Mountain Province Diamonds Inc - President and CEO, Stuart Brown
President and CEO, Stuart Brown
Source: The Diamond Loupe
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  • Mountain Province Diamonds Inc (TSX:MPVD) has reported consistent first quarter financials but is readdressing its 2020 outlook, amid disruptions caused by the COVID-19 pandemic
  • The company generated around C$65.4 million in diamond sales during its first quarter, over five million more than in 2019
  • However, since global lockdown measures recently came into effect, the company has been unable to sell diamonds in Antwerp
  • Furthermore, while the company’s Gahcho Kué diamond mine remains operational, staffing disruptions have impacted the site’s activities
  • Mountain Province Diamonds Inc (MPVD) is up 5.75 per cent, with shares trading at $0.46 and a market cap of $96.78 million

Mountain Province Diamonds Inc (TSX:MPVD) has reported consistent first quarter financials but is anticipating upcoming operational disruptions from COVID-19.

The company, in a joint partnership with De Beers Canada, operates the Gahcho Kué diamond mine located in Canada’s Northwest Territories. During 2020’s first quarter the company mined approximately 9.4 million tonnes of ore, which was within two per cent of 2019’s comparative figures.

Diamond sales in Antwerp were similarly positive. The company generated around C$65.4 million, over five million more than in 2019. This was, in part, due to an improved price per carat in 2020.

However, since the first quarter ended, global pandemic shutdown measures have forced the company to stop selling diamonds in Antwerp until further notice. As a result, the company is readdressing its outlook for the year and halting all non-core projects until the pandemic abates.

On the production side, the Gahcho Kué diamond mine remains operational. However, activities at the site have been hindered by reductions in staff, after the company sent home any high-risk employees or contractors.

Despite the consistent first quarter results, Stuart Brown, President and CEO of Mountain Province, believes the company’s future operations still remain uncertain.

“Our Q1 2020 production figures were in line with expectations and slightly improved compared to the equivalent period last year. Looking ahead however, and as a result of the COVID-19 pandemic, our full year 2020 production guidance will be revised.

“We are currently working through various planning scenarios to fully assess the impact on production and will communicate this to the market when we have more clarity and certainty on what the future may look like,” he said.

Mountain Province Diamonds Inc (MPVD) is up 5.75 per cent, with shares trading for $0.46 at 11:35am EST.

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