Mountain Province boosts diamond sales revenue in 2021 on strong demand and higher prices
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(Kitco News) - Mountain Province Diamonds (TSX: MVPD) reported today that in 2021, production from the Gahcho Kué diamond mine was 6.23 million carats against the guidance of 6.30 - 6.50 million carats.
However, the company said that during 2021, 3,158,418 carats were sold at an average value of $94 per carat (US$75 per carat) for total proceeds of $298.4 million (US$236.9 million) in comparison to 3,329,289 carats sold at an average value of $68 per carat (US$51 per carat) for total proceeds of $227.0 million (US$171.3 million) in 2020.
The company added that sentiment in the rough diamond market continues to be buoyant and that strong diamond jewellery sales during the holidays and lower rough diamond supply volumes from the major producers are expected to maintain this positive momentum.
President and CEO Mark Wall commented, "2021 was an excellent year for the Gahcho Kué operations. Managing through the COVID-19 pandemic to finish 1% below production guidance is testament to the management of the operations. We end the year with production very close to guidance, lower costs and increased revenue based on a rising demand and strengthening diamond prices, which is a great platform to commence 2022."
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Medium to longer-term, the company's outlook for rough diamonds remains positive. Retail diamond jewellery sales in the important US market confirm a growing preference for smaller, lower priced diamonds which align well with the diamond profile of the Gahcho Kué mine.
"The closure of the Argyle diamond mine combined with reduced global rough diamond production is expected to further support prices as demand to replenish inventories of these diamond categories continues,” 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 Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development.