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CNBC
4 days ago
- Business
- CNBC
Dollar poised for weekly loss, hurt by economic weakness and trade limbo
The dollar was headed for a weekly loss on Friday, undermined by signs of fragility in the U.S. economy and little progress on trade negotiations between Washington and its partners, ahead of a critical jobs report. The U.S. nonfarm payrolls report expected later on will draw greater scrutiny after a slew of weaker-than-expected economic data this week underscored that President Donald Trump's tariffs were taking a toll on the economy. Currencies were mostly rangebound in early European hours as traders steered clear of large bets ahead of the data release. The euro was taking a breather after hitting a 1-1/2-month top on Thursday following hawkish remarks from the European Central Bank. It last bought roughly $1.1422, down just 0.2% on the day. Traders have pushed back expectations on the timing of the next rate cut, but continue to anticipate a 25 basis point reduction by year-end. Deutsche Bank's Mark Wall said he still expects 50 basis points worth of ECB rate cuts, adding "it is still too early to judge the impact of trade war, and the path of the trade war is in any case still inherently unpredictable." Reflecting a struggling economy, data showed that German exports and industrial output fell more than expected in April and data on euro zone retail sales is expected later in the day. Sterling dipped 0.2% at around $1.3546 having scaled a more than three-year peak in the previous session, and was set to rise about 0.6% for the week. The yen fell 0.18% to 143.90 per dollar. Most currencies had surged against the dollar late on Thursday, helped by news that Trump and Chinese President Xi Jinping spoke on a call for more than an hour, before paring some of their gains. Against a basket of currencies, the dollar edged up to 98.9, and was headed for a weekly loss of 0.5%. Analysts said Friday's U.S. jobs data would likely be the next catalyst for currencies. Economists polled by Reuters forecast the U.S. economy created 130,000 new jobs in May versus 177,000 in April. Job growth likely slowed considerably in May as businesses struggled with headwinds from tariff uncertainty, but probably not enough for a cautious Federal Reserve to resume cutting interest rates anytime soon, analysts said. "Within all the noise... the softness that we've seen in the data this week has probably been more responsible for rejuvenating the bearish U.S. dollar narrative than anything else that's gone on," said Ray Attrill, head of FX research at National Australia Bank. "We've always taken the view that once it becomes clear that the U.S. economy is no longer exceptional, and that the policy actions that we've seen to date, together with the relative tightness of Fed policy, will start to show through particularly in a weakening labor market. Hence the importance of tonight's numbers." Adding to headwinds for the dollar, investors remain worried about U.S. trade negotiations and the lack of progress in hashing out deals ahead of an early July deadline. The highly anticipated call between Trump and Xi also provided little clarity and the spotlight on it was quickly stolen by a public fallout between Trump and Elon Musk.
Cision Canada
13-05-2025
- Business
- Cision Canada
Mountain Province Diamonds Announces First Quarter Financial Results for 2025
TSX and OTC: MPVD TORONTO, May 13, 2025 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) & (OTC: MPVD) today announces financial results for the first quarter ended March 31, 2025 ("the Quarter" or "Q1 2025") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian dollars unless otherwise noted. Financial Highlights for Q1 2025 426,000 carats sold, with total proceeds of $44.0 million (US$30.7 million) at an average realised value of $103 per carat (US$72). Adjusted EBITDA 1 of $6.1 million. Loss from mine operations of $22.4 million. Net loss of $34.4 million or $0.16 basic and diluted loss per share. 1 Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See "Reconciliation of non-IFRS measures" at the end of the news release for explanation and reconciliation. Operational Highlights for Q1 2025 (all figures reported on a 100% basis unless otherwise stated) 925,773 ore tonnes treated, a 15% increase relative to Q1 2024, (Q1 2024: 805,557 tonnes treated;) 762,978 carats recovered, 40% lower than Q1 2024 (Q1 2024: 1,264,887 carats) Average grade of 0.82 carats per tonne, a 48% decrease relative to Q1 2024 (Q1 2024: 1.57 carats per tonne) Cost per carat recovered, including capitalized stripping of $192/carat, and cost per tonne processed, including capitalized stripping of $158/tonne. Sales Highlights for Q1 2025 As previously released, during Q1 2025, 426,000 carats were sold for total proceeds of $44.0 million (US$30.7 million), resulting in an average value of $103 per carat (US$72 per carat). These results compare to Q1 2024 when 938,000 carats were sold for total proceeds of $89.4 million (US$66.1 million), resulting in an average price of $95 per carat (US$70 per carat). Mark Wall, the Company's President, and Chief Executive Officer, commented: "The diamond market remained depressed in Q1 2025, and this was a real challenge from a cashflow