Mountain Province reported a net loss in the first quarter amid a downturn in demand for rough and a sharp decline in the volume of goods it had to offer.
The miner posted a loss of CAD 34.4 million ($24.7 million) for the three months that ended March 31, compared to a profit of CAD 6.9 million ($4.9 million) during the same period a year ago, it said Tuesday. Revenue fell 51% to CAD 44 million ($31.6 million). Sales volume decreased 55% to 426,000 carats, while the average price rose 3% to $72 per carat.
“The diamond market remained depressed in the first quarter, and this was a real challenge from a cash flow perspective,” said Mountain Province CEO Mark Wall.
The company’s earnings took a hit from the processing of lower-grade, lower-quality stockpiled ore, instead of ore from the main pit, due to the company’s transition to the higher-grade NEX orebody. However, grades in the stockpiled ore were even lower than the company expected, yielding less supply, it said.
“At this time, I anticipate earlier access to the high-grade NEX ore than was originally anticipated in the plan, which will help us later in the year,” Wall noted.
The company, which holds 49% of Canada’s Gahcho Kué mine in a joint venture with majority owner De Beers, saw production for its share fall 40% to 374,000 carats for the three months. The total volume of ore processed rose 15% to 925,773 tonnes, while the ore grade slid 48%.
Dunebridge Worldwide, a majority investor in Mountain Province, has agreed to front the miner a new loan of CAD 33 million ($23.7 million) to carry it through until the market recovers.
“I am optimistic that the turbulence in the global markets will stabilize as we move through 2025, and the diamond market will recover,” Wall added.
Image: Trucks hauling ore at the Gahcho Kué mine. (Mountain Province)
