TORONTO and NEW YORK, September 18,
2017 /PRNewswire/ --
Shares Issued and Outstanding:
160,236,83
TSX and NASDAQ: MPVD
Mountain Province Diamonds Inc. ('Mountain Province', the 'Company') (TSX and
NASDAQ: MPVD) today announces the results of its recently completed
seventh diamond sale. A total of 463,000 carats were sold for
proceeds totalling US$27.1 million, a
30% increase over the preceding sale proceeds despite there being
significantly fewer fancies and specials on offer in this sale.
This was the Company's largest single sale to date in terms of both
total value and carats sold, with carat volume reflecting strong
production throughput and grade at the mine as well as the
opportunity to fast-track just over 85,000 carats of smaller size
diamonds into this sale.
The results of the seventh sale, with preceding sale results for
comparative context, are summarized as follows:
2017-Q1 2017-May 2017-Jun 2017-Jul 2017-Sep
Sales 1-3 Sale 4 Sale 5 Sale 6 Sale 7
Tender Sale Proceeds (USD million) 37.7 12.7 21.1 20.9 27.1
Carats Sold ('000s) 522 148 222 290 463
Value per Carat (USD)[1] 72 86 95 72 59
Normalized Value per Carat (USD) 72 86 75[2] 87[2] 72[2]
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
[1] party of each fancies and specials bid then markets 100% of those diamonds.
Normalized to adjust for goods accelerated or deferred, and to include fancies and
[2] specials acquired through bid by De Beers Canada Inc.
All lots on offer were sold. As previously indicated would be
the case, the realized value per carat from this sale was averaged
down from the fast-tracked inclusion of just over 85,000 carats of
smaller sized goods. As a result of a procedural change by the
Government of the Northwest
Territories to expedite processing of the Company's smaller
sized goods for royalty valuation purposes, the Company is able to
bring such diamonds to market sooner than was previously the case.
A portion of such accelerated goods was included in this seventh
sale, and the remainder will be included in subsequent sales. The
seventh sale also included significantly fewer fancies and specials
than previous sales, further averaging down the realized value per
carat as compared to previous sales, as De Beers Canada was the
successful bidder for the main component of the fancies and
specials associated with this sale assortment. Adjusting to include
the fancies and specials at the value paid by De Beers, and to
exclude the fast-tracked smaller sized goods, the value realized
per carat in the seventh sale was US$72, generally consistent with the year-to-date
adjusted realized sale value of approximately US$75 per carat.
Reid Mackie, the Company's Vice
President Diamond Marketing, said, "It is encouraging to see
Mountain Province's sales process
and customer bidding continue to deliver robust levels of
competition. Attendance and average bids per lot were consistent
with previous sales, and this sale saw our highest level of lots
won by return customers. This demonstrates that, in spite of
current trading conditions being somewhat challenging, our diamonds
are becoming well established in the market and their positive
manufacturing results continue to engender customer support."
To more meaningfully relate prices realized at sale events to
production results, the Company provides the following table:
Inception YTD
to End of Q1 Apr May June July Aug Total
Production Period[3] Year 2016 2017 2017 2017 2017 2017 2017 2017
Sale in Which Goods Were
Primarily Sold 1 & 2 3 to 5 6 7 n/a[2] n/a[2] n/a[2]
Tonnes Processed (100%) ('000s) 515 492 201 276 289 314 269 1,841
Recovered Grade (carats per
tonne) 1.64 1.76 2.27 2.09 1.99 2.13 2.32 2.05
Carats Recovered (100%) ('000s) 847 867 457 579 578 669 622 3,772
Carats Recovered (49% share)
('000s) 422 425 224 284 283 328 305 1,848
Attributed Value per Tonne in
CAD[1] 143 188 225 172 n/a[2] n/a[2] n/a[2]
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
[1] 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
[3] effects of rounding.
At the Gahcho Kué mine site, the joint venture partners have
approved a fall exploration program focused on an area between the
5034 and Hearne pipes referred to as the Southwest Corridor, with a
total budget of $2.3 million. With
much of it already scheduled under the mine plan to be mined as
waste rock, in the course of stripping activity this area has been
recognized as containing diamondiferous kimberlite that is not
included in the project resource statements. Geophysical survey
work has already commenced under the program, with follow-up drill
work scheduled for later this year. David
Whittle, the Company's Interim President and Chief Executive
Officer, said, "With the mining of the Southwest Corridor
already costed into the project as waste removal, the ability to
convert any such tonnage into feed for the plant is a clear
opportunity given the small incremental cost per tonne for
processing. We look forward to the results of this exploration
program."
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.
Please Contact:
Mountain Province Diamonds Inc.
David Whittle
Interim President and CEO
161 Bay Street, Suite 1410, Toronto,
Ontario, M5J 2S1
Phone: +1-(416)361-3562
E-mail: info@mountainprovince.com