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Mountain Province Incurs Loss in 2018

Weaker Canadian dollar negatively affects bottom line.
Mar 24, 2019 10:52 AM   By Rapaport News
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 The devaluation of the Canadian dollar pushed Mountain Province to a loss in 2018, even as sales grew strongly in the first full year of commercial operations at the Gahcho Kué mine.

The miner reported a net loss of CAD 18.9 million ($14.1 million), compared with a profit of CAD 17.2 million ($12.8 million) in 2017, it said last week. The miner sells rough in US dollars, but reports in Canadian currency. In 2018, foreign-currency losses amounted to CAD 32 million ($23.8 million). The net loss in the fourth quarter amounted to CAD 30.2 million ($22.5 million).

Revenue for the year surged 79% to CAD 311 million ($240 million). Sales volume increased 22% to 3.3 million carats, with the average selling price up 9% to $74 per carat. It sold more than 500 gem-quality stones over 10.8 carats, compared with 250 of that magnitude the previous year, the miner said.

In the three months ending December 31, Mountain Province sold 823,000 carats at an average price of $65 per carat, yielding $53.6 million in revenue, it said.

Production for the year surpassed the upper end of the company’s guidance, it noted, rising 17% to 6.9 million carats.

Mountain Province owns 49% of Gahcho Kué and receives a proportional share of run-of-mine production for sale. De Beers holds the remaining 51%.

Image: Gahcho Kué mine. (Mountain Province)
Tags: De Beers, Gahcho Kué, mountain province, Rapaport News, stuart brown
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