Mountain Province Diamonds Inc. said that it had earned US$24.2 million (CDN$31.4 million) from the sale of 366,505 carats at its eighth diamond sale completed on October 5, 2018. The Company thus realised an average price of US$ 66 per carat. 

 “These results were in line with our expectations and reflect current market conditions, Mountain Province said while making the announcement yesterday. “We saw good price bids for our better quality larger goods where the majority of our value lies. In the lower qualities and smaller sizes, we saw average price declines in the mid single digits.  We believe the price pressure is predominantly driven by the recent rapid weakening of the Indian Rupee against the US Dollar and to some extent the seasonal lower demand for rough diamonds ahead of the Diwali celebrations.” 

On the flip side, the Company said, it has received encouraging reports  of diamond retail jewellery sales, particularly in the US, where, it stated, “demand remains strong”.

Mountain Province noted that the news from the US  “is supportive” as the major selling seasons for the US and Far East markets, are beginning.

“Consumer sentiment in the US remains strong on the back of a healthy economy and strong labour market,” the Company remarked.  “The Chinese retail market, and the jewellery retail in particular is also strong and showing positive momentum despite the most recent uncertainty in Chinese Capital Markets.”

Stuart Brown, the Company's President and Chief Executive Officer, commented: "The eighth sale of the year totalling US$ 24.2 million was a good result considering the current market and time of the year and we did well to sell all our categories at current best market prices.  We are encouraged to see positive diamond jewellery retail sales and we believe that with a positive retail selling season we will see better demand for rough diamonds in the near future."