Mountain Province produces 6.23mn cts diamonds in 2021

Recovers over 1.5mn cts diamonds during Q4

808,739 carats sold in Q4 at US$83 per carat 

Mountain Province Diamonds announces production, sales and preliminary unaudited cost results for the fourth quarter and year ended December 31, 2021 and FY21 from the Gahcho Kué Diamond Mine. 1,511,253 carats recovered during Q4 at an average grade of 1.86 carats per tonne. Full year 2021 production of 6.23 million carats against guidance of 6.30 - 6.50 million carats.

Preliminary unaudited mine level costs on a full year 2021 basis were $61 per carat against guidance of $58-$63 per carat and $123 per tonne treated against guidance of $125-$135 per tonne treated. Ore mined on a full year 2021 basis was 3.6 million tonnes against guidance of 3.3 – 3.5 million tonnes. Ore processed on a full year 2021 basis was 3.1 million tonnes against guidance of 3.15 – 3.3 million tonnes.

Mark Wall, the Company's President and Chief Executive Officer, commented, “2021 was an excellent year for the Gahcho Kué operations.  Managing through the Covid-19 pandemic to finish 1% below production guidance is testament to the management of the operations. 

At the same time to finish with a preliminary cost per tonne about 2% below the bottom end of the cost range is an excellent result.  We end the year with production very close to guidance, lower costs and increased revenue based on a rising demand and strengthening diamond prices, which is a great platform to commence 2022."                                                                                                                             Q4 2021 diamond sales totaled 808,739 carats sold at an average value of $105 per carat (US$83 per carat) for total proceeds of $85.2 million (US$67.5 million) in comparison to 957,120 carats sold at an average value of $84 per carat (US$65 per carat) for total proceeds of $80.2 million (US$61.7 million) in Q4 2020.

During FY 2021, 3,158,418 carats were sold at an average value of $94 per carat (US$75 per carat) for total proceeds of $298.4 million (US$236.9 million) in comparison to 3,329,289 carats sold at an average value of $68 per carat (US$51 per carat) for total proceeds of $227.0 million (US$171.3 million) in FY 2020.

Sentiment in the rough diamond market continues to be buoyant. Strong diamond jewellery sales during the holidays and lower rough diamond supply volumes from the major producers are expected to maintain this positive momentum through to the Company's upcoming January sale.

Medium to longer-term, the Company's outlook for rough diamonds remains positive. Retail diamond jewellery sales in the important US market confirm a growing preference for smaller, lower priced diamonds which align well with the diamond profile of the Gahcho Kué Mine.  

The closure of the Argyle diamond mine combined with reduced global rough diamond production is expected to further support prices as demand to replenish inventories of these diamond categories continues.