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Mountain Province Lowers 2022 Production Forecast

Jul 12, 2022 7:44 AM   By Rapaport News
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Mountain Province has reduced its output guidance for the Gahcho Kué mine in Canada amid a Covid-19 outbreak at the site and other challenges.

The miner now expects to produce between 5.6 million and 5.8 million carats of rough in 2022, compared with its previous forecast of 6.2 million to 6.4 million carats, it said Tuesday. A reduction in the availability of the processing plant as well as a higher-than-planned amount of waste material in the ore stream also dented output, the company explained. Mountain Province owns 49% of Gahcho Kué, with De Beers holding the remaining 51%.

Total production from the deposit slid 29% year on year to 1.3 million carats in the second quarter. However, the figure was up 6% from the first quarter.

“Production during the quarter improved from the first quarter and reached our daily targets over the past month,” said Mountain Province CEO Mark Wall. “The action plan that has been developed to drive operational improvements is working. However, efforts to recover from the lower production throughout the first quarter were slower than anticipated.”

Sales jumped 44% year on year to $76 million for the three months ending June 30, as the average price surged 78% to $130 per carat. The sales figure marked the company’s second-highest quarterly revenue ever, it noted. Sales were up 14% compared to the previous quarter, while volume rose 16% to 586,763 carats.

“The rough-diamond market continues to experience strong demand supported by solid US retail results,” the company explained. “Further support to the market is anticipated from jewelry retail in China as Covid-19 restrictions ease in that country.”

Image: The Gahcho Kué mine. (Mountain Province)
Tags: COVID-19, De Beers, diamonds, Gahcho Kué, Gahcho Kué mine, Jewelry, Mark Wall, mountain province, Rapaport News, Rough Diamonds
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