Mountain Province Diamonds Inc. is focusing all of its efforts on raising and conserving money.
On Monday, Nov. 9, the company and its joint venture partner De Beers announced plans to pause all discretionary spending and cut costs where possible with the goal of SA国际影视传媒渕aximizing cash generation.SA国际影视传媒�
SA国际影视传媒淲e have agreed with De Beers to pause all discretionary spend and reduce costs wherever prudent,SA国际影视传媒� Mountain Province Diamonds president and CEO Mark Wall said in a news release. SA国际影视传媒淲e continue to monitor the market closely, while focusing on the controllables, which are costs, production and operating efficiencies. We aim to maintain the optionality of growth opportunities for an improved price environment.SA国际影视传媒�
Mountain Province Diamonds will reduce its costs by suspending growth-related expenditures at the Gahcho Kue mine, located 280km northeast of Yellowknife. That includes SA国际影视传媒減ausing spending and further work on the Gahcho Kue underground expansion,SA国际影视传媒� the news release stated.
The companySA国际影视传媒檚 vice-president of exploration, Tom McCandless, will be stepping down from his full-time role to offer support on an SA国际影视传媒渁s needs basisSA国际影视传媒� as a consultant.
Wall attributed the companySA国际影视传媒檚 decision to reduce costs to the pressures facing the diamond market, including SA国际影视传媒渁 slowing market in the US, low Chinese demand, and the uncertainty in the diamond supply chain related to lab-grown diamonds and continued supply of Russian diamonds following the invasion of Ukraine.SA国际影视传媒�
He said the market SA国际影视传媒渄eteriorated furtherSA国际影视传媒� in the third quarter of this year, and contended that major diamond producers have been SA国际影视传媒渟ignificantly cutting their salesSA国际影视传媒� as a result. He also noted that India has imposed a two-month moratorium on rough diamond imports until Dec. 15.
SA国际影视传媒淭he hope being that this pause in selling rough diamonds, together with December being the busiest time for diamond purchases, will reduce the excess supply in the sector and stabilise prices,SA国际影视传媒� said Wall. SA国际影视传媒淔or our part, the company took the decision to withhold some of our lower value goods during quarter three and took the unprecedented step in October to sell some of our production directly to our joint venture partner, De Beers.SA国际影视传媒�
Mountain Province acquired the Gahcho Kue site in 1992. It entered into a joint venture agreement with De Beers in 2002, and amended that agreement in 2009, selling 51 per cent ownership interest to De Beers.
