Mountain Province Diamonds Inc. (OTC:MPVDF) This autumn 2023 Outcomes Convention Name April 2, 2024 11:00 AM ET
Firm Contributors
Mark Wall – President and CEOSteve Thomas – CFOReid Mackie – VP, Diamond Gross sales and MarketingMatt Macphail – Chief Technical and Sustainability Officer
Operator
Good morning, girls and gents. And welcome to the Mountain Province Diamonds, Inc. This autumn and Full Yr 2023 Webcast and Convention Name. At the moment, be aware that each one participant strains are within the listen-only mode. Following the presentation, we’ll conduct a question-and-answer session [Operator Instructions]. Additionally be aware that the decision is being recorded on Tuesday, April 2, 2024. I might now like to show the decision over to Mr. Mark Wall, President and CEO. Please go forward, sir.
Mark Wall
Thanks very a lot, Sylvie. Good day to everybody who’s dialed in to hearken to our This autumn and full yr 2023 outcomes name. My title is Mark Wall, and I am the President and CEO of the corporate. Additionally current on this name is Steve Thomas, our CFO; Reid Mackie, our VP, Diamond Gross sales and Advertising and marketing; and Matt Macphail, our Chief Technical and Sustainability Officer. On the conclusion of this presentation, the crew will then be accessible for any questions that you’ll have. Firstly, I wish to draw your consideration to our cautionary assertion relating to forward-looking info. This presentation will likely be posted on our Web page for anybody who wants extra time to overview this assertion. Mountain Province Diamonds produces Canadian diamonds to the excessive requirements of company social accountability and that’s one thing that we proceed to be happy with. We personal 49% of the Gahcho Kué mine within the Northwest Territories with the De Beers Group, a division of Anglo American Plc, proudly owning the remaining 51%. Along with the 5,025 hectares of three way partnership floor containing the present mining operations, Mountain Province is the 100% proprietor of greater than 113,000 hectares of floor that surrounds the Gahcho Kué belongings, and we refer to those because the Kennady North challenge.
As we speak, I’ll converse to our This autumn and full yr 2023 outcomes, present some insights into our technique as we enter 2024. Following that, Steve, our CFO, will talk about the This autumn and full yr monetary efficiency of the corporate and Reid will touch upon the general diamond market. I’ll then make some closing remarks to finish the presentation and we’ll reply any questions that you’ll have. Firstly, I will flip to security. With 2023, our outcomes with security, stay a key focus space with one in every of our foremost security metrics, the TRIFR or complete recordable damage frequency price, displaying a 43% enchancment in 2023 relative to 2022. Moreover, I am happy to report that the location has lately celebrated the achievement of going one yr with no single misplaced time damage. As is all the time the case with security, the work isn’t carried out. The horrible wildfires that impacted the Northwest Territories in late summer time and brought about the evacuation of Yellowknife did trigger important hardship for the communities which the operation depends upon. Regardless of these horrible fires, the mine continued to function with restricted impression to manufacturing and we’re happy that workers had been stored protected each at residence and at work throughout these unprecedented occasions.
I am now going to run by means of some highlights from our fourth quarter and full yr 2023. Firstly, through the fourth quarter, the corporate achieved a quarterly adjusted EBITDA of CAD39.8 million, a rise relative to our Q3 adjusted EBITDA of CAD25.1 million. For the complete yr, the corporate generated adjusted EBITDA of $165 million, down some $12 million from the 2022 document excessive of $177.2 million. These reductions had been primarily pushed by a softening of the tough diamond market in H2 of 2023 as beforehand reported. This autumn 2023 delivered income of $79.8 million generated by the sale of some 918,000 carats at a mean worth of $87 per carat. For the complete yr and 2023, we offered roughly 2.7 million carats at a mean worth of $121 per carat for complete income of $328.6 million. Onto manufacturing. Fourth quarter 2023 manufacturing noticed round 9.8 million tonnes mined, barely behind quarter three the place 10.1 million complete tonnes had been mined. For the complete yr, we noticed complete tonnes mined of 36.9 million tonnes. All tonnes mined in quarter 4 at 1.9 million tonnes was an enchancment over quarter three 2023 with the upper all tonnes mined because of deliberate ore launch from 5,034 pit backside. For diamond, manufacturing in This autumn, the mine produced 1.57 million carats from the processing of 855,000 tonnes. For the complete yr, the mine produced 5.57 million carats. One other spotlight I wish to level out is that in 2023, the mine confirmed year-over-year enhancements on key manufacturing metrics, displaying a 9% and 5% improve in complete tonnes mined and complete tonnes handled respectively. On the processing aspect of issues, the plant continues to run properly after an prolonged upkeep shutdown in mid-2023, which was centered on changing and enhancing elements of the plant that had been driving upkeep downtime. Working plant utilization or OPU as we name it confirmed important enchancment in half two 2023 relative to half one.
