Past year: ▼ 73%(0.05c – 6.00c USD)
Each one in plain English, with the numbers worked through for a shareholder.
30 Mar 2012business combination● NeutralMajor
Won an interim court order for a plan of arrangement to spin the wholly-owned Kennady North exploration ground, plus about C$3 million of working capital, into a separately listed company, Kennady Diamonds, with one Kennady share for every five Mountain Province shares. The same release disclosed that the auditors had put a going-concern note on the 2011 accounts.
1 Mar 2012joint venture update● Neutral
Three of five deep holes at Tuzo were complete and the airborne survey had picked out 57 gravity targets on the joint venture leases, while the environmental review moved to technical sessions in April and public sessions in May. Gahcho Kué's probable reserve stood at 31.3 million tonnes at 1.57 carats per tonne, 49 million carats.
12 Dec 2011regulatory community update● Neutral
On 12 December 2011 the company reported that the first formal session of the Gahcho Kué environmental review finished, with information requests from participants due January 2012. Final results from an airborne gravity survey over Gahcho Kué and the company's 100%-owned Kennady North project were received, and the Tuzo Deep drilling has two holes done and a third underway, with the rest expected in Q1 2012. Shares outstanding are 80,345,558.
24 Oct 2011drilling progress report● Neutral
Finished the 3,991 line-kilometre airborne gravity survey (1,198 km over Gahcho Kué, 2,793 km over the wholly-owned Kennady North ground), with results expected in November, and expanded the Tuzo deep drilling program.
7 Oct 2011drilling progress report● Neutral
Started deep drilling at the Tuzo kimberlite to test for diamond-bearing rock between 350 and 750 metres, below the bottom of the existing resource, and began the first property-wide airborne gravity survey flown at Kennady Lake in roughly 17 years of exploration.
2 Aug 2011joint venture update▲ GoodMajor
The review panel ruled that the 11,000-page environmental impact statement for Gahcho Kué met its terms of reference, which let the formal environmental review of the project begin. Mountain Province holds 49% of the joint venture; De Beers Canada operates it.
27 Dec 2010regulatory community update▲ GoodMajor
On 23 December 2010 De Beers and the company announced the Gahcho Kué environmental impact statement was submitted to the review panel, meeting the end-2010 target. The panel will next check that it meets its terms of reference, after which the analysis phase of the review starts. This resolves the EIS filing thread, but approval is still pending.
7 Dec 2010resource reserve update● Neutral
On 7 December 2010 the company announced that the NI 43-101 technical report for the feasibility study has been filed, repeating the 21 October results (IRR 20.7% with sunk costs, 33.9% without; capital C$549.5M; 11-year life). It confirms the filing of the full study but adds no new numbers. Shares outstanding are 77,341,973. The CEO says the next focus is submitting the environmental impact statement before year-end.
6 Dec 2010resource reserve update● Neutral
A 6-K filed in December 2010 saying the full Gahcho Kué feasibility study was filed on SEDAR, with a note on how Canadian reserve and resource terms differ from U.S. rules. It carries no new figures beyond the October 2010 results.
18 Nov 2010capital raising announcement▲ GoodMajor
On 18 November 2010 the company closed a private placement of 4.6 million shares at C$5 per share (about C$23M). Dermot Desmond, described as the largest shareholder, took 600,000 shares. The CEO says this plus cash on hand covers the 2011 operating budget and the next $10 million payment to De Beers (the milestone in the 2009 JV agreement). Shares outstanding are now 77,298,973, up from 72.6M, and the price is well above the C$2.10 paid in May 2010.
What it means for a shareholder
4.6m new shares at C$5.00 to raise about C$23.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
5 Nov 2010regulatory community update● Neutral
On 5 November 2010 the company said De Beers, the operator, told the review panel that the Gahcho Kué environmental impact statement is on track to be submitted before the end of 2010. Submission restarts the environmental impact review. This continues the permitting step flagged in September and October.
22 Oct 2010resource reserve update▲ GoodMajor
On 21 October 2010 the company released the final JDS feasibility study for Gahcho Kué (dated 15 October 2010): after-tax, unleveraged IRR of 20.7% including sunk costs and 33.9% excluding them, initial capital C$549.5M, operating cost C$48.68 per tonne, and an 11-year life averaging 4.45 million carats a year at US$102.48 per carat. A first Mineral Reserve was also declared: 31.3 Mt of probable reserve at 1.57 carats per tonne, 49.0 million carats (5034, Hearne, Tuzo). This firms up the September draft (capital now at the low end of the C$550-650M range) and, per the CEO, the IRR exceeds the 15% the JV agreement requires to support a decision to develop. The release also repeats that the 2009 audit report carried a going concern qualification.
