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

Mountain Province Diamonds Reports Q2 2025 Financial Results

Mountain Province Diamonds Inc. (TSX: MPVD) has issued its financial results for the second quarter of 2025, revealing a mix of operational achievements and ongoing challenges at the Gahcho Kué Diamond Mine. The period ending June 30, 2025, saw significant sales figures but was also marked by a net loss of $37.7 million.

Key Financial Figures

During Q2 2025, the company sold a total of 411,114 carats, generating total proceeds of $36.8 million (approximately US$26.6 million), which translates to an average price of $90 per carat (US$65). In contrast, the previous year's second quarter showcased more favorable conditions with revenues reaching $56.8 million from 557,361 carats sold at a higher average price of $102 per carat (US$74).

Despite sales, the company experienced an adjusted EBITDA loss of $2.2 million and a loss from mine operations amounting to $52.6 million, reflecting the hurdles faced in the current diamond market. Mark Wall, the company's President and CEO stated, "The first half of 2025 demonstrated operational discipline, yet we continue to navigate challenges, notably with the introduction of new U.S. tariffs impacting our long-term market predictions."

Operational Performance

The Gahcho Kué Mine achieved a notable 82.5% in availability and utilization, showcasing improvements compared to previous years. In total, the mine processed approximately 1.81 million tonnes of ore, setting a new operational record. However, despite the increased processing capabilities, the grades of diamonds recovered fell short—recording an average of 0.81 carats per tonne, a steep decline of 44% from the first half of 2024, attributing to lower than expected recovery outcomes despite robust processing performance.

Wall emphasized the importance of safety as a priority, highlighting a remarkable 51% improvement in the Total Recordable Injury Frequency Rate (TRIFR) when compared to the previous year. With the decline in grades and ongoing market unrest due to recent tariffs, the company faces challenges in maintaining financial stability and shareholder confidence.

Market Conditions

Overall, the diamond market remains fragile, with early indications of recovery in the U.S. consumer demand later in June being overshadowed by the disruption caused by U.S. tariffs. These market fluctuations pose significant uncertainties that the company must navigate as it looks forward to future operational and financial performance.

Wall also expressed gratitude for the support from the company's largest shareholder, Dermot Desmond, especially in providing essential liquidity in these trying times.

In summary, while Mountain Province Diamonds continues to operate at a reliable capacity, the combination of weaker grades and market uncertainties has significantly tempered the financial outcomes. The company’s strategies moving forward will focus on maintaining safe operations, controlling costs, and positioning itself for anticipated market stabilization in the diamond industry.

Financial Highlights for H1 2025

Furthermore, the financial performance for the first half of 2025 indicated total revenue of $80.8 million (approximately US$57.3 million) at an average realized value of $97 per carat. This figure starkly contrasts with the $146.3 million achieved in 2024. With capital expenses reaching $70.4 million and operational improvement efforts continuing, Mountain Province Diamonds remains steadfast in its commitment to enhancing both operational efficiencies and market navigation strategies.

As Mountain Province Diamonds continues to adapt to the evolving landscape of the diamond market, it is crucial for investors and stakeholders to keep informed about the company's ongoing developments and strategic directions.