Shifting into 2024. The corporate faces a decrease manufacturing yr as a result of results of mine sequencing and grade profile modifications, all regular occurrences in open pit diamond mining. This decrease manufacturing yr was anticipated and the mine stays on monitor to realize the beforehand acknowledged 2024 manufacturing steering of 4.2 million to 4.7 million carats on the 100% stage and a couple of.3 million to 2.6 million carats offered on the firm stage. On the prices, our full yr 2023 money value of manufacturing together with capitalized stripping prices had been $129 per tonne handled, which was on the decrease finish of our public steering of $127 to $137 per tonne handled. Our full yr 2023 value per carat recovered was $75, which was on the midpoint of our steering of $70 to $80 per carat recovered. Mining firms want to have the ability to display the power to regulate prices and this was an space of focus for us in 2023. Trying briefly in the direction of 2024, it will stay a key focus space. We have been working collaboratively with our three way partnership companion and have budgeted prices which can be primarily the identical as in 2023 towards the headwinds of inflation and labor pressures seen throughout the mining business. Our concentrate on managing prices will stay a key space for the corporate shifting ahead.
Turning to the diamond market. Diamond market continues to underperform because of numerous components, which embrace a slowing market within the US, low Chinese language demand and the uncertainty within the diamond provide chain associated to lab grown diamonds and continued provide of Russian diamonds following the invasion of Ukraine. We proceed to watch developments carefully as many components are built-in available in the market dynamic. Preliminary levels of the G7 sanctions banning imports of Russian origin tough diamonds may yield a optimistic impression on demand for Canadian origin items and we hope to seize this worth ought to the chance come up. These sanctions and their implementation stay within the early levels and proof of enforcement motion has been seen by the authorities. Our share worth continues to underperform. Our actions to reverse this are to concentrate on the underlying manufacturing and price elements of the enterprise to ship underlying profitability. We’re working carefully with our three way partnership companion on each of those areas by means of detailed labor critiques, mine to mill value discount alternatives, in addition to reviewing the design of the mine itself to hunt step change alternatives. I will now cross the decision over to Steve who will go over our monetary leads to element. Steve?
Steve Thomas
Thanks, Mark, and good morning, everybody. And welcome to our outcomes name, which is being held considerably later than regular. By means of context, the 2023 monetary statements embrace two explicit issues, which require cautious consideration between administration and KPMG by means of the audit course of and therefore the transient deferrals of this name to at present. Noting that each one numbers mentioned will likely be in Canadian {dollars} until in any other case acknowledged. Particularly, I’ll first tackle the going concern language reintroduced into be aware 1 of the monetary statements and secondly, the noncash impairment cost booked in This autumn 2023, which materially impacts the corporate’s reported working revenue and earnings per share. Given the impression of the noncash impairment cost, it is very important focus additionally on these monetary metrics, corresponding to earnings from mine operations, money generated from working actions and adjusted EBITDA, that are vital indicators of the corporate’s efficiency throughout 2023 not impacted by that impairment cost. The going concern be aware within the monetary statements emphasizes that ought to the corporate not considerably obtain the carat manufacturing or worth per carat underpinning the forecast income, then it will want to hunt various plans to fulfill its liquidity wants. This evaluation considers a time horizon of 12 months. And given the volatility seen throughout elements of 2023, we view this be aware as offering an acceptable cautionary assertion.
