WhatsApp
Email
Facebook
Twitter
LinkedIn
Mountain Province is in talks with key stakeholders and government authorities to cultivate a plan that will preserve its liquidity and help it continue operations.
The talks come during a difficult period for the company, which has suffered from the “challenging” downturn in the market and from falling prices for smaller goods. In the first quarter that ended March 31, Mountain Province reported a net loss of CAD 65.1 million ($47.5 million), it said Wednesday. That compares with a net loss of CAD 34.4 million ($25.1 million) during the same period a year ago.
“The diamond market continues to be adversely affected by geopolitical uncertainty, including concerns surrounding US tariffs and the ongoing conflict in the Middle East,” said Mountain Province CEO Jonathan Comerford. “Given the sustained weakness in diamond pricing and its impact on cash flow, the company is operating in a highly constrained and challenging financial environment which, if prolonged, could have implications for the longer-term sustainability of the company.”
Revenue from the company’s Gahcho Kué mine in Canada’s Northwest Territories fell 9% to CAD 40 million ($29.2 million). Sales volume doubled to 858,000 carats year on year, outweighing a drop in the average price to $34 per carat versus $72 the previous year. The revenue decline stemmed from ongoing market weakness and changes in the diamond-size mix, with a higher proportion of smaller stones, which continue to face the greatest pressure.
Output reached a record high for the operation, as for the first time the company produced more than 2 million carats, a 163% increase compared to a year earlier. The performance received a boost from a higher recovered grade of 2.64 carats per tonne, exceeding expectations and growing 222% year on year. Mountain Province’s share of production was 983,000 carats.
The miner owns 49% of the deposit, while joint-venture partner De Beers holds the remaining 51%.
Image: Trucks hauling ore at the Gahcho Kué mine in Canada. (Mountain Province)
