Mountain Province Diamonds Inc. (NASDAQ:MPVD) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 11:00 am ET
Good morning. My name is Sylvie and I will be your conference operator today. At this time, I would like to welcome everyone to Mountain Province Diamonds Q2 2020 Results Conference Call. [Operator Instructions] Mr. Stuart Brown, you may now begin the conference.
Thank you very much, Sylvie. Good morning and good afternoon to everyone. Welcome to our Q2 and half year Mountain Province update call. As usual, I'll start off -- I'll cover production and cover a bit of guidance and the overall premise of what we're trying to achieve. I'll then hand over to Perry, who will take us through the financial highlights in a broad scale. We'll then return to me, I'll deal with markets and what our future plans are and then we'll turn it over very briefly to some questions. Without further ado, I'd like to touch on a very basic point right up front. As we know, there is some forward-looking statements being made today, so please take note of the cautionary statement regarding all of this information. This included in the presentation and should be on display. For those of you who got access to the webcast and also, there are some references that might be made to non-IFRS financial reporting measures today.
So before I get into the actual production highlights, just I think just a bit of context, everything we say today and everything we measure again should be obviously taken in the context of the COVID-19 pandemic. It has had an extraordinary effect on our whole industry and obviously, even more directly on us and that's the focus of what we're trying to cover today. We entered into 2020 in what I thought was a very strong position: we had a great stock balance, we had our costs under control, we knew where we were mining, and we had good expectations per office to sales of diamond production going through the pipeline and generating cash and obviously, everyone knows what's happened, so I won't belabor the point and we won't be prefacing every point we make with COVID-19. What we have done is we assessed our options very early on, we looked at potential options around closure of mine, mothballing the mine, and discovered which options were best for us looking at a number of cash flow outcomes and Perry will touch on some of the financial steps that we took to alleviate our cash position, but what we are doing is we're planning forward in a very difficult future.
So we anticipate or we anticipated a very difficult future, we didn't understand the full impact to how big this challenge would be. What has happened, if I turn to the production highlights and if we look at the comps, it's obviously negative variances, but if I put that into context, our tonnes treated are only marginally down on Q2 last year if we compare Q2 '20 to 2019. We've made use of the stockpile which is precisely why it's there