Mountain Province Sees Drop in Quarterly Sales

RAPAPORT... Mountain Province's revenue fell 14% year on year to CAD 47.3 million ($36.1 million) in the third quarter as Covid-19 limited the miner's ability to sell rough.The company held only one standard sale during the three months ending September 30, compared with two or three during a usual quarter, it reported Wednesday. Its revenue for the period came from that tender in Antwerp, as well as a bulk-sales agreement with major shareholder Dunebridge Worldwide."The lingering effects of Covid?EUR?19 continued to put pressure on the diamond industry as a whole," the company said.The average selling price fell 30% to $37 per carat for the quarter, reflecting weaker rough market sentiment and rough demand, Mountain Province explained. This contributed to a loss of CAD 6.5 million ($5 million), though this was less severe than the CAD 25.8 million ($19.6 million) loss it incurred a year earlier.The company, which owns the Gahcho Ku?(C) mine in Canada jointly with De Beers, has suffered liquidity difficulties this year because of the coronavirus crisis, prompting the inventory deal with Dunebridge. However, sales picked up at its October sale as manufacturers sought rough ahead of the holidays, Mountain Province noted earlier this week.Image: The Gahcho Ku?(C) mine. (De Beers)