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

Mountain Province Diamonds' 2024 Production Results

Mountain Province Diamonds Inc. has announced its production and sales outcomes for the fourth quarter and the entirety of the 2024 fiscal year. Despite navigating a challenging diamond market, the company achieved several milestones in production from its Gahcho Kué Diamond Mine, located in the Northwest Territories of Canada.

Key Highlights of FY 2024

In 2024, Mountain Province Diamonds sold around 2.7 million carats, realizing an average value of $98 per carat. This translated to total proceeds of $267.7 million, reflecting a decrease from the previous year's revenues of $328.6 million from the same volume of carats sold. Notably, the challenging market conditions significantly impacted pricing, leading to a drop in average selling prices compared to 2023.

The company reported production figures of 4.66 million carats for the year, slightly exceeding its production guidance. The amount of ore mined during 2024 totaled 5.4 million tonnes, again surpassing initial estimates. The processing operations also achieved a record throughput of 3.63 million tonnes, demonstrating improved operational efficiencies.

Production Challenges

Although the figures appear optimistic, the overall mined tonnes decreased by 10% year-on-year. This drop was primarily attributed to geotechnical challenges faced in the 5034 and Hearne open pits. Nonetheless, the high throughput from the processing plant provided a buffer against the lower grades mined early in the year.

The diamond price environment remained under pressure throughout 2024, driven by global market conditions, and particularly weak retail demand in China. The vice president of sales and marketing, Reid Mackie, articulated the industry struggles with both polished and rough diamond prices, as well as the growing competition from lab-grown diamonds.

Safety and Operational Improvements

Safety has been a focal point for Mountain Province, with the total recordable injury frequency rate (TRIFR) decreasing by 60% from the previous year, marking the best safety performance in the history of the Gahcho Kué Mine. The successful stabilization project aimed at enhancing the processing plant was completed in late 2023, setting the stage for even better operational performance moving forward.

Q4 2024 Overview

During the fourth quarter of 2024, the company mined a total of 8.99 million tonnes, a 9% decrease from Q4 2023. The ore tonnes mined also saw a notable decline of 19%, contributing to a significant drop in carats recovered—890,202 carats for the quarter, reflecting 43% lower than the previous year.

Despite these challenges, the treatment of ore improved slightly, highlighting operational gains in processing efficiency.

Overall, while the productions figures for FY 2024 exhibit a level of resilience, the prevailing market conditions and unexpected challenges in extraction highlight the need for continued strategic planning as Mountain Province prepares for 2025. Mark Wall, the President and CEO of Mountain Province, remains optimistic yet cautious about the upcoming year, foreseeing another challenging production year for 2025 as the company aligns its operations with market demand.

As market dynamics evolve, Mountain Province Diamonds remains poised to adapt, focusing on production optimization and addressing market pressures while advocating for the value of natural diamonds in a competitive landscape.

For future updates, potential investors and stakeholders are encouraged to follow Mountain Province Diamonds through its official channels, including its website for the latest news and developments regarding their mining operations and production forecasts.