Mountain Province Diamonds Announces Full Year and Fourth Quarter 2021 Results, Impairment Reversal of $240.6 Million

TORONTO and NEW YORK, March 28, 2022

TORONTO and NEW YORK, March 28, 2022 /PRNewswire/ -- Mountain Province Diamonds Inc. ("Mountain Province", or the "Company") (TSX: MPVD) (OTCQX: MPVD) today announces its financial and operating results for the fourth quarter ("the Quarter" or "Q4 2021") and the full year ended December 31, 2021 ("FY 2021"). The Company also announces that it has recorded an impairment reversal of $240.6 million to the carrying value of the Gahcho Kué Mine's property, plant and equipment, attributable to changes in market sentiment and diamond prices.

All figures are expressed in Canadian dollars unless otherwise noted and are unaudited.

FY 2021 Highlights

• Adjusted EBITDA² of $135.3 million up 163% (2020: $51.5 million).
• Total sales revenue at $298.3 million (US$237 million) compared to $227 million in 2020 (US$171 million) at an average realized value of $94 per carat (US$75) 2020: $68 per carat, (US$51).

Operational Highlights for Q4 and FY 2021
(all figures reported on a 100% basis unless otherwise stated)

• 10,812,723 total tonnes mined during the quarter, a 10% increase on the comparable period (Q4 2020: 9,796,823). 35,447,014 total tonnes mined during FY 2021, a 1% decrease from the comparable period (FY 2020: 35,870,474).
• 1,019,671 ore tonnes mined during the quarter, a 21% increase on the comparable period (Q4 2020: 840,261). 3,561,417 ore tonnes mined during FY 2021, an 8% increase from the comparable period (FY 2020: 3,286,843).
• 813,308 ore tonnes treated during the quarter, a 10% increase on the comparable period (Q4 2020: 736,138). 3,082,572 ore tonnes treated during FY 2021, a 5% decrease from the comparable period (FY 2020: 3,245,941).
• 1,511,253 carats recovered during the quarter at an average grade of 1.86 carats per tonne, 1% lower than the comparable quarter (Q4 2020: 1,521,617 carats at 2.07 carats per tonne). 6,229,042 carats recovered during FY 2021 at an average grade of 2.02 carats per tonne, 4% lower than the comparable period (FY 2020: 6,518,261 at 2.01 carats per tonne).

Q4 and FY 2021 Production Statistics

	2021 Q4 ARIVA.DE Börsen-Geflüster Kurse Mountain Province Diamonds 0,12693 $ +1,54%	2020 Q4	YoY Variance	FY 2021	FY 2020	YoY Variance
Total tonnes mined (ore and waste)	10,812,723	9,796,823	10%	35,447,014	35,870,474	-1%
Ore tonnes mined	1,019,671	840,261	21%	3,561,417	3,286,843	8%
Ore tonnes treated	813,308	736,138	10%	3,082,572	3,245,941	-5%
Carats recovered	1,511,253	1,521,617	-1%	6,229,042	6,518,261	-4%
Carats recovered (49% share)	740,514	745,592	-1%	3,052,231	3,193.948	-4%

Financial Highlights for Q4 2021

• 809,000 carats sold (Q4 2020: 957,000), with total proceeds of $85.1 million (US$67.6 million) compared to $80.2 million in Q4 2020, (US$61.7 million) at an average realised value of $105 per carat (US$84), Q4 2020: $84 per carat, (US$65).
• Adjusted EBITDA¹ of $37.1 million.
• Earnings from mine operations of $31.7 million.
• 813,308 ore tonnes treated and 1,511,253 carats recovered on a 100% basis for an average recovered grade of approximately 1.86 carats per tonne.
• Cash costs of $111 per tonne treated and $60 per carat recovered, include capitalized stripping costs¹.
• Impairment reversal of $240.6 million to the carrying value of the Gahcho Kué Mine's property, plant and equipment, attributable to changes in market sentiment and diamond prices.
• Net income of $237.6 million or $1.13 earnings per share.  Included in the determination of net income for the three months ended December 31, 2021 is an impairment reversal on property, plant and equipment of $240.6 million and unrealized foreign exchange gains of $1.9 million, on the translation of the Company's USD-denominated long-term debt. The unrealized foreign exchange gains are a result of the relative strengthening of the Canadian dollar versus the US dollar.

