TSX and NASDAQ: MPVD
TORONTO and NEW YORK, Dec. 19,
2019 /PRNewswire/ - Mountain Province Diamonds Inc.
("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) is
pleased to provide guidance for 2020 for the Gahcho Kué Mine. All
amounts expressed in Canadian dollars unless otherwise stated.
2020 Guidance: (all figures quoted on a 100% basis)
- 42 – 43 million total tonnes mined (ore and waste)
- 3.3 – 3.4 million ore tonnes mined
- 3.3 – 3.4 million ore tonnes treated
- 6.75 – 6.95 million carats recovered
- Production costs of $105 –
$115 per tonne treated
- Production costs of $50 –
$55 per carat recovered
- Sustaining Capital Expenditures of $26.5
million
Stuart Brown, the Company's
President and Chief Executive Officer, commented:
"As we approach the end of 2019, I am pleased to confirm that we
will achieve the upper end of our production guidance of 6.7 – 6.8
million carats recovered. Importantly, we have also reduced
our cost guidance to $95 -
$105 per tonne treated from the
original guidance of $110 -
$120 per tonne treated.
From an operational point of view, 2019 has been a strong year
for Mountain Province Diamonds. The operating team
successfully managed the challenges faced throughout the year and
has crucially 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.
The second half of 2019 has clearly been challenging for all
diamond producers with prices for rough diamonds experiencing
sustained pressure. There are however, positive signs that the
market is stabilising. Indeed, Mountain Province Diamonds' prices
over its last two sales have been positive. The major producers
have also continued to sell to meet their clients demands which is
encouraging to see. Thankfully the positive start to the global
diamond retail season continues which will also help to balance the
rough and polished diamond pipelines. Lastly, the recently agreed
acquisition of Tiffany by LVMH is a further confidence boost for
our industry and signals a strong commitment to the luxury retail
diamond market which can only be good for the sector in the long
term."
Qualified Persons
The disclosure in this news release of scientific and technical
information regarding Mountain
Province's mineral properties has been reviewed and approved
by Keyvan Salehi, P.Eng., MBA, a
Qualified Person as defined by National Instrument 43-101
Standards of Disclosure for Mineral Projects.
About Mountain Province Diamonds Inc.
Mountain Province Diamonds is a 49% participant with
De Beers Group in the Gahcho Kué diamond mine located in
Canada's Northwest Territories. The Gahcho Kué Joint
Venture property consists of several kimberlites that are actively
being mined, developed, and explored for future
development. The Company also controls 67,164 hectares of
highly prospective mineral claims and leases immediately adjacent
to the Gahcho Kué Joint Venture property that include an indicated
mineral resource at the Kelvin kimberlite and inferred mineral
resources for the Faraday kimberlites.
For further information on Mountain Province Diamonds and to
receive news releases by email, visit the Company's website at
www.mountainprovince.com
Caution Regarding Forward Looking Information
This news release contains certain "forward-looking
statements" and "forward-looking information" under applicable
Canadian and United States
securities laws concerning the business, operations and financial
performance and condition of Mountain Province Diamonds Inc.
Forward-looking statements and forward-looking information include,
but are not limited to, statements with respect to estimated
production and mine life of the project of Mountain Province; the realization of mineral
reserve estimates; the timing and amount of estimated future
production; costs of production; the future price of diamonds; the
estimation of mineral reserves and resources; the ability to manage
debt; capital expenditures; the ability to obtain permits for
operations; liquidity; tax rates; and currency exchange rate
fluctuations. Except for statements of historical fact
relating to Mountain Province,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can,"
"plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and
other similar words, or statements that certain events or
conditions "may", "should" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at
the date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking
statements. Many of these assumptions are based on factors
and events that are not within the control of Mountain Province and there is no assurance
they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and
timeliness of permitting and governmental approvals; supply of, and
demand for, diamonds; fluctuating commodity prices and currency
exchange rates, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain
Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base
themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Mountain
Province believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. These statements speak only as of the
date of this news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements.
Statements concerning mineral reserve and resource estimates may
also be deemed to constitute forward-looking statements to the
extent they involve estimates of the mineralization that will be
encountered as the property is developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to
a joint venture under which Mountain
Province is not the operator. Mountain Province is exposed to actions taken
or omissions made by the operator within its prerogative and/or
determinations made by the joint venture under its terms.
Such actions or omissions may impact the future performance of
Mountain Province. Under its current note and revolving
credit facilities Mountain
Province is subject to certain limitations on its ability to
pay dividends on common stock. The declaration of dividends
is at the discretion of Mountain
Province's Board of Directors, subject to the limitations
under the Company's debt facilities, and will depend on
Mountain Province's financial
results, cash requirements, future prospects, and other factors
deemed relevant by the Board.
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SOURCE Mountain Province Diamonds Inc.
