Mountain Province Diamonds announces 2Q

Jul 18, 2023

Mountain Province Diamonds Inc announces operating and sales results for the second quarter ended June 30, 2023-(Q2 2023) from the Gahcho Kué Diamond Mine. According to the Operational Highlights for Second Quarter 2023; 750,241 ore tonnes treated, largely unchanged relative to Q2 2022, (Q2 2022: 749,821 tonnes treated).

1,339,196 carats recovered, 6% higher than the comparable quarter (Q2 2022: 1,260,899 carats) that is average grade of 1.79 carats per tonne, a 6% increase relative to Q2 2022 (1.68 carats per tonne), 595,990 ore tonnes mined, a 43% decrease relative to last year’s comparable quarter (Q2 2022: 1,043,348 ore tonnes mined).

3.0 – 3.6 million ore tonnes mined; Previously 4.10 – 4.50 million ore tonnes mined and all other guidance remains unchanged.

At the Sales for 2Q 2023 front Mountain Province said, 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.”

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