Mountain Province Diamonds announces full year and fourth quarter 2018 results
20 March 2019
Mountain Province Diamonds Inc. today announces its financial and operating results for the full year ended December 31, 2018.
Operational Highlights for Full Year 2018
- Strong annual production: Gahcho Kué Mine exceeded upper end of FY2018 guidance of tonnes treated, 3,194,000 tonnes (2017: 2,775,000 tonnes) and recovered a record 6,937,000 carats (2017: 5,934,000 carats).
- Average recovered grade up 4% above the original budget at approximately 2.17 carats per tonne ("cpt") (2017: 2.14 cpt).
- 3,253,000 carats sold in 2018 (2,656,000 in 2017), included in the 2018 sales were over 500 (2017: 250) gem quality stones exceeding 10.8 carats, including the recovery of an exceptional 95 carat white stone and a 60 carat fancy vivid yellow stone, further validating the mine as a producer of exceptional quality high value diamonds.
Financial Highlights for Full Year 2018
- Total sales revenue at $311 million (US$240 million) compared to $170 million in 2017 (US$134 million) at an average realised value of $96 per carat (US$74) 2017: $85 per carat, (US$68).
- Full year Adjusted EBITDA1 of $139.2 million up 33% (2017: $103.4 million), demonstrating the good cash generation of the Gahcho Kué Mine.
- Earnings from mine operations up 55% to $81.0 million (2017: $52.1 million).
- During the year, the Company repurchased $26.4 million (US$20.1 million) of outstanding secured notes payable (2017: nil).
- Cash costs of production, including capitalized stripping costs1,2,3 of $101 per tonne treated (2017: $73 per tonne) and $47 per carat recovered (2017: $33 per carat).
- Dividend paid of $0.04 per common share totaling $8.4 million (2017: nil).
- Net loss for full year 2018 at December 31, 2018 was $18.9 million or $0.10 loss per share (2017: net income $17.2 million or $0.11 earnings per share). Included in the determination of net loss for the full year at December 31, 2018 are unrealized foreign exchange losses of $32 million, on the translation of the Company's USD-denominated long-term debt. The unrealized foreign exchange losses are a result of the weakening of the Canadian dollar versus US dollar. It should be noted that the weakening Canadian dollar compared to US dollar is beneficial to the Company as sales are made in US dollars and operating costs are incurred in Canadian dollars.
- Capital expenditures in 2018 were $35.8 million, $29.4 million of which were one-time pre mine construction and development capital costs and the remaining $6.4 million were sustaining capital expenditures related to mine operations.
- Year end cash position of $30.7 million (2017: $43.1 million) and net working capital of $87.2 million (2017: $96.8 million), with US$50 million revolving credit facility remaining undrawn.