Mountain Province Total Rough Diamond Sales Dip in July 2017

Mountain Province Diamonds Inc. has announced the results of its recently completed sixth diamond sale in July 2017. In terms of revenue, average price per carat and value per carat, the company has reported low figures when compared with the sales in June 2017.

The company generated total sales of $20.9 million in July 2017 compared with US$ 21.1 million in June 2017. The price per carat also witnessed a decline of US$ 23 per carat. In the sixth diamond sales the company realised US$ 72 per carat (US$ 95 per carat in June 2017). Mountain Province sold 290,000 carats of rough diamonds in July 2017 compared with 222,000 carats in the fifth diamond sale in June, 2017.

‘The results from the fifth and sixth sales are impacted in part by the inclusion in the fifth sale of a high-value selection of the fancies and specials won by the company otherwise scheduled for inclusion in the sixth sale. Including these high-value diamonds, the value realised per carat in the sixth sale was US$ 87. The size and quality distributions of the sixth sale’s offering is in line with the average production profile mined to date,’ the company stated.

The company’s sixth sale represents the highest volume sale to date and cumulative sales at tender now exceed 1.18 million carats. Competitive bidding and strong prices were realised on the fancies and specials and high-end parcels and prices realised on the remainder of the lots were in line with expectations. Tender performance measures remain healthy with a high level of interest from returning customers.

Reid Mackie, vice president diamond marketing, Mountain Province Diamonds Inc. said that “Following on from a very strong June sale, the July tender was well attended and bidding performance remains high. Repeat customers won 83 per cent of lots, consolidating our view that the rough market is now fully engaged with the Gahcho Kué product and its positive performance at manufacturing.”

David Whittle, Interim President and CEO, Reid Mackie, vice president diamond marketing, Mountain Province Diamonds Inc. commented: “The diamonds sold in this sixth sale primarily originate from the April production month and the attributed value per tonne for the month as realised from the sale was C$225. This is the highest monthly value per tonne we have achieved to date, and reflects the particularly strong recovered grade for the April production. It is encouraging to see these positive trends through the initial months of our first full year of production.”

The company declared the commencement of commercial production on March 1, 2017. It will report its first mine revenues and gross margins in its second quarter financial results, reflecting the sale of March production under the fifth diamond sale event. Second quarter financial results are expected to be released on August 9, 2017. The revenue from this sixth sale will be included in the company’s third quarter financial results.

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