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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

Post by cigarbuttson Aug 14, 2018 3:06pm
86 Views
Post# 28459076

Reconciliation is EASY TT

Reconciliation is EASY TTDeBeers is about 1/3rd of WWdiamond industry.   33M carats produced last year by DB.
Avg.price last year was $162US.    Botswana govt. holds 15% of DeBeers.

Botswana production was 22.6M carats last year for DeBeers,  or 2/3rd of the total.   Average price was $159US for DeBeers Botswana production.

The Victor mine is pretty good valuation per carat there in Ontario.  2016 production in Canada was about 1/2 Victor and 1/2 GKmine.   1m carats at $271US.  They show unit costs in Canada of  $212US per carat.    That is going to be about all Victor.    In order to hit about $80M  EBITDA in Canada for 2016,  as GK is still being capitlaized,  then it is all coming from
Victor.  

DeBeers shows 2017 first half year financials.   ALL those stones are Victor in 1H 2016.

Cost is $207US per carat,  and realized price is $370US per carat.     EBITDA margin is roughly correct then for 2016 Canadian production,  1stH 2016, all from Victor.

$163US margin times 309K carats productionis about $50M US  EBITDA. 

So,  IF Victor is about $370US  per carat and was 724K production in 2017,   and the total was 3.757M carats with an average of $235US,  then GK at contribution value per carat would be an average of $205US on 3M stones.   

Tells me the ROW including Russia have a lot of lower valued production contributing to the averages in Belgium!!.
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