TSX and OTC: MPVD
TORONTO and NEW YORK, Oct. 27,
2022 /PRNewswire/ -- Mountain Province Diamonds Inc.
("Mountain Province", the
"Company") (TSX: MPVD) (OTCQX: MPVD) today announces production and
sales results for the third quarter ended September 30, 2022 ("the Quarter" or "Q3 2022")
from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are
expressed in Canadian dollars unless otherwise noted.
Q3 Sales Highlights
- Highest Quarterly Revenue in Company History. Total
proceeds of $111M representing the
highest quarterly revenue in the Company's history, and a 9%
increase relative to that achieved in Q2 2022.
- Quarter-on-quarter 37% Increase in Carats Sold. The
Company sold 805,227 carats in Q3 2022, a 37% increase relative to
Q2 2022.
- Q3 production of 1,451,453 carats, which is 22% better
than Q1, 2022 and 15% better than Q2, 2022.
Mark
Wall, the Company's President and Chief Executive Officer,
commented:
"After a disappointing production performance in Q1 and into Q2,
an action plan was developed to drive operational and safety
improvements at the mine. The safety performance was however
further impacted by a workplace fatality in early September.
Workplace fatalities have no place in our industry and ensuring a
safe workplace is a primary focus. On production, Q3 was stronger
than both Q1 and Q2 and the action plan in place is incrementally
delivering the required improvements. This improving production
performance, coupled with our very strong financial performance
during the quarter places the Company in a strong position as we
enter the final quarter of the year.
We have also recently announced our refinancing solution with a
net US$190 million in private second
lien notes from our existing bondholders at a coupon of 9%, with
further details within the associated press release. From
discussions with several shareholders there was a concern that
there would be a large equity issue with this refinancing, I am
very happy to report that our three main existing bondholders have
presented a refinancing package that features no equity dilution of
existing shareholders."
Q3 Production Takeaways
- 816,201 ore tonnes treated, an 2% decrease relative to Q3 2021,
and a 9% increase relative to Q2 2022 (Q3 2021: 832,511 tonnes
treated; Q2 2022, 749,821 tonnes treated)
- 1,451,455 carats recovered, 7% lower than Q3 2021, and a 15%
increase relative to Q2 2022 (Q3 2021: 1,562,105 carats recovered,
Q2 2022: 1,260,899 carats recovered)
- Average grade of 1.78 carats per tonne, a 5% decrease relative
to Q3 2021, and 6% higher than to Q2 2022 (Q3 2021: 1.88 carats per
tonne, Q2 2022: 1.68 carats per tonne)
Q3 2022 Production
Figures
|
|
|
|
|
|
|
2022
Q3
|
2021
Q3
|
YoY
Variance
|
Total tonnes mined
(ore and waste)
|
7,753,629
|
10,280,749
|
-25 %
|
Ore tonnes
mined
|
1,345,654
|
1,033,461
|
30 %
|
Ore tonnes
treated
|
816,201
|
832,511
|
-2 %
|
Carats
recovered
|
1,451,455
|
1,562,105
|
-7 %
|
Carats recovered (49%
share)
|
711,213
|
765,431
|
-7 %
|
Recovered grade
(carats per tonne)
|
1.78
|
1.88
|
-5 %
|
Q3 Sales
Performance
Though rough diamond market prices have stabilized compared to
the strong gains achieved in H1 2022, the Company's sales continue
to show resiliency. During the quarter 805,227 carats were sold for
total proceeds of C$110.6 million
(US$83.3 million), resulting in an
average value of C$137 per carat
(US$103 per carat). This Q3/22 sales
result represents a 13% increase in revenue relative to Q2/22, and
a 10% reduction on an US$ average value per carat basis. Adjusting
for mix of goods sold, on a like-for-like basis the Q3/22 sales
result represented a 2% increase in average value per carat
relative to Q2/22.
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 107,373 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. 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.
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. All resource
estimations are based on a 1mm diamond size bottom cut-off.
For further information on Mountain Province Diamonds and to
receive news releases by email, visit the Company's website
at www.mountainprovince.com.
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. Mineral resources are not mineral reserves and do not
have demonstrated economic viability.
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.
Mark Wall, President and CEO,
(416) 361-3562, info@mountainprovince.com; Matthew
MacPhail, Chief Technical Officer, (416)
361-3562, info@mountainprovince.com
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