Mountain Province Diamonds announces second quarter 2020 production results and provides conference call details

15 July 2020

Mountain Province Diamonds Inc. today announces production and sales results for the second quarter ended June 30, 2020 from the Gahcho Kué Diamond Mine. All figures are expressed in Canadian dollars unless otherwise noted. 
Q2 Highlights
(all figures reported on a 100% basis unless otherwise stated)

  • 6,836,110 total tonnes mined, a 37% decrease on comparable period (Q2 2019: 10,865,263).
  • 527,664 ore tonnes mined, a 29% decrease on comparable period (Q2 2019: 746,583). 
  • 786,249 ore tonnes treated, an 11% decrease on comparable period (Q2 2019: 882,374).
  • 1,547,114 carats recovered at an average grade of 1.97 carats per tonne, an 11% decrease on comparable quarter (Q2 2019: 1,730,147 carats at 1.96). 
Q2 2020 Production Figures talbe in full release
The variance in the latest quarterly production figures compared to same period last year, and specifically the total ore and waste tonnes mined, are a direct result of the impacts of COVID-19 on mine operations. As previously announced, reduced levels of personnel, travel restrictions to and from site, revised health and safety protocols on site, and new operating procedures to reduce the risk of COVID-19 are some of the key driving factors in the lower production figures and revised full year 2020 guidance.
The Company is also reiterating its revised full year 2020 guidance previously provided in the press release of June 18th, 2020.
Q2 2020 Diamond Sales
There were no formal sales held in the second quarter due to the ongoing COVID-19 impact.  Markets have been heavily impacted with resultant rough demand being extremely limited.  As previously announced, the Company entered into US$50 million sales contract with Dunebridge Worldwide Ltd ("Dunebridge"). The contract allows the Company to sell its current production at market related prices and to participate in future potential upside when the diamonds are sold by Dunebridge.  
In Q2, the Company sold 757,360 carats at an average value of $44.92 per carat (US$33.01 per carat) for total proceeds of $34 million (US$25 million). It is important to note that Q2 diamond sales do not represent normal run of mine production.  
$30.6 million (US$22.6 million) of the total sales in Q2 were under the sales agreement with Dunebridge.  These sales do not reflect a normal, run of mine mix as they contain a lower proportion of larger, higher value diamonds which were accelerated into earlier sales to maximise revenue in Q1.  Further, diamonds larger than 10.8 carats recovered during the quarter were not included in sales due to logistics constraints.
The sale to Dunebridge has allowed the company to maintain its liquidity and meet its current expense obligations.  The Company expects to resume its normal market structured sales starting in September.