Shares Issued and Outstanding: 160,236,833
TSX and
NASDAQ: MPVD
TORONTO and NEW YORK, Sept. 18,
2017 /CNW/ - 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:
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2017-Q1
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2017-May
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2017-Jun
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2017-Jul
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2017-Sep
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Sales 1-3
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Sale 4
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Sale 5
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Sale 6
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Sale 7
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Tender Sale Proceeds
(USD million)
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37.7
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12.7
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21.1
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20.9
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27.1
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Carats Sold
('000s)
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522
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148
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222
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290
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463
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Value per Carat
(USD)1
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72
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86
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95
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72
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59
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Normalized Value per
Carat (USD)
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72
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86
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752
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872
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722
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1
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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.
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2
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Normalized to adjust
for goods accelerated or deferred, and to include fancies and
specials acquired through bid by De Beers Canada Inc.
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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.
Said Reid Mackie, the Company's
Vice President Diamond Marketing, "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:
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Production
Period3
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Inception
to End of
Year 2016
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Q1 2017
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Apr 2017
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May 2017
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June
2017
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July
2017
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Aug
2017
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YTD
Total
2017
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Sale in Which Goods
Were Primarily Sold
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1 & 2
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3 to 5
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6
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7
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n/a2
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n/a2
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n/a2
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Tonnes Processed
(100%) ('000s)
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515
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492
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201
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276
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289
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314
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269
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1,841
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Recovered Grade
(carats per tonne)
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1.64
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1.76
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2.27
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2.09
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1.99
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2.13
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2.32
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2.05
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Carats Recovered
(100%) ('000s)
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847
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867
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457
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579
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578
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669
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622
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3,772
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Carats Recovered (49%
share) ('000s)
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422
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425
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224
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284
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283
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328
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305
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1,848
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Attributed Value per
Tonne in CAD1
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143
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188
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225
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172
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n/a2
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n/a2
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n/a2
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1
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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.
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2
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Not applicable as
goods from this production period have not yet been
sold.
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3
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Total figures may
differ slightly from the sum of monthly figures due to the effects
of rounding.
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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. Said David Whittle, the Company's Interim
President and Chief Executive Officer, "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.
SOURCE Mountain Province Diamonds Inc.