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Mountain Province Diamonds Inc T.MPVD

Alternate Symbol(s):  MPVDF

Mountain Province Diamonds Inc. is a Canada-based diamond company. The Company’s primary asset is its 49% interest in the Gahcho Kue Mine, a Joint Venture with De Beers Canada. The Gahcho Kue Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company’s Kennady North Project includes approximately 113,000 hectares of claims and leases surrounding the Gahcho Kue 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) at 8.50 million tons (Mt) at a grade of 1.60 carats/ton and a value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/ton and a value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct to 1.87Mt at a grade of 1.04 carats/ton and a value of US$75/carat.


TSX:MPVD - Post by User

Comment by IslandOracleon Jan 23, 2023 12:26pm
178 Views
Post# 35240012

RE:Mpvd press release

RE:Mpvd press releaseI share the confusion about what the release means for 2023.  The approach I took is multiplying the midpoint of the estimate for the tonnes of ore treated (3.35 million) by the midpoint of the production cost for each treated tonne ($133).  That gets you to production costs of $445 million if you do the math.  This is far higher than your estimate and suggests a break even operation based on costs and your likely revenue. They haven't  defined whether production cost includes overhead,  interest, depreciation etc.  so it is difficult to estimate cash flow and profit or loss figures.  I view the company as a call option on the diamond market or as a possible take out candidate by the joint venture partner.  I noticed that De Beers last year put out a news release on looking for ore in Angola.  You'd think their shareholders would much rather be more all-in in  Canada,  especially given the exploration results at our mine, but what do I know.  I agree with you than we need more information to make an informed judgement about the merits of investing in the company.
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