Mountain Province Diamonds Inc. · OTC:MPVDF
Mountain Province Diamonds — Investor Presentation (April 2015)
37 slides from Mountain Province Diamonds's investor presentation, April 2015
Slide 1: Corporate Presentation
Mountain Province DIAMONDS CORPORATE PRESENTATION TSX: MPV NASDAQ: MDM
Slide 2: Forward Looking Information
Forward Looking Information Caution Regarding Forward Looking Information Certain information included in this presentation constitutes forward-looking information within the meaning of Canadian and United States securities laws. Forward-looking information relates to management's future outlook and
Slide 3: 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 third highest margin diamond mine in production • Potential to be a Tier 1 asset • +20 year LOM, +$20 Billion in situ value • Fully funded to production Apri
Slide 4: Highest Margin New Diamond Mine
Highest Margin New Diamond Mine Name Reserve Grade Total Diamon Revenue Operating Operating Production Carats dValue per tonne Cost Margin (MMct/year) (Mt) (cpt) (MMct) ($/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 5: Projected Third Highest Margin Mine
Projected Third Highest Margin Mine April 2015 5
Slide 6: Capital Structure
Capital Structure • Markets – TSX: MPV – NASDAQ: MDM • Market cap: ~$720M • Shares outstanding: 158.9M • Fully diluted: 160.25M • Cash: ~$100M April 2015 6
Slide 7: Major Shareholders
Major Shareholders Bottin 22.7% Blackrock 6.5% JP Morgan 4.0% Royal Bank 3.8% M&G 3.6% April 2015 7
Slide 8: Joint Venture with De Beers
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 Operator: Performance Obligations April 2015 8
Slide 9: Canada’s Diamond Fields
Canada’s Diamond Fields April 2015 9
Slide 10: Gahcho Kué Kimberlite Cluster
Gahcho Kué Kimberlite Cluster 61M carat open-pit resource to +350 meters April 2015 10
Slide 11: Reserve Statement
Reserve Statement Pipe Category Tonnes (Mt) Grade (cpt) Carats (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 Source: JDS Mining, March 2014 April 2015 11
Slide 12: Independent Diamond Valuations
Independent Diamond Valuations Pipe Actual* Model** Model Esc*** 5034 169 138.19 167.35 Tuzo 311 101.00 144.36 Hearne 92 107.00 123.19 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 13: Gahcho Kué Diamonds
Gahcho Kué Diamonds April 2015 13
Slide 14: 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 Source: JDS Mining/Hatch, March 2014 April 2015 14
Slide 15: Diamond Price Gearing
Diamond Price Gearing Value IRR NPV $150/carat 32.6% $1.1B $174/carat 43% $1.85B $200/carat 62.5% $3.4B April 2015 15
Slide 16: De Beers Major Capital Projects
De Beers Major Capital Projects Project Capital Resource Cost ($/ct) Jwaneng $3B 102M $29.41 8-Cut Venetia $2B 96M $20.83 Underground Gahcho Kué $0.85B 55M $15.45 Gahcho Kué – Highest Return April 2015 16
Slide 17: Potential Cash Flow (US$)
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 MPV 49% ~ $310M/year Per Share ~ $2.00 April 2015 17
Slide 18: Capital Program
Capital Program Capital (49%) 2014 $120M 2015 $226.6M 2016 $120M Total $466.6M Commissioning opex $41M Working capital $14M Total C$521.6M Project debt US$370M Cost overrun facility US$75M Total US$445M April 2015 18
Slide 19: Development Schedule
Development Schedule Permits approved October 2013 Construction started December 2013 Current status ~60% complete March 2015 Target for construction End 2015 completion H1 2016 Target for plant commissioning Q3 2016 Target for start of production April 2015 19
Slide 20: Construction at Gahcho Kué
Construction at Gahcho Kué April 2015 20
Slide 21: Pre-Stripping 5034 North Lobe
Pre-Stripping 5034 North Lobe April 2015 21
Slide 22: Gahcho Kué Mine Design
Gahcho Kué Mine Design April 2015 22
Slide 23: Sensitivity Analysis
Sensitivity Analysis April 2015 23
Slide 24: Phase 2 Inferred Resources
Phase 2 Inferred Resources Pipe Category Tonnes (Mt) Grade (cpt) Carats (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 18.4 • Further indicated resource of 1.1M carats • Mine life potential from 12 to 17 years April 2015 24
Slide 25: Phase 3: Tuzo Deep
Phase 3: Tuzo Deep April 2015 25
Slide 26: 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 • Target for further delin
Slide 27: Phase 3 Mine Potential
Phase 3 Mine Potential April 2015 27
Slide 28: Phase 4: Tesla & 5034/Hearne Deep
Phase 4: Tesla & 5034/Hearne Deep • Mine life potential: + 20 years April 2015 28
Slide 29: Phase 5 Exploration Potential
Phase 5 Exploration Potential April 2015 29
Slide 30: Path to Tier 1 Asset
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 ? ? ? Phase 5: New Targets ? ? ? Vision: +20 years LOM, +$20B in-situ Value April 2015 30
Slide 31: Global Diamond Supply & Demand
Global Diamond Supply & Demand Source: Rio Tinto April 2015 31
Slide 32: Falling Diamond Supply
Falling Diamond Supply Source: RBC Capital Markets April 2015 32
Slide 33: Climbing Diamond Demand
Climbing Diamond Demand Source: Rio Tinto April 2015 33
Slide 34: Climbing Diamond Demand
Climbing Diamond Demand Source: Bain and Co. April 2015 34
Slide 35: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Source: De Beers & Rio Tinto April 2015 35
Slide 36: New Diamond Mines
New Diamond Mines Source: Rio Tinto April 2015 36
Slide 37: Corporate Information
Corporate Information Head Office 161 Bay Street Suite 2315 Toronto, ON M5J 2S1 Canada Tel. ++1-416-361-3562 Fax. ++1-416-603-8565 www.mountainprovince.com [email protected] TSX: MPV NASDAQ: MDM April 2015 37
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