Mountain Province Cuts 2020 Production Forecast

RAPAPORT… Mountain Province has reduced its production outlook for the year amid the challenges posed by the coronavirus pandemic and its impact on operations.

The miner now expects to produce between 6.3 million and 6.4 million carats in 2020 from the Gahcho Kué mine in Canada, compared to its earlier outlook of 6.75 million to 6.95 million carats, it said last week. That figure represents total rough-diamond production from the site. Mountain Province’s share of output is 49%, while De Beers holds the remaining 51%.

“As previously noted, the unprecedented events of Covid-19 have had a major impact on our operations and sales,” Mountain Province CEO Stuart Brown said. “As a result of all the interruptions and subsequent changes since the start of the pandemic, our total 2020 production forecast has been lowered by approximately 400,000 carats whilst maintaining or slightly lowering our cost guidance for full year 2020.”

The company will recover ore from lower-grade portions of the mine than originally intended, as the pandemic forced it to reduce the number of workers taking part in daily operations, it said. Mountain Province has pushed the mining of higher-grade ore at its Hearne and 5034 kimberlites to 2021.

The miner believes the rough market will improve before the end of the year.

“The demand for rough diamonds is starting to show signs of interest,” Brown added. “We anticipate the diamond market will continue to open up over the coming months, and we look forward to resuming normal sales later in the second half of the year.”

Image: A shovel truck outside the Gahcho Kué mine. (Mountain Province)