Mountain Province Diamonds Inc. (NASDAQ:MPVD) Q2 2018 Earnings Conference Call - Final Transcript
Aug 09, 2018 • 11:00 am ET
Good day, ladies and gentlemen, and welcome to Mountain Province Diamonds Second Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to introduce one of your host for today's conference, Mr. Stuart Brown, President and CEO. Mr.Brown, you may begin.
Thank you very much. Good morning or good afternoon depending on your geographical location. Welcome to the Mountain Province Diamond's second quarter financial results conference call. This will be my first call of many ahead. With me today I have Perry Ing, our CFO; Reid Mackie, our VP for Diamond Marketing; and Keyvan Salehi, our Head of IR.
Before we get going, I would like to draw your attention to the cautionary notes in our press release and the management discussion analysis report. We'll be discussing a number of topics today and some of them will be forward-looking.
The format for today is, I will cover some topics in my introduction and then Perry will lead with a detail of financial introduction to numbers. I will then conclude with a summary of where we are and what we'll be focusing on for the remainder of the year. We will then be in a position to take your questions.
So without further ado, I'm not going to quote any numbers here as Perry will cover these in detail, but what I will say is that the second quarter's performance has been a continuation of the positive trends set in the first quarter of the year. All the numbers relating to production are where we would like them to be, or slightly ahead of our expectations, particularly with our grade (inaudible) recovered.
The rough diamond market has continued to be positive throughout the second quarter, and our sales were all well attended and received. The results of our Sixth sale, which will be announced early next week was also good, although we did note some softening of diamond prices in the very low end of this market in the small and brown good categories.
So August is traditionally a quiet time in the diamond market and season none of you (ph) will play here. Considerations in the Indian market such as the weakening of rupee and reduced financing to small manufacturers will also be closely monitored during the second half of the year.
On the positive side, our continued strength in our specials and fancies, where we can assume you to see strong pricing and competitive bidding, somewhat offset or slowed momentum in our lower price point diamond categories.
The other big news today is the announcement of our dividend of $0.04 a share. As stated in the announcement, we have adopted a flexible approach to paying dividends like all public cash generating businesses we want to pay dividends, but we're mindful of our obligations to pay down our debt and cover our operating commitments and execute our strategy over the coming years.