Mountain Province’s sales fell in the second quarter as prices for its rough nearly halved due to the sale of lower-quality stones and weak demand.
Sales slipped 36% year on year to CAD 36.8 million ($26.6 million) for the period that ended June 30, the Canada-based miner said last week. The decline came amid a 26% decrease in sales volume to 411,114 carats and a 48% drop in the average price to CAD 90 ($65) per carat.
During the three months, Mountain Province processed only stockpiled ore, as it transitioned to mining from the NEX orebody. The grade of the stockpiled ore was 41% below that of the material it processed during the same period a year ago.
Output for the period slipped 46% to 708,072 carats, with the company reducing the amount of ore it processed at the Gahcho Kué mine by 86%. Mountain Province’s 49% share of production was 346,955 carats. De Beers owns the remaining 51% of the joint venture.
“In May, we mined a small amount of ore from the NEX orebody and additional tonnes in June,” said Mountain Province CEO Mark Wall. “This is the transitional material at the very top of the NEX orebody. This transitional material delivered a much-improved grade compared to the stockpile material, although the grade in this area was lower than anticipated. We are mining through the transitional zone and expect the grade to further improve as we progress.”
Mountain Province will report its full second-quarter results on August 12, it added.
Image: Trucks hauling ore at the Gahcho Kué mine. (Mountain Province)