Mountain Province Diamonds Inc. · OTC:MPVDF
Mountain Province Diamonds — Q2 2017 Earnings Presentation
27 slides from Mountain Province Diamonds's earnings presentation, May 2017
Slide 1: Mountain Province Diamonds
3 Mountain Province DIAMONDS
Slide 2: Mountain Province – Investment Case
Mountain Province – Investment Case • World’s largest and richest new diamond mine • Partnered with De Beers • Projected top quartile operating margin • Q3 2016 – ramp-up production commenced • March 1, 2017 – commercial production declared • Mid 2017 – target for full production • Vision: To be a T
Slide 3: Capital Structure
Capital Structure • Markets: TSX & NASDAQ: MPVD • Market cap: ~C$725M • Shares outstanding: 160.0M • Fully diluted: 162.6M • Cash: +C$65M Q2 2017 3
Slide 4: Mine Location
Mine Location : A NUN. ~ 7 ee NWT rN QUE. a B.C. ALTA. SASK, MAN, a , ONT. > Gahcho Kue project MAP KEY — Highway o — Existing winter road XD — _Tibbit-Contwoyto winter road a ---- Winter access road @ Existing mine C) Gahcho Kue Mountain Province Q2 2017 4 DIAMONDS
Slide 5: Gahcho Kué Mine
Gahcho Kué Mine Mountain Province 02-2017 DIAMONDS
Slide 6: 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: mine operator Q2 2017 6
Slide 7: Reserve Statement
Reserve Statement Pipe Tonnes (Mt) Grade (cpt) Carats (Mct) 5034 12.9* 1.74 22.3* Tuzo 16.4 1.25 20.6 Hearne 5.6 2.07 11.7 Total 34.9* 1.57 54.6* Resource category: Probable reserve Source: JDS Mining, March 2014 (100% basis) * Inclusive of mining in 2016 Geological Model Q2 2017 7
Slide 8: Independent Diamond Valuations
Independent Diamond Valuations Pipe Actual* Model* Model Esc** 5034 169 138 167 Tuzo 311 101 144 Hearne 92 107 123 Total $182 $123 $150 *WWW, August 2014. Actual = spot including all stones. Modeled assumes value increases only up to 6 carats **Model price escalated by real 1.5% over 12 year life of
Slide 9: Rough Diamond Price Index
Rough Diamond Price Index August 2014 Valuation Q2 2017 9
Slide 10: Capital Program
Capital Program Capex/Opex CAD Debt Service Schedule Construction 2015/16 $304M 2017 $24.8M Operating costs 2016/17 $78.9M 2018 $94M Total Capex/Opex $382.9M 2019 $101M Drawn to March 2017 $382.9M 2020 $47M Balance to Sept 2017 Nil 2021 $63M Total funding $382.9M 2022 $40.5M Reserve balance $65M Tot
Slide 11: 2016 Ramp-up and 2017 Production Guidance
2016 Ramp-up and 2017 Production Guidance 2016 ‘16 Variance 2017 Actual Guidance Tonnes 500 515 +3% 2,771 ‘000 Grade 1.60 1.67 +4% 1.59 (c/t) Total 800 862 +7% 4,400 Cts‘000 MPV 400 422 +6% 2,200 cts‘000 Q2 2017 11
Slide 12: 5034 Bulk Sample
5034 Bulk Sample • Bulk sample taken from across the length, breath and depth of 5034 • 1,957 carats from Center and East Lobes • 1,132 carats from West Lobe • Total : 3,089 carats • 23.2 M ct Reserve • 520, 836 carats mostly from upper portion of NE lobes sold to date – 2.2% of Reserve • Early diam
Slide 13: 5034 Kimberlite – Six Lobes
5034 Kimberlite – Six Lobes • Diamond distribution in North and East (NE) lobes variable by layer • Three layers: upper transitional tuffisitic, middle transitional hypabyssal and lower hypabyssal (HK) • Center lobe only HK • Center and West lobe diamond distribution highly variable • Mined to date:
Slide 14: Product Profile in Early Production
Product Profile in Early Production • Wide product variation • Fancies and Specials 0.5% by weight and approx. 15% of value • White gem and near gem 30% by weight and approx. 65% of value • Browns and boart 70% by weight and approx. 20% by value • Significant population of large “special” stones but
Slide 15: Fancies and Specials
Fancies and Specials • Less than 1% by volume but high value concentration • Quality variable – gem, near gem & boart • Colors variable – white, grey, brown • 9.9 ct stone from C/E bulk sample “D” color valued at $18,500/ct. ½ % of bulk sample weight but 56% of value • 67.87 carat largest gem qualit
Slide 16: Diamond Sales
Diamond Sales • Three sales completed: Jan (49,420), Feb (277,646) and March (193,770) • Early sales weak due to “price discovery”, Indian Rupee, higher percentage of browns and lower quality “Specials” • January to February 12 percent price increase • February to March 6 percent price increase • Ja
Slide 17: Price Discovery Example
Price Discovery Example Feasibility modeled price +$300/ct Q2 2017 17
Slide 18: Fluorescence
Fluorescence • Approx 1/3 of all natural diamonds fluoresce • Fluorescence seen in bulk sample – limited to white colors (approx. 25% of bulk sample) • “Blue fluorescence” only visible under black light. Under natural light fluorescing diamonds look brighter • Fluorescence varies from weak to medium
Slide 19: Fluorescence Under Black Light
Fluorescence Under Black Light Q2 2017 19
Slide 20: Phase 2 Inferred Resources
Phase 2 Inferred Resources Pipe Tonnes (Mt) Grade (cpt) Carats (Mct) 5034 0.9 1.51 1.4 Tuzo 8.9 1.62 14.6 Hearne 1.4 1.67 2.4 Total 11.3 1.64 18.4 • Indicated & inferred – 19.5M carats (100%) • Mine life potential from 12 to 17 years Q2 2017 20
Slide 21: Phase 3: Tuzo Deep
Phase 3: Tuzo Deep Tuzo Deep Potential • ~7M tonnes • ~14M carats • Mine Potential: 17-20 years Q2 2017 21
Slide 22: 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 feasibility diamond prices **To be determined Vision: +20
Slide 23: CAD/USD
CAD/USD Feasibility assumption US$0.91 CAD down ~ 16% against feasibility assumption Q2 2017 23
Slide 24: Falling Diamond Supply
Falling Diamond Supply Q2 2017 24
Slide 25: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Percent of Brides Receiving Diamond Engagement Rings Q2 2017 25
Slide 26: 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 Q2 2017 26
Slide 27: 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-
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