TSX and OTC: MPVD
TORONTO and NEW
YORK, Jan. 19, 2023 /CNW/ - Mountain Province
Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD)
(OTC: MPVD) today announces production and sales results for the
fourth quarter ended December 31,
2022 ("the Quarter" or "Q4 2022") from the Gahcho Kué
Diamond Mine ("GK Mine"). All figures are expressed in Canadian
dollars unless otherwise noted.
Q4 and FY 2022 Highlights
- 1,621,800 carats recovered during Q4 at an average grade of
1.96 carats per tonne. Full year 2022 production of 5.52 million
carats against guidance of 5.60 - 5.80 million carats.
- In 2022, approximately 2.7 million carats were sold at an
average value of $146 per carat
(US$112 per carat) for total proceeds
of $388.8 million (US$297.3 million). This compared to 3.2 million
carats sold at an average value of $94 per carat (US$75 per carat) for total proceeds of
$298.4 million (US$236.9 million) in FY 2021.
- Ore mined on a full year 2022 basis was 4.1 million tonnes
against guidance of 3.75 – 4.30 million tonnes. Ore processed on a
full year 2022 basis was 3.1 million tonnes against guidance of 3.0
– 3.2 million tonnes.
Mark Wall, the Company's
President and Chief Executive Officer, commented:
"After a very challenging start to the year, primarily due to a
spike in Covid cases at the GK Mine, a detailed recovery plan was
developed and executed resulting in quarter over quarter
improvement through 2022. We closed out 2022 with the
refinance of our bonds, including reducing our total debt by
approximately US$60 million compared
to this time last year. We now enter the 2023 cold weather
and ice road resupply season with good momentum and a backdrop of a
resilient rough diamond market."
Q4 and FY 2022 Production Highlights (All figures
reported on a 100% basis unless otherwise stated)
- 10,144,844 total tonnes mined during the quarter, a 6% decrease
on comparable period (Q4 2021: 10,812,723). 33,947,188 total tonnes
mined during FY 2022, a 4% decrease from comparable period (FY
2021: 35,447,014).
- 705,924 ore tonnes mined during the quarter, a 31% decrease on
comparable period (Q4 2021: 1,019,671). 4,113,648 ore tonnes mined
during FY 2022, a 16% increase from comparable period (FY 2021:
3,561,417).
- 828,644 ore tonnes treated during the quarter, a 2% increase on
comparable period (Q4 2021: 813,308). 3,102,219 ore tonnes treated
during FY 2022, a 1% increase from comparable period (FY 2021:
3,082,572).
- 1,621,800 carats recovered during the quarter at an average
grade of 1.96 carats per tonne, 7% higher than comparable quarter
(Q4 2021: 1,511,253 carats at 1.86). 5,519,309 carats recovered
during FY 2022 at an average grade of 1.78 carats per tonne, 12%
lower than comparable period (FY 2021: 6,229,042 carats at
2.02).
Q4 and FY 2022 Production Statistics
|
|
|
|
|
2022
Q4
|
2021
Q4
|
YoY
Variance
|
Total tonnes mined (ore
and waste)
|
10,144,844
|
10,812,723
|
-6 %
|
Ore tonnes
mined
|
705,924
|
1,019,671
|
-31 %
|
Ore tonnes
treated
|
828,644
|
813,308
|
2 %
|
Carats
recovered
|
1,621,800
|
1,511,253
|
7 %
|
Carats recovered (49%
share)
|
794,682
|
740,514
|
7 %
|
Recovered grade (carats
per tonne)
|
1.96
|
1.86
|
5 %
|
|
FY
2022
|
FY
2021
|
YoY
Variance
|
Total tonnes mined (ore
and waste)
|
33,947,188
|
35,447,014
|
-4 %
|
Ore tonnes
mined
|
4,113,648
|
3,561,417
|
16 %
|
Ore tonnes
treated
|
3,102,219
|
3,082,572
|
1 %
|
Carats
recovered
|
5,519,309
|
6,229,042
|
-12 %
|
Carats recovered (49%
share)
|
2,704,461
|
3,052,231
|
-11 %
|
Recovered grade (carats
per tonne)
|
1.78
|
2.02
|
-12 %
|
Q4 and FY22 Sales Performance
Q4 2022 diamond sales totaled 757,830 carats sold at an average
value of $127 per carat
(US$94 per carat) for total proceeds of $96.3 million (US$71.3
million) in comparison to 808,739 carats sold at an average
value of $105 per carat (US$83 per carat) for total proceeds of
$85.2 million (US$67.5 million) in Q4 2021
During FY 2022, 2,656,387 carats were sold at an average
value of $146 per carat (US$112 per carat) for total proceeds of
$388.8 million (US$297.3 million) in comparison to 3,158,418
carats sold at an average value of $94 per carat (US$75 per carat) for total proceeds of
$298.4 million (US$236.9 million) in FY 2021.
Sentiment in the rough diamond market remains resilient despite
some recent turbulence. Strong diamond jewellery sales during the
holidays and lower rough diamond supply volumes from the major
producers are expected to maintain these stable prices through to
the Company's upcoming January sale.
Medium to longer-term, the Company's outlook for rough diamonds
remains positive. Retail diamond jewellery sales in the important
US market confirm a growing preference for smaller, lower priced
diamonds which align well with the diamond profile of the GK
Mine.
2023 Guidance (all figures quoted on a 100% basis unless
otherwise specified)
The Company wishes to provide operating and cost guidance for
2023, as follows:
- 37 – 42 million total tonnes mined (ore and waste)
- 4.1 – 4.5 million ore tonnes mined
- 3.2 – 3.5 million ore tonnes treated
- 5.6 – 6.1 million carats recovered
- Production costs of $127 -
$137 per tonne treated
- Production costs of $70 –
$80 per carat recovered
- Sustaining Capital Expenditure of $7
million (49% share)
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.
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SOURCE Mountain Province Diamonds Inc.