Mountain Province saw a net loss in the third quarter, hampered by bad weather and the negative impact of currency fluctuation.
The company reported a loss of CAD 25.8 million ($19.6 million) from its Gahcho Kué mine in Canada for the three months ending September 30, compared with a profit of $17.5 million ($13.3 million) the previous year, as the Canadian currency weakened against the US dollar.
Revenue for the July-to-September period fell 27% to $41.6 million from the sale of 791,252 carats, while the average price slumped 28% to $53 per carat. Although sales volume rose, it consisted of a larger proportion of lower-value rough as severe weather forced the company to mine at lower-quality portions of the deposit, Mountain Province said Tuesday. Total output fell 16% to 1.5 million carats, although the amount of material treated increased 17% to 890,325 tonnes.
The miner has lowered its full-year production outlook, as it continues to retrieve ore from the lower-grade portions of the mine. It now expects output of between 6.7 million and 6.8 million carats, compared to the 6.6 million to 6.9 million carats it reported in October.
Image: The Gahcho Kué mine. (Mountain Province)