Mountain Province Diamonds Inc. · OTC:MPVDF
Mountain Province Diamonds — Investor Presentation (September 2014)
31 slides from Mountain Province Diamonds's investor presentation, September 2014
Slide 1: Corporate Presentation
CORPORATE PRESENTATION
Slide 2: Mountain Province - Best in Class
Mountain Province - Best in Class World’s largest and richest new diamond mine Best in class - highest margin new diamond mine Projected to be third highest margin diamond mine in production Potential to be a Tier 1 asset - +20 year LOM, +$20 Billion in situ value
Slide 3: Highest Margin New Diamond Mine
Highest Margin New Diamond Mine Name Reserve Grade Total Diamond Revenue Operating Operating Production Carats Value per tonne Cost Margin (MMct/year) (Mt) (cpt) (MMct) ($/ct) ($/t) ($/t) ($/t) Gahcho Kué DeB/MPV 35.4 1.57 55.5 182 286 65 221 4.5 Canada Bunder Rio Tinto 37 0.74 27.4 50 38 20 18 0.7
Slide 4: Third Highest Margin Diamond Mine
Third Highest Margin Diamond Mine
Slide 5: Capital Structure
Capital Structure TSX : MPV Markets NYSE MKT : MDM Market cap ~$650M Shares outstanding 115M Fully diluted 116M Cash ~$38M
Slide 6: Joint Venture with De Beers
Joint Venture with De Beers MP 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 Operator: Performance Obligations
Slide 7: Canada's Diamond Fields
Canada’s Diamond Fields “Northwest Territories | Gameti Wekweeti @ ey Diavik tt aoe ¥ } Whati t BeNchok® i Gahcho Kué Ndilo/Dettah Yellowknife raed Om Lutsel K’e Te > Ft. Providence ts Ft. Resolution Hay River» ig Feat iis
Slide 8: Gahcho Kué Kimberlite Cluster
Gahcho Kué Kimberlite Cluster 61M carat open-pit resource to +350 metres
Slide 9: Reserve Statement
Reserve Statement Pipe* Category Tonnes Grade Carats (Mt) (cpt) (Mct) 5034 Probable 13.4 1.74 23.2 Tuzo Probable 16.4 1.25 20.6 Hearne Probable 5.6 2.07 11.7 Total Probable 35.4 1.57 55.5 JDS Mining, March 2014
Slide 10: Independent Diamond Valuations
Independent Diamond Valuations Pipe Actual* Model** Model Esc*** 5034 169 138.19 167.35 Hearne 92 107.00 123.19 Tuzo 311 101.00 144.36 Total $182 $118.38 $149.66 *WWW International Diamonds Consultants, August 2014 **WWW, February 2014 ***Model price escalated by real 1.5% over life of mine (12 year
Slide 11: Gahcho Kué Diamonds
& Gahcho Kué Diamonds Mountain Province DIAMONDS
Slide 12: 2014 Feasibility Update
2014 Feasibility Update IRR 32.6% Capital (Jan 14) (49%) US$346M Contingency US$33M Working capital US$36M Sust. Cap LOM US$41M Operating cost US$65/tonne LOM 12 years LOM production 53.4 million carats Revenue US$150/carat JDS Mining/Hatch, March 2014
Slide 13: Diamond Price Gearing
Diamond Price Gearing Value IRR NPV $150/carat 32.6% $1.1B $174/carat 43% $1.85B $200/carat 62.5% $3.4B
Slide 14: De Beers Major Capital Projects
De Beers Major Capital Projects Project Capital Resource Cost ($/ct) Jwaneng $3B 102M $29.41 8-Cut Venetia Underground $2B 96M $20.83 Gahcho Kué $0.85B 54M $15.74 Gahcho Kué – Highest Return
Slide 15: Potential Cash Flow (US$)
