TSX and OTC: MPVD
TORONTO, July 17,
2023 /CNW/ - Mountain Province Diamonds Inc.
("Mountain Province", the "Company") (TSX:MPVD) (OTC: MPVD) today
announces operating and sales results for the second quarter ended
June 30, 2023 ("the Quarter" or "Q2
2023") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures
are expressed in Canadian dollars unless otherwise noted.
Operational Highlights for Second Quarter
2023
(all figures reported on a 100% basis unless
otherwise stated)
- 750,241 ore tonnes treated, largely unchanged relative to Q2
2022, (Q2 2022: 749,821 tonnes treated;)
- 1,339,196 carats recovered, 6% higher than the comparable
quarter (Q2 2022: 1,260,899 carats)
- Average grade of 1.79 carats per tonne, a 6% increase
relative to Q2 2022 (1.68 carats per tonne)
- 595,990 ore tonnes mined, a 43% decrease relative to last
year's comparable quarter (Q2 2022: 1,043,348 ore tonnes
mined)
Five-Day Major Plant Shutdown
Safely Executed
In mid-June a planned 5-day major plant shutdown was safely
executed. Process equipment, which had been responsible for
repeated unplanned downtime, was repaired/replaced, with strategies
implemented to ensure reduced unplanned downtime going forward.
Plant stability has benefitted from the shutdown, with throughput
expected to ramp-up though H2/23.
Q2 2023 Production
Figures
|
2023 Q2
|
2022 Q2
|
YoY
Variance
|
Total tonnes mined (ore
and waste)
|
9,235,465
|
7,880,914
|
17 %
|
Ore tonnes
mined
|
595,990
|
1,043,348
|
-43 %
|
Ore tonnes
treated
|
750,241
|
749,821
|
0 %
|
Carats
recovered
|
1,339,196
|
1,260,899
|
6 %
|
Carats recovered (49%
share)
|
656,206
|
617,840
|
6 %
|
Recovered grade (carats
per tonne)
|
1.79
|
1.68
|
6 %
|
Revised Ore Mined Guidance for
2023
A transition to greater waste stripping activities than planned
in the Tuzo pit, driven by the need to reduce the effects of
interactive mining, has resulted in less mining activity in the
5034 pit than planned with the ore release from this pit deferred
to future periods. Given the sizeable ore stockpile (1.27 million
tonnes grading 1.26 ct./tonne, containing 1.59 million carats) and
resource overperformance relative to the model, there is no
production interruption expected from this deferral. Given this ore
release deferral, it is appropriate to revise the ore mined
guidance for the 2023 operating year. For the full year 2023
Company expects:
- 3.0 – 3.6 million ore tonnes mined
-
- Previously 4.10 – 4.50 million ore tonnes mined
- All other guidance remains unchanged
Sales Highlights for Second
Quarter 2023
During the second quarter, 360,308 carats were sold for total
proceeds of $59.9 million
(US$44.6 million), resulting in an
average price of $166 per carat
(US$124 per carat). These results
compare to Q2 2022 where 586,567 carats were sold for total
proceeds of $97.0 million
(US$74.5 million) at an average price
per carat of $165 per carat
(US$129 per carat).
The reduction in volume sold in Q2 2023 relative to Q2 2022 was
due to the acceleration of sales into Q1 2023, where three sales
were held versus the historical norm of two. Relative to Q2 2022,
average price per carat in Q2 2023 benefitted from a coarser than
average mix of goods sold, offsetting a softening in the market. We
expect a finer mix of goods sold in Q3 2023.
Despite a softening of the broader rough diamond market in Q2
2023, the market for smaller goods, making up the majority of
Gahcho Kué goods, continues to show resilience and a more positive
demand outlook. The Company expects that the Gahcho Kué production
will continue to attract sustained market demand.
Mark
Wall, the Company's President, and Chief Executive Officer,
commented:
"Q2 2023 saw quarter-on-quarter operational improvements
across most operating metrics at site. While I am pleased to see
this incremental improvement, there remains much work to be done to
ensure that we are able to achieve planned mining and processing
rates in a more sustainable way. We are working together with
our JV partner to allow for more predictable outcomes.
On the rough diamond market, we were glad to see our sales
performance stay resilient amongst some broader market
turbulence."
About Mountain Province Diamonds
Inc.
Mountain Province Diamonds is a 49% participant with De
Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest
Territories. The Gahcho Kué Joint Venture property consists
of several kimberlites that are actively being mined, developed,
and explored for future development. The Company also controls more
than 113,000 hectares of highly prospective mineral claims and
leases surrounding the Gahcho Kué Mine that include an Indicated
mineral resource for the Kelvin kimberlite and Inferred mineral
resources for the Faraday kimberlites. Kelvin is estimated to
contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a
grade of 1.60 carats/tonne and value of US$63/carat, at February
2019. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at
a grade of 2.63 carats/tonne and value of US$140/ct, at February
2019. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt
at a grade of 1.04 carats/tonne and value of US$75/carat, at February
2019. All resource estimations are based on a 1mm diamond
size bottom cut-off.
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 Matthew MacPhail, P.Eng., MBA,
and Tom E. McCandless, Ph.D.,
P.Geo., both employees of Mountain Province Diamonds and Qualified
Persons 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 operational
hazards, including possible disruption due to pandemic such as
COVID-19, its impact on travel, self-isolation protocols and
business and operations, 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
the development of operation hazards which could arise in relation
to COVID-19, including, but not limited to protocols which may be
adopted to reduce the spread of COVID-19 and any impact of such
protocols on Mountain Province's
business and operations, 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.
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SOURCE Mountain Province Diamonds Inc.