perspective. On the mine operations side we executed another successful ice-road resupply season safely and on plan. Safety at the operations remained a key focus area, with the Total Recordable Injury Frequency Rate (TRIFR) finishing at 2.14, which was a material improvement on the TRIFR of 6.37 for Q1 2024. The processing plant continued to perform very well, with total tonnes treated in Q1 2025 improving by 15% compared to Q1 2024. On the negative, the grade for Q1 2025 was 48% lower than Q1 2024. The grade reduction was expected while lower grade stockpiles were treated during the period that we are stripping down to the higher grade NEX orebody, although the grade reduction experienced in the stockpile was greater than anticipated. Confidence remains in the overall grade of the stockpile, but at around 3 million tonnes there are pockets of higher and lower grade that will be experienced. We have begun treating areas of higher grade although the minerology of the ore will reduce the tonnes able to be treated by the processing facility. On the all-important mining side, the total tonnes mined increased by 28% in Q1 2025 when compared to Q1 2024. The significant increase in mining rate is the result of a sustained focus on drill and blast efficiency, people efficiency, maintenance efficiency and short-term planning efforts. At this time, I anticipate earlier access to the high grade NEX ore than was originally anticipated in the plan, which will help us later in the year. I am optimistic that the turbulence in the global markets will stabilize as we move through 2025 and the diamond market will recover. As previously announced, during Q1 2025, we saw the closing of the Refinancing Transactions , which served to address the reclamation liabilities owed to De Beers as operator of the GK Mine, provide an immediate injection of capital to address the 2025 near cash flow deficit faced by the Company, and extend the term of the Second Lien Notes to December 2027, which were due to mature in December 2025. Furthermore, we recently announced that at our AGM to be held on May 16 th, Shareholders will be asked to pass an ordinary resolution approving a new working capital facility from Dunebridge Worldwide Ltd., a related party of the Company, in the amount of CAD33,000,000, or the USD equivalent amount. In respect of these transactions for which we have received much appreciated support from De Beers and our financing partners, I would like to recognize the stalwart support of our largest shareholder and debt holder, Mr. Dermot Desmond. " The following table summarizes key operating statistics for the Gahcho Kué Mine in Q1 2025, and Q1 2024. * at 100% interest in the Gahcho Kué Mine **See "Reconciliation of non-IFRS measures" at the end of the news release for explanation and reconciliation. ***Includes the sales directly to De Beers for fancies and specials acquired by De Beers through the production split bidding process Financial Performance Three months ended Three months ended (in thousands of Canadian dollars, except where otherwise noted) March 31, 2025 March 31, 2024 Sales $ 43,995 89,438 Carats sold 000's carats 426 938 Average price per carat sold $/carat 103 95 Cost of sales per carat* $/carat 156 63 (Loss) earnings from mine operations per carat $ (53) 32 (Loss) earnings from mine operations % -51 % 34 % Selling, general and administrative expenses $ 2,542 3,542 Operating (loss) income $ (25,102) 26,760 Net (loss) income for the period $ (34,374) 6,864 Basic (loss) earnings per share $ (0.16) 0.03 Diluted (loss) earnings per share $ (0.16) 0.03 Conference Call The Company will host its quarterly conference call on Wednesday May 14 th, 2025, at 11:00am ET. Title: Mountain Province Diamonds Inc Q1 2025 Earnings Conference Call Conference ID: 19522 Date of call: 05/14/2025 Time of call: 11:00 Eastern Time Expected Duration: 60 minutes Webcast Link: Participant Toll-Free Dial-In Number: (+1) 888-699-1199 Participant International Dial-In Number: (+1) 416-945-7677 A replay of the webcast and audio call will be available on the Company's website. Reconciliation of Non-IFRS measures This news release refers to the terms "Cash costs of production per tonne of ore processed" and "Cash costs of production per carat recovered", both including and net of capitalized stripping costs and "Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA)" and "Adjusted EBITDA Margin". Each of these is a non-IFRS performance measure and is referenced in order to provide investors with information about the measures used by management to monitor performance. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Cash costs of production per tonne of ore processed and cash costs of production per carat recovered are used by management to analyze the actual cash costs associated with processing the ore, and for each recovered carat. Differences from production costs reported within cost of sales are attributed to the amount of production cost included in ore stockpile and rough diamond inventories. Adjusted EBITDA is used by management to analyze the operational cash flows of the Company, as compared to the net income for accounting purposes. It is also a measure which is defined in the Notes documents. Adjusted EBITDA margin is used by management to analyze the operational margin % on cash flows of the Company. The following table provides a reconciliation of the Adjusted EBITDA and Adjusted EBITDA margin with the net income on the condensed consolidated interim statements of comprehensive (loss) income: The following table provides a reconciliation of the cash costs of production per tonne of ore processed and per carat recovered and the production costs reported within cost of sales on the condensed consolidated interim statements of comprehensive (loss) income: About Mountain Province Diamonds Inc. Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat, at February 2019. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct, at February 2019. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat, at February 2019. All resource estimations are based on a 1mm diamond size bottom cut-off. Qualified Person The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Tom McCandless, Ph.D., and Mr. Tysen Hantelmann, independent advisors to the Company and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Caution Regarding Forward Looking Information This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province's business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provides additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed. Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities, Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject to the limitations under the Company's debt facilities, and will depend on Mountain Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board. SOURCE Mountain Province Diamonds Inc.
Yahoo
13-05-2025
- Business
- Yahoo
Mountain Province Diamonds Announces First Quarter Financial Results for 2025
TSX and OTC: MPVD TORONTO, May 13, 2025 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) & (OTC: MPVD) today announces financial results for the first quarter ended March 31, 2025 ("the Quarter" or "Q1 2025") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian dollars unless otherwise noted. Financial Highlights for Q1 2025 426,000 carats sold, with total proceeds of $44.0 million (US$30.7 million) at an average realised value of $103 per carat (US$72). Adjusted EBITDA1 of $6.1 million. Loss from mine operations of $22.4 million. Net loss of $34.4 million or $0.16 basic and diluted loss per share. 1Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See "Reconciliation of non-IFRS measures" at the end of the news release for explanation and reconciliation. Operational Highlights for Q1 2025(all figures reported on a 100% basis unless otherwise stated) 925,773 ore tonnes treated, a 15% increase relative to Q1 2024, (Q1 2024: 805,557 tonnes treated;) 762,978 carats recovered, 40% lower than Q1 2024 (Q1 2024: 1,264,887 carats) Average grade of 0.82 carats per tonne, a 48% decrease relative to Q1 2024 (Q1 2024: 1.57 carats per tonne) Cost per carat recovered, including capitalized stripping of $192/carat, and cost per tonne processed, including capitalized stripping of $158/tonne. Sales Highlights for Q1 2025 As previously released, during Q1 2025, 426,000 carats were sold for total proceeds of $44.0 million (US$30.7 million), resulting in an average value of $103 per carat (US$72 per carat). These results compare to Q1 2024 when 938,000 carats were sold for total proceeds of $89.4 million (US$66.1 million), resulting in an average price of $95 per carat (US$70 per carat). Mark Wall, the Company's President, and Chief Executive Officer, commented: "The diamond market remained depressed in Q1 2025, and this was a real challenge from a cashflow perspective. On the mine operations side we executed another successful ice-road resupply season safely and on plan. Safety at the operations remained a key focus area, with the Total Recordable Injury Frequency Rate (TRIFR) finishing at 2.14, which was a material improvement on the TRIFR of 6.37 for Q1 2024. The processing plant continued to perform very well, with total tonnes treated in Q1 2025 improving by 15% compared to Q1 2024. On the negative, the grade for Q1 2025 was 48% lower than Q1 2024. The grade reduction was expected while lower grade stockpiles were treated during the period that we are stripping down to the higher grade NEX orebody, although the grade reduction experienced in the stockpile was greater than anticipated. Confidence remains in the overall grade of the stockpile, but at around 3 million tonnes there are pockets of higher and lower grade that will be experienced. We have begun treating areas of higher grade although the minerology of the ore will reduce the tonnes able to be treated by the processing facility. On the all-important mining side, the total tonnes mined increased by 28% in Q1 2025 when compared to Q1 2024. The significant increase in mining rate is the result of a sustained focus on drill and blast efficiency, people efficiency, maintenance efficiency and short-term planning efforts. At this time, I anticipate earlier access to the high grade NEX ore than was originally anticipated in the plan, which will help us later in the year. I am optimistic that the turbulence in the global markets will stabilize as we move through 2025 and the diamond market will recover. As previously announced, during Q1 2025, we saw the closing of the Refinancing Transactions , which