Potential Cash Flow (US$) Revenue ~ $182 per carat Cost ~ $42 per carat Margin ~ $140 per carat Production ~ 4.5M carats/year Cash flow ~ $630M/year MPD 49% ~ $310M/year Per share ~ $2.38* * Based on post-financing 130M shares in issue
Slide 16: Project Finance
Project Finance Term loan US$370M Capital $254M Working capital $50M Capitalized interest $26M Fees $22M De Beers payment $10M Management fee $8M Equity US$210M 2013 $52.3M 2014 $81.2M 2015 (Jan/Feb) $76.5M Debt/equity: 64/36
Slide 17: Development Schedule
Development Schedule Federal government approval October 2013 Construction started December 2013 Current status: 40% complete end August 2014 Target for construction completion end 2015 Target for plant commissioning H1 2016 Target for start of production Q3 2016
Slide 18: Construction at Gahcho Kué
os) Construction at Gahcho Kué
Slide 19: Gahcho Kué Mine Design
& Gahcho Kué Mine Design sore se2000 sesaoo 586000 afi 988000 690000 3 NT-4201 7038000 os SS NT-4199 NT-4341 Ld Gahcho Kue —— Road ‘Structure L — Pipe . [TT Acevc seres uossos eT [TF Leaserermit Application or 7 el heal NT4731 74725 r) 0s 1 km g D 7 B De $ E DEERS gs NT-4737, NT-4738) Group oF Compa
Slide 20: Phase 2 Inferred Resources
Phase 2 Inferred Resources Pipe* Category Tonnes Grade Carats (Mt) (cpt) (Mct) 5034 Inferred 0.9 1.51 1.4 Tuzo Inferred 8.9 1.62 14.6 Hearne Inferred 1.4 1.67 2.4 Total Inferred 11.3 1.64 18.5 Further indicated resource of 1.1M carats Mine life potential from 12 to 17 years
Slide 21: Phase 3: Tuzo Deep
3 Phase 3: Tuzo Deep ntain Provi DIAMONDS
Slide 22: Phase 3 Resource Potential
Phase 3 Resource Potential Depth Volume Volume (meters) (tonnes) (carats) Phase 1 Surface to 350 16.4M 20.6M Reserve Phase 2 350 to 560 8.9M 14.6M Resource Phase 3 560 to 750 ~7M ~12M Potential 2014 Tuzo Deep drill program completed Kimberlite intersected to 740 meters Mine life potential from 17 to
Slide 23: Phase 3 Mine Potential
3 Phase 3 Mine Potential Tuzo s Pit Tuzo/5034 pits intersection 5034 Pit Mountain Province DIAMONDS
Slide 24: Phase 4: Tesla & 5034/Hearne Deep
Phase 4: Tesla & 5034/Hearne Deep Mine life potential + 20 years
Slide 25: Phase 5 Exploration Potential
Phase 5 Exploration Potential
Slide 26: Path to Tier 1 Asset
Path to Tier 1 Asset Phase Carats LOM Value est. Phase 1 Reserve 54M 12 years $9.4B Phase 2 Resource 18.4M 5 years $3.2B Phase 3 Tuzo Deep ~ 12M ~3 yrs. ~ $2B Phase 4 Tesla & Other ? ? ? Phase 5 New Targets ? ? ? Vision: +20 years LOM, +$20B in-situ Value
Slide 27: Global Diamond Supply & Demand
Global Diamond Supply & Demand Source: Rio Tinto
Slide 28: Falling Diamond Supply
Falling Diamond Supply Source: RBC Capital Markets
Slide 29: Climbing Diamond Demand
Climbing Diamond Demand Source: Rio Tinto
Slide 30: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Source: De Beers & Rio Tinto
Slide 31: Corporate Information
Corporate Information Head Office 161 Bay Street Suite 2315 Toronto, ON M5J 2S1 TSX: MPV Canada NYSE MKT: MDM Tel. ++1-416-361-3562 Fax. ++1-416-603-8565 www.mountainprovince.com [email protected] This presentation may contain “forward looking” statements that involve known and unknown risks
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