Rough Slump Hits Mountain Province

RAPAPORT… Sales of rough diamonds at Mountain Province fell 13% in 2019 as a glut in the midstream led to a challenging market.

The company’s sales from its Gahcho Kué mine in Canada slipped year on year to $208.2 million in 2019, it said last week. Although sales volume inched up 1% to 3.3 million carats, value decreased amid a 15% drop in the average selling price to $63 per carat.

Total production for the year slid 2% to 6.8 million carats, but exceeded the company’s guidance of 6.7 million carats to 6.8 million carats due to operational efficiencies, Mountain Province explained.

The company sold 771,799 carats in the fourth quarter, a 6% decrease, with the average price slipping 1.5% to $64 per carat. Revenue declined 8% to $49.2 million. Total production for the three months rose 28% to 2 million carats.

The company’s outlook for 2020 is positive, it noted. Sentiment in the rough market increased toward the end of 2019, and has remained “relatively positive” leading up to the first sales cycle of 2020, the miner added.

Mountain Province owns 49% of Gahcho Kué and receives a proportional share of run-of-mine production for sale. De Beers holds the remaining 51%.


Image: An ore crusher at the Gahcho Kué mine. (Mountain Province)