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Mountain Province Revenue Slides as Prices Fall

October 9, 2023  |  Leah Meirovich
A truck carrying ore at Gahcho Kue mine Mountain Province 1280 USED 091023

Mountain Province’s revenue decreased as prices for its rough dropped and it held back goods from sale strategically.

Revenue fell 46% year on year to $45.3 million in the third quarter that ended September 30, the miner reported Saturday. Sales volume from the company’s Gahcho Kué mine in Canada slipped 41% to 478,653 carats, while the average price fell 8% to $95 per carat.

The company held back a portion of its lower-value supply from the sale, it noted. It expects to sell those rough diamonds in December, when it hopes prices will be higher.

“The company took the decision to withhold some of the sales during the [third quarter] to defend its prices in the rough market,” said Mountain Province CEO Mark Wall. “We continue to watch the diamond market closely to assess market conditions.”

Production from the deposit slipped 9% year on year to 1.3 million carats, as the grade fell 15%, and many employees were unable to work due to the wildfires that raged through the Northwest Territories. Mountain Province’s portion of production came to 649,818 carats from its 49% share of the asset. De Beers holds the remaining 51%.

Despite the drop in output, the company expects to maintain its production forecast but believes it will lean more toward the lower end of the predicted range, it said.

“In these very challenging markets we have decided to pause all discretionary spending to focus on maximizing cash generation and repaying the debt,” it added.

Main image: A truck carrying ore at the Gahcho Kué mine. (Mountain Province)

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