TORONTO and NEW YORK, August 2,
2017 /PRNewswire/ --
Shares Issued and Outstanding:
160,233,833
TSX and NASDAQ: MPVD
Mountain Province Diamonds Inc. ('Mountain Province', the 'Company') (TSX and
NASDAQ: MPVD) today announces the results of its recently completed
sixth diamond sale. The results of the sixth sale, with preceding
sale results for comparative context, are summarized as
follows:
2017-Q1 2017-May 2017-Jun 2017-Jul
Sales 1-3 Sale 4 Sale 5 Sale 6
Tender Sale Proceeds (USD million) 37.7 12.7 21.1 20.9
Carats Sold ('000s) 522 148 222 290
Value per Carat (USD)[1] 72 86 95 72
[1] Diamonds sold at individual sale events will not directly reflect run-of-mine production
from specific processing periods. The timing of the sale of some goods may be accelerated
or deferred for tactical marketing purposes. Realized average value per carat is also
impacted by the binary nature of the fancies and specials bidding process within each
production split, conducted approximately every five weeks with the Company's joint venture
partner, De Beers Canada Inc. The winning party of each fancies and specials bid then markets
100% of those diamonds.
The results from the fifth and sixth sales are impacted in part
by the inclusion in the fifth sale of a high-value selection of the
fancies and specials won by the Company, otherwise scheduled for
inclusion in the sixth sale. Including these high-value diamonds,
the value realized per carat in the sixth sale was US$87. The size and quality distributions of the
sixth sale's offering is in line with the average production
profile mined to date.
The Company's sixth sale represents the highest volume sale
to-date and cumulative sales at tender now exceed 1.18 million
carats. Competitive bidding and strong prices were realized on the
fancies and specials and high-end parcels, and prices realized on
the remainder of the lots were in line with expectations. Tender
performance measures remain healthy with a high level of interest
from returning customers. Reid
Mackie, the Company's Vice President Diamond Marketing said,
"Following on from a very strong June sale, the July tender was
well-attended and bidding performance remains high. Repeat
customers won 83% of lots, consolidating our view that the rough
market is now fully engaged with the Gahcho Kué product and its
positive performance at manufacturing."
To more meaningfully relate prices realized at sale events to
production results, the Company provides the following table:
Inception to YTD
End of Year Q1 Apr May June July Total
Production 2016 2017 2017 2017 2017 2017 2017
Period[3]
Sale in
Which
Goods Were
Primarily
Sold 1 & 2 3 to 5 6 n/a[2] n/a[2] n/a[2]
Tonnes
Processed
(100%)
('000s) 515 492 201 276 289 314 1,573
Recovered
Grade
(carats
per tonne) 1.64 1.76 2.27 2.09 1.99 2.13 2.02
Carats
Recovered
(100%)
('000s) 847 867 457 579 578 669 3,150
Carats
Recovered
(49%
share)
('000s) 422 425 224 284 283 328 1,544
Attributed
Value per
Tonne in
CAD[1] 143 188 225 n/a[2] n/a[2] n/a[2]
[1] Attributed Value per Tonne has been determined based on realized sale results, with
any accelerated or deferred goods adjusted to their period of production, reflecting only the Company's 49% share of
all diamonds including fancies and specials.
[2] Not applicable as goods from this production period have not yet been sold.
Total figures may differ slightly from the sum of monthly figures due to the effects
[3] of rounding.
David Whittle, the Company's
Interim President and Chief Executive Officer said, "The diamonds
sold in this sixth sale primarily originate from the April
production month, and the attributed value per tonne for the month
as realized from the sale was C$225.
This is the highest monthly value per tonne we have achieved to
date, and reflects the particularly strong recovered grade for the
April production. It is encouraging to see these positive trends
through the initial months of our first full year of
production."
As previously disclosed, the Company declared the commencement
of commercial production on March 1,
2017. The Company will report its first mine revenues and
gross margins in its second quarter financial results, reflecting
the sale of March production under the fifth diamond sale event.
Second quarter financial results are expected to be released on
August 9, 2017. The revenue from this
sixth sale will be included in the Company's third quarter
financial results.
Mountain Province Diamonds is a 49% participant with
De Beers Canada in the Gahcho Kué diamond mine located in
Canada's Northwest Territories. Gahcho Kué is the
world's largest new diamond mine and projected to produce an
average of 4.5 million carats a year over a 12-year mine life.
The Gahcho Kué Diamond Mine consists of a cluster of four
diamondiferous kimberlites, three of which are being developed and
mined under the current mine plan.
Qualified Person
This news release has been prepared under the supervision of
Carl G. Verley, P.Geo., who serves
as the qualified person under National Instrument 43-101.
Forward-Looking Statements
Cautionary Statement: This news release contains
forward-looking statements under applicable Canadian and US
securities regulations and legislation in which
Mountain Province discusses
its potential future performance. Forward-looking
statements are all statements other than statements of historical
facts, such as projections or expectations relating to ore grades
and processing rates, production and sales volumes, cash costs,
operating cash flows, capital expenditures, debt management
initiatives, exploration efforts and results, development and
production activities and costs, liquidity, tax rates, the impact
of diamond price changes, reserve estimates, and future
dividend payments. The words "anticipates," "may," "can,"
"plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and any
similar expressions are intended to identify those assertions
as forward-looking statements. Under its current project
finance facility Mountain Province
is not permitted to pay dividends on common stock unless and until
obligations under the facility have been satisfied.
The declaration of dividends is at the discretion of
Mountain Province's Board of
Directors, subject to restrictions under the Company's project
finance facility, and will depend on Mountain Province's financial results, cash
requirements, future prospects, and other factors deemed relevant
by the Board.
Mountain Province cautions
readers that forward-looking statements are not guarantees of
future performance and actual results may differ materially from
those anticipated, projected or assumed in the
forward-looking statements. Important factors that can cause
Mountain Province's actual results
to differ materially from those anticipated in the forward-looking
statements include supply of and demand for, and prices of,
diamonds, mine commissioning, mining sequencing, production rates,
cash flow, industry risks, regulatory changes, political risks,
labor relations, weather- and climate-related risks, environmental
risks and other risk factors.
Investors are cautioned that many of the assumptions upon
which Mountain Province's
forward-looking statements are based are likely to change after the
forward-looking statements are made, including for example diamond
prices, which Mountain Province
cannot control, and production volumes and costs, some aspects of
which Mountain Province may not be
able to control. Further, Mountain
Province may make changes to its business plans that
could affect its results. Mountain
Province disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
Media Contact:
David Whittle
Interim President and CEO
Mountain Province Diamonds Inc.
161 Bay Street
Suite 1410, Toronto
Ontario M5J 2S1
Phone: +1-(416)-361-3562
E-mail: info@mountainprovince.com