Mountain Province Diamonds Announces First Quarter Financial Results for 2024

9 May 2024

TORONTO, May 9, 2024 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) (OTC: MPVD) today announces financial results for the first quarter ended March 31, 2024 ("the Quarter" or "Q1 2024") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian dollars unless otherwise noted.

Financial Highlights for First Quarter 2024

  • 938,000 carats sold, with total proceeds of $89.4 million (US$66.1 million) at an average realised value of $95 per carat (US$70).
  • Adjusted EBITDA1 of $50.0 million.
  • Earnings from mine operations of $30.4 million.
  • Net income of $6.8 million or $0.03 basic and diluted earnings per share2.

1Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See "Reconciliation of non-IFRS measures" at the end of the news release for explanation and reconciliation.

Operational Highlights for First Quarter 2024
(all figures reported on a 100% basis unless otherwise stated)

  • 805,557 ore tonnes treated, a 5% increase relative to Q1 2023, (Q1 2023: 766,786 tonnes treated;)
  • 1,264,887 carats recovered, 4% lower than the comparable quarter (Q1 2023: 1,319,603 carats)
  • Average grade of 1.57 carats per tonne, a 9% decrease relative to Q1 2023 (1.72 carats per tonne)
  • Cost per carat recovered, including capitalized stripping of $56/carat, and cost per tonne processed, including capitalized stripping of $88/tonne.

Sales Highlights for First Quarter 2024

As previously released, during the first quarter 938,000 carats were sold for total proceeds of $89.4 million (US$66.1 million), resulting in an average value of $95 per carat (US$70 per carat). These results compare to Q1 2023 when 961,024 carats were sold for total proceeds of $128.7 million (US$95.0 million), resulting in an average price of $134 per carat (US$99 per carat).

Mark Wall, the Company's President, and Chief Executive Officer, commented:

"Quarter 1 was a strong quarter for ore tonnes mined and ore tonnes treated. The processing plant continues to operate well following the 2023 improvement work. The grade from the mine was below expectations in March which led to slightly lower carat production when compared with Q1, 2023. We are reviewing the mine plan both for grade performance as well as potential opportunities to bring additional production into the Life of Mine plan. We have engaged an engineering firm to undertake this work and we plan to be able to provide an update to the market towards the end of Q2, 2024 on the results.

We are continuing to work on production and cost optimization as well as reviewing opportunities to enhance the value of Canadian provenance in the global diamond market."