Forward Looking Statements

Transcription

1 TSX & NASDAQ: MPVD

2 Forward Looking Statements Caution Regarding Forward Looking Information Cautionary Statement: This news release contains forward-looking statements under applicable Canadian and US securities regulations and legislation in which Mountain Province discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as projections or expectations relating to ore grades and processing rates, production and sales volumes, cash costs, operating cash flows, capital expenditures, debt management initiatives, exploration efforts and results, development and production activities and costs, liquidity, tax rates, the impact of diamond price changes, reserve estimates, and future dividend payments. The words anticipates, may, can, plans, believes, estimates, expects, projects, targets, intends, likely, will, should, to be, potential and any similar expressions are intended to identify those assertions as forward-looking statements. Under its current project finance facility Mountain Province is not permitted to pay dividends on common stock unless and until obligations under the facility have been satisfied. The declaration of dividends is at the discretion of Mountain Province s Board of Directors, subject to restrictions under the Company s project finance facility, and will depend on Mountain Province s financial results, cash requirements, future prospects, and other factors deemed relevant by the Board. Mountain Province cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause Mountain Province s actual results to differ materially from those anticipated in the forward-looking statements include supply of and demand for, and prices of, diamonds, mine commissioning, mining sequencing, production rates, cash flow, industry risks, regulatory changes, political risks, labor relations, weather- and climate-related risks, environmental risks and other risk factors. Investors are cautioned that many of the assumptions upon which Mountain Province s forward-looking statements are based are likely to change after the forward-looking statements are made, including for example diamond prices, which Mountain Province cannot control, and production volumes and costs, some aspects of which Mountain Province may not be able to control. Further, Mountain Province may make changes to its business plans that could affect its results. Mountain Province disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. This presentation has been prepared under the supervision of Carl Verley, P. Geo., a Qualified Person under National Instrument

3 Mountain Province Investment Case World s largest and richest new diamond mine Partnered with De Beers Projected top quartile operating margin Q ramp-up production commenced March 1, 2017 commercial production declared Mid 2017 target for full production Vision: To be a Tier 1 asset: +20 year LOM, +$20 Billion in situ value 3

4 Capital Structure Markets: TSX & NASDAQ: MPVD Market cap: ~C$725M Shares outstanding: 160.0M Fully diluted: 162.6M Cash: +C$65M 4

5 Mine Location 5

6 Gahcho Kué Mine 6

7 Joint Venture with De Beers MPV 49% / De Beers 51% JV Board - 2 representatives each All material decisions by consensus Effectively 50/50 JV Each market own share of diamonds De Beers: mine operator 7

8 Resource category: Probable reserve Source: JDS Mining, March 2014 (100% basis) * Inclusive of mining in 2016 Reserve Statement Pipe Tonnes (Mt) Grade (cpt) Carats (Mct) * * Tuzo Hearne Total 34.9* * Geological Model 8

9 Independent Diamond Valuations Pipe Actual* Model* Model Esc** Tuzo Hearne Total $182 $123 $150 *WWW, August Actual = spot including all stones. Modeled assumes value increases only up to 6 carats **Model price escalated by real 1.5% over 12 year life of mine Note: estimated 15.5% reduction in rough prices since August

10 Rough Diamond Price Index August 2014 Valuation 10

11 Capital Program Capex/Opex CAD Construction 2015/16 $304M Operating costs 2016/17 $78.9M Total Capex/Opex $382.9M Drawn to March 2017 $382.9M Balance to Sept 2017 Nil Total funding $382.9M Reserve balance $65M Debt Service Schedule 2017 $24.8M 2018 $94M 2019 $101M 2020 $47M 2021 $63M 2022 $40.5M Total US$370M 11

12 2016 Ramp-up and 2017 Production Guidance Tonnes 000 Grade (c/t) Total Cts 000 MPV cts Actual Variance 2017 Guidance % 2, % % 4, % 2,200 12

