Diamond demand ‘to boost Alrosa’s value’
Friday, September 10th, 2010
Higher demand for diamonds and an expected initial public offering are likely to boost shares in Russia's biggest diamond miner Alrosa, according to one analyst.
Andrey Lobazov of Metropol was quoted by Bloomberg as saying in a report there will be "an upturn in global diamond demand", with China, India and the Middle East leading the way.
He also warned a diamond deficit could occur "as soon as 2012", noting this would "drive raw diamond prices higher".
Mr Lobazov noted this, along with a forecast IPO in 2012, will help raise the value of Alrosa, which is responsible for nearly all of Russia's diamond output and hold 25 per cent of the global market in terms of value.
Earlier this week, the company said it expects total sales for 2010 to be higher than previously forecast at approximately $3.34 billon (£2.16 billion).
For the first nine months of the year, preliminary figures from the firm show it sold diamonds worth over $2.78 billion.
