Coronavirus: Mountain Province 2020 Revenue Down a Fifth
January 14, 21
(IDEX Online) - Mountain Province today said 2020 revenue from its Gahcho Kue mine, in Canada, was down more than a fifth on the previous year. But it recovered well in Q4.
The miner said March to September were particularly tough, as the pandemic put the market under unprecedented pressure, but the outlook for 2021 was "more positive".
Mountain Province's revenue share from the mine, which it operates jointly with De Beers, was $171.3m for FY2020, down 21.5 per cent from $208.2m in FY2019.
But it rallied in the fourth quarter, outperforming the same period year-on-year. In Q4 of 2020 it sold 957,120 carats sold at an average $65 per carat, for total of $61.7m. By comparison, in Q4 2091 it sold 771,799 carats sold at an average $64 per carat for a total of $49.2m.
Throughout the year Mountain Province recovered 6,518,261 carats, down four per cent on 2019. But production fell off in Q4, down 23 per cent to 1,521,617 carats.
"Sentiment in the rough diamond market was more positive towards the end of 2020 and has remained so as the market prepares for the first selling cycle of 2021," it said in its Fourth Quarter and Full Year 2020 Production Results.
Stuart Brown, president and CEO, said: "Under very difficult circumstances, all driven by COVID-19, the Gahcho Kué Mine has performed well in being able to maintain production albeit at a reduced level and came very close to the revised guidance in tonnes mined and treated and exceeded the revised guidance target for carats recovered."
Gahcho Kue, an open pit operation approximately 280 km northeast of Yellowknife, Northwest Territories, began commercial production in March 2017.
Last month it recovered its biggest ever diamond (pictured) - a 157.4-carat gem of "exceptional quality".