served to address the reclamation liabilities owed to De Beers as operator of the GK Mine, provide an immediate injection of capital to address the 2025 near cash flow deficit faced by the Company, and extend the term of the Second Lien Notes to December 2027, which were due to mature in December 2025. Furthermore, we recently announced that at our AGM to be held on May 16th, Shareholders will be asked to pass an ordinary resolution approving a new working capital facility from Dunebridge Worldwide Ltd., a related party of the Company, in the amount of CAD33,000,000, or the USD equivalent amount. In respect of these transactions for which we have received much appreciated support from De Beers and our financing partners, I would like to recognize the stalwart support of our largest shareholder and debt holder, Mr. Dermot Desmond. " Gahcho Kué Mine Operations The following table summarizes key operating statistics for the Gahcho Kué Mine in Q1 2025, and Q1 months ended Three months endedMarch 31, 2025 March 31, 2024 GK operating data Mining *Ore tonnes mined kilo tonnes - 1,947*Waste tonnes mined kilo tonnes 10,092 5,938*Total tonnes mined kilo tonnes 10,092 7,885*Ore in stockpile kilo tonnes 3,142 3,458 Processing *Ore tonnes processed kilo tonnes 926 806*Average plant throughput tonnes per day 9,851 8,857*Average diamond recovery carats per tonne 0.82 1.57*Diamonds recovered 000's carats 763 1,265Approximate diamonds recovered - Mountain Province 000's carats 374 620Cash costs of production per tonne of ore, net of capitalized stripping ** $ 90 51Cash costs of production per tonne of ore, including capitalized stripping** $ 158 88Cash costs of production per carat recovered, net of capitalized stripping** $ 109 33Cash costs of production per carat recovered, including capitalized stripping** $ 192 56 Sales Approximate diamonds sold - Mountain Province*** 000's carats 426 938Average diamond sales price per carat US $ 72 $ 70 * at 100% interest in the Gahcho Kué Mine **See "Reconciliation of non-IFRS measures" at the end of the news release for explanation and reconciliation. ***Includes the sales directly to De Beers for fancies and specials acquired by De Beers through the production split bidding process Financial Performance Three months ended Three months ended (in thousands of Canadian dollars, except where otherwise noted)March 31, 2025 March 31, 2024 Sales $ 43,995 89,438 Carats sold 000's carats 426 938 Average price per carat sold $/carat 103 95 Cost of sales per carat* $/carat 156 63 (Loss) earnings from mine operations per carat $ (53) 32 (Loss) earnings from mine operations % -51 % 34 % Selling, general and administrative expenses $ 2,542 3,542 Operating (loss) income $ (25,102) 26,760 Net (loss) income for the period $ (34,374) 6,864 Basic (loss) earnings per share $ (0.16) 0.03 Diluted (loss) earnings per share $ (0.16) 0.03 Conference Call The Company will host its quarterly conference call on Wednesday May 14th, 2025, at 11:00am ET. Title: Mountain Province Diamonds Inc Q1 2025 Earnings Conference Call Conference ID: 19522Date of call: 05/14/2025Time of call: 11:00 Eastern TimeExpected Duration: 60 minutes Webcast Link: Participant Toll-Free Dial-In Number: (+1) 888-699-1199Participant International Dial-In Number: (+1) 416-945-7677 A replay of the webcast and audio call will be available on the Company's website. Reconciliation of Non-IFRS measures This news release refers to the terms "Cash costs of production per tonne of ore processed" and "Cash costs of production per carat recovered", both including and net of capitalized stripping costs and "Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA)" and "Adjusted EBITDA Margin". Each of these is a non-IFRS performance measure and is referenced in order to provide investors with information about the measures used by management to monitor performance. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Cash costs of production per tonne of ore processed and cash costs of production per carat recovered are used by management to analyze the actual cash costs associated with processing the ore, and for each recovered carat. Differences from production costs reported within cost of sales are attributed to the amount of production cost included in ore stockpile and rough diamond inventories. Adjusted EBITDA is used by management to analyze the operational cash flows of the Company, as compared to the net income for accounting purposes. It is also a measure which is defined in the Notes documents. Adjusted EBITDA margin is used by management to analyze the operational margin % on cash flows of the Company. The following table provides a reconciliation of the Adjusted EBITDA and Adjusted EBITDA margin with the net income on the condensed consolidated interim statements of comprehensive (loss) income:Three months ended Three months endedMarch 31, 2025 March 31, 2024Net (loss) income for the period $ (34,374) $ 6,864 Add/deduct: Non-cash depreciation and depletion 23,075 22,104 Net realizable value adjustment included in production costs 10,181 - Share-based payment expense 154 242 Fair value gain of warrants 1,099 (541) Gain on lease 4 (55) Finance expenses 10,078 10,337 Derivative (gains) losses (815) 2,340 Current and deferred income taxes (3,800) 2,325 Current income