Mountain Province Diamonds Announces Fourth Quarter and Full Year 2023 Production and Sales Results

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Jan 23, 2024, 08:00 ET

TSX and OTC: MPVD

TORONTO, Jan. 23, 2024 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) (OTC: MPVD) today announces production and sales results for the fourth quarter ended December 31, 2023 ("the Quarter" or "Q4 2023"), and full-year 2023 ("FY 2023") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian dollars unless otherwise noted.

FY 2023 Highlights

In 2023, approximately 2.7 million carats were sold at an average value of $121 per carat (US$90 per carat) for total proceeds of $328.6 million (US243.7 million). This compares to 2.7 million carats sold at an average value of $146 per carat (US$112 per carat) for total proceeds of $388.8 million (US$297.3 million) in FY 2022.
Ore mined on a FY 2023 basis was 3.8 million tonnes against the revised guidance of 3.1 – 3.6 million tonnes. Ore processed on a FY 2023 basis was 3.25 million tonnes against guidance of 3.2 – 3.5 million tonnes.
FY 2023 production of 5.6 million carats against guidance of 5.6 – 6.1 million carats.

Mark Wall, the Company's President and Chief Executive Officer, commented:

"Q4 2023 was the highest carat producing quarter of 2023. The mid-year major shutdown of the processing facility contributed to this result by delivering an average H2 operating plant utilization rate ("OPU") of 84%, which was well above the average H1 2023 performance of 73%. We expect to carry this momentum into 2024 notwithstanding some expected seasonal reduction in performance numbers in the early months, due to cold weather. Mining in Q4 2023 was also the best quarter of 2023 with approximately 9.8 million tonnes mined which was, in part, driven by improved haul truck availability, as a result of maintenance improvement initiatives.

On the sales front, a finer assortment of goods held back from previous quarters were sold during Q4 2023. The addition of these goods in Quarter sales resulted in a lower average value per carat sold in Q4 2023, relative to prior quarters. Sales in the Quarter were also impacted by the two-month moratorium on imports by the Indian Diamond Industry. This moratorium finished in mid-December 2023, during which we completed our final sale of 2023.

Regarding the rough diamond market, the market is now reopened and we continue to monitor it closely to maximise value from our sales pipeline."

Q4 and FY 2023 Production Highlights (All figures reported on a 100% basis unless otherwise stated)

9,831,021 total tonnes mined during the Quarter, a 3% decrease on comparable period (Q4 2022: 10,144,844). 37,147,350 total tonnes mined during FY 2023, a 9% increase from comparable period (FY 2022: 33,947,188).
1,895,492 ore tonnes mined during the Quarter, a 169% increase on comparable period (Q4 2022: 705,924). 3,807,102 ore tonnes mined during FY 2023, a 7% decrease from comparable period (FY 2022: 4,113,648).
855,319 ore tonnes treated during the Quarter, a 3% increase on comparable period (Q4 2022: 828,644). 3,249,963 ore tonnes treated during FY 2023, a 5% increase from comparable period (FY 2022: 3,102,219).
1,572,696 carats recovered during the Quarter at an average grade of 1.84 carats per tonne, 3% lower than comparable quarter (Q4 2022: 1,621,800 carats at 1.96). 5,557,655 carats recovered during FY 2023 at an average grade of 1.71 carats per tonne, 1% higher than comparable period (FY 2022: 5,519,309 carats at 1.78).

Q4 and FY 2023 Production Statistics

	2023 Q4	2022 Q4	YoY Variance
Total tonnes mined (ore and waste)	9,831,021	10,144,844	-3 %
Ore tonnes mined	1,895,492	705,924	169 %
Ore tonnes treated	855,319	828,644	3 %
Carats recovered	1,572,696	1,621,800	-3 %
Carats recovered (49% share)	770,621	794,682	-3 %
Recovered grade (carats per tonne)	1.84	1.96	-6 %

	FY 2023	FY 2022	YoY Variance
Total tonnes mined (ore and waste)	37,147,350	33,947,188	9 %
Ore tonnes mined	3,807,102	4,113,648	-7 %
Ore tonnes treated	3,249,963	3,102,219	5 %
Carats recovered	5,557,655	5,519,309	1 %
Carats recovered (49% share)	2,723,251	2,704,461	1 %
Recovered grade (carats per tonne)	1.71	1.78	-4 %

Q4 and FY 2023 Sales Performance

Q4 2023 diamond sales totaled 917,757 carats sold at an average value of $87 per carat (US$64 per carat) for total proceeds of $79.8 million (US$58.9 million) in comparison to 757,830 carats sold at an average value of $127 per carat (US$94 per carat) for total proceeds of $96.3 million (US$71.3 million) in Q4 2022. The lower average value per carat sold in Q4 2023 was the result of the mix of goods sold, reflecting the sale of a finer set of goods held back from previous quarters.

During FY 2023, 2,717,742 carats were sold at an average value of $121 per carat (US$90 per carat) for total proceeds of $328.6 million (US$243.8 million) in comparison to 2,656,387 carats sold at an average value of $146 per carat (US$112 per carat) for total proceeds of $388.8 million (US$297.3 million) in FY 2022.

About Mountain Province Diamonds Inc.

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat. All resource estimations are based on a 1mm diamond size bottom cut-off.

For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company's website at www.mountainprovince.com.

Caution Regarding Forward Looking Information
This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province's business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.

These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.

Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject to the limitations under the Company's debt facilities, and will depend on Mountain Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

SOURCE Mountain Province Diamonds Inc.