MPVD recovered over 1,319K cts diamonds

May 10, 2023

Mountain Province Diamonds Inc (MPVD) announces financial results for the first quarter ended March 31, 2023 (Q1 2023) from the Gahcho Kué Diamond Mine (GK Mine).

According to the First Quarter 2023, takeaways are,

1: 961,000 carats sold, with total proceeds of $128.7 million (US$95.0 million) at an average realised value of $134 per carat (US$99), a record quarterly revenue result for the Company.

2: Record Net income of $28.2 million &

3: Record Net Income, with Q4 2021, normalised for Impairment reversal of $240.6 million.

766,786 ore tonnes treated, an 8% increase relative to Q1 2022, (Q1 2022: 707,553 tonnes treated 😉 and 1,319,603 carats recovered, 11% higher than the comparable quarter (Q1 2022: 1,185,156 carats). Average grade of 1.72 carats per tonne, a 3% increase relative to Q1 2022 (1.67 carats per tonne).

During the first quarter 961,024 carats were sold for total proceeds of $128.7 million (US$95.0 million), resulting in an average value of $134 per carat (US$99 per carat). Three open market sales were completed in the quarter to deliver the highest Q1 revenue recorded by the Company to date. These results compare favourably with two open market sales during Q1 2022 when 506,567 carats were sold for total proceeds of $84.7 million (US$66.7 million).

Reid Mackie, the Company’s Vice President Sales and Marketing, commented, “In Q1 2023 the Company achieved record sales on the back of a three-sale first quarter, which included three full production shipments and buoyant prices for smaller diamonds. Compared with Q1 2022, the lower average sales price achieved can be primarily attributed to the different mix of goods sold in both quarters with market prices also adjusting downwards from the record high seen early last year.”

Mark Wall, the Company’s President, and Chief Executive Officer, said, “In the first quarter we saw an improvement in production compared to Q1 in 2022 despite unplanned maintenance challenges.  There remains work to be done to fully optimize production and we are working with our joint venture partner on the required opportunities. The mine operator expects to see production increase as we move through the year in response to these initiatives and warmer weather.

On growth we continue to work with our joint venture partner De Beers on reviewing mine life extension possibilities for the project via the drilling we are currently doing on the underground potential of the Gahcho Kué mine, as well as reviewing any potential to incorporate kimberlites from the Kennady property.

We will continue to push hard in quarter 2 where we have important maintenance work scheduled that is planned to further optimize the processing plant at Gahcho Kué.”

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