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Mountain Province Diamonds reports $7 million net income in Q1 2021

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(Kitco News) - Mountain Province Diamonds (TSX: MPVD) (OTCQX: MPVD) today announced financial results for the first quarter ended March 31, 2021 from the Gahcho Kué diamond mine.

The company said that 1,392,128 carats were recovered, 16% lower than the comparable quarter (Q1 2020: 1,655,121 carats), impacted by the unplanned 3-week operational stand-down in February. Average grade was 2.23 carats per tonne, a 22% increase relative to Q1 2020 (1.83 carats per tonne).

The company added that 603,000 carats were sold, with total proceeds of $54.2 million (US$42.7 million) at an average realised value of $90 per carat (US$71). This is a 6% increase relative to the average value per carat in Q4 2020 of $85 per carat (US$64 per carat), and a near-return to pre-pandemic pricing levels seen in Q1 2020 (US$75 per carat).

Adjusted EBITDA was $19.1 million and earnings from mine operations were $13.7 million. The company reported net income of $7.3 million or $0.03 earnings per share compared to net loss of $41 million in Q1 2020. 

President and CEO Stuart Brown commented, "With a tough quarter behind us, our focus now shifts to making up the carat shortfall, and revenue over the remainder of 2021. Despite the unplanned 22-day operational stand-down in February, we expect the process plant to make up most of the lost production by increasing the plant throughput levels with the bottom screen change.  This will have a positive effect on the average value of diamonds recovered. We expect this to drive the recovery of between 6.3 – 6.5 million carats, at or just below 2020's recovery of 6.5 million carats."

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development.

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