Shares Issued and Outstanding: 159,808,833
TSX:
MPV
NASDAQ: MDM
TORONTO and NEW YORK, Nov. 10,
2016 /PRNewswire/ - 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.
Financial Summary
During the quarter the Company drew
US$26 million under the Loan Facility
and, subsequent to the quarter end, a further US$19 million in October and November, leaving a
balance of US$47 million until
financial completion, which is expected to take place on or before
September 30, 2017. The Company ended
the quarter with cash and restricted cash totalling $107.9 million, compared with $124.4 million at the end of the previous
quarter.
*****
Mountain Province Diamonds is a 49% participant with De
Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest
Territories. Gahcho Kué is the world's largest new diamond
mine and projected to produce an average of 4.5 million carats a
year over the projected 12 years of the first phase of mine
development.
The Gahcho Kué Project consists of a cluster of four
diamondiferous kimberlites, three of which are being developed in
the first phase of mining and have a probable mineral reserve of
35.4 million tonnes grading 1.57 carats per tonne for total diamond
content of 55.5 million carats.
Qualified Person
This news release has been prepared
under the supervision of Carl G.
Verley, P.Geo., who serves as the qualified person under
National Instrument 43-101.
Forward-Looking Statements
This news release includes
certain information that may constitute "forward-looking
information" under applicable Canadian and US securities
legislation. Forward-looking information includes, but is not
limited to, the Company's strategic plans, future operations,
future work programs and objectives. Forward-looking information is
necessarily based upon a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties and other factors which may cause the actual
results and future events to differ materially from those expressed
or implied by such forward-looking information. There can be no
assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information. All
forward-looking information contained in this press release is
given as of the date hereof and is based upon the opinions and
estimates of management and information available to management as
at the date hereof. The Company disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Mountain Province Diamonds Inc.