https://www.miningweekly.com

Mountain Province declares maiden dividend

10th August 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

The strong performance of the Gahcho Kué diamond mine – a joint venture between De Beers Canada and Mountain Province – is benefitting the junior company’s shareholders, who will receive their first dividend from the diamond miner.

The board of Mountain Province, which maintains listings on the TSX and Nasdaq, announced this week that shareholders would be paid a 4c-a-share dividend next month.

“The continued good performance of the mine and the cash reserves the company has generated, we have decided to declare a dividend,” said president and CEO Stuart Brown.

“The company's policy is to manage down the debt levels and to pay reasonable dividends based on available cashflows.  The level of future dividends may go up or down dependent on these cashflows which are strongly linked to realised diamond prices, as well as the covenants relating to dividend declarations under the revolving credit facility and the secured notes payable conditions," he commented.

At the end of the second quarter, Mountain Province had a cash position of C$33.5-million and net working capital of C$100.4-million, with the C$50-million revolving credit facility remaining undrawn. On June 30, the miner’s debt balance was C$433.4-million and subsequent to the quarter, C$4.02-million of debt was repaid.

Earnings from mine operations for the three- and six-months ended June 30 amounted to C$18.5-million and C$43-million, respectively. The company reported a net loss of $6.3-million for the quarter, and $6.2-million for the half year. Included in the determination of the net loss are unrealised foreign exchange losses on the translation of the company’s US-dollar denominated long-term debt.

Adjusted earnings before interest, tax, depreciation and amortisation amounted to C$40.7-million and $73.3-million for the quarter and half year, respectively.

For the six months, Gahcho Kué (on a 100% basis) treated 1.68-million tonnes of ore and recovered 3.57-million carats, for an average recovered grade of 2.12 c/t.

Edited by Creamer Media Reporter

Comments

Latest News

Ironveld smelter
Ironveld ramp-up slower than expected
28th March 2024 By: Darren Parker

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.123 0.157s - 107pq - 2rq
Subscribe Now