#Canada #Toronto #Mountain Province #Diamonds #Gahcho Kué

Mountain Province Diamonds Announces 2026 Production Guidance and Reviews 2025 Results

Introduction
Mountain Province Diamonds Inc., a prominent player in the diamond industry, has recently shared its production guidance for 2026 along with a review of its production and sales performance for the year 2025. Their activities primarily revolve around the Gahcho Kué Diamond Mine in Canada’s Northwest Territories, where they continue to navigate a challenging market environment.

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2026 Production Guidance

For the upcoming year, Mountain Province has set ambitious targets, with guidance indicating total tonnes mined (including both ore and waste) ranging from 23 to 26 million tonnes. Specific targets for ore include:

• - Ore tonnes mined: 3.9 to 4.3 million
• - Ore tonnes treated: 3.3 to 3.6 million
• - Carats recovered: 6.6 to 7.2 million

To ensure financial sustainability amid fluctuating market conditions, the company has planned a sustaining capital expenditure of $6 million, representing a 49% share, assuming the deferral of the Tuzo project as discussions with De Beers are still ongoing. Additionally, they expect to sell approximately 3.4 to 3.8 million carats in 2026.

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2025 Production and Sales Highlights

Looking back at 2025, Mountain Province reported mixed results. They sold approximately 1.9 million carats during the year, fetching an average value of $83 per carat, leading to total proceeds of $155.7 million. This was a significant drop compared to the previous year, where 2.7 million carats were sold at a higher average value of $98 per carat, totaling $267.7 million.

This decline in sales can be attributed to several factors, including a 67% decrease in ore mined, totaling 1.8 million tonnes for FY 2025 which fell short of the targeted 1.9 to 2.2 million tonnes. Ore processed, however, met guidance expectations, totaling 3.52 million tonnes. Production for 2025 delivered 4.33 million carats, slightly below the forecasted range of 4.3 to 4.7 million carats.

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Quarterly Performance

Q4 of 2025 was notable for Mountain Province, marking the highest carat production quarter of the year with 1.86 million carats recovered—109% higher than the same quarter in 2024. The average grade during this period was commendable at 2.15 carats per tonne, showcasing a recovery in operational momentum, particularly following a year focused predominantly on stripping operations to access higher-grade ore deposits.

On the sales front during Q4, the company sold 634,333 carats at an average price of $72 per carat, generating total proceeds of $45.7 million. This reflects the sale of a finer assortment reserved from prior quarters, which was influenced by ongoing challenges in the diamond market, including pressures from geopolitical tensions and competition from lab-grown diamonds.

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Outlook and Market Conditions

Despite the robust performance in terms of quarterly production, the company has expressed concerns over continued pressures in the diamond market, particularly due to uncertainty surrounding U.S. tariffs and demand fluctuations. As a result of these factors, Mountain Province has made the difficult choice to suspend the Tuzo Phase 3 project to maintain cash flow and financial flexibility during these uncertain times.

Moving forward, Mountain Province Diamonds aims to carry this operational momentum into 2026, but remains vigilant about the external factors that could affect future performance. The company plans to host an earnings conference call on March 25, 2026, to discuss these results and provide further insights into its strategic direction.

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Conclusion

In conclusion, while 2025 presented challenges for Mountain Province Diamonds, the outlook for 2026 remains cautiously optimistic as the company navigates through a complex diamond market. Stakeholders and investors will be closely monitoring how the company addresses the obstacles ahead while leveraging its operational strengths to capture value in the coming year.