Mountain Province Diamonds Announces June 30, 2018 Quarter End Results and Declares a Dividend of 4 Cents per Share
Toronto and New York, August 8, 2018 – Mountain Province Diamonds Inc. (“Mountain Province”, or the “Company”) (TSX and NASDAQ: MPVD) today announces its financial and operating results for second quarter ended June 30, 2018 (“Q2 2018”) and first half of 2018 (“H1 2018”). All figures are expressed in Canadian dollars unless otherwise stated.
The Company is also pleased to announce that the Board of Directors has declared its first dividend of CDN 4 cents per share to be payable September 25, 2018 to the shareholders of record at the close of business on September 10, 2018.
- Earnings from mine operations for the three and six months ended June 30, 2018 amounted to $18.5 million and $43.0 million respectively.
- The net loss for the three and six months ended June 30, 2018 was $6.3 million or $0.03 cents loss per share and $6.2 million or $0.03 cents loss per share. Included in the determination of net loss for the three and six months ended June 30, 2018 are unrealized foreign exchange losses of $7.7 million and $18.1 million respectively, on the translation of the Company’s USD-denominated long-term debt. Generally, the weakening Canadian dollar compared to US dollar is beneficial to the Company.
- Adjusted EBITDA1 of $40.7 million and $73.3 million in Q2 2018 and H1 2018 respectively.
- For the six months ended June 30, 2018, approximately 1,684,000 tonnes of ore treated and 3,571,500 carats recovered, on a 100% basis, for an average recovered grade of 2.12 carats per tonne (“cpt”), marginally ahead of expectations. The Company’s 49% attributable share of diamond production for the three and six months ended June 30, 2018 was approximately 945,900 carats and 1,750,000 carats respectively.
- Sales for the six months ended June 30, 2018 were $165.6 million (US$129.2 million) at an average realized value of $101 per carat (US$79 per carat).
- Cash costs of production, including capitalized stripping costs1, for the three and six months ended June 30, 2018 were $112 ($82 without stripping) and $96 ($80 without stripping) per tonne of ore processed respectively.
- Cash costs per carat recovered including stripping were $52 for the quarter and $45 for the six months ended June 30, 2018.
- Quarter end cash position of $33.5 million and net working capital of $100.4 million, with the US$50 million revolving credit facility remaining undrawn. As of June 30, 2018, the debt balance was $433.4 million (US$330 million). Subsequent to the quarter, $4.02 million (US$3.06 million) of debt was repaid.
- $2.5 million of exploration expenditures for ongoing exploration work on the Kennady properties.
- Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See the Non-IFRS Measures section of the Company’s June 30, 2018 MD&A for explanation and reconciliation.
Stuart Brown, the Company’s President and CEO, commented, “The performance at the Gahcho Kué Mine for the second quarter continues to set excellent standards, and our production results are pleasing. The knowledge gained with each quarter allows us to build a better understanding of expectations as we mature as a mine. Our sales results are also steady as the market has become more familiar with our product.”
“With the continued good performance of the mine and the cash reserves the Company has generated, we have decided to declare a dividend of 4 cents per share. The Company’s policy is to manage down the debt levels and to pay reasonable dividends based on available cashflows. The level of future dividends may go up or down dependent on these cashflows which are strongly linked to realised diamond prices as well as the covenants relating to dividend declarations under the revolving credit facility and the secured notes payable conditions. “
Read More: http://www.mountainprovince.com/application/files/5115/3381/6713/MPV_NR_2018-08-08_Q2_2018_Quarter_End_-_Final_Version.pdf