Mountain Province Earns $19M from 9th Tender of Gahcho Kué Diamonds

Rough Market
22/11/2017 16:53

Mountain Province Diamonds, a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories, earned $19 million from their ninth tender of rough diamonds in Antwerp. It was the lowest haul in terms of overall value since their fourth sale of the year in May, but prices remained stable to firm, generally averaging about 2% higher than the eighth sale across the full assortment profile. The company attributes the slight increase in average price realization is primarily to an improved quality distribution in the larger stone sizes and increased demand for lower value assortments. The company’s earned $19 million from the sale of 288,000 carats at $66 per carat, or $71 per carat normalized to adjust for goods accelerated or deferred, and to include fancies and specials acquired through a bid by DeBeers Canada.

The company’s 49 percent attributable share of diamond production for the month ended September 30 was approximately 310,000 carats from a total production of 632,000 carats. For the year thus far, Mountain Province has recovered 2.42 million carats from a total of 4.94 produced at Gahcho Kué. Reid Mackie, the Company’s Vice President Diamond Marketing said, “Despite caution reported in the rough markets after the return from Indian and Jewish holidays, customer participation metrics at our ninth sale were strong with over 150 companies attending the tender, average bids per lot reaching our highest level to date at 11.9, and return customers purchasing 88% by value. This, combined with firming of price-points in our lower qualities and sizes, demonstrates the ability of our tender process to harness positive outlook in the market following encouraging news from the Asian and US retail markets.”

David Whittle, the Company’s Interim President and Chief Executive Officer said, “I am pleased to report that Gahcho Kué mine operations is continuing its solid track record, not only in terms of plant performance but with our highest monthly recovered grade to date." The recovered grade for the period was 2.40 carats per ton.