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Mountain Province Rough Output Drops

Jan 16, 2022 7:32 AM   By Rapaport News
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Production at the Gahcho Kué mine in Canada missed expectations in 2021, falling 4% for the year, according to part owner Mountain Province.

Output came to 6.2 million carats for the 12 months, just below the miner’s guidance of 6.3 million to 6.5 million carats, it said Thursday. The figures encompass all production at the mine, include the 51% share belonging to De Beers. Mountain Province owns the remaining 49%.

Mountain Province’s full-year sales jumped 38% to $236.9 million. Sales volume dropped 5% to 3.2 million carats, while the average price surged 47% to $75 per carat.

“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,” said Mark Wall, who took over as Mountain Province’s CEO in November.

Sentiment in the rough market is “buoyant,” the company noted. “Strong diamond-jewelry 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,” it added.

Good retail demand for smaller, lower-priced diamonds aligns well with Gahcho Kué’s production range, the miner explained.

Image: Trucks at the Gahcho Kué mine. (Mountain Province)
Tags: Canada, Gahcho Kué, Mark Wall, mining, mountain province, Production, Rapaport News, rough, Rough Diamonds
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