TORONTO and NEW YORK, May 24,
2018 /PRNewswire/ --
TSX and NASDAQ: MPVD
Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and
NASDAQ: MPVD) today announces the results of its recently completed
fourth diamond tender sale of 2018. Total proceeds from the
sale were US$28.3 million
(CDN$36.2 million), the highest total
for any tender result to date.
The results of the fourth tender sale, with preceding sale
results for comparative context, are summarized as follows:
2018 2018
2017-H1 2017-Q3 2017-Q4 2018-Q1 Apr May
Sales 1-5 Sales 6-7 Sales 8-10 Sales 1-2 Sale 3 Sale 4
Tender Sale Proceeds (USD
million) 71.5 48.0 59.3 52.4 26.4 28.3
Carats Sold ('000s) 892 753 1,005 527 451 350
Value per Carat (USD)[1] 80 64 59 99 59 81
Normalized Value per Carat
(USD)[2] 75 78 66 83 80 79
[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.
Market sentiment remained positive coming out of the April
holidays and into the fourth selling cycle. Customer
participation was healthy with 191 companies attending the tender
and an average of 12.4 bids received per lot.
Said Reid Mackie, the Company's
Vice President Diamond Marketing, "Our fourth sale results reflect
the overall positive sentiment in the rough diamond market, driven
by the strong fundamentals of stable rough supply and positive news
from the major retail markets. Larger size gem categories
again attracted high interest levels from customers, delivering
record prices for some on a per carat basis. Prices for the
remaining categories of goods generally remained stable, with a
marginal market price increase for these goods over our third sale
results."
To more meaningfully relate prices realized at sale events to
production results, the Company also provides the following
table:
Production
Period[3]
H1 Q3 Q4 Jan Feb Mar Apr
2017 2017 2017 2018 2018 2018 2018
Sale in Which
Goods Were
Primarily 3 to 7 & Partial 8 1, 2
Sold Partial 8 to 10 & 3 2 & 3 4 n/a[2] n/a[2]
Tonnes
Processed
(100%)
('000s) 1,259 823 693 327 217 242 275
Recovered
Grade (carats
per tonne) 1.97 2.22 2.35 1.89 2.05 2.40 2.31
Carats
Recovered
(100%)
('000s) 2,481 1,825 1,627 618 444 579 634
Carats
Recovered
(49% share)
('000s) 1,216 894 797 303 218 284 311
Attributed
Value per
Tonne in
CAD[1] 183 172 208 167 185 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] 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, "The results of this
fourth sale exceeded our target expectations. Our experience in
recent sales confirms rough diamond prices are holding stable,
supported by strength in the largest retail diamond jewellery
markets in the world, the US and China. Mine and plant operations continue to
perform solidly, with production remaining comfortably on track
compared to plan due to good production rates and continued strong
grade".
Additionally, as previously announced Stuart Brown will assume the role of President
and Chief Executive Officer effective July
1. David Whittle, currently
in the interim position, will resume his prior role as an
independent director. To preserve his independent status in
accordance with applicable securities regulation, Mr. Whittle will
step down as Interim President and CEO at the end of May.
Jonathan Comerford, current Chair of
the Board, will be appointed to the interim position for the month
of June until the transition to Mr. Brown is completed.
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
The disclosure in this news release of scientific and technical
information regarding Mountain
Province's mineral properties has been reviewed and approved
by Keyvan Salehi, P.Eng., MBA, a
Qualified Person as defined by National Instrument
43-101 Standards of Disclosure for Mineral
Projects.
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 to 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 note and revolving credit facilities
Mountain Province is subject to
certain limitations on its ability to pay dividends on common
stock. The declaration of dividends is at the
discretion of Mountain Province's
Board of Directors, subject to the limitations under the Company's
debt facilities, 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