Mountain Province revenue rose to $42.7M on better diamond prices

Marilyn Scales | December 7, 2021 | 8:42 am News Canada Diamond 
Some of the diamonds sold in December from the Gahcho Kué mine. Credit: Mountain Province Diamonds.

Mountain Province Diamonds (TSX: MPVD; OTC: MPVD) said the most recent (December 2021) diamond sales brought in total proceeds of $42.7 million. That represents an average value of $110 per carat.

The company says diamond prices have shown steady improvement through the fourth quarter of 2021. Quarterly sales were 808,739 carats for total proceeds of $85.2 million, resulting in an average value of $105 per carat.

For the full year, Mountain Province sold almost 3.2 million carats and received $198.4 million. The average price for 2021 was $94 per carat.

“The price acceleration that we’ve seen leading into the final quarter of the year has continued, most notably in the smaller size fractions of our diamonds,” said president and CEO Mark Wall. “This price appreciation has resulted in the company achieving the third highest quarterly average value per carat figure in its history, and the highest since the first quarter of 2018. Additionally, the US$86 [C$110] per carat achieved in our December sale further reinforces our confidence in a robust diamond market heading into 2022, a pivotal year for the company as we progress the streamlining of the capital structure.”

Mountain Province owns 49% of the Gahcho Kué mine 280 km  northeast of Yellowknife, NWT. Partner and 51% owner De Beers Canada is the operator.

Mountain Province is also the 100% owner of 107,000 hectares of prospective minerals claims and leases that surround Gahcho Kué. These assets are known as the Kennady North advanced exploration project less than 10 km from the joint venture. Resources have been estimated for three kimberlites. The Kelvin indicated resource is 8.5 million tonnes grading 1.6 carats per tonne for 13.6 million carats. The Faraday 2 inferred resource is 2.1 million tonnes grading 2.64 carats per tonne for 5.5 million carats. The Faraday 1-3 inferred resource is 1.9 million tonnes grading 1.04 carats per tonne for 1.9 million carats.

Detailed information about both Gahcho Kué and Kennady North can be found on www.MountainProvince.com.

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