Financial Highlights for Full Year 2021

• Total sales revenue at $298.3 million (US$237 million) compared to $227 million in 2020 (US$171 million) at an average realized value of $94 per carat (US$75) 2020: $68 per carat, (US$51). The sales revenue for 2021 does not include the upside revenue of $10.4 million from the Dunebridge Agreement.
• Adjusted EBITDA² of $135.3 million up 163% (2020: $51.5 million).
• Earnings from mine operations of $113.7 million (2020: loss from mine operations $1.5 million).
• No repurchases of outstanding secured notes payable in 2021 and 2020.
• Cash costs of production, including capitalized stripping costs^2,3 of $110 per tonne treated (2020: $103 per tonne) and $55 per carat recovered (2020: $51 per carat). 
• Net income of $276.2 million or $1.31 earnings per share (2020: net loss $263.4 million or $1.25 loss per share). Included in the determination of net income is an impairment reversal on property, plant and equipment of $240.6 million (2020: impairment loss of $217.4 million) offset by an unrealized foreign exchange gain of $2.3 million (2020: $12.3 million) on the translation of the Company's USD-denominated long-term debt. The unrealized foreign exchange gain is a result of the strengthening of the Canadian dollar versus US dollar.
• Capital expenditures were $43.8 million, $29.3 million of which were deferred stripping costs, with the remaining $14.5 million accounting for sustaining capital expenditures related to mine operations.

Market Highlights for Q4 and Full Year 2021

In Q4 2021, 808,750 carats were sold at an average value of $105 per carat (US$84 per carat) for total proceeds of $85.1 million (US$67.6 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, 3,158,429 carats were sold at an average value of $94 per carat (US$75 per carat) for total proceeds of $298.3 million (US$237 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 million (US$171 million) in FY 2020. 

Recovery in rough diamond prices was evident from late 2020 with Mountain Province's final sales of 2020 registering prices close to pre-pandemic levels. This price growth continued through 2021 with the Company's indicative market price index increasing 37% year on year average, or 62% from January through December 2021. Price recovery began in larger, higher quality diamonds and accelerated through all product ranges, and by year end all segments had recovered their price decline of the last two years.

Upstream stock levels are now believed to reflect operating inventories only. This supply scarcity combined with forecast higher demand for diamond jewellery support the continued stability or further growth in rough diamond prices.

Revised Operating and Cost Guidance for 2022 (all figures quoted on a 100% basis)

Due to the rapid rise in fuel costs because of the global oil price shock during the supply period, noting that the Gahcho Kué mine procures all of its diesel in the first quarter during the ice-road supply season, a significant, once-off and unbudgeted diesel price increase was experienced.  Additional issues related to the previously announced COVID-19 (Omicron) outbreak at site and the failure of the pitman bearing in the primary crusher, together have impacted annual production and costs. More than 95% of the diesel for the year has been purchased, the site is free of any COVID-19 cases, and the crusher has been repaired and is operating at full capacity.  These issues, although now managed, have had an impact on annual production and cost targets for the 2022 operating year. The Company expects:

• 35 – 40 million total tonnes mined (ore and waste)
• 3.75 – 4.30 million ore tonnes mined
• 3.35 – 3.60 million ore tonnes treated
• 6.2 – 6.4 million carats recovered
• Production costs of $131 - $137 per tonne treated
• Production costs of $71 – $76 per carat recovered
• Sustaining Capital Expenditure of $11 million

In a positive development for the mine, although a short-term constraint, during mining in the opening months of 2022, additional unmodeled resource has been encountered, carrying a lower grade than planned mining areas. This incremental, previously unmodeled kimberlite will be incorporated into stockpile strategy throughout 2022, with the net effect of lower processed grade, but a net increase in Life-of-Mine ore tonnes. It is seen as a positive by Mountain Province that more diamond bearing ore is being mined that existed in the mine plan. 

Mountain Province Diamonds President and CEO Mark Wall commented:

"While the beginning of last year was a challenging time for the Company, we ended 2021 strong with excellent sales results, record free cash flow and a $240.6M impairment reversal. Our recently announced US$50 million junior ranking finance package, combined with expected cash flow from production and an encouraging supply and demand dynamic are positioning us well to resolve the debt from our 2^nd Lien bonds coming due at the end of the year.

We now have a clear Business Strategy in place, excellent cash-flows, a clear vision to manage our debt, as well as an updated NI 43-101 Technical Report on Gahcho Kué that we released yesterday that generates a pre-tax NPV of $1,233M attributable to Mountain Province.  That together with our initial results from our recently initiated Kennady North drill program with our first hole returning kimberlite intercepts at the South Anomaly which is incredibly encouraging, I believe that Mountain Province is position for an exciting future."

Gahcho Kué Mine Operations

The following table summarizes the key operating statistics for Q4 2021 and FY 2021, and the previous year, at the Gahcho Kué Mine.  

		Three months ended		Three months ended		Year ended		Year ended
		December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
GK operating data
Mining
*Ore tonnes mined	kilo tonnes	1,019		840		3,561		3,287
*Waste tonnes mined	kilo tonnes	9,794		8,956		31,886		32,583
*Total tonnes mined	kilo tonnes	10,813		9,796		35,447		35,870
*Ore in stockpile	kilo tonnes	748 Werbung Mehr Nachrichten zur Mountain Province Diamonds Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:33 - PR Newswire Norges Bank - Form 8.3 - BHP Group Limited 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - TClarke Plc 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Accrol Group Holdings plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59