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Mountain Province Revenue Slips in Second Quarter

July 19, 2023  |  Leah Meirovich
A truck hauling ore at Gahcho Kue mine credit Mountain Province 1280 USED 071923

Mountain Province’s sales fell in the second quarter as the miner moved one of its tenders forward to capitalize on strong demand and higher prices for its goods.

Sales slid 54% year on year to CAD 59.9 million ($44.6 million) for the period ending June 30, the Canada-based miner said Monday. Sales volume fell 39% to 360,308 carats, while the average price was flat at CAD 166 ($124) per carat.

The reduction in volume was attributable to Mountain Province accelerating one of the tenders it generally holds in the second quarter to the first quarter, for a total of three during that earlier period, compared to the usual two. The miner brought forward the sale to benefit from higher prices for small stones and stronger demand seen throughout the first quarter, the company explained.

Output for the three months from April to June rose 6% to 1.3 million carats as the company processed higher-grade ore from the Gahcho Kué mine. Mountain Province’s 49% share of production was 656,206 carats. De Beers owns the remaining 51% of the joint venture.

The miner has lowered its full-year guidance for mined ore to between 3 million and 3.6 million tonnes, down from the 4.1 million to 4.5 million tonnes it previously announced, due to planned work-related shutdowns. However, the company reiterated that owing to its large ore stockpile, its 2023 production guidance remains unchanged.

“We were glad to see our sales performance stay resilient amongst some broader market turbulence,” Mountain Province CEO Mark Wall added.

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

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A truck hauling ore at Gahcho Kue mine credit Mountain Province 1280 USED 071923 Mountain Province Revenue Slips in Second Quarter

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