14 Sept 2010resource reserve update▲ GoodMajor
On 14 September 2010 the company reported receiving the final draft of the JDS feasibility study, which is under up to 90 days of internal review by the partners and may change. Preliminary results: IRR above the 15% the joint venture agreement requires to support a decision to develop; an 11-year base-case mine life at about 4.5 million carats a year; initial capital of C$550M-C$650M; and cash operating cost of C$48-C$60 per tonne. The company plans to file the environmental impact statement with the review board before year-end. The 15% IRR also bears on the first C$10M repayment to De Beers, which the July 2009 agreement ties to a feasibility study with a 15% IRR or a decision to build (an inference).
18 May 2010capital raising announcement▲ Good
On 18 May 2010 the company closed the placement, issuing 5,476,177 shares at $2.10 for about $11.5M; named subscribers include JP Morgan, Capital Group, Colonial First State and CQS/City Natural Resources. Some of the same buyers also bought an overhang block of about 3 million shares from the Lehman bankruptcy. Shares outstanding are now 72,107,923, and proceeds are for the feasibility study, permitting and general purposes.
What it means for a shareholder
5.5m new shares at C$2.10 to raise about C$11.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
28 Apr 2010capital raising announcement● Neutral
On 27 April 2010 the company announced a non-brokered placement of up to 5,476,191 shares at C$2.10 to raise up to C$11.5M, closing by 14 May 2010. Proceeds are for the feasibility study, Gahcho Kue permitting and general purposes. It is not offered in the United States.
What it means for a shareholder
5.5m new shares at C$2.10 to raise about C$11.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
25 Jan 2010resource reserve update▲ Good
On 25 January 2010 the company said the feasibility study is progressing satisfactorily, on budget and on schedule for mid-2010 completion. A draft project description (for guidance, subject to partner approval) shows about 3 million tonnes of ore a year, a roughly 12-year open-pit life and about 4.5 million carats a year; this is a different, more specific plan from the earlier 3 Mct/yr over 15 years. The environmental impact statement is being finished in parallel. Shares outstanding are 66,631,746.
1 Sept 2009resource reserve update▲ GoodMajor
On 1 September 2009 the joint venture appointed JDS Energy and Mining to carry out the Gahcho Kue feasibility study, which has started. It is expected to take about twelve months with a budget of about $10 million. This follows the July agreement under which the company pays the study cost.
5 Aug 2009capital raising announcement● Neutral
On 4 August 2009 the company closed the placement: 3,000,000 units at C$1.50 for C$4.5M gross, each with half a warrant at C$2.00 for 18 months. Shares outstanding rose to 63,097,746, and the money is earmarked for the planned feasibility study and general purposes. This completes the July placement.
What it means for a shareholder
3.0m new shares at C$1.50 to raise about C$4.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
14 July 2009capital raising announcement● Neutral
On 14 July 2009 the company announced it was arranging a non-brokered placement of up to 3 million units at C$1.50, each unit one share plus half a warrant (C$2.00 strike, 18 months), to raise up to C$4.5M. Proceeds are for Gahcho Kue development and general purposes. This would add shares to the 60,097,746 outstanding.
What it means for a shareholder
3.0m new shares at C$1.50 to raise about C$4.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
6 July 2009joint venture update▲ GoodMajor
On 6 July 2009 the company and De Beers Canada signed a revised joint venture agreement replacing the 2002 one. The company keeps 49% (De Beers 51%), no longer faces the 2002 dilution provisions beyond normal ones that apply to both, and will market its own share of diamonds. Historic sunk costs to end-2008 are capped at C$120M; the company owes De Beers C$59M (49%) on a schedule tied to the feasibility study, permits and production, backed by security granted to De Beers, and it will pay 100% of the feasibility study cost. The release says this ends the strategic review announced 4 June 2008, and that a feasibility proposal from JDS is under consideration. This resolves the earlier open question of De Beers' right to raise its stake, at least as the release describes the dilution change.
