Mountain Province Diamonds Announces Second Quarter 2020 Production Results and Provides Conference Call Details - Seite 2

758,086

847,772

-11%

Recovered grade (carats per tonne)

1.97

1.96

-

The variance in the latest quarterly production figures compared to same period last year, and specifically the total ore and waste tonnes mined, are a direct result of the impacts of COVID-19 on mine operations. As previously announced, reduced levels of personnel, travel restrictions to and from site, revised health and safety protocols on site, and new operating procedures to reduce the risk of COVID-19 are some of the key driving factors in the lower production figures and revised full year 2020 guidance.

The Company is also reiterating its revised full year 2020 guidance previously provided in the press release of June 18^th, 2020.

Q2 2020 Diamond Sales

There were no formal sales held in the second quarter due to the ongoing COVID-19 impact.  Markets have been heavily impacted with resultant rough demand being extremely limited.  As previously announced, the Company entered into US$50 million sales contract with Dunebridge Worldwide Ltd ("Dunebridge"). The contract allows the Company to sell its current production at market related prices and to participate in future potential upside when the diamonds are sold by Dunebridge. 

In Q2, the Company sold 757,360 carats at an average value of $44.92 per carat (US$33.01 per carat) for total proceeds of $34 million (US$25 million). It is important to note that Q2 diamond sales do not represent normal run of mine production. 

$30.6 million (US$22.6 million) of the total sales in Q2 were under the sales agreement with Dunebridge.  These sales do not reflect a normal, run of mine mix as they contain a lower proportion of larger, higher value diamonds which were accelerated into earlier sales to maximise revenue in Q1.  Further, diamonds larger than 10.8 carats recovered during the quarter were not included in sales due to logistics constraints.