Announcing its results for the quarter ended June 30, 2017, Mountain Province Diamonds Inc. reported a net income of C$ 7.6 million or C$ 0.05 per share; and C$ 5.4 million or C$ 0.03 earnings per share, respectively.

In the six months ended June 30, 2017, Mountain Province conducted five sales of a total    of approximately 892,000 carats, including fancies and specials. “Proceeds of approximately US$ 71.5 million or an average of US$ 80 per carat were received,” the Company reported.

Providing a breakdown, Mountain Province said that for the half year, gem and near-gem diamonds contributed approximately 96% of the diamond sales proceeds. “The remaining 4% of proceeds came from industrial diamonds at an average price of US$ 7 per carat. Gem and near-gem diamonds represented approximately 60% of sales by volume to June 30, 2017,” the Company elaborated.

In the half year, the Gahcho Kué Mine treated approximately 1,258,600 tonnes of ore recovering approximately 2,481,200 carats on a 100% basis at an average grade of approximately 1.97 carats/tonne; which is approximately 20% above budget for the period. Of this, Mountain Province’s attributable share for the three months ended June 30, 2017 was approximately 790,900 carats; and for the six months ended June 30, 2017 amounted to 1,215,800 carats.   The Company said   production in the second quarter was 86% higher than the first quarter, as a result of the Mine commencing commercial production from March 1, 2017.

“The Company has increased the 2017 production guidance on a 100% basis by 25% to 5.5 million carats recovered (2.7 million carats on a 49% basis) from 4.4 million carats previously (2.2 million carats on a 49% basis). Guidance on carats sold for full-year 2017 has accordingly been increased by 20% to 2.4 million carats from 2.0 million previously,” Mountain Province announced.

Interim President and CEO of Mountain Province, David Whittle, commented: “Mine operations have performed well with the declaration of commercial production at the beginning of March. The diamond recovery plant has been running at and above nameplate capacity, and the on-site safety record is commendable. Price realisation remains a challenge as rough diamond markets, while showing some signs of strengthening in recent months, nonetheless continue to be under pressure and are expected to be relatively flat through the balance of the year.”

He added: “Our ability to generate a 43% gross margin on mine operations in our first quarter of reported results, in spite of the challenges in the rough diamond markets, speaks well to the resiliency of the GK Mine.”