TSX and OTCQX: MPVD
TORONTO and NEW YORK, Jan. 13,
2021 /PRNewswire/ -- Mountain Province Diamonds Inc.
("Mountain Province", the
"Company") (TSX: MPVD) (OTCQX: MPVD) today announces production and
sales results for the fourth quarter ended December 31, 2020 ("the Quarter" or "Q4 2020")
from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are
expressed in Canadian dollars unless otherwise noted.
Q4 and FY 2020 Highlights
(all figures
reported on a 100% basis unless otherwise stated)
- 9,796,823 total tonnes mined during the quarter, a 12% decrease
on comparable period (Q4 2019: 11,089,408). 35,870,474 total tonnes
mined during FY 2020, a 17% decrease from comparable period (FY
2019: 43,224,827).
- 840,261 ore tonnes mined during the quarter, a 6% decrease on
comparable period (Q4 2019: 890,886). 3,286,843 ore tonnes mined
during FY 2020, a 1% increase from comparable period (FY 2019:
3,247,324).
- 736,138 ore tonnes treated during the quarter, a 21% decrease
on comparable period (Q4 2019: 936,903). 3,245,941 ore tonnes
treated during FY 2020, a 9% decrease from comparable period (FY
2019: 3,580,551).
- 1,521,617 carats recovered during the quarter at an average
grade of 2.07 carats per tonne, 23% lower than comparable quarter
(Q4 2019: 1,977,438 carats at 2.11). 6,518,261 carats recovered
during FY 2020 at an average grade of 2.01 carats per tonne, 4%
slightly lower than comparable period (FY 2019: 6,820,631 carats at
1.90).
Q4 and FY 2020 Production Statistics
|
2020
Q4
|
2019
Q4
|
YoY
Variance
|
FY
2020
|
FY
2019
|
YoY
Variance
|
|
|
|
|
|
|
|
Total tonnes mined
(ore and waste)
|
9,796,823
|
11,089,408
|
-12%
|
35,870,474
|
43,224,827
|
-17%
|
Ore tonnes
mined
|
840,261
|
890,886
|
-6%
|
3,286,843
|
3,247,324
|
1%
|
Ore tonnes
treated
|
736,138
|
936,903
|
-21%
|
3,245,941
|
3,580,551
|
-9%
|
Carats
recovered
|
1,521,617
|
1,977,438
|
-23%
|
6,518,261
|
6,820,631
|
-4%
|
Carats recovered (49%
share)
|
745,592
|
968,945
|
-23%
|
3,193,948
|
3,342.109
|
-4%
|
Q4 and FY 2020 Diamond Sales
As previously reported, Q4 2020 diamond sales totaled 957,120
carats sold at an average value of $84 per carat (US$65 per carat) for total proceeds of
$80.2 million (US$61.7 million) in comparison to 771,799 carats
sold at an average value of $84 per
carat (US$64 per carat) for total
proceeds of $65.0 million
(US$49.2 million) in Q4
2019.
During FY 2020, 3,329,289 carats were sold at an average value
of $68 per carat (US$51 per carat) for total proceeds of
$227.0 million (US$171.3 million) in comparison to 3,284,520
carats sold at an average value of $84 per carat (US$63 per carat) for total proceeds of
$276.3 million (US$208.2 million) in FY 2019.
Sentiment in the rough diamond market was more positive towards
the end of 2020 and has remained so as the market prepares for the
first selling cycle of 2021.
The Company's medium- to long-term outlook for rough diamonds,
remains positive. The major producers reported lower levels of
sales through 2020 which, together with the stronger retail selling
season, will help normalize inventory levels in the cutting
centers. In addition, the recent closure of the high-volume
Argyle diamond mine will help to establish a more balanced supply
and demand equilibrium in the diamond market. Importantly, consumer
confidence and retail spending over the consumer season was
particularly strong in Greater
China while US sales were reasonably strong despite
difficult COVID-19 conditions throughout the period. Together
these two markets account for approximately 65% by value of global
retail sales of diamond jewelry.
