Mountain Province Diamonds announces second quarter and half year 2020 results

5 August 2020

Mountain Province Diamonds Inc. today announces its financial and operating results for the second quarter ("Q2 2020") and first half 2020 ("H1 2020") ended June 30, 2020.  All figures are expressed in Canadian dollars unless otherwise noted.
Operational Highlights for Second Quarter 2020 ("Q2 2020")

  • 786,000 tonnes treated, an 11% decrease from the 882,000 tonnes treated in Q2 2019. 
  • 1,547,000 carats recovered at an average grade of 1.97 carats per tonne, an 11% decrease compared to the 1,730,000 carats recovered at 1.96 carats per tonne of Q2 2019.
  • 6,836,000 total tonnes mined, a 37% decrease from 10,865,00 total tonnes mined in Q2 2019. 
Financial Highlights for Second Quarter 2020 ("Q2 2020")
  • Revenue from 757,000 carats sold at $34 million (US$25 million) at an average realised value of $45 per carat (US$33) compared to $95.8 million from 1,077,000 carats sold in Q2 2019 (US$71.7 million) at an average realized value of $89 per carat (US$67). 
  • Adjusted EBITDA1 of ($23.9) million compared to $39.1 million in Q2 2019, entirely due to market conditions as a result of the COVID-19 pandemic. 
  • Loss from mine operations $35.8 million compared to earnings from mine operations of $17.8 million in Q2 2019. 
  • Cash costs of production, including capitalized stripping costs1 of $125 per tonne treated (2019: $106 per tonne) and $63 per carat recovered (2019: $54 per carat). The cost is higher in Q2 2020 compared to the same period last year mainly due to the lower volumes of ore treated and additional costs related to safety measures put in place as a result of COVID-19.  
  • Net loss at June 30, 2020 was $26.8 million or $0.13 loss per share (2019: net income $10.3 million or $0.05 earnings per share). Included in the determination of the net loss at June 30, 2020 are unrealized foreign exchange gains of $13.4 million, on the translation of the Company's USD-denominated long-term debt. The unrealized foreign exchange gains are a result of the strengthening of the Canadian dollar versus US dollar. 
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 June 30, 2020 MD&A for explanation and reconciliation.
 

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