6 May 2020
Mountain Province Diamonds Inc. today announces its financial and operating results for the quarter ended March 31, 2020 (or "Q1"). All figures are expressed in Canadian dollars unless otherwise noted.
Operational Highlights for First Quarter 2020
•903,000 tonnes treated, a 4% increase on comparable quarter (Q1 2019: 871,000 tonnes).
•1,655,000 carats recovered at an average grade of 1.83 carats per tonne, slightly higher than the same period last year (Q1 2019: 1,585,000 carats and 1.82 carats per tonne).
•9,357,000 total tonnes mined, a 2% decrease on comparable period (Q1 2019: 9,528,000).
Financial Highlights for First Quarter 2020
•Revenue from 659,000 carats sold at $65.4 million (US$49.2 million) compared to $60.7 million from 644,000 carats sold in Q1 2019 (US$45.8 million) at an average realised value of $99 per carat (US$75) 2019: $94 per carat, (US$71).
•Adjusted EBITDA1 of $22.8 million compared to $19.7 million in Q1 2019, mainly due to the rough diamond market improving prior to the COVID-19 pandemic and the sale of a different mix of goods in Q1 2020 compared to Q1 2019.
•Earnings from mine operations $13.6 million compared to $10.2 million in Q1 2019.
•Cash costs of production, including capitalized stripping costs1 of $84 per tonne treated (2019: $111 per tonne) and $46 per carat recovered (2019: $61 per carat). The cost improvements in Q1 2020 compared to the same period last year are mainly attributable to volumes of ore treated and stockpile management, lower fuel charges and lower maintenance costs.
•Net loss at March 31, 2020 was $41.0 million or $0.19 loss per share (2019: net income $2.5 million or $0.01 earnings per share). Included in the determination of net loss at March 31, 2020 are unrealized foreign exchange losses of $30.8 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.
•Capital expenditure in the first quarter of 2020 was $5.3 million, $1.7 million of which was waste stripping and the remaining $3.6 million was sustaining capital related to mine operations.
•Cash position of $31.9 million (December 31, 2019: $34.8 million) and net working capital of $103.3 million (December 31, 2019: $99.4 million). The winter road season was successful with all required spares and consumables delivered to site.
1Cash costs of production, including capitalized stripping costs, and Adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See the Non-IFRS Measures section of the Company's March 31, 2020 MD&A for explanation and reconciliation.