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Mountain Province Back in the Black

Nov 10, 2021 10:36 AM   By Rapaport News
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Mountain Province saw a jump in sales and a return to profit as the rough market rebounded from last year’s pandemic-induced slump.

Revenue leaped 99% year on year to CAD 94.2 million ($75.8 million) in the third quarter ending September 30, the miner reported Tuesday. Net profit came to CAD 8.8 million ($7 million), compared with a loss of CAD 6.5 million ($5.3 million) a year earlier.

Rough prices increased strongly across all size categories, according to the company, which owns 49% of the Gahcho Kué mine in Canada in a joint venture with De Beers. On a like-for-like basis, Mountain Province is now achieving prices 47% above February 2020 levels, it said.

Figures also benefited from a favorable comparison with the same quarter of 2020, when the “lingering effects of Covid‐19” put pressure on the diamond industry, Mountain Province explained. The company held only one sale in Antwerp in that period, versus two in the same quarter of 2021.

“As global economies continue to recover and the Covid-19 pandemic becomes less restrictive, consumer confidence heading into the important holiday retail buying season is expected to strengthen, further supporting price growth in the diamond industry,” the miner said. “Additionally, supply-demand dynamics are expected to favor the company as volumes sold by industry majors remain at multiyear lows.”

On Tuesday, Mountain Province also announced the appointment of Mark Wall as CEO. He will take over on November 15.

Image: The Gahcho Kué mine. (Mountain Province)
Tags: Canada, Gahcho Kué, mining, mountain province, Rapaport News
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