Mountain Province Diamonds Inc. announces production and sales results for the first quarter ended March 31, 2021 (“the Quarter” or “Q1 2021”) from the Gahcho Kué Diamond Mine (“GK Mine”). All figures are expressed in Canadian dollars unless otherwise noted.
Additionally, the Company is providing the details of its Q1 2021 earnings release and conference call. The Company will release Q1 2021 financial results after market-close on Wednesday May 12th, 2020, with the quarterly conference call on Thursday May 13th, 2021 at 11:00am EST.
Q1 Production Highlights
(all figures reported on a 100% basis unless otherwise stated)
Q1 2021 Production Figures |
|||
2021 Q1 |
2020 Q1 |
YoY Variance1 |
|
Total tonnes mined (ore and waste) |
5,604,562 |
9,356,785 |
-40% |
Ore tonnes mined |
515,002 |
1,029,579 |
-50% |
Ore tonnes treated |
625,582 |
902,506 |
-31% |
Carats recovered |
1,392,128 |
1,655,121 |
-16% |
Carats recovered (49% share) |
682,143 |
811,009 |
-16% |
Recovered grade (carats per tonne) |
2.23 |
1.83 |
22% |
Note 1: Q1 2020 Production impacted by 22-day unplanned operational stand-down in February due to measures taken to limit spread of Covid-19 at Gahcho Kué, in addition to impacts noted below |
Mining and processing performance in the quarter was negatively impacted by the previously disclosed unplanned 22-day operational stand-down in February due to measures taken to limit the spread of Covid-19 at Gahcho Kué. Additionally, the problematic restart of production during one of the coldest winter months contributed to a lower-than-expected equipment availability, which combined with manpower availability issues and a higher-than-average incidence of extreme weather events resulted in lower than expected production for the quarter.
To counter the unpredictability of staffing levels various initiatives have been adopted to attempt to mitigate these issues. These include a recruitment drive for relief equipment operators, as well as targeted equipment-availability improvements.
Q1 Sales Results
During the quarter, 602,773 carats were sold for total proceeds of $54.2 million (US$42.7 million) resulting in an average value of $90 per carat (US$71 per carat). This is a 6% increase relative to the average value per carat in Q4 2020 of $85 per carat (US$64 per carat), and a near-return to pre-pandemic levels seen in Q1 2020 (US$75 per carat). The increase in average values and the positive product mix sold in Q1 reflected the growing price confidence across the rough diamond markets. Overall, on a like for like price book basis, compared to Q1 2020 our current average diamond value is now ahead of Q1 2020.
Stuart Brown, the Company’s President and Chief Executive Officer, commented:
“The impact of the COVID-19 outbreak at the mine during the quarter was very unfortunate, particularly with all the additional safety protocols and avoidance procedures that were in place. This highlights the ease with which the virus can spread. Pleasingly, the plant has continued to perform well and we are starting to catch up on the carat production deficit. This together with the continued price increases seen as well as the relative stability in the markets, is encouraging. With global vaccination rates increasing, we’re beginning to see a path to a return to normalcy, and with it the potential for continued diamond market recovery.”
Conference Call
The Company will host its quarterly conference call on Thursday, May 13th, 2021 at 11:00am ET.
Title: Mountain Province Diamonds Inc Q1 2021 Earnings Conference Call
Conference ID: 94367303
Date of call: 05/13/2021
Time of call: 11:00 Eastern Time
Expected Duration: 60 minutes
Participant Toll-Free Dial-In Number: |
(+1) 888-390-0561 |
Participant International Dial-In Number: |
(+1) 416-764-8668 |
A replay of the webcast and audio call will be available on the Company’s website.
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About the Company
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls 106,202 hectares of highly prospective mineral claims and leases that surround the Gahcho Kué Joint Venture property that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.
For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company’s website at www.mountainprovince.com.