In respect of the impairment cost booked this yr, the corporate equally booked a cost in yr finish 2019 and 2020 after which booked a reversal or write again for the yr finish 2021. For yr finish 2023, in accordance with accounting requirements, the corporate assessed proof of triggers of impairment and particularly in contemplating the carrying quantity of the online belongings of the entity being greater than its market capitalization decided which can be set off existed. The calculation then undertaken confirmed that the carrying worth of the corporate’s belongings had been better than the online current worth of future internet money flows and the delta booked as a discount to the worth of the property, plant and gear in respect to the Gahcho Kué belongings. An identical evaluation was carried out in respect of the Kennady North challenge and it was decided that no proof about set off of impairment existed. Turning to an outline of the enterprise itself. In respect of turnover, This autumn 2024 delivered $79.8 million in gross sales, being roughly 24% of the 12 month turnover of $329 million and for earnings from operations in This autumn of $25.6 million that was roughly 25% of the 12 months earnings of $102.4 million. In 2023, the corporate offered 2.71 million carats at a mean worth of CAD121 per carat in comparison with 2022 when 2.66 million carats had been offered however at a mean worth CAD146 per carat, reflecting the unprecedented excessive gross sales costs achieved in H1 of 2022.
In respect of the steadiness sheet comparability between yr finish 2023 yr finish ’22, along with the motion in a number of account balances in step with regular working actions or mark-to-market valuations, pushed by underlying assumptions, which I’ll develop upon, the most important change arises in respect of the property, plant and gear carrying worth, which has been written down by the noncash impairment cost. Turning to the long run liabilities. The long run debt balances mirror the reimbursement of $18 million towards the 9% senior secured notes and the accrual of roughly $8 million in deferred curiosity in respect to the Dunebridge Junior secured credit score facility, which I’ll develop upon additionally. Turning now to the steadiness sheet in additional element, I’ll spotlight sure materials balances and people for which there have been notable modifications when in comparison with the comparative durations for 2022. In respect of present belongings, we now have seen closing money for 2023 improve to $29.7 million from a gap place of $17.2 million. For the by-product asset steadiness on the yr finish 2023 of $14 million, this contains — compares to a steadiness of $2.2 million at yr finish 2022. The rise of $11.8 million is in respect of two distinct by-product belongings. Firstly, there’s a $2.3 million improve within the by-product asset worth calculated in respect of foreign money hedge contracts in place on the yr finish, which displays a change within the components used to derive the honest worth of the embedded by-product inside these hedges.
The second by-product asset part arises in respect of the reimbursement options hooked up to the 9% second lien notes, that are assessed at honest worth and for which the assumed rate of interest volatility used within the respective yr finish calculations has modified notably down from 78% on the finish of 2022 to 40% on the finish of 2023. The opposite giant present asset steadiness is in respect of inventories, which contains our share of ore in stockpile tough diamonds transiting the valuation and gross sales pipeline course of and bodily provides stock onsite. The entire stock steadiness of $197 million at yr finish 2023 is $26.5 million larger than the steadiness of $161 million at yr finish 2022 and $25 million of this improve is as a result of improve in ore stockpile for which our proportionate share has grown from 862,000 tonnes to 1.14 million tonnes in step with the strategic marketing strategy. The tough diamond steadiness at yr finish 2023 of $50.4 million represents 745,000 carats held at value in comparison with a price of 56.7 million for 732,000 held on the yr finish 2022. To notice that in Q3 2023, we adjusted down the carrying worth of the tough diamonds held at value to mirror their assessed internet realizable worth. No such adjustment was required on the yr finish for both the stockpile or tough diamond balances.
