Mountain Province Diamonds Inc. announced its financial and operating results for the quarter ended March 31, 2020 (or "Q1").
The company treated 903,000 ore tonnes, a 4% increase on comparable quarter (Q1 2019: 871,000 tonnes).1,655,000 carats recovered at an average grade of 1.83 carats per tonne, slightly higher than the same period last year (Q1 2019: 1,585,000 carats and 1.82 carats per tonne). In Q1 2020, 659,000 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 644,000 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.
Image credit: Mountain Province
Stuart Brown, the Company's President and Chief Executive Officer, commented: "2020 started positively with production figures in line with our expectations and slightly ahead of the equivalent period last year. Our sales for Q1 2020 were also modestly ahead of expectations with higher values per carat realized in some categories. The rapid spread of the COVID-19 pandemic toward the end of the quarter impacted our ability to operate normally and required significant changes to our procedures which has had an impact on our production capabilities. We are in the final stages of completing our full year 2020 production outlook and will be providing new guidance in June."
"With respect to the market for rough diamonds, like all producers, we are awaiting more clarity on the easing of restrictions around the globe, especially in Belgium, Dubai and India before finalising and committing to a formal sale later in the second quarter. We note that in Europe, an easing of restrictions has commenced, and India is starting a gradual re-opening of some businesses. We have also received enquiries from our customers about when we will restart formal sales which is positive."
Alex Shishlo, Editor of the Rough&Polished European Bureau
