Weaker Canadian Dollar Hits Mountain Province

RAPAPORT... Mountain Province recorded a net loss in the second quarteras the weaker Canadian dollar inflated its debt levels. The loss amounted to $4.8 million (CAD 6.3 million) for thethree months ending June 30, compared with a $5.8 million (CAD 7.6 million) profita year ago, it said last week. The depreciation of the Canadian currency againstthe US dollar since late 2017 has had a detrimental impact on the profitfigures it reports, as its debts are in US dollars, while its income statementsare in the local coinage, it explained. The company's share price fell 4%Thursday after it released its results. The loss was despite higher sales, with revenue from the GahchoKu?(C) mine more than tripling to $75.4 million (CAD 99.1 million) from $21.1million (CAD 27.6 million) last year. MountainProvince began diamond recovery at the mine in late 2016, and reachedcommercial production in March 2017. It began recording revenue in the secondquarter of 2017. The miner sold 1.2 million carats at three tenders during thesecond quarter of this year, all in Antwerp, at an average price of $86 per carat. The company also paid shareholders its first dividend of$0.03 (CAD 0.04) per share, noting positive performance at the asset, which islocated in Canada's Northwest Territories. The company will hold two tenders in the third quarter andthree in the fourth quarter. It expects to achieve production at the higher endof its forecast of 6.3 million to 6.6 million carats for the year, it said. Mountain Province owns 49% of the Gahcho Ku?(C) mine, with DeBeers holding the remaining 51%.