taxes 160 150 Unrealized foreign exchange losses 313 6,187 Adjusted earnings before interest, taxes, depreciation and depletion (Adjusted EBITDA) $ 6,075 $ 49,953 Sales 43,995 89,438 Adjusted EBITDA margin 14 % 56 % The following table provides a reconciliation of the cash costs of production per tonne of ore processed and per carat recovered and the production costs reported within cost of sales on the condensed consolidated interim statements of comprehensive (loss) income: Three months ended Three months ended (in thousands of Canadian dollars, except where otherwise noted)March 31, 2025 March 31, 2024 Cost of sales production costs $ 39,289 32,728 Timing differences due to inventory and other non-cash adjustments $ 1,541 (12,393) Cash cost of production of ore processed, net of capitalized stripping $ 40,830 20,335 Cash costs of production of ore processed, including capitalized stripping $ 71,597 34,927 Tonnes processed kilo tonnes 454 395 Carats recovered 000's carats 374 620 Cash costs of production per tonne of ore, net of capitalized stripping $ 90 51 Cash costs of production per tonne of ore, including capitalized stripping $ 158 88 Cash costs of production per carat recovered, net of capitalized stripping $ 109 33 Cash costs of production per carat recovered, including capitalized stripping $ 192 56 About Mountain Province Diamonds Inc. Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat, at February 2019. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct, at February 2019. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat, at February 2019. All resource estimations are based on a 1mm diamond size bottom cut-off. Qualified Person The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Tom McCandless, Ph.D., and Mr. Tysen Hantelmann, independent advisors to the Company and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Caution Regarding Forward Looking Information This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province's business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provides additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed. Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities, Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject to the limitations under the Company's debt facilities, and will depend on Mountain Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board. View original content: SOURCE Mountain Province Diamonds Inc. View original content: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
25-04-2025
- Business
- Cision Canada
Mountain Province Diamonds Announces Mailing of Meeting Materials For Annual and Special Meeting of Shareholders to Approve Additional Working Capital Facility
TSX and OTC: MPVD TORONTO and NEW YORK, April 25, 2025 /CNW/ - Mountain Province Diamonds Inc. (" Mountain Province" or the " Company") (TSX: MPVD) (OTC: MPVD) announces today that the Company has mailed and filed its notice of meeting, management information circular (the " Circular") and related documents (collectively, the " Meeting Materials") to the holders (the " Shareholders") of common shares of the Company (the " Shares") in connection with the annual and special meeting of Shareholders to be held virtually at 11:00 a.m. (EST) on May 16, 2025 (the " Meeting"). The Meeting Materials will be filed on the Company's SEDAR+ profile at and will be accessible on the Company's website at In addition, to the routine matters of the election of directors, approval of the financial statements and the appointment of the Company's auditor, at the Meeting, Shareholders will be asked to pass an ordinary resolution (the " WCF Resolution") approving a new working capital facility (the " Proposed WCF") from Dunebridge Worldwide Ltd. (" Dunebridge"), a related party of the Company, in the amount of CAD33,000,000, or the USD equivalent amount (the " Principal Amount"). The Company expects that, combined with the Company's recently completed refinancing transactions announced on February 19, 2025 and March 25, 2025 (the " Refinancing Transactions"), the Proposed WCF will address the majority of the Company's cash flow requirements through the balance of the 2025 calendar year at currently modelled diamond prices. Specifically, the Proposed WCF will allow the Company to finance its near-term share of operational expenses at the Gahcho Kué diamond mine in the Northwest Territories, the joint venture in which the Company holds a 49% interest and its joint venture partner of De Beers Canada Inc. (" De Beers") holds the remaining 51% interest. Mark Wall, the Company's President and Chief Executive Officer, commented: " Mountain Province is grateful to have the continued support of Mr. Dermot Desmond, through Dunebridge, to meet the Company's current working capital requirements." Terms of the Proposed WCF On April 17, 2025, the Company entered into a non-binding term sheet with Dunebridge, setting the terms of the Proposed WCF (the " Term Sheet"). Pursuant to the Term Sheet, the Company may draw down against the Proposed WCF for a period of six months commencing on or about May 16, 2025. The Proposed WCF will mature on June 30, 2026. Drawn down amounts under the Proposed WCF will be subject to interest at a rate of 10.5% per annum (the " Facility Interest"). Interest at a rate of 7% per