Mountain Province Diamonds Results of Fourth Diamond Sale of 2018
Mountain Province Diamonds Results of Fourth Diamond Sale of 2018 |
[24-May-2018] |
TSX and NASDAQ: MPVD TORONTO and NEW YORK, May 24, 2018 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) today announces the results of its recently completed fourth diamond tender sale of 2018. Total proceeds from the sale were US$28.3 million (CDN$36.2 million), the highest total for any tender result to date. The results of the fourth tender sale, with preceding sale results for comparative context, are summarized as follows:
Market sentiment remained positive coming out of the April holidays and into the fourth selling cycle. Customer participation was healthy with 191 companies attending the tender and an average of 12.4 bids received per lot. Said Reid Mackie, the Company's Vice President Diamond Marketing, "Our fourth sale results reflect the overall positive sentiment in the rough diamond market, driven by the strong fundamentals of stable rough supply and positive news from the major retail markets. Larger size gem categories again attracted high interest levels from customers, delivering record prices for some on a per carat basis. Prices for the remaining categories of goods generally remained stable, with a marginal market price increase for these goods over our third sale results." To more meaningfully relate prices realized at sale events to production results, the Company also provides the following table:
Said David Whittle, the Company's Interim President and Chief Executive Officer, "The results of this fourth sale exceeded our target expectations. Our experience in recent sales confirms rough diamond prices are holding stable, supported by strength in the largest retail diamond jewellery markets in the world, the US and China. Mine and plant operations continue to perform solidly, with production remaining comfortably on track compared to plan due to good production rates and continued strong grade". Additionally, as previously announced Stuart Brown will assume the role of President and Chief Executive Officer effective July 1. David Whittle, currently in the interim position, will resume his prior role as an independent director. To preserve his independent status in accordance with applicable securities regulation, Mr. Whittle will step down as Interim President and CEO at the end of May. Jonathan Comerford, current Chair of the Board, will be appointed to the interim position for the month of June until the transition to Mr. Brown is completed. 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 Caution Regarding Forward Looking Information 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. View original content:http://www.prnewswire.com/news-releases/mountain-province-diamonds-results-of-fourth-diamond-sale-of-2018-300654356.html SOURCE Mountain Province Diamonds Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: NASDAQ-NMS:MPVD, Toronto:MPVD |
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