TORONTO and NEW YORK, November 22,
2017 /PRNewswire/ --
Shares Issued and Outstanding:
160,245,166
TSX and NASDAQ: MPVD
Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and
NASDAQ: MPVD) today announces the results of its recently completed
ninth diamond sale.
The results of the ninth sale, with preceding sale results for
comparative context, are summarized as follows:
2017-Q1 2017-Q2 2017-Q3 2017-Oct 2017-Nov
Sales 1-3 Sales 4-5 Sales 6-7 Sale 8 Sale 9
Tender Sale Proceeds (USD million) 37.7 33.8 48.0 21.3 19.0
Carats Sold ('000s) 522 370 753 353 288
Value per Carat (USD)[1] 72 91 64 60 66
Normalized Value per Carat (USD) 72 79[2] 67[2] 63[2] 71[2]
[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.
[2] Normalized to adjust for goods accelerated or deferred, and to include fancies and specials acquired through bid by De Beers Canada Inc.
Pricing in this ninth sale was stable to firm, with prices
across the full assortment profile generally averaging about 2%
higher than the eighth sale. The increase in average price
realization is primarily a result of an improved quality
distribution in the larger stone sizes and increased demand for
lower value assortments.
Said Reid Mackie, the Company's
Vice President Diamond Marketing, "Despite caution reported in the
rough markets after the return from Indian and Jewish holidays,
customer participation metrics at our ninth sale were strong with
over 150 companies attending the tender, average bids per lot
reaching our highest level to date at 11.9, and return customers
purchasing 88% by value. This, combined with firming of
price-points in our lower qualities and sizes, demonstrates the
ability of our tender process to harness positive outlook in the
market following encouraging news from the Asian and US retail
markets."
To more meaningfully relate prices realized at sale events to
production results, the Company also provides the following
table:
Inception YTD
Production to End of Q1 Q2 July Aug Sep Aug Total
Period[4] Year 2016 2017 2017 2017 2017 2017 2017 2017
Sale in
Which Goods
Were
Primarily
Sold 1 & 2 3 to 5 6,7& Partial 8 9 n/a[2] n/a[2]
Partial 8
Tonnes
Processed
(100%)
('000s) 515 492 767 314 269 241[3] 263 2,345
Recovered
Grade
(carats per
tonne) 1.64 1.76 2.10 2.13 2.32 2.22 2.40 2.11
Carats
Recovered
(100%)
('000s) 847 867 1,614 669 622 535 632 4,939
Carats
Recovered
(49% share)
('000s) 422 425 791 328 305 262 310 2,420
Attributed
Value per
Tonne in
CAD[1] 143 188 180 160 185 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.
[3] Tonnes processed in the month of September reflect the impact of a
planned five day shut-down in that month for annual maintenance.
[4] Total figures may differ slightly from the sum of monthly figures
due to the effects of rounding.
Said David Whittle, the Company's
Interim President and Chief Executive Officer, "I am pleased to
report that Gahcho Kué mine operations is continuing its solid
track record, not only in terms of plant performance but with our
highest monthly recovered grade to date. This result is a
testament to the quality of the mine operating team, which along
with the consistent performance of our marketing group is a driving
factor behind the strong operating margins we are generating."
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, consisting of a cluster of four
diamondiferous kimberlites, three of which are being developed and
mined under the initial 12 year 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.
Caution Regarding Forward Looking Information
This news release contains certain "forward-looking statements"
and "forward-looking information" under applicable Canadian and
United States securities laws
concerning the business, operations and financial performance and
condition of Mountain Province Diamonds Inc. Forward-looking
statements and forward-looking information include, but are not
limited to, statements with respect to estimated production and
mine life of the project of Mountain
Province; the realization of mineral reserve estimates; the
timing and amount of estimated future production; costs of
production; the future price of diamonds; the estimation of mineral
reserves and resources; the ability manage debt; capital
expenditures; the ability to obtain permits for operations;
liquidity; tax rates; and currency exchange rate fluctuations.
Except for statements of historical fact relating to
Mountain Province, certain
information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can,"
"plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and
other similar words, or statements that certain events or
conditions "may", "should" or "will" occur.
Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and
are based on a number of assumptions and subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking statements. Many of these assumptions
are based on factors and events that are not within the control of
Mountain Province and there is no
assurance they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and
timeliness of permitting and governmental approvals; supply of, and
demand for, diamonds; fluctuating commodity prices and currency
exchange rates, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain
Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base
themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Mountain
Province believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. These statements speak only as of the
date of this news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no
obligation to update forward-looking statements if circumstances or
management's estimates or opinions should change except as required
by applicable securities laws. The reader is cautioned not
to place undue reliance on forward-looking statements.
Statements concerning mineral reserve and resource estimates may
also be deemed to constitute forward-looking statements to the
extent they involve estimates of the mineralization that will be
encountered as the property is developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to
a joint venture under which Mountain
Province is not the operator. Mountain Province is exposed to actions taken
or omissions made by the operator within its prerogative and/or
determinations made by the joint venture under its terms.
Such actions or omissions may impact the future performance of
Mountain Province. 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 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