annum will be payable on the undrawn amounts (the " Commitment Fee Interest"). The Proposed WCF will have a facility fee of USD$1 million (the " Facility Fee"), payable in cash on maturity. Interest at a rate of 10.5% per annum will accrue on the Facility Fee from the date of the first draw down on the Proposed WCF. Penalty interest at a rate of 2.5% on top of the Facility Interest will be payable from December 31, 2025 should the Principal Amount or any part thereof not be repaid on or before December 31, 2025. All interest payments will be calculated on an actual/365 day basis and will be capitalized and compounded quarterly beginning on June 30, 2025. The Principal Amount outstanding must be repaid in full on or before December 31, 2025. The Facility Fee, Facility Interest and Commitment Fee Interest must be paid in full on or before June 30, 2026. The minimum initial draw down amount on the Proposed WCF is USD10 million, and thereafter, the Company must draw down on the Proposed WCF in increments of at least USD1 million. Any amounts repaid under the Proposed WCF may be re-borrowed on a revolving basis. During the term of the Proposed WCF, the Company is required to direct all proceeds from its diamond sales to Dunebridge to repay the Principal Amount then outstanding. Proceeds received by Dunebridge in excess of the Principal Amount then outstanding are to be paid to the Company within five (5) business days of receipt of such proceeds. Subject to settling the definitive terms of the Proposed WCF and the satisfaction of all conditions precedent to funding, including receipt of all regulatory and shareholder approvals, the Proposed WCF is expected to be made available to the Company on or about May 16, 2025, concurrently with the conclusion of the Shareholder Meeting. There can be no assurance that the Proposed WCF will be completed on the terms described herein or at all, in which case, the Company's future as a going concern will be in serious doubt. Definitive Documentation The Proposed WCF will be documented as an amendment (the " WCF Amendment") to the bridge secured facility agreement which the Company entered into with Dunebridge, as lender and administrative agent and the guarantors named therein on February 24, 2025 as part of the Company's recently completed series of refinancing transactions (the " Bridge Facility Agreement"). As such, it is intended that the covenants, events of default and security interests under the Bridge Facility Agreement will apply equally to the Proposed WCF. Insider and Related Party Participation Mr. Dermot Desmond, through Vertigol Unlimited Company (" Vertigol"), is the ultimate beneficial holder of 75,446,071 Shares (the " Vertigol Shares"), representing over 35% of the Company's issued and outstanding shares, and accordingly, an "insider" of the Company (as determined under the TSX Company Manual (the " Manua l")) and a "related party" (as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (" MI 61-101")). Dunebridge, is also ultimately beneficially held by Mr. Desmond, which makes Dunebridge an affiliate of Vertigol, and therefore an insider of the Company under the Manual and a related party of the Company under MI 61-101. The Proposed WCF does not involve the distribution of any equity in the Company and will not affect Mr. Desmond's current equity position. Value of the Consideration to Insiders The Proposed WCF is estimated to result in the payment of consideration to Dunebridge, being the Facility Fee and interest payable on the Proposed WCF, of up to CAD3,647,554 (being the Canadian dollar equivalent of USD2,626,029 as at April 16, 2025) or 31.23% of the market capitalization of the Company based on the market capitalization of CAD11,676,819 as of April 16, 2025, such date being the last full trading day prior to the execution of the Term Sheet. Such consideration, is based on certain assumptions of management of the Company, including: (a) reasonable estimates as to the proceeds expected from the remaining sales cycles of the Company's diamonds in 2025; (b) that Dunebridge will exercise its right to sweep the proceeds from each of the Company's remaining diamond sales cycles and apply such proceeds to the repayment of the Principal Amount then outstanding; (c) that the Company will re-borrow the Principal Amount so repaid within five (5) business days of each such repayment, such that the Company will incur the Commitment Fee Interest during such five-business day period; (d) the foreign exchange rate of 1.3890 as at April 16, 2025, contemplated at the time of such assumptions; as published by the Bank of Canada, and (e) that the Company will repay the Principal Amount on or prior to December 31, 2025. The Company previously disclosed that the Refinancing Transactions would result in consideration to the insiders and related parties involved in the Refinancing Transactions of up to 229.14% of the market capitalization of the Company as of February 21, 2025. Together, the total consideration to insiders and related parties of the Company under the Refinancing Transactions and the Proposed WCF is expected to be up to 260.37% of the market capitalization of the Company. Review and Approval Process The Proposed WCF was considered by the same special committee (the " Special Committee") of