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Mountain Province nets US$24.2M in eighth sale

Mountain Province Diamonds (TSX: MPVD) has reported US$24.2 million in proceeds from the eighth diamond sale this year.
Mountain Province nets US$24.2M in eighth sale Mountain Province nets US$24.2M in eighth sale Mountain Province nets US$24.2M in eighth sale Mountain Province nets US$24.2M in eighth sale Mountain Province nets US$24.2M in eighth sale

Mountain Province sold 366,505 carats, at an average value of $66/ct in its eighth sale this year

Staff Reporter

The Northwest Territories-focused miner sold 366,505 carats, at an average value of $66/ct, compared with the $65/ct average price the company netted from the previous sale of 411,317cts.

"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 CEO Stuart Brown.

He said in the lower qualities and smaller size categories, the company 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."

Brown also noted good reporting of diamond retail jewellery sales, particularly in the US, where demand remained strong.

The Chinese retail market is also strong and showing positive momentum despite the most recent uncertainty in Chinese capital markets.

"We are encouraged to see positive diamond jewellery retail sales and we believe that with a positive retail selling season we will see better demand for rough diamonds in the near future."

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine, in Canada's Northwest Territories.