In respect of present liabilities, the rise within the account payable and accrued legal responsibility steadiness from $42.5 million on the finish of 2022 to $56.8 million at yr finish 2023 is due purely to the timing difficulty of when funds are made in respect of mine liabilities. The opposite notable present legal responsibility motion is in respect to the honest worth attributed to the $41 million warrants issued with the Dunebridge Junior Credit score Facility March 2022. The calculated honest worth of 2023 yr finish is $2.4 million in comparison with $7.2 million at yr finish 2022. This discount displays the change within the estimated honest worth parts of anticipated volatility, danger free rate of interest and liquidity low cost. The ensuing summation of present belongings and present liabilities on the 2023 yr finish derives a working capital place of $171 million in comparison with $155 million on the finish of Q3 2023 and $130 million on the finish of 2022. In respect of long run belongings, the carrying worth of property, plant and gear at $591 million is after the $104.6 million impairment cost talked about earlier. This successfully accelerates future depreciation for the Gahcho Kué belongings into this yr. And this worth compares to a carrying worth of $686 million of the 2022 yr finish. The carrying worth of the Gahcho Kué belongings embrace capitalized waste stripping of $157 million, which on the finish of 2022 was solely $102 million. We anticipate to see the continued development within the capitalized waste stripping asset in ’25, ’26 and ’27 as that exercise continues in respect of the Tuzo ore physique and at a tempo, which can exceed its price of depreciation in these years.
In respect of long run liabilities, the yr finish complete long run debt of CAD306 million contains the interpretation of $177 million of 9% senior secured notes due in 2025 and $58 million for the Dunebridge junior secured credit score facility due in 2027. Through the yr, we paid down $18 million towards the 9% notes and accrued the deferred curiosity due in respect to the junior credit score facility, which itself is calculated in step with the requirement to acknowledge a money yield of 14%. For these US greenback denominated debt liabilities, their translation to Canadian {dollars} was on the yr finish 2023 closing Canadian greenback price of 1.3243 in comparison with the interpretation on the yr finish 2022, for which the closing price was 1.3554. Lastly, the decommissioning and restoration legal responsibility recorded at honest worth of $85.3 million at 2023 yr finish is just like the steadiness of $81.2 million recorded at 2022 yr finish. These honest values hold off of the respective undiscounted values of $92.9 million and $90.3 million for 2023 and 2022 yr finish respectively, and there was minimal motion within the nominal low cost price utilized to derive the honest worth calculation.
Turning now to earnings and money circulation. In 2023, the corporate offered roughly 2.7 million carats at a mean worth of $90 for carat or CAD121 to generate $329 million in turnover. This compares to 2022 when roughly 2.66 million carats had been offered at a mean worth of $112 per carat or CAD146 for turnover of $389 million. Though 2023 noticed our second highest common annual promoting worth per carat since gross sales started, the distinctive peaking costs within the first half of 2022 considerably drives the comparative discount between the 2 years. This autumn 2023 noticed 918,000 carats offered on the US greenback worth of solely $64 per carat or CAD87 in comparison with 758,000 carats at $94 per carat in This autumn 2022. It is price noting that in Q3 2023, the corporate solely offered 479,000 carats however a mean promoting worth of $95 per carat. And the variance in gross sales quantity and worth between quarter 4 and quarter three displays the choice by the corporate to withhold a big quantity of low worth items from the September sale when the market was performing poorly after which we offered a proportion of those in This autumn, thereby tending to drive down the typical promoting worth.
Manufacturing prices for the yr had been largely in step with plan regardless of continued excessive inflation throughout numerous consumables and labor prices and us selecting to incur extra working prices and undertake capital funding to deal with required enhancements within the course of plant, which had impeded its efficiency within the first half of the yr. For the three and 12 months ended December 31, 2023, manufacturing prices, internet of capitalized stripping prices, had been $33.4 million and $138.4 million. Depreciation and depletion on the GK mine belongings at $19 million for the three months and $70.6 million for the 12 months and through that interval, the price of acquired diamonds was $1.8 million for the three months ending first of December ’23 and $17.2 million for the complete yr. For the equal three months and 12 months ended December 31, 2022, manufacturing prices had been $38.4 million and $131.6 million respectively and depreciation $17.7 million and $56.9 million and for the price of acquired diamonds, $8.5 million for the three months of This autumn and $29.8 million for the complete yr. As such, manufacturing and depreciation fees in This autumn had been per the prior three quarters in 2023 and near these incurred in 2022. The exception is in respect of depreciation, which displays the impression of accrued capitalized waste stripping being incurred and depreciated.
