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Gahcho Kué Prices Lower than Expected
Apr 26, 2017 7:30 AM
By Rapaport News
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RAPAPORT... Mountain Province’s share of production from the new Gahcho
Kué diamond mine in Canada amounted to 424,830 carats in the first quarter,
though the company reported lower sale prices than anticipated.
The Toronto-based miner held three sales of pre-commercial
production during the quarter, it said Tuesday. Those rough diamonds came mainly from the upper
levels of the 5034 kimberlite’s northeast lobe, which has lower-quality
diamonds than that kimberlite’s average. As a result, average prices failed to
meet expectations, the company explained.
However, the miner predicted prices would rise as market conditions
improved and production shifted to the higher-value center lobe. The company
will release sales figures for the first quarter on May 11.
“The unexpected headwinds from demonetization in India
compounded customary weakness during the price-discovery period,” said Mountain
Province CEO Patrick Evans, referring to the Indian government’s decision in
November to invalidate 86% of currency notes. The move sapped liquidity from
large swathes of the diamond-manufacturing sector.
Gahcho Kué — in which Mountain Province has a 49% stake — reached
commercial production on March 1. The company expects the mine to yield 4.4
million carats of rough diamonds this year, including those attributed to
co-owner De Beers.
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Tags:
Canada, De Beers, Gahcho Kué, mining, mountain province, Patrick Evans, prices, Rapaport News
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