Mountain Province Diamonds Inc. (TSX: MPVD) (OTCQX: MPVD) today announces the results of its second quarter diamond sales and the company’s upside share of profits from the diamond sales agreement with Dunebridge dated June 11, 2020. All figures are expressed in Canadian dollars unless otherwise noted.

The company is pleased to report the completion of its sales for the quarter, with 718,549 carats sold for total proceeds of $64.5 million (US$52.6 million), resulting in an average value of $90 per carat (US$73 per carat). This Q2/21 sales result represents a three per cent increase in US$ terms relative to the 603,000 carats sold for C$ 54.2 million (US$42.7 million) in Q1/21 at (US$71 per carat). The mix of diamonds sold varied across the quarters and on a direct comparison basis, second quarter market prices are approximately 18% higher than those achieved in the first quarter.

Demand in the rough diamond market is robust, supported by polished diamond price increases and buoyant jewelry retail sales in the US and China. At our most recent sale held over the past two weeks in Antwerp, Belgium, the company saw high demand and increased customer interest across all rough diamond categories.

In addition to the company’s sales, in Q2/21 Dunebridge also completed the sale of all diamonds purchased from the company in 2020 (see news release dated June 11, 2020 for details on the agreement). After fees and expenses the company received C$10.4 million (C$7/carat) this week being its total share of the value uplift. The company believes this further confirms the growing demand and pricing trends in the natural rough diamond market.

The improved cash in-flow from Dunebridge has resulted in the company reducing the planned US$10M draw on the final tranche of the Dunebridge term facility (see news release dated May 12, 2021), down to US$8M. The lower draw on the second tranche will result in lower fees as well as a lower interest expense.

“This is an excellent result for the company. Producers are reporting strong demand and higher diamond prices at their sales which we have also seen with our latest offering. This is additionally supported by the results from the Dunebridge sales,” said Mountain Province president and CEO, Stuart Brown. “We remain optimistic that as the global economy continues to recover that the current positive pricing and demand momentum throughout the diamond industry will continue and translate into improved margins for the company.”

Source: Mountain Province Diamonds