Q4 and FY 2020 Summary
Q4 and FY 2020 production results compared to same periods last
year, and specifically the total ore and waste tonnes mined,
continue to be affected as a direct result of the impacts of
COVID-19 on mine operations. As previously announced, reduced
levels of personnel, travel restrictions to and from site, revised
health and safety protocols on site, and new operating procedures
to reduce the risk of COVID-19 are some of the key driving factors
in the lower production figures. Under the circumstances with
all the additional protocols, we are satisfied with the quarterly
and annual production results.
Recovered carats for FY 2020 came in higher than the revised
guidance of 6.3 – 6.4 million carats, attributable to the strong
operational performance in Q3 2020. Q4 was more difficult with
cases of COVID-19 on site necessitating additional preventative
measures affecting productivity.
Stuart Brown, the Company's
President and Chief Executive Officer, commented:
"Under very difficult circumstances, all driven by COVID-19, the
Gahcho Kué Mine has performed well in being able to maintain
production albeit at a reduced level and came very close to the
revised guidance in tonnes mined and treated and exceeded the
revised guidance target for carats recovered. The carat recovery
was particularly pleasing under the circumstances and will place us
in a good position for sales in the first quarter of 2021.
"The diamond market came under unprecedented pressure from early
March to early September and although this pressure remains, we did
see a strong recovery with respect to rough diamond demand in the
last quarter of the year. The two sales during the last
quarter saw significant price recovery across all categories of
diamonds sold. Early diamond jewelry retail sales reports are
encouraging, and we expect to see steady demand for rough diamonds
in the first quarter of 2021. There will no doubt still be
challenges ahead but we are certainly more positive in our outlook
as we start 2021 compared to the middle of 2020.
With respect to production targets for 2021 we remain focused on
maintaining the health and safety of all our employees and
contractors as we continue to manage the impacts of COVID-19 at
site. We are finalizing all the metrics and will update the
market when we have more certainty on the steady state performance
of the mine as we hopefully exit the impact of COVID-19 during the
coming year. We look forward to keeping all stakeholders
updated throughout 2021."
For further information on Mountain Province Diamonds and to
receive news releases by email, visit the Company's website at
www.mountainprovince.com
Caution Regarding Forward Looking Information
This news release contains certain "forward-looking statements"
and "forward-looking information" under applicable Canadian and
United States securities laws
concerning the business, operations and financial performance and
condition of Mountain Province Diamonds Inc. Forward-looking
statements and forward-looking information include, but are not
limited to, statements with respect to estimated production and
mine life of the project of Mountain
Province; the realization of mineral reserve estimates; the
timing and amount of estimated future production; costs of
production; the future price of diamonds; the estimation of mineral
reserves and resources; the ability to manage debt; capital
expenditures; the ability to obtain permits for operations;
liquidity; tax rates; and currency exchange rate
fluctuations. Except for statements of historical fact
relating to Mountain Province,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can,"
"plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and
other similar words, or statements that certain events or
conditions "may", "should" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at
the date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking
statements. Many of these assumptions are based on factors
and events that are not within the control of Mountain Province and there is no assurance
they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and
timeliness of permitting and governmental approvals; supply of, and
demand for, diamonds; fluctuating commodity prices and currency
exchange rates, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain
Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base
themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Mountain
Province believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. These statements speak only as of the
date of this news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements.
Statements concerning mineral reserve and resource estimates may
also be deemed to constitute forward-looking statements to the
extent they involve estimates of the mineralization that will be
encountered as the property is developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to
a joint venture under which Mountain
Province is not the operator. Mountain Province is exposed to actions taken
or omissions made by the operator within its prerogative and/or
determinations made by the joint venture under its terms.
Such actions or omissions may impact the future performance of
Mountain Province. Under its current note and revolving
credit facilities Mountain
Province is subject to certain limitations on its ability to
pay dividends on common stock. The declaration of dividends
is at the discretion of Mountain
Province's Board of Directors, subject to the limitations
under the Company's debt facilities, and will depend on
Mountain Province's financial
results, cash requirements, future prospects, and other factors
deemed relevant by the Board.
Stuart Brown, President, Chief
Executive Officer, and Director, Phone: (416) 361-3562, E-mail:
info@mountainprovince.com; Perry
Ing, CFO, Phone: (416) 361-3562, E-mail:
info@mountainprovince.com
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