there has been an imbalance between supply and demand for diamonds: the sector is entering a prolonged period of shortage of rough diamonds.

  • The global supply of rough diamonds has shrunk structurally from 145–150 million carats in 2017–2018 to 110–120 million carats per year. Bain estimates that diamond production will not exceed 120 million carats over the next 5 years. The main reason for such a sharp decline is the natural depletion of existing deposits, which excludes the possibility of an active increase in future production.


Supply dropped structurally on depletions / lack of new mines
Source: Company data and analysis, Kimberley Process, AWDC Bain report “The Global Diamond Industry 2020-21”. Note: 1. Conservative scenario for rough diamond demand is based on 10% YoY change in 2021-23 and 1% in 2024-25.

Miners: Who is in and Who is out?

Depletions / reduction in output

$/ct - price per ct on depleting and suspended projects in 2020-25E1 vs 2019

$50 - Average Price of Depleted Diamonds

Source: Company data and analysis, brokers’ reports, Kimberley Process statistics. Notes: 1. Prices as of the latest available date. 2. Weighted average price. 3. Stands for De Beers Consolidated Mines, includes Venetia and Voorspoed mines.