Mountain Province Diamonds Completes Eighth Diamond Sale

Canadian gem producer Mountain Province Diamonds (TSX:MPVD,NASDAQ:MPVD) has announced the completion of its eighth diamond sale for 2018. The company’s most recent diamond tender included 366,505 carats, which brought in C$31.4 million.

As quoted from the press release:

Total proceeds from the sale were US$24.2 million (C$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 CEO, “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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