Industria
Mountain Province Diamonds Announces Second Quarter Financial Results for 2023
As previously released, 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.
Recent results from the Company's 2023 drill program revealed a new kimberlite discovery located 40 metres northeast of the known Tuzo kimberlite. Following the discovery and delineation of the Hearne Northwest Extension, a program to look for a similar extension was started at Tuzo; a single drillhole was collared east of Tuzo to test for a northeast extension, returning approximately 40 metres of kimberlite. Despite exploration northeast of Tuzo being in the early stage, the Company is encouraged by the width of the kimberlite intersection and its similarities to Tuzo based on initial logging.
In addition, during the quarter, the Company announced positive drilling results at Hearne Deep and the Northwest Extension, which returned multiple intercepts with the longest returning 287 meters of kimberlite. During the 2023 program, 11 drillholes were drilled (seven drillholes were collared outside of the pit and four were collared on the kimberlite within the pit) to test the width and depth of the extension. Combined with past results, Mountain Province has 21 drillholes that define the extension below the final pit and to the northwest, which will be evaluated with our operating partner De Beers to examine ways to recover this deeper kimberlite.
The following table summarizes key operating statistics for the Gahcho Kué Mine in the three and six months ended June 30, 2023 and 2022.
The Company will host its quarterly conference call on Friday, August 11 , 2023 at 11:00AM Eastern Time .
Conference ID: 76959572
Date of call: 08/11/2023
Time of call: 11:00AM Eastern Time
Expected Duration: 60 minutes
Webcast Link:
https://app.webinar.net/9x2L4L5jok8
Participant Toll-Free Dial-In Number: (+1) 888-390-0546
Participant International Dial-In Number: (+1) 416-764-8688
A replay of the webcast and audio call will be available on the Company's website following the call.
This news release refers to the terms "Cash costs of production per tonne of ore processed" and "Cash costs of production per carat recovered", both including and net of capitalized stripping costs and "Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA)" and "Adjusted EBITDA Margin". Each of these is a non-IFRS performance measure and is referenced in order to provide investors with information about the measures used by management to monitor performance. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
Cash costs of production per tonne of ore processed and cash costs of production per carat recovered are used by management to analyze the actual cash costs associated with processing the ore, and for each recovered carat. Differences from production costs reported within cost of sales are attributed to the amount of production cost included in ore stockpile and rough diamond inventories.
Adjusted EBITDA is used by management to analyze the operational cash flows of the Company, as compared to the net income for accounting purposes. It is also a measure which is defined in the Notes documents. Adjusted EBITDA margin is used by management to analyze the operational margin % on cash flows of the Company.
The following table provides a reconciliation of the Adjusted EBITDA and Adjusted EBITDA margin with the net income on the consolidated statements of comprehensive income:
The following table provides a reconciliation of the cash costs of production per tonne of ore processed and per carat recovered and the production costs reported within cost of sales on the consolidated statements of comprehensive income:
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
Contact: Mark Wall , President, and CEO, 161 Bay Street, Suite 1410, Toronto, Ontario M5J 2S1, Phone: (416) 361-3562, E-mail: info@mountainprovince.com; Matthew MacPhail , Chief Technical and Sustainability Officer, 161 Bay Street, Suite 1410, Toronto, Ontario M5J 2S1, Phone: (416) 361-3562, E-mail: info@mountainprovince.com
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