Shares Issued and Outstanding: 160,233,833
TSX and NASDAQ: MPVD
TORONTO and NEW YORK, Aug. 2,
2017 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) today announces
the results of its recently completed sixth diamond sale. The results of the sixth sale, with preceding sale results for
comparative context, are summarized as follows:
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2017-Q1
Sales 1-3
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2017-May
Sale 4
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2017-Jun
Sale 5
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2017-Jul
Sale 6
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Tender Sale Proceeds (USD million)
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37.7
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12.7
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21.1
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20.9
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Carats Sold ('000s)
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522
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148
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222
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290
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Value per Carat (USD)1
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72
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86
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95
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72
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1 Diamonds sold at individual sale events will not directly
reflect run-of-mine production from specific processing periods. The timing of the sale of some goods may be
accelerated or deferred for tactical marketing purposes. Realized average value per carat is also impacted by the
binary nature of the fancies and specials bidding process within each production split, conducted approximately every
five weeks with the Company's joint venture partner, De Beers Canada Inc. The winning party of each fancies and
specials bid then markets 100% of those diamonds.
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The results from the fifth and sixth sales are impacted in part by the inclusion in the fifth sale of a high-value selection
of the fancies and specials won by the Company otherwise scheduled for inclusion in the sixth sale. Including these
high-value diamonds, the value realized per carat in the sixth sale was US$87. The size and
quality distributions of the sixth sale's offering is in line with the average production profile mined to date.
The Company's sixth sale represents the highest volume sale to date and cumulative sales at tender now exceed 1.18 million
carats. Competitive bidding and strong prices were realized on the fancies and specials and high-end parcels, and prices
realized on the remainder of the lots were in line with expectations. Tender performance measures remain healthy with a high
level of interest from returning customers. Said Reid Mackie, the Company's Vice President
Diamond Marketing, "Following on from a very strong June sale, the July tender was well attended and bidding performance remains
high. Repeat customers won 83% of lots, consolidating our view that the rough market is now fully engaged with the Gahcho
Kué product and its positive performance at manufacturing."
To more meaningfully relate prices realized at sale events to production results, the Company provides the following
table:
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Production Period3
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Inception to
End of Year
2016
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Q1
2017
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Apr
2017
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May
2017
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June
2017
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July
2017
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YTD
Total
2017
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Sale in Which Goods Were Primarily Sold
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1 & 2
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3 to 5
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6
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n/a2
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n/a2
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n/a2
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Tonnes Processed (100%) ('000s)
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515
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492
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201
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276
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289
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314
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1,573
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Recovered Grade (carats per tonne)
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1.64
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1.76
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2.27
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2.09
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1.99
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2.13
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2.02
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Carats Recovered (100%) ('000s)
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847
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867
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457
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579
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578
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669
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3,150
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Carats Recovered (49% share) ('000s)
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422
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425
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224
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284
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283
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328
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1,544
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Attributed Value per Tonne in CAD1
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143
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188
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225
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n/a2
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n/a2
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n/a2
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1
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Attributed Value per Tonne has been determined based on realized sale
results, with any accelerated or deferred goods
adjusted to their period of production, reflecting only the Company's 49%
share of all diamonds including fancies and
specials.
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2
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Not applicable as goods from this production period have not yet been
sold.
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3
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Total figures may differ slightly from the sum of monthly figures due to
the effects of rounding.
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Said David Whittle, the Company's Interim President and Chief Executive Officer, "The diamonds
sold in this sixth sale primarily originate from the April production month, and the attributed value per tonne for the month as
realized from the sale was C$225. This is the highest monthly value per tonne we have
achieved to date, and reflects the particularly strong recovered grade for the April production. It is encouraging to see
these positive trends through the initial months of our first full year of production."
As previously disclosed, the Company declared the commencement of commercial production on March
1, 2017. The Company will report its first mine revenues and gross margins in its second quarter financial results,
reflecting the sale of March production under the fifth diamond sale event. Second quarter financial results are expected
to be released on August 9, 2017. The revenue from this sixth sale will be included in the
Company's third quarter financial results.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in
Canada's Northwest Territories. Gahcho Kué is the world's largest new diamond mine and
projected to produce an average of 4.5 million carats a year over a 12 year mine life.
The Gahcho Kué Diamond Mine consists of a cluster of four diamondiferous kimberlites, three of which are being developed and
mined under the current mine plan.
Qualified Person
This news release has been prepared under the supervision of Carl G. Verley, P.Geo.,
who serves as the qualified person under National Instrument 43-101.
Forward-Looking Statements
Cautionary Statement: This news release contains forward-looking statements under applicable Canadian
and US securities regulations and legislation in which Mountain Province discusses its
potential future performance. Forward-looking statements are all statements other than statements of historical facts, such
as projections or expectations relating to ore grades and processing rates, production and sales volumes, cash costs, operating
cash flows, capital expenditures, debt management initiatives, exploration efforts and results, development and production
activities and costs, liquidity, tax rates, the impact of diamond price changes, reserve estimates, and future dividend payments.
The words "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends,"
"likely," "will," "should," "to be", "potential" and any similar expressions are intended to identify those assertions as
forward-looking statements. Under its current project finance facility Mountain Province
is not permitted to pay dividends on common stock unless and until obligations under the facility have been satisfied. The
declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject
to restrictions under the Company's project finance facility, and will depend on Mountain
Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.
Mountain Province cautions readers that forward-looking statements are not guarantees of
future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking
statements. Important factors that can cause Mountain Province's actual results to differ
materially from those anticipated in the forward-looking statements include supply of and demand for, and prices of, diamonds,
mine commissioning, mining sequencing, production rates, cash flow, industry risks, regulatory changes, political risks, labor
relations, weather- and climate-related risks, environmental risks and other risk factors.
Investors are cautioned that many of the assumptions upon which Mountain Province's
forward-looking statements are based are likely to change after the forward-looking statements are made, including for example
diamond prices, which Mountain Province cannot control, and production volumes and costs, some
aspects of which Mountain Province may not be able to control. Further, Mountain Province may make changes to its business plans that could affect its results. Mountain
Province disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
SOURCE Mountain Province Diamonds Inc.
View original content: http://www.newswire.ca/en/releases/archive/August2017/02/c7666.html