Gahcho Ku?(C) Prices Rise as Market Improves

RAPAPORT... Mountain Province Diamonds has posted its highest monthly sales total to date, as better-quality production and improved demand drove rough prices higher in February.The company sold a total of 351,000 carats from its Gahcho Ku?(C) mine for $27.3 million during the month, at an average of $78 per carat. The increase from $53 per carat in December was due in part to an improvement in the size distribution, as well as the quality of fancies and special-size stones, the company explained. Prices of the miner's rough also rose 7% from December on a like-for-like basis for equivalent diamonds."The results of this sale were driven not only by thequality of the diamonds on offer, but stronger rough-diamond prices generally,as we experienced an improvement in customer sentiment similar to that whichhas been reported by the industry generally," said Mountain Province interim CEO David Whittle. "We have experienced general rough-diamond price increases ofapproximately 12% since October, supporting a view of improving marketfundamentals."De Beers owns a 51% stake in Canada-based Gahcho Ku?(C), with Mountain Province holding the remainder. The two companies split the run-of-mine - or standard - rough diamonds according to their stake in the venture, and bid against each other for the fancies and specials.The February tender featured half of Mountain Province's allocationof fancies and specials from the mine's production at the end of last year. This means the remainder will be available at the company's next sale.Operations at the mine began in late2016, with the project achieving commercial production in March 2017.