TSX and NASDAQ: MPVD
TORONTO and NEW YORK, Oct. 18,
2018 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) today
announces the results of its eighth diamond sale completed on October 5th
2018.
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. These
results were in line with our expectations and reflect current market conditions. We saw good price bids for our better quality
larger goods where the majority of our value lies. 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.
Encouragingly, we have noted some good reporting of diamond retail jewellery sales particularly in the US where demand remains
strong. This news is supportive as we enter into the major selling seasons for the US and Far East markets. Consumer sentiment in
the US remains strong on the back of a healthy economy and strong labour market. The Chinese retail market, and the
jewellery retail in particular is also strong and showing positive momentum despite the most recent uncertainty in Chinese
Capital Markets.
Said Stuart Brown, the Company's President and Chief Executive Officer, "The eighth sale of the
year totalling US$24.2 million was a good result considering the current market and time of the
year and we did well to sell all our categories at current best market prices. We are encouraged to see positive diamond
jewellery retail sales and we believe that with a positive retail selling season we will see better demand for rough diamonds in
the near future."
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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,
consisting of a cluster of four diamondiferous kimberlites, three of which are being developed and mined under the initial
12-year mine plan.
Qualified Person
The disclosure in this news release of scientific and technical information regarding Mountain
Province's mineral properties has been reviewed and approved by Keyvan Salehi, P.Eng., MBA,
a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Caution Regarding Forward Looking Information
This news release contains certain "forward-looking statements" and "forward-looking information" under applicable
Canadian and United States securities laws concerning the business, operations and financial
performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information
include, but are not limited to, statements with respect to estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future
production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to
manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate
fluctuations. Except for statements of historical fact relating to Mountain Province,
certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or
conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to differ materially from those projected in the
forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of
Mountain Province and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements
include variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply
of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns
or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or
processes to operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection
with these statements. Mountain Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and the risk they entail. Mountain
Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can
be given that these expectations will prove to be correct and such forward-looking statements included in this news release
should not be unduly relied upon. These statements speak only as of the date of this news release.
Although Mountain Province has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no obligation to update
forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable
securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements
concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they
involve estimates of the mineralization that will be encountered as the property is developed.
Further, Mountain Province may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to a joint
venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative
and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future
performance of Mountain Province. Under its current note and revolving credit facilities Mountain
Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of
dividends is at the discretion of Mountain Province's Board of Directors, subject to the
limitations under the Company's debt facilities, and will depend on Mountain Province's
financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.
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SOURCE Mountain Province Diamonds Inc.