Price Rise Boosts Mountain Province

RAPAPORT… Mountain Province’s sales and earnings jumped in the first quarter as the Canadian miner benefited from growth in rough prices.

Revenue rose 56% year on year to CAD 84.7 million ($65.7 million) for the three months, the company reported last week. Net profit more than tripled to CAD 24.3 million ($18.9 million) from CAD 7.3 million ($5.7 million) a year earlier. The average selling price surged 86% to $132 per carat.

“All diamond-industry sectors saw a positive start in 2022, with steady rough output, low producer inventories, high manufacturer and consumer demand, and rapid restocking by buyers after a busy holiday season,” management said in a quarterly report. “This led to rapid, exceptional rough-diamond price increases in January and February.”

However, Russia’s invasion of Ukraine in late February destabilized the market, while high inflation and China’s latest Covid-19 lockdowns added to the uncertainty, the company explained. Still, sanctions against Russian rough could boost prices for other goods, it added.

Production at the company’s Gahcho Kué mine in Canada slid 15% year on year to 1.2 million carats due to the impact of a Covid-19 Omicron outbreak as well as other operational issues at the mine.

Image: The Gahcho Kué mine. (Mountain Province)