13 5034 Bulk Sample Bulk sample taken from across the length, breath and depth of ,957 carats from North and East Lobes 1,132 carats from Center Lobe Total : 3,089 carats 23.2 M ct Reserve 520, 836 carats from upper portion of NE and Center lobes sold to date 2.2% of Reserve Early diamond sales not yet representative of bulk sample results 13

14 5034 Kimberlite Six Lobes Diamond distribution in North and East (NE) lobes variable by layer Three layers: upper fragmental textured, middle transitional textured and lower hypabyssal (HK) Center lobe only HK Center and West lobe diamond distribution highly variable Mined to date: 8% of 5034 Reserve Early diamond sales not yet representative of bulk sample results 14

15 Product Profile in Early Production Wide product variation Fancies and Specials 0.5% by weight and approx. 15% of value White gem and near gem 30% by weigth and approx. 65% of value Browns and boart 70% by weight and approx. 20% by value Significant polulation of large special stones but not yet representative of bulk sample results Highest value special from early sales less than $10,000/ct 9.9 ct stone from C/E bulk sample valued at $18,500/ct. 15

16 Fancies and Specials Less than 1% by volume but high value concentration Quality variable gem, near gem & boart Colors variable white, grey, brown 9.9 ct stone from C/E bulk sample D color valued at $18,500/ct. ½ % of bulk sample weight but 56% of value carat largest gem quality to date, but lower white quality 156 carat largest diamond to date, but boart No quality trend evident yet 16

17 Diamond Sales Three sales completed: Jan (49,420), Feb (277,646) and March (193,770) Early sales weak due to price discovery, Indian Rupee, higher percentage of browns and lower quality Specials January to February 12 percent price increase February to March 6 percent price increase Janaury 8.1 bids per parcel (approx 130 to 150 parcels per sale) February 8.8 bids per parcel March 10.4 bids per parcel De Beers Sightholders 10 at January sale; up to 24 at March sale March sale: 72 percent of lots sold to repeat customers Conclusion: good progress being made to establish product in the market 17

18 Price Discovery Example Feasibility modeled price +$300/ct 18

19 Fluorescence Approx 1/3 of all natural diamonds fluoresce Fluorescence seen in bulk sample limited to white colors (approx. 25% of bulk sample) Blue fluorescence only visible under black light. Under natural light fluorescing diamonds look brighter Fluorescence varies from weak to medium to strong 9.9 carat 5034 bulk sample diamond has strong fluorescence; 25 carat Tuzo diamond weak fluorescence Sales to date indicate fluorescence in line with bulk sample Market tolerance for fluorescence varies from year-to-year. Weak diamond market = low tolerance; strong diamond market = high tolerance Current discounts from 5% for weak to 30% for strong fluorescence Adjusting marketing strategy to offer to specialized buyers of fluorescing diamonds Target: reduce/eliminate fluorescence discount 19

20 Fluorescence Under Black Light 20

21 Phase 2 Inferred Resources Pipe Tonnes (Mt) Grade (cpt) Carats (Mct) Tuzo Hearne Total Indicated & inferred 19.5M carats (100%) Mine life potential from 12 to 17 years 21

22 Phase 3: Tuzo Deep Tuzo Deep Potential ~7M tonnes ~14M carats Mine Potential: years 22

23 Path to Tier 1 Asset Phase Carats LOM Value Est.* Phase 1: Reserve 55M 12 years $9.4B Phase 2: Resource 18.4M 5 years $3.2B Phase 3: Tuzo Deep ~12M ~3 years ~$2B Phase 4: Tesla & Other Tbd** Tbd Tbd Phase 5: New Targets Tbd Tbd Tbd *Based on feasibility diamond prices **To be determined Vision: +20 years LOM, +$20B in-situ Value 23

24 CAD/USD Feasibility assumption US$0.91 CAD down ~ 16% against feasibility assumption 24

25 Falling Diamond Supply 25

26 Diamond Engagement Ring Demand Percent of Brides Receiving Diamond Engagement Rings 26

27 Corporate Information Head Office 161 Bay Street Suite 1410 Toronto, ON M5J 2S1 Canada Tel TSX & NASDAQ: MPVD 27