Alrosa produced 7.5 million carats in the first quarter of 2013, ending March 31, 2013, falling in volume 8 percent year over year and 17 percent compared to the fourth quarter of 2012. Despite these declines, the Yakutia-based miner said this output level was "in line" with its production plan.

Production by Mine: Alrosa's Nyurba and Jubilee pipes respectively produced 1.98 million carats and 1.94 million carats during the first quarter, increases of 13 percent and 67 percent year over year, due to improved grade in each of the pipes. However, production at the Udachny pipe, totaling 1.56 million carats, continued to decrease (by 24 percent) due to the gradual phasing out of its open-pit operations. The company plans for the launch of an underground mine at Udachny in 2015.

Production at International underground mine decreased 54 percent in the first quarter to 1.08 million carats due to processing of additional volumes of ore from storage in the first quarter of 2012. The company's Mir underground mine also experienced a 7 percent decline in production to 471,000 carats due to lower grade. Ore from the Aikhal underground mine was not processed as scheduled along with the company's plan

According to Alrosa, production from its alluvial placers and tailings almost tripled in the third quarter to 239,000 carats compared to a year ago, as scheduled.

Production costs during the period decreased year over year by 3 percent due to lower production, offset by increased expenses on fuel and energy.

Diamond Revenue: Including both gem-quality and non-gem-quality diamonds, Alrosa sold a total of 10.3 million carats of diamonds during the first quarter, up 8 percent year over year. Diamond revenue for the period totaled US$1.13 billion (RUB 36.3 billion), up 5 percent year over year, driven by a 25 percent increase in sales volumes of gem-quality diamonds. The miner sold 7.6 million carats of gem-quality diamonds during the period at an average price per carat of US$157.5. Diamond prices, excluding shifts in product mix, were down 14 percent than a year ago, states the firm.

Company Financials: Alrosa's overall revenue grew 6 percent in the first quarter to US$1.23 billion (RUB 39.6 billion) driven by increased sales volumes, yet fell 15 percent compared to the fourth quarter of 2012 due to changes in product mix.

The company's net profit totaled US$195 million (RUB 6.26 billion), a decrease of 51 percent year over year and 29 percent compared to the previous quarter, mainly due to exchange rate losses.