independent directors of the Company (the " Board") created to consider the Refinancing Transaction. The Special Committee reviewed the Term Sheet, and upon input from Ernst & Young LLP, as financial advisor, owing in material part to the financial condition of the Company, and various other factors, recommended that the Board approve the Proposed WCF, enter into the Term Sheet and that management of the Company proceed with negotiating the definitive terms of the WCF Amendment. Disinterested Shareholder Approval Requirements The Proposed WCF requires disinterested shareholder approval pursuant to section 501(c) of the TSX Company Manual as the aggregate value of the consideration to insiders or related parties of the Company under the Proposed WCF and the Refinancing Transactions exceed 10% of the market capitalization of the Company. To meet the TSX's disinterested shareholder approval requirements, the Company requires the approval of a simple majority of the votes cast on the WCF Resolution by Shareholders attending the Meeting virtually or by proxy, with the votes attached to the Vertigol Shares excluded from such vote on the WCF Resolution The Proposed WCF is also subject to the final acceptance of the TSX under Section 501(c) of the Manual and is conditional upon receipt of the disinterested shareholder approval in accordance with the Manual. Similarly, under MI 61-101, the Proposed WCF, as a related party transaction, requires the approval of a majority of the votes cast by Shareholders attending the Meeting virtually or by proxy, excluding from such vote Shares beneficially owned, or over which control or direction is exercised by certain prescribed persons (the " MI 61-101 Minority Shareholder Approval Requirement"). Shares held by any person who is a related party of Dunebridge (subject to certain exclusions), will be excluded for the purposes of calculating the requisite Shareholder approval on the WCF Resolution to meet the MI 61-101 Minority Shareholder Approval Requirement. For this purpose, the Vertigol Shares, 623,792 Shares held by Mr. Jonathan Comerford, 30,000 Shares held by Mr. Brett Desmond and 352,624 Shares held by Arkendale Investments Ltd. (a company that is beneficially controlled by Mr. Brett Desmond), representing in the aggregate a 36.0% interest in the Company, will be excluded from the vote on the WCF Resolution for the purposes of MI 61-101. Right of First Refusal The Proposed WCF is subject to the amended and restated indenture (the " A&R Indenture") entered into between Computershare Trust Company, N.A., the Company and the guarantors named therein on March 18, 2025 in respect of the Company's Senior Secured Second Lien Notes due 2027 (the " Second Lien Notes"). Under the A&R Indenture, the Company is prohibited from entering into any "working capital facility" (which includes the Proposed WCF), without first providing notice to holders of the Second Lient Notes (the " Noteholders") in accordance with the procedures in the A&R Indenture (the " ROFR Process"). The Noteholders who are entitled to participate in the ROFR Process notified the Company that they do not wish to participate in the Proposed WCF. Annual and Special Meeting of Shareholders Only holders of Shares of record as of the close of business on April 10, 2025, the record date for the Meeting, are entitled to receive notice of, attend (virtually) and vote at, the Meeting. Non-registered Shareholders (holders who hold their Shares through a broker, investment dealer, bank, trust company, custodian, nominee or other intermediary) must appoint themselves as a proxyholder to be able to participate, vote and asks questions at the Meeting. Detailed instructions on how to participate, vote and ask questions at the Meeting are included in the Meeting Materials. About Mountain Province Diamonds Inc. Mountain Province Diamonds is a 49% participant with De Beers in the GK Mine located in Canada's Northwest Territories. The Gahcho Kué joint venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 96,000 hectares of highly prospective mineral claims and leases surrounding the GK Mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites. For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company's website at Caution Regarding Forward Looking Information This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to: the timing of the Meeting, the terms of the Proposed WCF; the anticipated benefits of the Proposed WCF on the Company's cash flow position; the expected outcome on the ability of the Company to continue as a going concern if the Proposed WCF is not consummated; the use of proceeds from diamond sales; expectations as to how the Proposed WCF will be drawn down and repaid; disinterested shareholder approval requirements under the Manual and MI 61-101 and the value of the consideration to insiders and related parties. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the negotiating stances taking by the parties; the ability to obtain approval of regulators, parties and shareholders, as may be required; satisfaction of the conditions acceptable to the parties; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR+, which also provide additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. SOURCE Mountain Province Diamonds Inc.
