Mountain Province prices plunge on finer rough diamonds sold

By Henry Lazenby      / January 06, 2018 / www.miningweekly.com / Article Link

VANCOUVER (miningweekly.com) – The value per carat realised at the tenth tender sale of diamonds produced at Mountain Province Diamonds’ 49%-owned Gahcho Kué mine, in Canada’s Northwest Territories, has fallen to the lowest level since sales started 12 months ago.

The TSX- and Nasdaq-listed company recorded sale proceeds of $19.1-million for the tenth tender sale, from the sale of 364 000 ct of rough diamonds, compared with revenues of $19-million derived from the sale of 288 000 ct of diamonds sold during the ninth tender sale held in November.

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The value per carat dropped to $53/ct, down 20% on the previous tender sale.

No fancy or special diamonds were offered in the tenth tender sale, as the fancy and special diamond bid for the related production split was won by 51% joint venture partner and mine operator De Beers Canada.

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Mountain Province advised that the decrease in average price realisation compared with the ninth sale is mainly owing to a finer size distribution of goods.

However, the last production split of 2017, which will supply the January tender sale, saw significant volumes, an improved size frequency distribution and the largest parcel of fancy and special diamonds produced to date, both in value and volume terms, the company said.

“After a successful first year of operations, Mountain Province anticipates a strong start to the new year. We have a robust product offering available for our first tender sale of 2018, and the parcel of fancies and specials from the last production split of 2017 is characterised by large, high-value and attractive stones. We look forward to bringing them to sale over the coming months,” interim president and CEO David Whittle said.

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