Gahcho Kué recovers diamond 17% more YoY
Sold
3,252,491 carats at
An
average value of $USD 74
Mountain
Province Diamonds announces production and sales results for the fourth quarter
ended December 31, Q4 2018 and full year from the Gahcho Kué Diamond Mine (GK
Mine). According to the highlights, in Q4 2018, 1,545,786 carats were recovered
at an average grade of 2.06 carats per tonne. During the full year 2018,
6,936,894 carats at an average grade of 2.17 carats per tonne, 17% higher than
total carats recovered in 2017.
In
Q4 2018, the Company sold 822,548 carats at an average value of $USD 65 per
carat for total proceeds of $USD 53.6 million. For the full year 2018, the
Company sold 3,252,491 carats at an average value of $USD 74 per carat for
total proceeds of $USD 240 million.
Diamond
sales were in line with our expectations and reflect current market conditions.
Prices for the better quality larger goods, where the majority of our value
lies, remained strong throughout the year, however, during the latter part of
H2 2018, lower qualities and smaller sizes experienced price pressure, driven
predominantly by a weakened Indian Rupee against the US Dollar.
Demand
at retail in both the US and China for luxury goods were reported to be strong
overall in 2018, initial reports from the Chinese and US holiday retail season
are generally positive. Reid Mackie, the Company's Vice President of Diamond
Marketing, commented: "we had a strong start to 2018 with price increases
in most rough diamond categories.
Low
quality and smaller sized rough diamonds did experience price pressure during
H2 2018, but our sales process attracted sufficient demand to achieve the
selling of all our production for the year.
We expect to see more interest in the first quarter rough sales where
the market is traditionally stronger."
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