Mountain Province Diamonds Inc. · OTC:MPVDF
Mountain Province Diamonds — Investor Presentation (2016)
31 slides from Mountain Province Diamonds's investor presentation, Jun 13, 2016
Slide 1: Corporate Presentation
Mountain Province DIAMONDS CORPORATE PRESENTATION TSX: MPV NASDAQ: MDM
Slide 2: 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 diamond mine in production • Project +85 percent complete • Fully funded to production • Additional $90M cash in cost-overrun account • Vision: To be
Slide 3: Capital Structure
Capital Structure • Markets: TSX: MPV, NASDAQ: MDM • Market cap: ~$800M • Shares outstanding: 159.7M • Fully diluted: 161.9M • Cash: +$90M Q1 2016
Slide 4: 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 Q1 2016
Slide 5: Projected Highest Margin Mine
Projected Highest Margin Mine 80% Operating Margin Red Dog Zinc 72% Escondida Copper 66% Freeport ‘s Grasberg 54% *Macquarie Research June 2015 Q1 2016
Slide 6: Gahcho Kué Kimberlite Cluster
Gahcho Kué Kimberlite Cluster 61M carat open-pit resource to +350 meters (MPV attributable 30M carats) Q1 2016
Slide 7: 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) Q1 2016
Slide 8: Independent Diamond Valuations
Independent Diamond Valuations Pipe Actual* Model** Model Esc*** 5034 169 138.19 167.35 Tuzo 311 101.00 144.36 Hearne 92 107.00 123.19 Total $182 $118.38 $149.66 *WWW International Diamonds Consultants, August 2014 **WWW, February 2014 ***Model price escalated by real 1.5% over life of mine (12 year
Slide 9: 2014 Feasibility Update
2014 Feasibility Update 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 Q1 2016
Slide 10: Gahcho Kué Diamonds
Gahcho Kué Diamond Mountain Province an 2078 DIAMONDS
Slide 11: Diamond Price Gearing
Diamond Price Gearing NPV Value IRR (49%) $150/carat 32.6% $540M $175/carat 43% $900M $200/carat 62.5% $1.67M Current market cap ~US$580M Q1 2016
Slide 12: Sensitivity Analysis
Sensitivity Analysis Q1 2016
Slide 13: Potential Cash Flow (US$)
Potential Cash Flow (US$) Revenue ~ $175 per carat Cost ~ $35 per carat Margin ~ $140 per carat Production ~ 4.5M carats/year Cash Flow 100% ~ $630M/year MPV 49% ~ $310M/year MPV per share ~ $2.00 Q1 2016
Slide 14: Free Cash Flow
Free Cash Flow Figure 6: Free Cash Flow Yield Of Diamond Producers vs Other Precious Metals Companies 14.0% 5 iat m2014A ote m2015E 10.0% + m2016E 8.0% - m2017E 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; *Consensus estimate for c
Slide 15: Capital Program
Capital Program Debt funded Capital/Opex (MPV 49%) 2015 C$157M 2016 C$150M Capital C$307M Commissioning opex C$41M Working capital C$12M Total C$360M Core debt facility C$360M Cost overrun facility C$90M Total C$450M Q1 2016
Slide 16: Development Schedule
Development Schedule Construction started December 2013 Current status +85% complete End major construction Dec 2015 Start ore mining Q1 2016 Plant commissioned Q2 2016 Target for first production Q3 2016 Q1 2016
Slide 17: Plant and Truck Shop
Plant and Truck Shop Q1 2016
Slide 18: Diamond Plant
Diamond Plant Q1 2016
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 Q1 2016
Slide 21: Phase 3 Mine Potential
Phase 3 Mine Potential Q1 2016
Slide 22: Phase 4: Tesla & 5034/Hearne Deep
Phase 4: Tesla & 5034/Hearne Deep Mine life potential: + 20 years Q1 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 Q1 2016
Slide 25: USD vs CAD
USD vs CAD Feasibility assumption C$1.11 CAN$ down ~ 25% against Feasibility Assumption Q1 2016
Slide 26: Diesel Price
Diesel Price Price down 45% against Feasibility Assumption Q1 2016
Slide 27: Falling Diamond Supply
Falling Diamond Supply Q1 2016
Slide 28: New Diamond Mines
New Diamond Mines Source: Bain & Company Q1 2016
Slide 29: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Q1 2016
Slide 30: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Q1 2016
Slide 31: 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 Q1 2016
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