3 May 2022
TSX and OTCQX: MPVD
TORONTO and NEW YORK, May 3, 2022 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) (OTC: MPVD) today announces strong financial results for the first quarter ended March 31, 2022 ("the Quarter" or "Q1 2022") continuing the strong operational and financial performance achieved in 2021 from the Gahcho Kué Diamond Mine ("GK Mine").
All figures are expressed in Canadian dollars unless otherwise noted.
As previously disclosed, during the first quarter Gahcho Kué experienced an outbreak of COVID-19 Omicron that caused disruption to both operations and maintenance activities, in conjunction with a major failure of the Pitman bearing in the primary crusher. These two events have been largely resolved, but within the quarter production was below internal expectations, as the feed rate through the Primary crusher continued to be lower than planned. Grade was impacted by unplanned external dilution from mining that was primarily due to workforce inefficiencies around shovel operations and bottom pit mining causing space constraints, in conjunction with a different ore mix than was planned. The Company is working with its joint venture partner DeBeers, who are the operator of the mine, to address these operating issues.
As previously released, during the first quarter only 507,000 carats were sold for total proceeds of $84.7 million (US$66.7 million) resulting in an average value of $167 per carat (US$132 per carat). This is a 52% increase relative to the average value per carat in Q4 2021 of $110 per carat (US$86 per carat) but 16% lower in terms of volume of carats sold.
"I'm extremely pleased to see the Company's strong financial performance in Q1, with a record adjusted EBITDA of $44.6M in the first 3 months of the year. In addition to its strong financial performance, the Company closed a US$50M Junior Credit Facility with its largest shareholder, and produced an updated NI 43-101 Technical Report which demonstrated an NPV attributable to Mountain Province of over $1.2Bn. These milestones are significant steps forward as we progress through what is to be a pivotal year for the Company, and all of its stakeholders. Going forward Management time will be focussed on guiding the Operator to optimise the operation and addressing the financing requirements of the Company."
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Three months ended |
Three months ended |
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(in thousands of Canadian dollars, except where otherwise noted) |
March 31, 2022 |
March 31, 2021 |
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|
Sales |
$ |
84,653 |
54,224 |
|
Carats sold |
000's carats |
507 |
603 |
|
Average price per carat sold |
$/carat |
167 |
90 |
|
Cost of sales per carat* |
$/carat |
83 |
80 |
|
Earnings from mine operations per carat |
$ |
84 |
10 |
|
Earnings from mine operations |
% |
50% |
11% |
|
Selling, general and administrative expenses |
$ |
3,994 |
2,609 |
|
Operating income |
$ |
35,018 |
10,532 |
|
Net income for the period |
$ |
24,196 |
7,312 |
|
Basic and diluted income per share |
$ |
0.11 |
0.03 |
The following table summarizes key operating statistics for the Gahcho Kué Mine in the three months ended March 31, 2022 and 2021.
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Three months ended |
Three months ended |
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March 31, 2022 |
March 31, 2021 |
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GK operating data |
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Mining |
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*Ore tonnes mined |
kilo tonnes |
1,019 |
515 |
|
*Waste tonnes mined |
kilo tonnes |
7,149 |
5,090 |
|
*Total tonnes mined |
kilo tonnes |
8,168 |
5,605 |
|
*Ore in stockpile |
kilo tonnes |
1,059 |
158 |
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Processing |
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*Ore tonnes processed |
kilo tonnes |
708 |
626 |
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*Average plant throughput |
tonnes per day |
7,867 |
6,731 |
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*Average diamond recovery |
carats per tonne |
1.67 |
2.22 |
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*Diamonds recovered |
000's carats |
1,185 |
1,392 |
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Approximate diamonds recovered - Mountain Province |
000's carats |
581 |
682 |
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Cash costs of production per tonne of ore, net of capitalized stripping ** |
$ |
93 |
119 |
|
Cash costs of production per tonne of ore, including capitalized stripping** |
$ |
122 |
139 |
|
Cash costs of production per carat recovered, net of capitalized stripping** |
$ |
56 |
53 |
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Cash costs of production per carat recovered, including capitalized stripping** |
$ |
73 |
62 |
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Sales |
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Approximate diamonds sold - Mountain Province*** |
000's carats |
507 |
603 |
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Average diamond sales price per carat |
US |
$ 132 |
$ 71 |
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* at 100% interest in the Gahcho Kué Mine |
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**See Non-IFRS Measures section of the Company's March 31, 2022 MD&A for explanation and reconciliation |
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***Includes the sales directly to De Beers for fancies and specials acquired by De Beers through the production split bidding process |
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Conference ID: 29875964
Date of call: 05/04/2022
Time of call: 11:00 Eastern Time
Expected Duration: 60 minutes
Webcast Link:
https://produceredition.webcasts.com/starthere.jsp?ei=1545143&tp_key=bd339f39e9
Participant Toll-Free Dial-In Number: (+1) 888-390-0546
Participant International Dial-In Number: (+1) 416-764-8688
A replay of the webcast and audio call will be available on the Company's website.