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Mountain Province Diamonds Announces September 30, 2017 Quarter End Results

Press Release

Toronto and New York, November 13, 2017 – Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) (TSX and NASDAQ: MPVD) today announces the results for the quarter ended September 30, 2017.

Highlights for 2017 and to date

(All quoted figures in CAD$ unless indicated otherwise)

  • For the three months ended September 30, 2017, the Company reported a net income of $27.7 million or $0.17 per share. Included in sales reported for the quarter are the results of two diamond tenders that were conducted.
  • Revenue recognized in the three months ended September 30, 2017 totaled $65,218,000. Revenue recognized in the nine months ended September 30, 2017 totaled $160,359,000 of which $67,493,000 was capitalized as pre-commercial production revenue and $92,866,000 is reported as sales in the statement of earnings. Revenue recognized year to date reflects an average realization of US$75 per carat.
  • For the nine months ended September 30, 2017, the Gahcho Kué Diamond Mine (“GK Mine”) treated approximately 2,082,000 tonnes of ore through the process plant and recovered approximately 4,306,000 carats on a 100% basis for an average grade of approximately 2.07 carats per tonne. This recovered grade is approximately 28% above the original budget for the nine months ended September 30, 2017. The Company’s 49% attributable share of diamond production for the three months ended September 30, 2017 was approximately 894,000 carats and 2,110,000 carats for the nine months ended September 30, 2017.
    • Cash costs of production, including capitalized stripping costs, is a non-IFRS measure with no standardized meaning prescribed under IFRS. See the Non-IFRS Measures section of the Company’s September 30, 2017 MD&A for explanation and reconciliation.
  • Participation at the Company’s tender sales has been strong from the outset, with participation rates increasing through the year. Bids per lot (approximately 125 lots per sale) increased from an average of 8.1 in January to 11.8 in September. There is a high level of market interest and competition for Gahcho Kué diamonds with an average of 100 companies bidding each sale.
  • Cash costs of production, including capitalized stripping costs, is a non-IFRS measure with no standardized meaning prescribed under IFRS. See the Non-IFRS Measures section of the Company’s September 30, 2017 MD&A for explanation and reconciliation.

Financial Summary

For the three and nine months ended September 30, 2017, the Company reported a net income of $27.7 million or $0.17 earnings per share, and $33.1 million or $0.21 earnings per share, respectively.

The Company undertook seven tender sales of diamonds during the first three quarters of 2017 through its broker in Antwerp, Belgium, and the eighth and ninth sales were completed in October and November. Although the GK Mine declared commercial production on March 1st, the first four sales have been recorded against the mine construction costs rather than as revenue on the Company’s statement of comprehensive income as those diamonds sold were all recovered prior to the mine declaring commercial production.

At September 30, 2017, the Company had cash and restricted cash totaling $125.9 million, and had drawn US$357 million of its US$370 million project lending facility. As the availability period defined under the facility has now ended, no further draws against the facility will be made.

Read More: http://www.mountainprovince.com/application/files/1115/1059/6106/MPV_NR_2017-11-13_Q3_2017_Quarter_End_FINAL.pdf

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