MOUNTAIN PROVINCE DIAMONDS ANNOUNCES FIRST QUARTER 2020 PRODUCTION AND SALE RESULTS AND PARTIAL DRAWDOWN OF CREDIT FACILITY
TSX and OTCQX: MPVD
TORONTO and NEW YORK, April 20, 2020 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX & OTCQX: MPVD) today announces production and sales results for the first quarter ended March 31, 2020 ("the Quarter" or "Q1 2020") from the Gahcho Ku Diamond Mine ("GK Mine"). All figures are expressed in Canadian dollars unless otherwise noted.
The Company also reports that it has drawn US$25 million from its revolving credit facility amid the uncertainty surrounding the COVID-19 pandemic. As reported previously in the press release dated March 17, 2020, the Company's formal sales in Antwerp have been suspended until further notice as a result of the global lock down of nonessential services. In addition, and at the present time, the Gahcho Ku Mine and Plant continue to operate albeit the virus has impacted operations and performance due to a decision to send home employees and contractors from remote Northwest Territories communities and those at higher risk of serious complications from COVID-19. The site has implemented numerous precautionary measures over the past few weeks to ensure, as far as possible, a safe working environment for all employees and contractors travelling to and from site as well as at the support offices in Yellowknife, Calgary, and Toronto. As such, the drawn funds will be used for general operating expenses.
The Company, along with its JV Partner, De Beers Canada Inc. are reviewing all capital and exploration expenses and will be halting most long-term and noncore projects during this time. The JV partners are also assessing all possible operating scenarios and potential impacts on 2020 production outlook and will provide further details to the market accordingly.
Q1 Highlights
(all figures reported on a 100% basis unless otherwise stated)
- 9,356,785 total tonnes mined, a 2% decrease on comparable period (Q1 2019: 9,528,018).
- 1,029,579 ore tonnes mined, a 70% increase on comparable period (Q1 2019: 605,027).
- 902,506 ore tonnes treated, a 4% increase on comparable period (Q1 2019: 870,949).
- 1,655,121 carats recovered at an average grade of 1.83 carats per tonne, 4% higher than comparable quarter (Q1 2019: 1,584,552 carats at 1.82).
Q1 2020 Production Figures
| | 2020 Q1 | 2019 Q1 | YoY Variance |
| Total tonnes mined (ore and waste) | 9,356,785 | 9,528,018 | -2% |
| Ore tonnes mined | 1,029,579 | 605,027 | 70% |
| Ore tonnes treated | 902,506 | 870,949 | 4% |
| Carats recovered | 1,655,121 | 1,584,552 | 4% |
| Carats recovered (49% share) | 811,009 | 776,431 | 4% |
| Recovered grade (carats per tonne) | 1.83 | 1.82 | 1% |
Q1 2020 Diamond Sales
In Q1 2020, 659,318 carats were sold at an average value of $99 per carat (US$75 per carat) for total proceeds of $65.4 million (US$49.2 million) in comparison to 643,739 carats sold at an average value of $94 per carat (US$71 per carat) for total proceeds of $60.7 million (US$45.8 million) in Q1 2019.
The Company's sales, as previously stated, have been halted indefinitely. In the meantime, alternative sale strategies are being explored and will be considered if deemed viable.
Stuart Brown, the Company's President and Chief Executive Officer, commented:
"During this unprecedented time, the health and safety of our people, their families, and the communities in which we operate remains our top priority. Our JV partner, De Beers Canada Inc., in consultation with the Government of the Northwest Territories has implemented numerous precautionary measures over the past few weeks to ensure the safest working environment possible for all employees and contractors across all working sites and offices. In addition, work from home policies, where applicable, have been implemented. We have halted all long-term, non-core capital and exploration projects to reduce foot traffic and travel to and from site. We have also changed our crew rotation from two weeks to four weeks to further reduce travel. Furthermore, we continue to follow public health guidelines for COVID-19, such as physical distancing protocols to the best of our abilities. We are extremely proud of our workforce and during this difficult time I would like to thank everyone for all their hard work, dedication, and continued support.
"Our Q1 2020 production figures were in line with expectations and slightly improved compared to the equivalent period last year. Looking ahead however, and as a result of the COVID-19 pandemic, our full year 2020 production guidance will be revised. We are currently working through various planning scenarios to fully assess the impact on production and will communicate this to the market when we have more clarity and certainty on what the future may look like."