Mountain Province Diamonds Inc T.MPVD

RE:from stockwatch

[Macloud1]

Tellingly, Mountain Province and De Beers plan to increase the cut-off for their diamond plant to 1.25 millimetres from one millimetre. The difference will cut the grade and boost the average diamond price accordingly. Some value will be lost, but Mr. Brown says that the move will allow the mine to increase its throughput by up to 10 per cent, resulting in greater revenue on an hourly basis.

This is exactly what I was pointing to when I posted the the post below in August 2018. So the value per carat will go up, the carat per ton will frop about 10% which will be the smaller 8 dollar diamonds, the volume of ore processsed will go up because we are not going after the finer grade, and because of the greater sieve size we will get an increase in the larger diamonds because of the increase in processed ore. 

Feasibility done at 1.5 mm sieve vs. actual 1 mm sieve

Let us assume that the actual carats per ton went up because of the difference between the two sieve rates which is approximately 20% . This assumption means we are producing 20% more of the finer diamonds. The finer diamonds have been selling at about 8 dollars US per carat. Look what happens to our actual carat value when you remove the smaller diamonds. 

Actual 

sale         Number of carats           revenue                  average value per carat.

1                  351,000                 27,379,000                                78

2                  177,000                 25,134,000                              142

3                  451,000                 26,669,000                                59

4                  350,000                 28,350,000                                 81

5                  356,000                 30,260,000                                 85

6                  334751                  22,093,566                                 66


total           2,099,751             159,824,566                                 79.13 average


Now lets look at if it was done with a 1.5 sieve as in the study and we remove the 20% smaller diamonds at 8 dollars US per carat.

sale         Number of carats           revenue                  average value per carat.

1                280,800                 26,816,400                               95.5

2                141,600                 24,850,800                              175.5

3                300,800                 25,887,400                                71.75

4                280,000                 27,700,000                                99.25

5                284,400                 29,690,400                                104.25

6                267,800                 21,557,964                                 80.5

total         1,615,800              159,824,566                                96.91

So that is a difference of 403,950 carats  for a revenue of $3,231,601. I have discussed this in the past with some board members and asked if it was worth going after those smaller diamonds because at some point there is what they call a point of dimishing return. I was informed that it would be the same cost and that we would be missing the additional revenue. 

Read more at https://stockhouse.com/companies/bullboard/t.mpvd/mountain-province-diamonds-inc?postid=28549839#0QX2Y0G8yObQ0Jry.99