Mountain Province Diamonds Releases Q1 Results

Mountain Province Diamonds (TSX:MPVD,NASDAQ:MPVD) announces its financial and operating results for the first quarter of the year, ending March 31, 2018. Mountain’s total sales revenue for the period is C$67 million, averaging C$126 per carat.

As quoted from the press release:

Highlights

• Earnings from mine operations of C$24.6 million and net income of C$0.7 million or C$0.00 per share for the first quarter of 2018 with adjusted EBITDA of C$33.2 million.  Included in the determination of net income is an unrealized foreign exchange loss for the quarter of C$10.3 million on the translation of the Company’s USD-denominated long-term debt.  The company did not record any sales in the comparable period for 2017 as sales were still credited against mine construction costs in that period.
• Two tender sales conducted in the first quarter of 2018, through the company’s diamond broker based in Antwerp, Belgium.  Mountain Province anticipates conducting three tender sales in the second quarter, two tender sales in the third quarter and three tender sales in the fourth quarter.
• Total sales of C$67 million (US$52 million) in the first quarter of 2018.  Revenue was realized through the first two tender sales of the 2018 year.  Average realization in the first quarter was C$126 per carat sold (US$99 per carat).  The third sale of the year began at the end of the quarter and closed in early April, yielding C$33.3 million (US$26.4 million) in tender sale proceeds as reported in the news release of April 18, 2018
• Approximately 786,000 tonnes of ore were treated through the process plant and 1,641,000 carats recovered, on a 100 percent basis, for an average recovered grade of 2.09 carats per tonne, in line with budget.  The company’s 49 percent attributable share of diamond production for the three months ended March 31, 2018 was approximately 804,000 carats.
• Cash costs of production, including capitalized stripping costs, for the three months ended March 31, 2018 of C$76 per tonne of ore processed and C$37 per carat recovered.

“Mountain Province recorded a solid start to the year, generating C$33.2 million in adjusted EBITDA in a two sale quarter.  We remain on pace to achieve our production guidance for the year.  Rough diamond markets in general continued to firm notably through the quarter, with strong demand and price increases reported across all product categories, supported by robust retail jewellery sales reported from both the US and Asian markets.  Ending the quarter with C$113.5 million in net working capital, and with our US$50 million revolver remaining undrawn, our balance sheet is strong and growing,”David Whittle, the company’s interim president and CEO said.

Click here to read the full press release