17 July 2023
TSX and OTC: MPVD
TORONTO, July 17, 2023 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX:MPVD) (OTC: MPVD) today announces operating and sales results for the second quarter ended June 30, 2023 ("the Quarter" or "Q2 2023") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian dollars unless otherwise noted.
Operational Highlights for Second Quarter 2023
(all figures reported on a 100% basis unless otherwise stated)
Five-Day Major Plant Shutdown Safely Executed
In mid-June a planned 5-day major plant shutdown was safely executed. Process equipment, which had been responsible for repeated unplanned downtime, was repaired/replaced, with strategies implemented to ensure reduced unplanned downtime going forward. Plant stability has benefitted from the shutdown, with throughput expected to ramp-up though H2/23.
Q2 2023 Production Figures
|
2023 Q2 |
2022 Q2 |
YoY |
|
|
Total tonnes mined (ore and waste) |
9,235,465 |
7,880,914 |
17 % |
|
Ore tonnes mined |
595,990 |
1,043,348 |
-43 % |
|
Ore tonnes treated |
750,241 |
749,821 |
0 % |
|
Carats recovered |
1,339,196 |
1,260,899 |
6 % |
|
Carats recovered (49% share) |
656,206 |
617,840 |
6 % |
|
Recovered grade (carats per tonne) |
1.79 |
1.68 |
6 % |
Revised Ore Mined Guidance for 2023
A transition to greater waste stripping activities than planned in the Tuzo pit, driven by the need to reduce the effects of interactive mining, has resulted in less mining activity in the 5034 pit than planned with the ore release from this pit deferred to future periods. Given the sizeable ore stockpile (1.27 million tonnes grading 1.26 ct./tonne, containing 1.59 million carats) and resource overperformance relative to the model, there is no production interruption expected from this deferral. Given this ore release deferral, it is appropriate to revise the ore mined guidance for the 2023 operating year. For the full year 2023 Company expects:
Sales Highlights for Second Quarter 2023
During the second quarter, 360,308 carats were sold for total proceeds of $59.9 million (US$44.6 million), resulting in an average price of $166 per carat (US$124 per carat). These results compare to Q2 2022 where 586,567 carats were sold for total proceeds of $97.0 million (US$74.5 million) at an average price per carat of $165 per carat (US$129 per carat).
The reduction in volume sold in Q2 2023 relative to Q2 2022 was due to the acceleration of sales into Q1 2023, where three sales were held versus the historical norm of two. Relative to Q2 2022, average price per carat in Q2 2023 benefitted from a coarser than average mix of goods sold, offsetting a softening in the market. We expect a finer mix of goods sold in Q3 2023.
Despite a softening of the broader rough diamond market in Q2 2023, the market for smaller goods, making up the majority of Gahcho Kué goods, continues to show resilience and a more positive demand outlook. The Company expects that the Gahcho Kué production will continue to attract sustained market demand.
Mark Wall, the Company's President, and Chief Executive Officer, commented:
"Q2 2023 saw quarter-on-quarter operational improvements across most operating metrics at site. While I am pleased to see this incremental improvement, there remains much work to be done to ensure that we are able to achieve planned mining and processing rates in a more sustainable way. We are working together with our JV partner to allow for more predictable outcomes.
On the rough diamond market, we were glad to see our sales performance stay resilient amongst some broader market turbulence."