Mountain Province Raises Production Outlook

RAPAPORT... Shares in Mountain Province rose 12% Friday after it increased its production guidance for the Gahcho Ku?(C) deposit. The Canada-based miner has made plant modifications at thesite that will allow it to process between 3.2 million and 3.3million tonnes of ore in 2019. Mountain Province had previously stated it expected toprocess between 3.1 million and 3.2 million tonnes. The changes will alsoenable the company to process coarser ore, which it expects to lead to anincrease in the average selling price per carat. "Production figures are slightly ahead of expectations, andcosts are at the lower end of our guidance for 2019," Mountain Province CEOStuart Brown said last week. The company has maintained its production outlook of 3.3 million to 3.45 million carats for the year.  Revenue fell 13% to $45.8 million in the first quarter,despite a 22% increase in sales volume to 643,739 carats. The average pricedropped 28% to $71 per carat, as the miner sold fewer large and high-qualitystones than in the same period the year before. Profit for the quarter plunged59% to CAD $10.2 million ($7.6 million). Mountain Province's share of production was 777,000 caratsfrom its 49% stake in the Gahcho Ku?(C) project. De Beers holds the remaining 51%. Mountain Province expects total full-year production at GahchoKu?(C) to be in the range of 6.6 million to 6.9 million carats, for the company and De Beers combined. Image: Workmen at the Gahcho Ku?(C) mine. (Mountain Province)