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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 NormanWellson Oct 23, 2018 7:52am
59 Views
Post# 28853704

Lower qualities.. experiencing increasing price pressure

Lower qualities.. experiencing increasing price pressure"Lower qualities and smaller sizes experienced price pressure" - 8 TH Sale
"In the lower qualities and smaller sizes, we saw average price declines" - 7 TH
"..a slight softening in prices for smaller, lower priced diamonds." 6 TH
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( No mention of weakness in lower qualities etc ) 5 TH
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Oct. 18, 2018

In the lower qualities and smaller sizes, we saw average price declines in the mid single digits.  We believe the price pressure is predominantly driven by the recent rapid weakening of the Indian Rupee against the US Dollar and to some extent the seasonal lower demand for rough diamonds ahead of the Diwali celebrations. 

Total proceeds from the sale were US$24.2 million (CDN$31.4 million) from 366,505 carats at an average realized value of US$66 per carat. 

Sept 6, 2018

Lower qualities and smaller sizes experienced price pressure but our +10.8 carat specials performed well and made a strong contribution to the higher total sale result."

 Total proceeds from the sale were US$26.9 million ( CDN$35.3 million ) from 411,317 carats at an average realized value of US$65 per carat

Aug 15 2018

Total proceeds came in as expected at US$22.2 million (CDN$28.9 million) from the sale of 334,751 carats at an average realized price of US$66 per carat.

The lower realised price per carat of US$66 per carat compared to the previous sale of US$85 a carat was driven by a much smaller offering of fancies and specials and a slight softening in prices for smaller, lower priced diamonds. Overall the impact of the small decline in average prices for run of mine goods was not material compared to those achieved in the previous sales and prices for better quality fancies and specials remain firm.
 
June 28 2018

 Total proceeds from the sale were US$30.3 million (CDN$40.0 million), setting another new high for Mountain Province's tender results to date.  This tender also delivered the sale of Mountain Province's highest value individual diamond, as well as the highest attributable value per tonne to date.

"The positive results of our fifth sale were driven by strong demand in the rough diamond market", said Reid Mackie, the Company's Vice President Diamond Marketing.  "This demand is supported by stable rough supply levels and continued positive retail news from the key diamond consumer markets.  At our fifth tender, customer interest and bidding competition was particularly high for larger white gem lots.  We saw prices for this product category again increase by low single digit percentages compared with the previous sale."

This interest in larger white gem was exemplified by the impressive sales result achieved for the 95 carat diamond acquired at the most recent joint venture production split.  Said Mr. Mackie, "Customer competition for the 95 carat gem exceeded expectations, with the final result more than doubling the previous highest value achieved for a single diamond.  To maintain confidentiality for the buyer, further specifics of this diamond's sale will not be released."

We set a new record for total proceeds realized byMountain Province in a tender, and the normalised value for this sale at US$86 a carat is one of the highest we have achieved to date.  This tender also saw the successful sale of our highest value diamond to date, at a price we were very happy with."

 


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