Mountain Province Diamonds has reported a net loss of $34.4 million for the first quarter of 2025, reflecting reduced demand for rough diamonds and a decline in the volume of goods available for sale. This compares with a net profit of $6.9 million in the same period last year.
Revenue fell by 51% to $44 million, while sales volume declined 55% to 426,000 carats. The average price per carat rose 3% to $72.
Operational Transition Impacts Production
The company noted that the use of lower-quality ore during the transition period negatively affected output and sales.
“As we worked through this transition, the lower quality of the ore impacted our supply and revenue,” said Mountain Province CEO Mark Wall. “The diamond market remained depressed in the first quarter, and this was a real challenge from a cash flow perspective.”
Mountain Province said that lower-grade stockpiled ore was processed in place of material from the main pit, as part of the company’s shift towards mining the higher-grade NEX orebody. The grades in the stockpiled ore were lower than expected, reducing the overall diamond yield.
“At this time, I anticipate earlier access to the high-grade NEX ore than was originally anticipated in the plan, which will help us later in the year,” Wall noted.
Production Results and Ore Grades
Mountain Province owns a 49% stake in the Gahcho Kué mine, a joint venture with majority partner De Beers. For the three months ending 31 March, Mountain Province’s share of production fell 40% to 374,000 carats. While the total volume of ore processed rose 15% to 925,773 tonnes, the average ore grade declined by 48%.
Financing Secured
To support operations during the downturn, the company has secured a CAD 33 million ($23.7 million) loan from Dunebridge Worldwide, its principal shareholder.
“I am optimistic that the turbulence in the global markets will stabilise as we move through 2025, and the diamond market will recover,” Wall added.
