Canadian miner Mountain Province, which owns the Gahcho Kué diamond mine in a joint venture with De Beers, is set to enter 2022 on a strong footing, with the mine having returned to peak efficiency levels and the diamond market exceeding preCovid levels.

The company is achieving sales prices 47% above its preCovid benchmark of February 2020, chairperson and interim CEO Jonathan Comerford reported on Tuesday.

The company sold 1.03-million carats for total proceeds of $93.9-million, resulting in an average value of $91/ct. This compares with gross proceeds of $74.1-million or an average value of $72/ct in the third quarter of 2020. Third quarter revenue of 2021 represents the second highest quarterly revenue in the company's history.

Adjusted earnings before interest, tax, depreciation and amortisation of $41.2 million is also the firm's second highest-quarterly performance.  The diamond producer posted

“We believe that Mountain Province is exiting a challenging time for the diamond industry as a whole. With the Covid-19 overhang on the industry slowly fading, supply and demand dynamics are expected to continue to tilt in our favour,” said Comerford.

He also commented that with newly announced CEO, Mark Wall at the helm, the company would be able to take full advantage of the strong rebound in the diamond market.

“Our Gahcho Kué is in a great position to fill the gap that the Argyle mine closure has left,” Comerford said, referring to the closure of Rio Tinto’s mine in Australia in late 2020.

NEW CEO
Wall will take over as president, CEO and director with effect from November 15. He is succeeding Stuart Brown, whose resignation was announced early last month.

Wall, who has more 25 years of experience in the mining industry, most recently served as CEO of Streamers Gold Mining, a subsidiary of Hong Kong-listed Shandong Gold Mining. Wall was previously the chief commercial officer and then COO for TSX-listed Nevada Copper, and prior to that, the senior VP and operations officer for Barrick Gold.

“Mark brings both senior executive and strong operational experience to the company as well as a deep focus on sustainability and the environment. His experience in large joint ventures and business development will be critical in engaging with our joint venture partner on operational performance and near-mine exploration, as well as focusing on the large and highly prospective exploration tenements that surround the Gahcho Kué mine, which are 100% owned by Mountain Province Diamonds,” said Comerford.

Wall will be based in Calgary, Canada, which is also the location of the De Beers Canada office and within close reach to the Gahcho Kué mine site and Kennady exploration areas.