Mountain Province Upbeat on Production

Shares in Mountain Province rose 12% Friday after it increased its production guidance for the Gahcho Kué deposit. 

The Canada-based miner has made plant modifications at the site that will allow it to process between 3.2 million and 3.3 million tonnes of ore in 2019. Mountain Province had previously stated it expected to process between 3.1 million and 3.2 million tonnes. The changes will also enable the company to process coarser ore, which it expects to lead to an increase in the average selling price per carat. 

“Production figures are slightly ahead of expectations, and costs are at the lower end of our guidance for 2019,” Mountain Province CEO Stuart Brown said last week. The company has maintained its production outlook of 3.3 million to 3.45 million carats for the year. 

Revenue fell 13% to $45.8 million in the first quarter, despite a 22% increase in sales volume to 643,739 carats. The average price dropped 28% to $71 per carat, as the miner sold fewer large and high-quality stones than in the same period the year before. Profit for the quarter plunged 59% to CAD $10.2 million ($7.6 million). 

Mountain Province’s share of production was 777,000 carats from its 49% stake in the Gahcho Kué project. De Beers holds the remaining 51%.

Mountain Province expects total full-year production at Gahcho Kué to be in the range of 6.6 million to 6.9 million carats, for the company and De Beers combined.  source – Rapaport