Mountain Province Expects Higher Output & Growth at Gahcho Kué in 2020

Mining and Exploration
23/12/2019 11:34

Mountain Province Diamonds reached the upper level of its output guidance in 2019 and sees opporunity for further growth in 2020. President and CEO Stuart Brown confirmed in a Dec. 19 statement that the miner will achieve the upper end of their production guidance of 6.7 – 6.8 million carats recovered on a 100% basis. Mountain Province Diamonds is a 49% participant with De Beers Group in the Gahcho Kué diamond mine in Canada's Northwest Territories. They have set a slightly higher production guidance for 2020, at 6.75 – 6.95 million carats and have reduced their cost guidance in the process.

"From an operational point of view, 2019 has been a strong year for Mountain Province Diamonds," Brown noted. He said their operating team "set a solid platform for 2020, increasing the plant's capacity and allowing for greater operational flexibility. This enables Mountain Province Diamonds to explore greater opportunities for growth within its highly prospective land package. The Company's guidance for 2020 demonstrates that the operating margins remain healthy and the mine continues to generate positive free cash flow, providing better leverage to fund the potential expansion of all the assets within its portfolio."

Acknowledging the highly challenging environment for diamond producers in the second half of 2019, particularly concerning the pressure on prices, Brown reiterates the statements of other miners in seeing positive signs that the market is stabilising, adding that Mountain Province's "prices over its last two sales have been positive." Mountain Province markets its diamonds through Bonas Group tender house in Antwerp.

Image: Gahcho Kué crusher, courtesy of Mountain Province Diamonds