Mountain Province Diamonds Inc. yesterday released its guidance for 2020 (all figs on 100% basis) for the Gahcho Kué Mine.

The Company projects between 3.3 to 3.4 million ore tonnes to be mined; and between 6.75 to 6.95 million carats to be recovered from this.

Mountain Province has projected a production cost of C$105-C$115 per tonne treated; and a production cost C$50-C$55 per carat recovered.

The Company expects sustaining capital expenditures to be about C$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 C$95-C$105 per tonne treated from the original guidance of C$110- C$120 per tonne treated.” 

Going on to elucidate upon the performance of the company for the past year, he said: “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.”

He added: “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.”

Dwelling on the challenges of the year almost ended, he said: “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."