RapNet


Rapaport News

 

Mining

 

Advanced search
Latest Articles
Videos
Features
News
Mining
Rough Markets
Polished Markets
Manufacturing
Retail

Mountain Province Revenue Improves in 1Q

Miner posts strong results but warns of impending impact of COVID-19.
Apr 22, 2020 11:06 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Sales of rough from Mountain Province’s Gahcho Kué mine grew 2.4% to 659,318 carats in the first quarter, the company said Monday.

The Canada-based miner also saw a 6% uplift in its average price, yielding $75 per carat compared to $71 per carat in the first quarter of 2019. Together, these factors increased the company’s revenue by 7% to $49.2 million for the three months ending March 31.

In total, the company recovered 1.7 million carats, up 4.5% compared with the previous year. This equates to 811,009 carats for the 49% stake it holds in Gahcho Kué. De Beers owns the remaining 51%.

However, the results are tempered by the ongoing coronavirus pandemic. Last month, Mountain Province said it would withdraw its forecast for 2020 until it had gauged the effect of COVID-19 on its operations. The miner confirmed Monday that it had suspended most long-term and non-core projects, as well as the company’s formal sales in Antwerp. It added that its mine continued to operate, albeit on four-week rather than two-week crew rotations.

The miner noted that it was currently “working through various planning scenarios” to assess the full impact on production and would “communicate this to the market when [it had] more clarity and certainty on what the future may look like.” It has meanwhile drawn $25 million from its revolving credit facility to alleviate the blow.

Shares in Mountain Province rose 10% Monday.

Image: The Gahcho Kué mine. (Mountain Province)
Tags: Gahcho Kué, mining, mountain province, Rapaport News, rough
Similar Articles
Rough diamonds in Calgary offices De BeersDe Beers Notes Recovery Ahead of Holidays
Oct 22, 2020
De Beers’ sales and production rebounded in the third quarter as the...
Petra to Offer Collection of Blue Diamonds at Tender
Rio Tinto to Sell Final Argyle Specials
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First



Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
  
twitter twitter
About Rapaport
Advertise with us