Mountain Province Diamonds latest sale nets $24 million

Total proceeds from Mountain Province Diamonds’ (TSX: MPVD) latest sale were $24.2 million netted from 366,505 carats, the company announced today.

“These results were in line with our expectations and reflect current market conditions. We saw good price bids for our better quality larger goods where, the majority of our value lies,” said Stuart Brown, Mountain Province Diamonds president in a statement.

“In the lower qualities and smaller sizes, we saw average price declines in the mid single digits.  We believe the price pressure is predominantly driven by the recent rapid weakening of the Indian Rupee against the US Dollar and to some extent the seasonal lower demand for rough diamonds ahead of the Diwali celebrations.” The price pressure is predominantly driven by the recent rapid weakening of the Indian Rupee against the US dollar

Brown also said the company has noted some good reporting of diamond retail jewellery sales, particularly in the US where demand remains strong.  Brown added that the Chinese retail market is also strong and showing positive momentum despite the most recent uncertainty in Chinese capital markets.

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine in Canada's Northwest Territories.  Gahcho Kué is the world's largest new diamond mine, consisting of a cluster of four kimberlites, three of which are being developed and mined under the initial 12-year mine plan.