Mountain Province reports lower diamond production in 2022, says diamond market remains resilient

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(Kitco News) – On Thursday, Mountain Province Diamonds (TSX: MPVD) reported that 5,519,309 carats were recovered at Gahcho Kue during FY 2022 at an average grade of 1.78 carats per tonne, 12% lower than comparable period (FY 2021: 6,229,042 carats at 2.02) and below guidance of 5.60 – 5.80 million carats.

According to a news release, during FY 2022, the company sold 2,656,387 carats at an average value of US$112 per carat for total proceeds of US$297.3 million in comparison to 3,158,418 carats sold at an average value of US$75 per carat for total proceeds of US$236.9 million in FY 2021.

The company said that sentiment in the rough diamond market remains resilient despite some recent turbulence, adding that strong diamond jewelery sales during the holidays and lower rough diamond supply volumes from the major producers are expected to maintain these stable prices through to the company’s upcoming January sale .

Medium to longer-term, the company said that its outlook for rough diamonds remains positive. Retail diamond jewelery sales in the important US market confirm a growing preference for smaller, lower priced diamonds which align well with the diamond profile of the GK Mine, it added.

President and CEO Mark Wall commented, “After a very challenging start to the year, primarily due to a spike in Covid cases at the GK Mine, a detailed recovery plan was developed and executed resulting in quarter over quarter improvement through 2022.

“We closed out 2022 with the refinance of our bonds, including reducing our total debt by approximately US$60 million compared to this time last year. We now enter the 2023 cold weather and ice road resupply season with good momentum and a backdrop of a resilient rough diamond market.”

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. The company also controls 107,373 hectares of mineral claims and leases surrounding the Gahcho Kué Mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.


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