Mountain Province Sells Rights to $1M of Future Diamond Revenue

Mountain Province has sold its right, title and interest to $999,999 of future diamond receivables to its majority shareholder in exchange for cash up-front to run its business.

The company, which owns 49% of the Gahcho Kué mine in Canada, has been struggling to keep its business afloat due to weakness in the rough market. A subsidiary of Dunebridge Worldwide, which holds a majority stake in the miner, will pay $833,000 for proceeds from the future sale of nearly $1 million in rough, Mountain Province said last week.

However, before Dunebridge can receive its diamonds, Mountain Province must first pay back money it owes De Beers, its joint-venture partner, which holds the remaining 51% of the deposit.

“The proceeds of the company’s diamond sales are paid directly to De Beers Canada pursuant to in-kind election notices previously delivered, and which continue to be delivered, in accordance with the amended and restated joint-venture agreement…relating to unpaid cash calls,” Mountain Province explained. This means De Beers will “effectively garnish” Dunebridge’s portion of the diamonds until the mining giant is fully paid back.

Mountain Province has also negotiated a two-month extension, to June 30, by which to repay the $40 million loan facility and $33 million working capital facility from Dunebridge.

Meanwhile, revenue for the first quarter that ended March 31 fell 9% year on year to CAD 40 million ($29.2 million) as a 64% slump in the average price to CAD 47 ($34) per carat outweighed sales volume more than doubling to 858,173 carats. The drop in price for the company’s rough is due to a “significant portion of the higher-grade material [being] smaller-stone sizes, which are currently under the greatest pressure in the diamond market,” said Mountain Province CEO Jonathan Comerford.

Output from the mine more than doubled to 2 million carats, compared to 762,978 in the first three months of 2025, amid an increase in the average grade. The figure, which represents both Mountain Province’s and De Beers’ share, was a record for quarterly production.

The company will report its full results for the first quarter on May 12.

Image: Rough diamonds. (Mountain Province)