Mountain Province Diamonds Inc. · OTC:MPVDF
Mountain Province Diamonds — Q1 2017 Earnings Presentation
11 slides from Mountain Province Diamonds's earnings presentation, May 10, 2017
Slide 1: 2017 First Quarter Results
2017 First Quarter Results TSX & NASDAQ: MPVD
Slide 2: Forward Looking Statements
Forward Looking Statements Caution Regarding Forward Looking Information Cautionary Statement: This news release contains forward-looking statements under applicable Canadian and US securities regulations and legislation in which Mountain Province discusses its potential future performance. Forward-
Slide 3: 2017 Q1 Operations Results
2017 Q1 Operations Results Mining Mining in the 5034 open pit of 7.7M tonnes with 222,600 tonnes stockpiled at quarter end Processing 492,000 tonnes processed and 867,000 carats recovered for grade of 1.76 carats per tonne Performance Commercial production declared on March 1, 2017 Target for full p
Slide 4: Gahcho Kué Mine
Gahcho Kué Mine 2017 Q1 Results 4
Slide 5: Diamond Sales
Diamond Sales • Diamonds sold since start of production: 523,000 cts • Sales proceeds: US$40.4M • Average price: US$77 per carat • May 2017 sale: 148,000 cts @US$86 per carat • Gem/near-gem: 96% of sales proceeds @US$118/ct • Industrial: 4% of sales @US$7/ct • Diamond inventory: Zero • Sales proceed
Slide 6: Diamond Sorting
Diamond Sorting 2017 Q1 Results 6
Slide 7: Tender Sales
Tender Sales • 10 open tender sales per year through Bonas in Antwerp • Strategy: Sell 100% of production at highest price on the day • Progress through price discovery period: Jan $67/ct, Feb $71/ct, March $76/ct, May $86/ct • Bids per parcel (115 parcels/sale) increased from 8.4 in Jan to 11.4 in
Slide 8: Sales Headwinds
Sales Headwinds Price discovery Takes approx. 6 months for first production to be sold into polished market. Conservative bidding through price discovery Indian demonetization Largest bank notes cancelled in Nov 2016 causing liquidity squeeze in Indian diamond trade. Effects felt through Q1 sales Se
Slide 9: Balance Sheet
Balance Sheet Project facility US$357M drawn from US$370M debt facility. US$13M balance to fund June and September interest payments. Target for financial completion: September 2017 Cash End March 2017 C$77.5M, including C$65M cash in cost overrun account Reserve account funding schedule March 31 US
Slide 10: Summary
Summary • 2017 attributable production: 2.2M carats • Projected price: US$70 to US$90 per carat • Sales proceeds: US$154M to US$198M • Attributable operating cost approx. US$90M • G&A and marketing costs approx. US$10M • 2017 principle debt repayment: US$24.8M • C$65M cash in treasury in cost overru
Slide 11: Corporate Information
Corporate Information Head Office 161 Bay Street Suite 1410 Toronto, ON M5J 2S1 Canada Tel. ++1-416-361-3562 www.mountainprovince.com info@mountainprovince.com TSX & NASDAQ: MPVD 2017 Q1 Results 11
Mountain Province Diamonds — Q1 2017 Earnings Presentation on 6ix