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

Mountain Province Diamonds Reports First Quarter Financial Results for 2025

Mountain Province Diamonds Inc. has unveiled its financial performance for the first quarter ending March 31, 2025. The highlights reflect challenges within the diamond market, combined with operational advancements at their Gahcho Kué Mine located in Canada's Northwest Territories.

Financial Highlights

During Q1 2025, Mountain Province sold a total of 426,000 carats of diamonds, generating revenues of $44 million CAD (approximately $30.7 million USD). The average realized price stood at $103 CAD per carat ($72 USD), revealing some improvement compared to previous quarters, despite a decrease in total carats sold compared to Q1 2024, where sales reached 938,000 carats with proceeds of $89.4 million CAD.

The company's adjusted EBITDA for this quarter was reported at $6.1 million CAD, though it faced losses from mine operations totaling $22.4 million CAD, contributing to an overall net loss of $34.4 million CAD or $0.16 per share.

Operational Performance

The operational metrics show some promising improvements. The Gahcho Kué Mine processed 925,773 tonnes of ore, marking a 15% increase from the same period last year. However, the total number of carats recovered was 762,978, which signifies a 40% decline compared to the previous year's quarter. This drop was attributed to a mix of lower-grade stockpiles being treated as the mine transitions to higher-grade ore from the NEX orebody.

Mark Wall, President and CEO, highlighted, "Despite the challenges of a depressed diamond market in Q1 2025, we managed to achieve operational improvements, with safety and efficiency being of utmost priority. The mine’s total tonnes mined increased by 28% compared to Q1 2024, driven by enhanced drilling and blasting efficiency."

As for the average diamond recovery, the carats recovered per tonne dropped sharply from 1.57 to 0.82, reflecting the lower quality of ore processed. Despite these drawbacks, Wall expressed optimism regarding transitioning to higher-grade mining areas in the coming months.

Sales Summary

The sales breakdown for Q1 2025 indicates a better average diamond sales price per carat than the previous year, although the overall sales revenue took a hit due to the fewer carats sold. The company recorded cash costs of production per tonne of ore processed at $158 CAD, significantly up from $88 CAD last year.

Future Outlook

Reflecting on the company’s strategic actions, Wall commented on the recent refinancing transactions aimed at addressing reclamation liabilities and injecting necessary capital to address cash flow deficits. Future plans include the anticipated introduction of a new working capital facility amounting to CAD 33 million from Dunebridge Worldwide Ltd.

"We foresee potential stabilization in the global diamond market throughout 2025 and are committed to advancing our operations to navigate these challenges effectively. Our confidence remains intact regarding the quality of resources available in our stockpiles, and we're keen to further monitor and optimize our operational strategies," he affirmed.

In summary, while Mountain Province Diamonds faces tough conditions with reduced carats sold and operational losses, it also displays resilience through marked operational improvements and strategic financial maneuvers, setting the stage for potential recovery in the diamond market later in 2025.