Cision Canada
25-04-2025
- Business
- Cision Canada
Mountain Province Diamonds Announces First Quarter 2025 Production and Sales Results, Details of First Quarter 2025 Earnings Release, and Conference Call
TSX and OTC: MPVD TORONTO, April 24, 2025 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) (OTC: MPVD) today announces production and sales results for the first quarter ended March 31, 2025 ("the Quarter" or "Q1 2025") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian dollars unless otherwise noted. Q1 Production Takeaways (all figures reported on a 100% basis unless otherwise stated) 762,978 carats recovered, 40% lower than last year's comparable quarter (Q1 2024: 1,264,887 carats) 0.82 Average grade of carats per tonne, a 48% decrease relative to Q1 2024 (1.57 carats per tonne) 0 (nil) ore tonnes mined; a 100% reduction relative to last year's comparable quarter (Q1 2024: 1,946,856 ore tonnes mined), as all ore treated came from the stockpile. 925,773 ore tonnes treated, a 15% increase relative to last year's comparable quarter (Q1 2024: 805,557 tonnes treated) Q1 Sales Results In the Quarter, 426,268 carats were sold for $44 million (US$30.7 million), averaging $103 per carat (US$72 per carat). In Q1 2024, 938,310 carats were sold for $89.4 million (US$66.1 million), averaging $95 per carat (US$70 per carat). Mark Wall, the Company's President and Chief Executive Officer, commented: "Q1 is historically a challenging quarter for the operations. For Q1 of 2025 we saw the all- important total tonnes mined increase by 28% when compared to Q1 of 2024. As previously reported the first half of 2025 is focussed exclusively on stripping waste to reach the important high grade NEX orebody, and the improvements in mining performance have been a key focus area. Processing continued to go well, with a 15% improvement in Q1 2025 compared to Q1 of 2024. As we were treating low grade stockpiles while we strip waste to the NEX orebody we expected lower grades, although the stockpile grades performed below modelled grade with a processed grade of 0.82 carats per tonne. While the processing facility continued to perform very well, the low-grade stockpiles being treated resulted in low carat production for the quarter. During Q2 we will continue to work to find the best grade in the large stockpile we are treating, while we close in on accessing the high grade NEX orebody at the end of Q2" Earnings Release and Conference Call Details The Company will host its quarterly conference call on Wednesday May 14 th, 2025 at 11:00am ET. Prior to the conference call, the Company will release Q1 2025 financial results on May 13 th, 2025 after-market. Conference Call Dial-in Details: Title: Mountain Province Diamonds Inc Q1 2025 Earnings Conference Call Conference ID: 19522 Date of call: 05/14/2024 Time of call: 11:00 Eastern Time Expected Duration: 60 minutes Webcast Link: Participant Toll-Free Dial-In Number: (+1) 888-699-1199 Participant International Dial-In Number: (+1) 416-945-7677 A replay of the webcast and audio call will be available on the Company's website. About Mountain Province Diamonds Inc. Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 96,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat. All resource estimations are based on a 1mm diamond size bottom cut-off. For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company's website at Qualified Person The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Tom McCandless, Ph.D., and Tysen Hantelmann, P. Eng., independent advisors to the Company and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Caution Regarding Forward Looking Information This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province's business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject to the limitations under the Company's debt facilities, and will depend on Mountain Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board. SOURCE Mountain Province Diamonds Inc.