It’s notable that whereas the money manufacturing value per tonne handled and carat recovered is comparable in respect to the complete yr 2023 versus 2022. For This autumn ’23, there’s a important drop in comparison with This autumn 2022. This arises as a result of in This autumn 2024, there was a major construct within the ore stockpile because it grew by 1 million tonnes whereas in This autumn 2022, it lowered by 123,000 tonnes. [indiscernible] [In hand] with this alteration, a bigger proportion of the money manufacturing prices incurred within the This autumn interval are capitalized into the ore stockpile fairly than launched as in interval bills. Ensuing earnings from operations for This autumn 2023 of $25.6 million compares to $31.6 million earned in This autumn 2022. The discount displays the decrease promoting worth in This autumn 2023 versus that achieved in This autumn 2022 described earlier. Offsetting this can be a decrease common value of manufacturing per carat in This autumn 2023 in comparison with This autumn 2022 with the online impact being the earnings margin in respect of This autumn 2023 at 32% is per 33% achieved in respect of This autumn 2022. For the complete yr 2023 earnings from operations are $102.4 million in comparison with $170.5 million for 2022 with the distinction attributable to the typical promoting worth in 2023 being $25 much less per carat over roughly 2.7 million carats offered and likewise a 4% improve in year-on-year complete value of gross sales.
Earlier than discussing internet revenue, it’s price noting that 2023’s adjusted EBITDA at $165 million is simply behind the document of $179 million achieved in 2022. The ensuing EBITDA margin on gross sales is 50% for each This autumn 2023 and the complete yr 2023 in comparison with 46% for the complete yr 2022. This non-GAAP measure is formulated to normalize for sure flows, which impression the online revenue quantity for which 2023 is definitely a internet lack of $43.7 million. The changes in respect of noncash impairment of $104.6 million and depreciation at $71 million account for a mixed $176 million of the overall adjusting cap flows of $209 million. For 2022, from internet revenue, depreciation accounts for $57 million of the overall changes of $129 million wanted to derive adjusted EBITDA. Per the above EBITDA comparisons, we noticed money circulation from working actions after permitting for changes and modifications in working capital of $143.4 million for 2023 in comparison with $172.6 million in 2022. This money generated from working actions enabled the funding in 2023 of $83 million in property, plant and gear, which primarily represents the waste stripping exercise undertaken to launch future ore. This compares to an equal funding of $60.4 million in 2022, which, once more, is primarily in respect of waste stripping exercise. The online lack of $43.7 million for the complete yr 2023 when in comparison with the revenue of $49.2 million for the complete yr 2022 incorporates a number of giant steadiness variations between the 2 years, that are price highlighting. Particularly, the by-product acquire of $11.8 million in 2023 compares to a lack of $2.5 million in 2022 and that contains the 2 components described within the steadiness sheet dialogue.
To notice that in respect of the rise within the honest worth of foreign money hedges excellent at 2023 yr finish in comparison with 2022, we proceed to make use of these hedges to ship assurance over a proportion of the Canadian greenback prices being funded from US greenback revenues. For 2023, there have been $45 million of overseas foreign money hedges excellent on the yr finish, which benefited from extra favorable mark-to-market conversion components than was the case for the $48 million of hedges excellent on the finish of 2022. For the acquire in 2023 of $9.5 million in respect of the embedded derivatives, derivatives pertaining to the second lien mortgage notes, this may fluctuate considerably from one interval to subsequent because the attributed danger free rate of interest, rate of interest volatility and credit score unfold on these notes modifications. And we be aware that for the primary 9 months of the yr, the cumulative acquire was solely 521,000 to emphasise this level. The second giant distinction impacting the respective reported internet revenue for 2023 in comparison with 2022 is in respect of overseas change. For the yr finish 2023, there was a overseas change acquire of $6.6 million in comparison with a overseas change lack of $28 million for yr finish 2022. The overseas change acquire in 2023 is nearly fully unrealized referring to the change within the translation of the US denominated debt balances primarily the US greenback denominated long run mortgage notes at a barely stronger Canadian price of 1.3243 versus the yr’s opening price of 1.3554.
