Mountain Province Profit Falls Amid Soft Rough-Pricing Market

Mountain Province’s earnings plunged 76% in the first quarter as slackening demand impacted rough prices. 

Net profit decreased to CAD 6.8 million ($5 million) for the first three months of 2024. compared to the same period a year ago, the company reported Thursday. Revenue fell 31% to CAD 89.4 million ($66.1 million). Sales volume slipped 2% to 938,310 carats, while the average price slid 29% to CAD 95 ($70) per carat. 

“Despite a softer rough-diamond market than this time last year, the company continued to show sustained profitability at current prices,” said Mountain Province CEO Mark Wall. 

The company, which holds 49% of Canada’s Gahcho Kué mine in a joint venture with majority owner De Beers, saw its share of production fall 4% to 619,795 carats for the three months. The volume of ore processed rose 5% to 805,557 tonnes, while the ore grade slipped 9%. 

Mountain Province has revised its mine plan for Gahcho Kué, it noted. The changes include design upgrades to the pit, which the company believes will add to its carat output. It will release the results of that study by the end of the second quarter. 

Image: An aerial view of theGahcho Kué mine. (Mountain Province)