Industria
Mountain Province Diamonds Announces Second Quarter 2023 Operating and Sales Results
In mid-June a planned 5-day major plant shutdown was safely executed. Process equipment, which had been responsible for repeated unplanned downtime, was repaired/replaced, with strategies implemented to ensure reduced unplanned downtime going forward. Plant stability has benefitted from the shutdown, with throughput expected to ramp-up though H2/23.
A transition to greater waste stripping activities than planned in the Tuzo pit, driven by the need to reduce the effects of interactive mining, has resulted in less mining activity in the 5034 pit than planned with the ore release from this pit deferred to future periods. Given the sizeable ore stockpile (1.27 million tonnes grading 1.26 ct./tonne, containing 1.59 million carats) and resource overperformance relative to the model, there is no production interruption expected from this deferral. Given this ore release deferral, it is appropriate to revise the ore mined guidance for the 2023 operating year. For the full year 2023 Company expects:
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.
is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories . The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63 /carat, at February 2019 . Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140 /ct, at February 2019 . Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75 /carat, at February 2019 . All resource estimations are based on a 1mm diamond size bottom cut-off.
The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Matthew MacPhail , P.Eng., MBA, and Tom E. McCandless , Ph.D., P.Geo., both employees of Mountain Province Diamonds and Qualified Persons as defined by National Instrument 43-101
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