Mountain Province Diamonds Inc announces its financial and operating results for the Q4 2023 and the full year ended December 31, 2023 (FY 2023). In Q4 2023, 918,000 carats were sold at an average value of $87 per carat (US$64 per carat) for total proceeds of $79.8 million (US$58.9 million) in comparison to 758,000 carats sold at an average value of $127 per carat (US$94 per carat) for total proceeds of $96.3 million (US$71.3 million) in Q4 2022.
During FY 2023, 2,718,000 carats were sold at an average value of $121 per carat (US$90 per carat) for total proceeds of $328.6 million (US$243.8 million) in comparison to 2,657,000 carats sold at an average value of $146 per carat (US$112 per carat) for total proceeds of $388.9 million (US$297.3 million.
After a record-breaking previous year, 2023 was more challenging for the diamond industry. Retail activity and consumer demand softened in the US and Europe amid global inflation concerns and ongoing conflict in Ukraine and the Middle East. Chinese retail remained persistently quiet.
Towards the end of the third quarter, major producers postponed or cancelled sales until more favourable market conditions prevailed. The Company elected to strategically stock select categories of goods to defend prices. In October, India’s Gem and Jewellery Export Promotion Council, representing Indian manufacturers, introduced a two-month self-imposed import ban.
These supply-tightening measures reduced manufacturers’ inventories and moved polished goods downstream for the retail holiday season and anticipated restocking. By year end, diamond prices had steadied, and the Company sold most of its strategic stock at a premium to withdrawn prices.
Mountain Province Diamonds President and CEO Mark Wall commented, “Coming from record 2022 where multiple Company financial records were broken, 2023 saw reduced revenues primarily due to a softening market.
Driven by this softening, the Company, along with its JV partner De Beers Group, made the prudent decision to limit discretionary spending, including continuing internal studies on a potential transition to underground mining at Gahcho Kué to extend mine life. The Company intends to take all reasonable steps to maintain the underground mining optionality.
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