26 March 2018
Mountain Province Diamonds Inc. today announces its financial and operating results for the full year ended December 31, 2017.
Highlights
•Commercial production at the Gahcho Kué Diamond Mine declared on March 1, 2017. Earnings from mining operations recorded commencing in June, on commencement of the sale of diamonds produced subsequent to start of commercial production.
•Earnings from mine operations of $52.1 million, and net income of $17.2 million or $0.11 per share. Adjusted EBITDA1 of $56.6 million for the second half of 2017 (the third quarter of 2017 was the first full quarter of reported earnings from mine operations following the start of commercial production).
•Total sales of $238 million (US$185 million) in 2017, of which $68 million was capitalized as pre-commercial production revenue and $170 million (US$134 million) is reported as sales in the statement of comprehensive income. Average full-year realization of US$70 per carat ($89 Canadian dollar equivalent per carat).
•Approximately 2,775,000 tonnes of ore treated through the process plant and 5,934,000 carats recovered, on a 100% basis, for an average recovered grade of 2.14 carats per tonne ("cpt"). This recovered grade is approximately 32% above the original budget for the year ended December 31, 2017.
•Cash costs of production, including capitalized stripping costs1, for the full year ended December 31, 2017 of $73 per tonne and $33 per carat recovered. Cash costs of production, including capitalized stripping costs1, for the fourth quarter of 2017 were $62 per tonne and $26 per carat recovered.
•Strong participation at the Company's tender sales, with participation rates increasing through 2017. An average of eleven bids per lot received in 2017, with individual tenders offering approximately 125 lots per sale and over 100 companies bidding each sale.
•Completed an offering of US$330 million in senior secured second lien notes in December 2017, the proceeds from which were used to fully retire the Company's project lending facility and pay out historical sunk cost amounts owing to De Beers Canada Inc. ("De Beers").
•Year end cash position of $43.1 million and net working capital of $96.8 million, with US$50 million revolving credit facility remaining undrawn.