Mountain Province Diamonds, a Canadian-listed miner whose largest shareholder is Dermot Desmond, has attributed a value linked to its investment in the Gahcho Kue diamond mine in the Arctic of close to one billion Canadian dollars (€700 million) after tax.
Mountain Province Diamonds filed a technical report with the stock exchange in Toronto, estimating the current value linked to royalty payments for its 49 per cent interest in the mine. Mr Desmond owns about a third of the company, whose directors include his son, Brett Desmond. It is chaired by his close associate, Jonathan Comerford.
Mountain Province chief executive Mark Wall said the technical report was filed as part of a process to "unlock value" for shareholders.
The company also announced it has closed a US$50 million (€45 million) funding deal with a company linked to Mr Desmond, at an interest rate of 8 per cent until mid-December, after which the rate will revert to two percentage points above the coupon attached to some of its other debts.
The deal also includes warrants that, if converted, would allow Mr Desmond to increase his stake in the company.
Mountain Province also announced it was reversing a previous 240 million Canadian dollars writedown on its share of the property and equipment at Gahcho Kue mine, which is majority owned and operated by gemstone behemoth, De Beers.
It said the reappraisal of value in the mine came about due to “changes in market sentiment and diamond prices”.
The diamond market has recovered strongly after an initial slump earlier in the pandemic. Mr Desmond has heavily backed Mountain Province Diamonds through the crisis with funding as well as agreeing to buy its diamonds at set prices.
The company also announced full-year results, with adjusted earnings up more than 160 per cent to 135 million Canadian dollars and sales up by close to a third to298 million Canadian dollars.