Expect stable rough price in 1H 2019!
Diamond
sales tumbles,
Mountain
Province hope on US holiday season!
Mountain Province Diamonds Inc announces its financial and operating results for Q3 2018 & says earnings from mine operations for the three and nine months ended September 30, 2018 amounted to $25.2 million and $68.3 million respectively.
For
the nine months ended September 30, 2018, approximately 2443K tonnes of ore
treated and 5391K carats recovered, on a 100% basis, for an average recovered
grade of 2.21 carats per tonne, ahead of expectations. The recovered grade for
Q3 2018 was also very high at 2.40 cpt. The Company’s 49% attributable share of
diamond production for the three and nine months ended September 30, 2018 was
approximately 891,000 carats and 2,642,000 carats respectively.
Stuart
Brown, the Company’s President and CEO, commented, “The performance of the
Gahcho Kué Mine was as expected for the quarter; we remain on track to achieve
or exceed all production targets for the year in a safe and sustainable manner.
The
sales for the quarter were in line with our expectations but do reflect the
somewhat difficult trading conditions that have been widely reported in the
rough diamond market over the recent period. The market for fancies and
specials has remained strong with firm pricing in all categories.
The
impact of the weakening Indian Rupee, together with the overhang from
demonetisation and a major fraud in India have combined to reduce the
availability of credit offered to diamantaires in the industry. A consequence
of this has been a price weakening of goods of the small lower quality and
brown categories where we have seen price decreases during Q3.
With major diamond
jewellery retailers reporting strong results to date in 2018 and the industry
forecasting a positive holiday season for sales in the US, the industry is well
positioned to see some price stability return in the first half of 2019.
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