Sales of rough from Mountain Province’s Gahcho Kué mine in Canada dropped in the first quarter amid slow demand and weak prices.
Diamond sales fell 31% year on year to $66.1 million for the three months ending March 31, Mountain Province said last week. Sales volume slipped 2% to 938,310 carats, while the average price plunged 29% to $70 per carat.
The decrease is the result of a prolonged slowdown in the diamond market caused by economic challenges, an oversupply in the midstream, and weakened diamond demand in China, one of the larger consumer markets for jewelry. Additionally, sales suffered from a weak comparison with the same period a year ago, which saw record first-quarter revenue as appetite for small stones increased.
Output fell 4% to 1.3 million carats during the period despite the company more than quadrupling the amount of ore it produced. A 9% decline in the ore grade contributed to the drop, the miner noted. Mountain Province’s 49% share of production was 619,795 carats. De Beers owns the remaining 51% stake in the site.
“The first quarter is generally the toughest quarter at the Gahcho Kué mine operations,” said Mountain Province CEO Mark Wall. “The important metrics of ore treated per day and overall plant utilization were both improved in the first quarter. The Gahcho Kué mine also recovered almost 2 million tonnes of ore in the quarter and has built up considerable stockpiles.”
The miner will release its full financial results for the period on May 8.
Image: Trucks hauling ore at the Gahcho Kué mine. (Mountain Province)
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