Mountain Province Diamonds Inc. · OTC:MPVDF
Mountain Province Diamonds — Investor Presentation (2016)
30 slides from Mountain Province Diamonds's investor presentation, Aug 8, 2016
Slide 1: Mountain Province Diamonds Corporate Presentation
Mountain Province DIAMONDS CORPORATE PRESENTATION TSX: MPV NASDAQ: MDM
Slide 2: Forward Looking Statements
Forward Looking Statements Q3 2016
Slide 3: Mountain Province - Best in Class
Mountain Province - Best in Class • World’s largest and richest new diamond mine • Partnered with De Beers • Best in class - projected highest margin new diamond mine • Construction and commissioning complete • Commercial production on track for Q1 2017 • Vision: To be a Tier 1 asset: +20 year LOM,
Slide 4: Capital Structure
Capital Structure • Markets: TSX: MPV NASDAQ: MDM • Market cap: ~C$1 Billion • Shares outstanding: 159.7M • Fully diluted: 162.6M • Cash: +C$80M Q3 2016
Slide 5: Gahcho Kué Mine
Gahcho Kué Mine Mountain Province 03 2016 DIAMONDS
Slide 6: Projected Highest Margin Mine
Projected Highest Margin Mine 80% Operating Margin *Macquarie Research March 2016 Q3 2016
Slide 7: Joint Venture with De Beers
Joint Venture with De Beers • MPV 49% / De Beers 51% • JV Board - 2 representatives each • All material decisions by consensus • Effectively 50/50 JV • Each market own share of diamonds • De Beers Operator: performance obligations Q3 2016
Slide 8: Gahcho Kué Kimberlite Cluster
Gahcho Kué Kimberlite Cluster 61M carat open-pit resource to +350 meters (MPV attributable 30M carats) Q3 2016
Slide 9: Reserve Statement
Reserve Statement Pipe Category Tonnes (Mt) Grade (cpt) Carats (Mct) 5034 Probable 13.4 1.74 23.2 Tuzo Probable 16.4 1.25 20.6 Hearne Probable 5.6 2.07 11.7 Total Probable 35.4 1.57 55.5 Source: JDS Mining, March 2014 (100% basis) Q3 2016
Slide 10: Independent Diamond Valuations
Independent Diamond Valuations Pipe Actual* Model* Model Esc** 5034 169 138 167.35 Tuzo 311 101 144.36 Hearne 92 107 123.19 Total $182 $123 $150 *WWW, August 2014. Actual = spot including all stones. Modeled assumes no stones over 6 carats **Model price escalated by real 1.5% over 12 year life of mi
Slide 11: 2014 Feasibility Study
2014 Feasibility Study Revenue US$150 per carat Capital (Jan 14) (49%) US$346M Contingency US$33M Working capital US$36M Operating costs US$65/tonne LOM 12 years LOM production 53.4 million carats MPV 49% share 26 million carats IRR 32.6% Source: JDS Mining/Hatch, March 2014 Q3 2016
Slide 12: Capital Program
Capital Program Capex/Opex MPV 49% (C$) 2015 $154M 2016 $150M Construction capital $304M Commissioning Opex $42M Working capital $12M Management fee $11M Total Capex/Opex $368M Core debt facility $346M Reserve draw $22M Total funding $368M Reserve balance $75M Q3 2016
Slide 13: Gahcho Kué Diamonds
Gahcho Kué Diamon OIE C8 O1 Mountain Province DIAMONDS Q3 2016
Slide 14: Gahcho Kué Diamonds
Gahcho Kué Diamonds Special stones recovered on July 29 and August 1 2016 Q3 2016
Slide 15: Diamond Price Gearing
Diamond Price Gearing NPV US$ Value (US$) IRR (49%) $150/carat 32.6% $540M $175/carat 43% $900M $200/carat 62.5% $1.67M Current market cap ~US$750M Q3 2016
Slide 16: Projected Production
Projected Production 2016 ramp up and first 5 years* commercial production (2017 – 2021) 2016 2017 2018 2019 2020 2021 Tonnes 500 3,000 3,000 3,000 3,000 3,000 ‘000 Grade 1.6 1.75 1.88 1.99 1.46 1.85 (c/t) Total 800 5,250 5,640 5,970 4,380 5,550 Cts‘000 MPV 400 2,572 2,764 2,925 2,146 2,720 cts‘000
Slide 17: Potential Cash Flow (US$)
Potential Cash Flow (US$) Revenue ~ $160 per carat Cost ~ $35 per carat Margin ~ $125 per carat Production (2017-21) ~ 5.4M carats/year Cash Flow 100% ~ $675M/year MPV 49% ~ $330M/year MPV per share ~$2.00 Q3 2016
Slide 18: Free Cash Flow
Free Cash Flow Figure 6: Free Cash Flow Yield Of Diamond Producers vs Other Precious Metals Companies 14.0% 9 wom | S2014A seine ‘OM m2015E 10.0% | m2016E 8.0% | 2017E 6.0% + 4.0% - 2.0% + 0.0% + -2.0% + 4.0% + 6.0% Gold Producers Silver Producers Royalty Co Base Metals 1 Diamond Producers, *Consens
Slide 19: Phase 2 Inferred Resources
Phase 2 Inferred Resources Pipe Category Tonnes (Mt) Grade (cpt) Carats (Mct) 5034 Inferred 0.9 1.51 1.4 Tuzo Inferred 8.9 1.62 14.6 Hearne Inferred 1.4 1.67 2.4 Total Inferred 11.3 1.64 18.4 • Further indicated resource of 1.1M carats • Indicated & inferred – 19.5M carats • Mine life potential from
Slide 20: Phase 3: Tuzo Deep
Phase 3: Tuzo Deep Tuzo Deep Potential • ~7M tonnes • ~14M carats • Mine Potential: 17-20 years Q3 2016
Slide 21: Phase 3 Mine Potential
Phase 3 Mine Potential Q3 2016
Slide 22: Phase 4: Tesla & 5034/Hearne Deep
Phase 4: Tesla & 5034/Hearne Deep Mine life potential: + 20 years Q3 2016
Slide 23: Path to Tier 1 Asset
Path to Tier 1 Asset Phase Carats LOM Value Est.* Phase 1: Reserve 55M 12 years $9.4B Phase 2: Resource 18.4M 5 years $3.2B Phase 3: Tuzo Deep ~12M ~3 years ~$2B Phase 4: Tesla & Other Tbd** Tbd Tbd Phase 5: New Targets Tbd Tbd Tbd *Based on spot price assumption of ~US$172 per carat **To be determi
Slide 24: Rough Diamond Price Index
Rough Diamond Price Index Q3 2016
Slide 25: CAD/USD
CAD/USD Feasibility assumption US$0.91 CAN$ down ~ 14% against Feasibility Assumption Q3 2016
Slide 26: Falling Diamond Supply
Falling Diamond Supply Q3 2016
Slide 27: New Diamond Mines
New Diamond Mines Source: Rio Tinto Q3 2016
Slide 28: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Q3 2016
Slide 29: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Q3 2016
Slide 30: Corporate Information
Corporate Information Head Office 161 Bay Street Suite 2315 Toronto, ON M5J 2S1 Canada Tel. ++1-416-361-3562 Fax. ++1-416-603-8565 www.mountainprovince.com info@mountainprovince.com TSX: MPV NASDAQ: MDM Q3 2016
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