News Bureau

Mountain recovered 1261K cts diamond in Q2

Mountain Province Diamonds reported financial and operating results for the second quarter (Q2 2022) and first half 2021 (H1 2022) ended June 30, 2022. Their Q2, 2022 key takeaways are,

1: Record Quarterly Adjusted EBITDA of C$55.1M,

2: Revenue of $97.8M representing the second highest quarterly revenue in the Company's history and a 16% increase relative to that achieved in Q1 2022.

3: Strong average value per carat of US$130 follows closely to the unprecedented price growth during the Q1/22. The rough diamond market continues to experience strong demand supported by solid US retail results. Further support to the market is anticipated from jewellery retail in China as Covid restrictions ease in that country.

4: Repurchase for cancellation of approximately US$26.4 million aggregate principal amount of the 8.000% Senior Secured Second Lien Notes following the close of the fiscal quarter &

5: A successful winter exploration program included further drilling of the Hearne Northwest Extension at the Gahcho Kué mine. Results included Kimberlite intersected in 60% of drill holes with mineralization ranging between 24.3 to 114.5 meters (see press release, July 18, 2022).

Mark Wall, the Company's President and Chief Executive Officer, commented, "The Company continues its' strong financial performance through the first half and into Q3 of 2022.  We are pleased with these financial results.  At the same time there remains work to do on the operations side.  There are plans in place to correct the dilution issues seen early in the year, and these are working. 

Significant work has recently been completed on the primary crusher and I expect these upgrades to have a positive impact.  There remain other areas of the operational performance that do not meet our expectations and we continue to actively engage with De Beers as the operator around the plan to deliver these improvements.

Together with our increased revenues, our recent repurchasing of Senior Secured Second Lien Notes has strengthened our balance sheet as we move closer to achieving our strategic and financial goals planned for the second half of this year."

Operational Highlights for Q2 2022 are,

1: 749,000 ore tonnes treated, a 6% increase relative to Q1 2022, and an 8% decrease relative to Q2 2021 (Q1 2022, 707,553 ore tonnes treated; Q2 2021: 811,171 ore tonnes treated).

2: 1,043,000 ore tonnes mined, a 2% increase relative to 1,019,000 tonnes mined in Q1 2022 and a 5% increase relative to the 993,000 tonnes mined in Q2 2021.

3: 1,261,000 carats recovered at an average grade of 1.68 carats per tonne, a 6% increase relative to Q1 2022 and a 29% decrease compared to the 1,764,000 carats recovered at 2.18 carats per tonne in Q2 2021 (Q2 2021: 1,763,556 carats recovered, Q1 2022: 1,185,156 carats recovered).

4: 7,881,000 total tonnes mined, a 6% increase relative to Q1 2022 and a 10% decrease from 8,749,000 total tonnes mined in Q2 2021.

Operational Highlights for H1 2022 are,

1: 16.0 million total tonnes mined in H1 2022, a 12% increase from the 14.3 million total tonnes mined in H1 2021.

2: 1,457,000 tonnes of ore treated in H1 2022; a 1% increase compared to the 1,437,000 tonnes treated in H1 2021. 

3: 2,446,000 carats recovered at an average grade of 1.68 carats per tonne, 22% lower than the 3,156,000 carats, 2.20 carats per tonne, recovered in H1 2021.

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