Mountain Province Diamonds Inc. reporting its financial and operating results for the quarter ended March 31, 2019 (Q1) said that Q1 2019 mining results were in line with the Company's expectations.

The Company reported that over 9.5 million tonnes of material was mined in the first quarter, a figure which is 16% higher than the 8.2 million tonnes mined during  the same period of last year.

A total of 870,949 tonnes were treated in the period , marking  an increase of 11% over 786,000 tonnes  treated in  Q1 2018. 
The diamond recovery stood at 1,584,552 carats, at an average grade of 1.82 carats per tonne, slightly lower than the same period last year, when 1,641,000 carats were recovered at an average grade of 2.09 carats per tonne.  

The average grade for the period was lower than that in 2018, the company said, partly due  to  adverse weather conditions preventing access to planned higher grade ore areas. Other factors cited were mine plan sequencing leading to lower grade ore being mined; and  plant enhancements and modifications.  

“The Gahcho Kué Mine remains on track to achieve it's 2019 production guidance of 6.6 – 6.9 million carats,” the Company asserted.

Stuart Brown, the Company's President and Chief Executive Officer, commented: "We are pleased with the Q1 operational and financial results for the Gahcho Kué Mine, given the mining area which consisted of lower grade ore. Production figures are slightly ahead of expectations and costs are at the lower end of our guidance for 2019. The 2019 target of 3.3 – 3.45 million carats (our 49% share of the full production) recovered, remains unchanged. We are encouraged by the early results of the plant changes implemented and look forward to updating the market on the progress of this initiative in the coming months."

Mountain Province reported a sale of 643,739 carats for a revenue of C$ 60.7 million (US$ 45.8 million) compared to C$ 66.6 million earned from the sale of 527,000 carats in Q1 2018 (US$ 52.4 million) at an average realised value of C$ 94 per carat (US$ 71) for Q1 2019 and C$ 126 per carat (US$ 99) in Q1 2018. 

Earnings from mine operations for the period amounted C$ 10.2 million as against  to C$ 24.6 million in Q1 2018. 

“Adjusted EBITDA  of C$ 19.7 million compared to C$ 33.6 million in Q1 2018, mainly due to the rough diamond market being weaker in Q1 2019 compared to Q1 2018 and the sale of a different mix of goods with fewer better-quality and special stones sold in Q1 2019 compared to Q1 2018,” the Company added.  

Mountain Province noted that the cash cost of production per carat was higher in Q1 2019 than in Q1 2018.

The Company declared a net income as at March 31, 2019 of C$ 2.5 million or C$ 0.01 earnings per share (2018: net income C$ 0.07 million or C$ 0.00 earnings per share). 

“The rough diamond market is showing signs of stabilising during the quarter, with lower rough supplies predicted for 2019 and cutting centre inventories expected to return to more normal levels,” the Company remarked.  

Reid Mackie, the Company's Vice President of Diamond Marketing, commented: "We have seen stability return, both in terms of diamond demand and prices achieved which resulted in our first quarter sales outperforming our expectations. Most of our diamond categories experienced modest but consecutive price increases and healthy demand from customers resulted in all lots offered being sold.”

The Company revised its 2019 outlook for production from the previously announced   approximately 3.1 million to 3.2 million tonnes treated to 3.2 million to 3.3 million tonnes treated. However, the Company maintained  its outlook for total carat production in the range of between 6.6 million and 6.9 million carats, as previously announced (100% basis); with recovered grades of between 2.12 and 2.16 carats per tonne. The Company also maintained its cost guidance of C$ 110 - C$ 120 per tonne or C$ 50 - C$ 54 per carat recovered for fiscal year 2019.