TORONTO and NEW YORK, July 19,
2018 /PRNewswire/ --
Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD)
(NASDAQ: MPVD) today announces production results for the second
quarter ended June 30, 2018 ("Q2
2018") and first half of 2018 ("H1 2018") from the Gahcho Kué
Diamond Mine ("GK Mine"). The Company also provides Q2 2018 and H1
2018 conference call details.
Q2 2018 and H1 2018 Production Highlights
(all figures reported on a 100% basis unless otherwise
stated)
- The plant treated 899,000 tonnes during the quarter, 17% ahead
of the same quarter last year. In the first half of 2018, the plant
treated 1,684,479 tonnes.
- A record 1,930,500 carats were recovered at an average grade of
approximately 2.15 carats per tonne in Q2 2018. Year to date,
3,571,500 carats have been recovered at an average grade of 2.12
carats per tonne. Q2 2018 recovered grade of 2.15 carats per tonne,
was 2% higher than the same quarter last year, reflecting a strong
grade performance in the second quarter.
- Ore tonnes mined in Q2 2018 were 341,000 tonnes, significantly
less than what was achieved in the same period last year. This was
primarily due to a high waste cycle in the quarter as a result of
the start up of the Hearne Pit. Year to date, a total of 1,082,000
tonnes of ore have been mined.
Q2 Production
Statistics[1]
2018 Q2 2017 Q2 YOY Variance
Total tonnes mined (ore and waste) 10,285,000 8,390,000 23%
Ore tonnes mined 341,000 940,000 -64%
Ore tonnes treated 899,000 767,000 17%
Carats recovered 1,930,500 1,614,000 20%
Carats recovered (49% share) 946,000 791,000 20%
Recovered grade (carats per tonne) 2.15 2.10 2%
All figures reported are on
100% basis unless otherwise
[1] stated
Q2 2018 and H1 2018 Production Summary
The plant continues to perform well and exceed expectations,
mainly as a result of ongoing improvements and optimization work
since commercial production began in early 2017; the results are
reflected in the latest quarterly production statistics. The
recovered grade also continues to outperform expectations and is a
key driver in achieving production targets at the GK Mine. Mining
operations are also performing well, with over 10 million tonnes of
material being mined during the quarter. Q2 2018 was a
planned high waste cycle period brought on by the start up of the
Hearne pit, as a result, ore tonnes mined were significantly less
than was achieved during the same period last year. It is not
expected that this will impact full year ore mined targets.
At June 30 2018, the Company
remains well positioned to achieve the upper end of its full year
2018 production guidance of 6.3 - 6.6 million carats recovered.
Stuart Brown, the Company's
President and Chief Executive Officer, commented: "The second
quarter performance continues to follow the trend of ongoing
excellent performance set by the GK Mine team, in a safe and
sustainable manner. We expect this trend to continue as we
enter the second half of the year. The continued good
performance is pleasing as the mine matures into its steady state
production methodology of continuous improvement."
Q2 2018 Conference Call Details
The Company will release its 2018 Second Quarter results on
Wednesday, August 8, 2018, after
market close in Toronto and
New York.
The Company will host a conference call to discuss the results
on Thursday, August 9, 2018 at
11:00 a.m. Eastern
Time.
Conference Call Dial-In Details:
Conference ID: 2878127
Date of call: 08/09/2018
Time of call: 11:00 Eastern Time
Expected Duration: 60 minutes
Participant Toll-Free Dial-In Number: (866) 300-0510
Participant International Dial-In Number: (636) 812-6656
Replay:
Toll-Free Dial-In: (855) 859-2056
International Dial-In: (404) 537-3406
Passcode: 2878127
A replay will also be available on the Company's website.
Mountain Province Diamonds is a 49% participant with
De Beers Canada in the Gahcho Kué diamond mine located in
Canada's Northwest Territories. Gahcho Kué is the
world's largest new diamond mine, consisting of a cluster of four
diamondiferous kimberlites, three of which are being developed and
mined under the initial 12 year mine plan.
Qualified Person
The disclosure in this news release of scientific and technical
information regarding Mountain
Province's mineral properties has been reviewed and approved
by Keyvan Salehi, P.Eng., MBA, a
Qualified Person as defined by National Instrument
43-101 Standards of Disclosure for Mineral
Projects.
Caution Regarding Forward Looking
Information
This news release contains certain "forward-looking
statements" and "forward-looking information" under applicable
Canadian and United States
securities laws concerning the business, operations and financial
performance and condition of Mountain Province Diamonds Inc.
Forward-looking statements and forward-looking information
include, but are not limited to, statements with respect to
estimated production and mine life of the project of Mountain Province; the realization of mineral
reserve estimates; the timing and amount of estimated future
production; costs of production; the future price of diamonds; the
estimation of mineral reserves and resources; the ability to manage
debt; capital expenditures; the ability to obtain permits for
operations; liquidity; tax rates; and currency exchange rate
fluctuations. Except for statements of historical fact
relating to Mountain Province,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can,"
"plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and
other similar words, or statements that certain events or
conditions "may", "should" or "will" occur.
Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and
are based on a number of assumptions and subject to a variety of
risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected
in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of Mountain Province and
there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and
timeliness of permitting and governmental approvals; supply of, and
demand for, diamonds; fluctuating commodity prices and currency
exchange rates, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain Province cautions that the foregoing
list of important factors is not exhaustive. Investors
and others who base themselves on forward-looking statements should
carefully consider the above factors as well as the uncertainties
they represent and the risk they entail. Mountain Province believes that the
expectations reflected in those forward-looking statements are
reasonable, but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included in this news release should not be unduly relied
upon. These statements speak only as of the date of
this news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned
not to place undue reliance on forward-looking
statements. Statements concerning mineral reserve and
resource estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the
mineralization that will be encountered as the property is
developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to
a joint venture under which Mountain
Province is not the operator. Mountain Province is exposed to actions taken
or omissions made by the operator within its prerogative and/or
determinations made by the joint venture under its terms.
Such actions or omissions may impact the future performance of
Mountain Province.
Under its current note and revolving credit facilities
Mountain Province is subject to
certain limitations on its ability to pay dividends on common
stock. The declaration of dividends is at the
discretion of Mountain Province's
Board of Directors, subject to the limitations under the Company's
debt facilities, and will depend on Mountain Province's financial results, cash
requirements, future prospects, and other factors deemed relevant
by the Board.
Stuart Brown
President and CEO
161 Bay Street, Suite 1410, Toronto, Ontario M5J 2S1
Phone: +1(416)361-3562
E-mail: info@mountainprovince.com
Keyvan Salehi
Investor Relations
161 Bay Street, Suite 1410, Toronto,
Ontario, M5J 2S1
Phone: +1(416)361-3562
E-mail: info@mountainprovince.com