In respect to 2022, $6 million of the overseas change loss was unrealized for a similar motive, reflecting the Canadian greenback weakening over that interval, whereas $23 million of the loss in 2022 was realized as reimbursement of the debt befell throughout that yr throughout a interval when the Canadian greenback was weakening. The final merchandise of be aware impacting internet revenue in 2023 in a different way to the impression in 2022 arises in respect of the deferred revenue tax cost for the respective years. The expansion within the deferred tax legal responsibility from yr finish 2021 to yr finish 2022 displays the continued utilization of tax calls as the corporate generates taxable earnings which will likely be taxable underneath the mining royalty regime. This is applicable equally in 2023, which absent the impairment cost, would have seen taxable revenue for tax functions and the deferred tax legal responsibility would have grown accordingly. Nonetheless, the impairment cost had the impact of lowering the deferred tax legal responsibility by roughly [$13 million], leaving the deferred tax legal responsibility comparatively unchanged and therefore a cost of solely $2 million. For 2023, the opposite aspect of tax is a present tax cost of $1.2 million in comparison with zero in 2022. This represents the popularity of an election to pay in April 2023, $600,000 in respect of the 2022 mining royalty, which was not accrued in 2022 plus an extra $600,000 accrued in respect of 2023 yr finish that will likely be money paid in April 2024. These voluntary superior money funds are environment friendly as they shield a number of million {dollars} of tax swimming pools to be offset towards future taxable earnings. 2023’s internet loss after tax of $43.7 million equals a lack of $0.21 per share on a primary and totally diluted foundation. Excluding the impairment cost and associated deferred tax impact, this may have been a acquire of roughly $0.22 per share, which is near the $0.23 per share achieved for 2022.
In conclusion, 2023 noticed headwinds in relation to the US greenback promoting worth however with indicators of worth stabilization by the yr finish. Regardless of this impression on income and prices persevering with to be topic to inflationary pressures, the corporate managed to develop its closing money place by $12 million and repaid $18 million towards the senior mortgage notes principal. The improved working efficiencies in mining and notable enchancment in plant throughput in H2 will stay the middle of our retention in 2024 to make sure that the operator delivers to plan in respect of carats recovered and prices incurred. That is crucial to make sure we are able to proceed to service our working and financing necessities and keep future choice worth throughout our complete endowment, together with the Kennady North challenge. With that, I’ll flip the presentation over to Reid Mackie, our VP, Diamond Gross sales and Advertising and marketing. Reid?
Reid Mackie
Thanks, Steve. As we have all heard, 2023 was a difficult yr for the Diamond pipeline, particularly following the document breaking highs of 2022. Following the midstream’s enthusiastic buying in 2022, the diamond market was met with decrease than hoped for client demand within the US and likewise in China, the place within the case of the latter, the a lot anticipated restocking of diamond stock and a client rebound didn’t materialize. Trying again to Q1 2023. polished costs weakened, which had the knock on impact of eroding costs within the tough diamond market, which materialized by early Q2. Small tough diamonds bucked the development some time longer and outperformed bigger items, however by April, these additionally began to slip. Throughout our April sale, decrease bidding prompted Mountain Province to withdraw some tough diamond classes from sale so as to defend worth. These items had been ultimately reintroduced from our July sale after costs firmed and we achieved a premium on the very best bid projected again in April. This obvious restoration was sadly brief lived as put up summer time break the tough diamond market and costs fell again once more. Being low bid ranges at our September sale, we once more withdrew sure classes from gross sales to defend worth.
