Mountain Province Diamonds Announces Third Quarter Results

10 November 2016

Toronto and New York, November 10, 2016 – Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) (TSX: MPV, NASDAQ: MDM) today announced the Company’s results for the third quarter ended September 30, 2016.
Highlights 

(All quoted figures in CAD$ unless otherwise indicated)

  • For the three months ended September 30, 2016, the Company reported a net loss of $5.4 million or ($0.03) per share, and for the nine months ended September 30, 2016, the Company reported net income of $13.1 million or $0.08 per share, fully diluted, due largely to foreign exchange movements. 
  • At September 30, 2016, mine development costs of $1,026 million and commitments of $18.5 million (100% basis) had been incurred, and the Company had cash and restricted cash totaling $107.9 million. 
  • Production ramp-up at the Gahcho Kué (“GK”) mine commenced on August 1, 2016, and from August 1 to September 30, 2016, the mine processed approximately 130,000 tonnes of ore from the 5034 pit at an average grade of 1.52 carats/tonne, recovering approximately 198,000 carats of which approximately 97,000 carats (49%) are the Company’s share.
  • During the quarter the run-of-mine diamond production from August 1 to August 25, 2016 was split at the Diavik Diamond Mines Inc. (“DDMI”) sorting facility based in Yellowknife, with De Beers Canada Inc. (“De Beers”) receiving 51% and Mountain Province 49%. The production from August 26, 2016 to October 3, 2016 was sent to DDMI and the split was completed subsequent to the quarter end on October 18, 2016.
  • Under the terms of the Gahcho Kué Joint Venture Agreement, De Beers and Mountain Province each bid for all fancy colored and special (+10.8 carat) diamonds. On September 15, 2016, the first bid was won by De Beers and, subsequent to the quarter end on October 18, 2016, the second bid was won by the Company. The Company received US$127,400, being 49% of the September 15, 2016 bid, and paid De Beers US$1,402,500, being 51% of the October 18, 2016 bid.
  • The Company plans its first sale of diamond production through its diamond broker, Bonas, in Antwerp, Belgium in mid-January, 2017 and approximately every five weeks thereafter. 
  • Commissioning of the GK mine is currently in progress and commercial production remains on target for early January 2017. The Gahcho Kué Diamond Mine has 441 full-time employees and long-term contractors.
  • At November 10, 2016, US$323 million of the US$370 million Loan Facility had been drawn.  

View Details