Gahcho Kué rebounds from difficult start to year
The Gahcho Kué diamond mine, 280 km northeast of Yellowknife in the Northwest Territories, has rebounded well from a difficult start to the year, with production on track to meet its guidance for the year, reports Mountain Province Diamonds CEO Stuart Brown.
The mine, which is owned in a joint venture with De Beers, was shut down for 21 days earlier this year because of Covid-19.
Mountain Province reported a 14% increase in production to 1.76-million carats recovered at a grade of 218 ct/t in the second quarter. This compares with 1.55-million carats at 1.97 ct/t in the second quarter of 2020.
Total tonnes mined increased by 28% year-on-year to 8.75-million tonnes.
Mountain Province generated revenue of C$64.7-million from the sale of 719 000 ct at C$90/ct, compared with C$34-million from 757 000 ct sold in the second quarter of last year at C$45/ct.
Net income for the June quarter was C$22.5-million, or C$0.11 a share, compared with a net loss of C$26.88-million, or a $0.13 loss a share, a year earlier.
“The return to expected levels of production, combined with the strong market recovery we've seen in the first half of the year bodes well for our revenue and cash generation into the second half of the year. Our primary aims will now shift to finalising the new life-of-mine plan and our debt management, where we will focus on repaying the short-term debt and begin to plan for refinancing the long-term debt,” said CEO Stuart Brown.
Commenting on the rough diamond market, he said the company was seeing strong participation at its sales, which was helping to drive increases in diamond prices across the size spectrum.
“We expect this strong market environment to persist as the world continues emerging from the effects of the Covid-19 pandemic, and consumer spending at the retail level returns to pre-pandemic levels. Encouragingly, some advanced economies appear to be exceeding pre-pandemic levels."
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