Mountain Province Diamonds posts second highest quarterly revenue in its history, hails strong market conditions
(Kitco News) - Mountain Province Diamonds (TSX: MPVD) today reported that in Q3 2021, 1,562,000 carats were recovered at an average grade of 1.88 carats per tonne, a 13% decrease compared to the 1,795,000 carats recovered at 2.19 carats per tonne of Q3 2020.
However, the company said that its revenue from 1,027,000 carats sold was $94.2 million (US$74.1 million) in Q3 2021 compared to $47.3 million from 956,000 carats sold in Q3 2020 (US$35.3 million).
“Third quarter revenue of 2021 represents the second highest quarterly revenue in the company's history,” the company said in a statement.
The company’s adjusted EBITDA in Q3 2021 was $41.2 million compared to $15.3 million in Q3 2020. Third quarter adjusted EBITDA of 2021 represents the second highest quarterly adjusted EBITDA in the company's history, according to a press-release.
Earnings from mine operations were $35.5 million compared to a loss from mine operations of $2.2 million in Q3 2020, while net income at September 30, 2021 was $8.8 million or $0.04 earnings per share (2020: net loss $6.5 million or $0.03 loss per share).
“The positive market environment which began early in the year persisted through the third quarter, resulting in strong price growth across all size classes. Indexed on a like-for-like basis, the company is now achieving sales prices 47% above its pre-Covid benchmark of February 2020,” the company said.
As global economies continue to recover and the Covid-19 pandemic becomes less restrictive, consumer confidence heading into the important holiday retail buying season is expected to strengthen, further supporting price growth in the diamond industry, the company added.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The company also controls 106,202 hectares of mineral claims and leases that surround the Gahcho Kué Joint Venture property that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.