Mountain Province Diamonds Inc. yesterday announced its unaudited financial and operating results for the fourth quarter (Q4 2019) and the full year ended December 31, 2019 (FY 2019).

For Q4 2019, the Company reported the sale of 772,000 carats (Q4 2018: 823,000), with total proceeds of C$65.0 million (US$49.2 million); as compared to C$70.5 million earned in Q4 2018, (US$53.6 million). For the period, the Company reported a realised average value     of C$84 per carat (US$64), as against an average value of C$86 per carat (US$65) per carat realised in the same period of the previous year.

While the Company reported an adjusted EBITDA of C$17.6 million; its earnings from mine operations stood at C$3.0 million.
Mountain Province reported a net loss of C$115.7 million or C$0.55 loss per share.    

For the Full Year 2019 Mountain Province reported a total sales revenue at C$276 million (US$208 million) compared to C$311 million in 2018 (US$240 million) at an average realised value of C$84 per carat (US$63) as against $96 per carat  (US$74) in 2018.

For the year, adjusted EBITDA was C$87.1 million down 37%  from C$139.2 million in 2018.
Earnings from mine operations were also down – by 69% to C$24.8 million as against $81.0 million in 2018.  

The Company reported a net loss of C$128.8 million or C$0.61 loss per share as compared to a net loss C$18.9 million or C$0.10 loss per share in the prior year.  

Mountain Province said that capital expenditures amounted to C$28.1 million, of which C$21.0 million   were deferred stripping costs, with the remaining C$7.1 million accounted for sustaining capital expenditures related to mine operations.  

In Q4 2019, a total of 771,799 carats were sold at an average value of C$84 per carat (US$64 per carat) for total proceeds of C$65.0 million (US$49.2 million) in comparison to 822,548 carats sold at an average value of C$86 per carat (US$65 per carat) for total proceeds of C$70.5 million (US$53.6 million) in Q4 2018. 

During FY 2019, the Company reported the sale of 3,284,520 carats at an average value of C$84 per carat (US$63 per carat) for total proceeds of C$276.3 million (US$208.2 million) in comparison to 3,252,491 carats sold at an average value of C$96 per carat (US$74 per carat) for total proceeds of C$311 million (US$240 million) in FY 2018. 

On the operational side, Mountain Province reported that a total of 1,977,438 carats were recovered during Q4 2019 at an average grade of 2.11 carats per tonne; a 28% increase over the comparable quarter of the prior year during which 1,545,786 carats were recovered at a grade of 2.06 carats per tonne. 

In FY2019, a total of 6,820,631 carats were recovered at an average grade of 1.90 carats per tonne; which was 2%   lower than 6,936,894 carats recovered in the prior year.

The Company noted: “Sentiment in the rough diamond market became slightly more optimistic towards the end of 2019 and remained relatively positive in early 2020 during the first selling cycle of the year.  However, the rapid global spread of a novel coronavirus ("COVID-19") has reversed that momentum coincident with the surge in volatility in global capital markets. Though the full extent of the impact of COVID-19 is still unknown at the moment, the Company believes, that like many other businesses, the COVID-19 will have a material impact on 2020 sales. At this stage the Company withdraws all guidance metrics while the COVID-19 impacts continue to be assessed on an on-going basis.”

Mountain Province President and CEO Stuart Brown commented: "2019 was certainly another challenging year for the diamond market. Despite this the Gahcho Kué Mine had an exceptional year of production in FY 2019, achieving all its operational metrics, with a notable highlight being the 12% increase in the plant's throughput capacity. The operational performance and increased plant treatment capacity helped the Gahcho Kué Mine navigate through the challenging diamond market resulting in the company generating positive free cash flow and continuing to voluntarily reduce its debt.” 

He added: “2020 year started off positively with a continuation of good production and a confidence boosting January sale in Antwerp.  This positive momentum has now been swept aside by the COVID-19 virus that is having a devastating effect on the world. Together with De Beers Canada and our stakeholders, we are assessing a range of mitigating actions. Our immediate focus is to maintain a sense of calm while focussing on the health and safety of all our employees, contractors, our immediate communities and their families as we implement procedures to protect all of them. We are also taking all the necessary precautions to protect the mine site. We will be monitoring the situation very closely and update the market accordingly.”

The Company also announced the filing of technical report for the Company's Gahcho Kué Mine entitled, Gahcho Kué Mi 43-101 Technical Report.