Mountain Province Diamonds Provides 2020 Guidance
TSX and NASDAQ: MPVD
TORONTO and NEW YORK, Dec. 19, 2019 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) is pleased to provide guidance for 2020 for the Gahcho Kué Mine. All amounts expressed in Canadian dollars unless otherwise stated.
2020 Guidance: (all figures quoted on a 100% basis)
- 42 – 43 million total tonnes mined (ore and waste)
- 3.3 – 3.4 million ore tonnes mined
- 3.3 – 3.4 million ore tonnes treated
- 6.75 – 6.95 million carats recovered
- Production costs of $105 – $115 per tonne treated
- Production costs of $50 – $55 per carat recovered
- Sustaining Capital Expenditures of $26.5 million
Stuart Brown, the Company's President and Chief Executive Officer, commented:
"As we approach the end of 2019, I am pleased to confirm that we will achieve the upper end of our production guidance of 6.7 – 6.8 million carats recovered. Importantly, we have also reduced our cost guidance to $95 - $105 per tonne treated from the original guidance of $110 - $120 per tonne treated.
From an operational point of view, 2019 has been a strong year for Mountain Province Diamonds. The operating team successfully managed the challenges faced throughout the year and has crucially set a solid platform for 2020, increasing the plant's capacity and allowing for greater operational flexibility. This enables Mountain Province Diamonds to explore greater opportunities for growth within its highly prospective land package.
The Company's guidance for 2020 demonstrates that the operating margins remain healthy and the mine continues to generate positive free cash flow, providing better leverage to fund the potential expansion of all the assets within its portfolio.
The second half of 2019 has clearly been challenging for all diamond producers with prices for rough diamonds experiencing sustained pressure. There are however, positive signs that the market is stabilising. Indeed, Mountain Province Diamonds' prices over its last two sales have been positive. The major producers have also continued to sell to meet their clients demands which is encouraging to see. Thankfully the positive start to the global diamond retail season continues which will also help to balance the rough and polished diamond pipelines. Lastly, the recently agreed acquisition of Tiffany by LVMH is a further confidence boost for our industry and signals a strong commitment to the luxury retail diamond market which can only be good for the sector in the long term."