By the shut of Q3, the diamond pipeline had seen greater than six months of consecutive polished worth decreases that lowered common polished diamond costs by greater than 10% and diamond inventories in the important thing Indian slicing facilities had been reported to be at unsustainably excessive ranges. This led to a self imposed two month import ban by Indian producers from the fifteenth of October to the fifteenth of December, which achieved its desired impact and considerably lowered provide volumes. Imports of tough diamonds in November 2023 had been down 76% in comparison with the identical month the yr earlier than. Main tough producers canceled or postponed most gross sales occasions throughout the identical interval. These provide tightening measures seem to have met their supposed end result, lowering manufacturing stock as polished items had been offered downstream through the retail vacation season and the next restocking interval. Although 2024 began cautiously. From December, we did see the return of comparatively steady pricing within the tough market. With this firming of costs, some inventories of tough held over from final yr had been launched, however these are thus far being properly absorbed into the slicing facilities. For 2024, tough provides from producers are anticipated to remain regular. Although the amount of Russian provide continues to be unpredictable, we’re seeing elevated boundaries being put in place through tightening G7 sanctions, which ought to scale back the instability Russian shares have delivered to the market. International political unrest has appeared to bolster client demand for ethically and sustainably sourced items, which is driving the rollout of digital provenance and traceability platforms by means of the diamond pipeline right down to retailers. Mountain Province is at the moment testing chain of custody through distributed ledger blockchain and continues to encourage prospects to develop branding applications, which spotlight the optimistic origin story of our pure Canadian supply diamonds.
Although lab grown diamonds market share reached a excessive in 2023, their wholesale costs proceed to fall drastically. And that is prompting jewelers and retailers to reassess the long run viability of manufacturing unit made diamonds inside the conventional pure diamond jewelry sectors, corresponding to bridal. Additional, the key luxurious jewelry manufacturers look like redoubling their dedication to pure diamonds over the long run. Nearer to residence, the corporate’s tough diamond tenders proceed to draw robust buyer curiosity and excessive ranges of competitors throughout all product segments. With shut administration of our items at sale and strategic brief time period stocking, we weathered a turbulent yr for the diamond business. Strategic inventory held again from sale to defend worth has now all been offered at an general premium to highest bids acquired at their unique sale. Although MPD’s common gross sales worth achieved in 2023 was $90 per carat properly down on 2022s $112, it is vital to take into account that this nonetheless represents the second highest common worth achieved by the corporate up to now. And we look ahead to continued deployment of our nimble and aggressive gross sales technique to consolidate additional market successes in 2024. And with that, I will cross you again to Mark for his closing remarks.
Mark Wall
Thanks, Reid. As soon as once more, it has been a tricky quarter available in the market. However to reiterate, in 2023, we have reported an adjusted EBITDA of CAD165 million. We have accomplished in depth processing plant works which have improved processing plant efficiency. We have delivered working prices on the center to decrease finish of our steering. We have responded to the moratorium on diamond imports by India and the general market downturn by specializing in value discount alternatives. We have labored by means of a devastating interval of wildfires within the Northwest territories with a concentrate on worker properly being and security, whereas persevering with to ship Canadian diamonds right into a market the place purchases are increasingly more centered on diamond origin. Our focus stays on safely producing diamonds whereas doubling down on value discount alternatives, whereas additionally searching for alternatives to vary the very design of the mine in quest of extra efficiencies. With that, I will finish our presentation and take any questions.
Query-and-Reply Session
Operator
[Operator Instructions] And at the moment, Mr. Wall, we now have no questions registered. Please proceed, sir.
Mark Wall
Matt?
Matt Macphail
No questions recorded on the webcast both.
Mark Wall
Okay. If we now have no questions in any respect, you don’t have anything in any respect, Matt?
Matt Macphail
Nothing from the webcast, no.
Mark Wall
Then I very a lot thank everybody for his or her consideration, and I look ahead to talking to you and speaking by means of the Q1 2024 outcomes. Good day.
Operator
Thanks, sir. Girls and gents, this does certainly conclude your convention name for at present. As soon as once more, thanks for attending. And at the moment, we do ask that you simply please disconnect your strains.
