Mountain Province Diamonds Inc. announced financial results for the first quarter ended March 31, 2021 from the Gahcho Kué Diamond Mine.
603,000 carats sold, with total proceeds of $54.2 million (US$42.7 million) at an average realised value of $90 per carat (US$71). Adjusted EBITDA1 of $19.1 million. Net income of $7.3 million or $0.03 earnings per share.
Stuart Brown, the Company's President and Chief Executive Officer, commented: "With a tough quarter behind us, our focus now shifts to making up the carat shortfall, and revenue over the remainder of 2021… This will have a positive effect on the average value of diamonds recovered. We expect this to drive the recovery of between 6.3 – 6.5 million carats, at or just below 2020's recovery of 6.5 million carats".
Brown informed that the company has agreed terms with Dunebridge Worldwide Ltd. for a short-term loan of US$33 million that will address "our near term liquidity needs and allows us the time to execute on this year's revised mine plan". "This plan shows us largely making up the lost production, revenue and cash generation during 2021 and should allow us to repay this loan by the end of 2021, " Brown said.
According to him, the diamond industry is bearing up well through the ongoing challenges of COVID-19, globally retailers continue to report increasing revenue as economic activity increases, in turn this is having a positive impact on polished and rough diamond prices. "We believe that the recovery across all sectors of the industry will continue for the remainder of 2021," Brown concluded.
Alex Shishlo for Rough&Polished
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