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Highlights:
- Mountain Province Diamonds recovered 1,187,912 carats in Q3 2024, a 10% decrease year-over-year.
- Sales in Q3 reached $69.4 million with an average price of $102 per carat.
- The company maintains its 2024 production guidance of 4.2 to 4.7 million carats.
Mountain Province Diamonds Inc. has released its production and sales results for the third quarter ended September 30, 2024, from the Gahcho Kué Diamond Mine. This report provides insight into the company’s performance during the quarter, revealing key metrics that reflect both challenges and strengths in operations.
In Q3 2024, Mountain Province recovered a total of 1,187,912 carats, marking a 10% decrease compared to 1,326,160 carats recovered in the same quarter of 2023. The average grade of diamonds recovered was 1.24 carats per tonne, which is an 18% decline from the previous year's figure of 1.51 carats per tonne. Despite these drops in recovery and grade, the company managed to mine 923,814 ore tonnes, a 4% increase from the 887,695 ore tonnes mined in Q3 2023. Additionally, the amount of ore treated rose by 10%, reaching 961,371 tonnes compared to 877,617 tonnes in Q3 2023.
The overall mining activity showed mixed results. Total tonnes mined, including waste, decreased by 6% to 8,603,369 tonnes. This was influenced by various operational challenges, including geotechnical issues and higher-than-expected rainfall impacting the Hearne and 5034 pits. Nevertheless, the progress in the bottom mining of the Hearne pit and the ongoing work to access the NEX orebody suggest a strategic focus on enhancing future production.
Sales figures for Q3 2024 indicated a positive trend despite the lower carat recovery. The company sold 679,599 carats, generating total proceeds of $69.4 million (US$50.8 million). This resulted in an average price of $102 per carat, compared to an average of $126 per carat in Q3 2023, when 478,653 carats were sold for $60.2 million (US$45.3 million). This shift in average price reflects market dynamics that Mountain Province is navigating.
Mark Wall, President and Chief Executive Officer of Mountain Province, commented on the results, noting that Q3 showcased a strong performance in tonnes treated and a grade that slightly exceeded expectations. Wall highlighted that the planned lower grades in Q3 and Q4 stem from a higher percentage of lower-grade ore from the Tuzo mine.
Looking ahead, the company has maintained its production guidance for 2024, expecting to recover between 4.2 and 4.7 million carats. While total tonnes mined are projected to finish below the lower end of the guidance range of 36 million tonnes, ore tonnes mined are expected to exceed 4.6 million tonnes, indicating effective operational management despite challenges.
Mountain Province's commitment to advancing its mining operations and strategic planning underscores its resilience in the diamond market. As the company continues to navigate fluctuations in production and sales, its focus on maintaining robust operational metrics will be vital for future growth and success in the competitive diamond industry.