12 June 2009resource reserve update● Neutral
A Form 6-K filed 12 June 2009 attaching the full AMEC technical report and consents behind the 26 May resource estimate. The text provided contains only the cover and exhibit list, so it adds no new figures beyond that estimate.
26 May 2009resource reserve update▲ GoodMajor
On 26 May 2009 the company released an updated resource estimate for Gahcho Kue prepared by AMEC: 50.5 million carats indicated (30.2 Mt at 167 carats per hundred tonnes) and 10.3 million carats inferred (6.0 Mt). This is a large change from the 2007-08 figures (about 23.6 Mct indicated, 22.9 Mct inferred), now with most of the stone in the indicated category; the filing says the data now supports a feasibility study that the joint venture partners are considering. The prices used to test economic prospects are mid-2008 prices with a 20% uplift (US$113/ct for 5034, $76/ct Hearne, $70/ct Tuzo), and resources are not reserves.
17 July 2008regulatory community update● Neutral
A routine Form 6-K attaching a notice of meeting and record date for a shareholder meeting. The text provided carries no meeting date, record date or other details, so there is nothing further to report.
2 July 2008drilling progress report▲ Good
On 2 July 2008 the company announced a 25.13-carat gem-quality diamond recovered from the 2008 Tuzo bulk sample, independently valued at about $17,500 per carat (about $440,000), which it calls the largest gem-quality diamond from a Canadian drill program. The Tuzo large-diameter program (nine holes, about 1,390 m) finished in March 2008 and diamond recovery is under way, with overall results due in the third quarter of 2008. One stone does not set the grade or value of the deposit, so those results are what matter.
7 Nov 2007drilling progress report▲ GoodMajor
On 6 November 2007 the company reported full 2007 drilling results: 26 Tuzo holes (8,576 m) and five 5034 East Lobe holes (1,486 m), with four of six deep Tuzo holes ending in kimberlite. The operator's volume estimate for Tuzo inferred kimberlite rose 17% (4,337 to 5,080 thousand cubic metres), 5034 indicated fell 4% and 5034 inferred rose 13%; updated resource models are expected in early 2008. The 5034 North Lobe large-diameter bulk sample ended in October with five of six planned holes done and less kimberlite recovered than expected, though the operator is described as confident it will still support an upgrade to indicated.
14 Aug 2007business combination● NeutralMajor
The August 2007 acquisition report confirms the Camphor takeover was completed: the compulsory acquisition of the last 653,752 Camphor shares closed on 19 June 2007, so the company owns 100% of Camphor. In total about 4,052,816 new company shares were issued at 0.41 per Camphor share; the 485,000 Camphor options were cancelled and replaced with 198,850 company options. This resolves the open Camphor thread; the company says it expects no major change in strategic direction.
14 June 2007regulatory community update● Neutral
On 14 June 2007 the CEO reported attending the review board's 11 June work plan meeting and called the environmental review process clear, transparent and disciplined. The release also says Gahcho Kue is the fourth diamond mine being developed in the NWT, the company now holds 49% against De Beers' 51%, and construction is expected to employ about 600 people. It adds no new schedule or resource figures.
6 June 2007regulatory community update▼ BadMajor
On 6 June 2007 the Mackenzie Valley Environmental Impact Review Board published a draft work plan and draft terms of reference for the Gahcho Kue review, with the review targeted for completion by mid-2009 and comments due 11 July. The company said it would meet the board and De Beers to assess the likely impact on the project schedule.
26 Apr 2007drilling progress report▲ Good
On 24 April 2007 the company said the 2007 Tuzo winter drilling (26 holes, 8,400 m) is finished, with preliminary results showing the kimberlite flaring to depth and four of six 400 m holes ending in kimberlite. The 5034 North/East lobe holes confirmed continuity at about 150 m, so the joint venture plans a summer 2007 large-diameter drilling program at the North Lobe (five to seven holes, about 1,500 m, about 60 tonnes for a 100-carat sample). This follows the March update and the plan to shift bulk sampling earlier than 2008; the company also says compulsory acquisition of the rest of Camphor has started, leading to a 49% venture interest.
17 Apr 2007business combination▲ GoodMajor
The Camphor offer expired with the company holding 14,224,813 Camphor shares, about 92.5% fully diluted. Since over 90% accepted, it is starting compulsory acquisition of the rest at the same 0.41 Mountain Province share per Camphor share; Camphor options will be exchanged for company options on the same basis. The company says it will control 49% of the Gahcho Kue venture at completion.
