Mountain Province Diamonds reported a 20% drop in annual revenue for 2024, with sales falling to $195.2 million.
The company, which operates the Gahcho Kué mine in Canada in partnership with De Beers, attributed the decline to weak rough diamond prices and subdued market demand.
Mark Wall, CEO of Mountain Province, noted that 2024 represented a period of weaker performance for the global diamond market, which he described as being in a “down cycle.”
Sales and Pricing Trends
Despite a flat sales volume of 2.7 million carats, the average price per carat dropped by 20% year-on-year, falling to $72. The significant price decline outweighed stable sales volumes and impacted revenue heavily.
Fourth-quarter sales reflected the ongoing market struggles, with revenue falling 39% to $36.7 million compared to the same period in 2023. Sales volume for the quarter declined by 41% to 543,000 carats, despite a 6% increase in the average price to $68 per carat.
Production Figures and Operational Performance
Annual production from Gahcho Kué fell by 16% to 4.7 million carats, although this figure reached the upper end of Mountain Province’s guidance of 4.2 to 4.7 million carats. Lower ore grades during the spring months were partially offset by increased ore processing, according to the company.
Including De Beers’ 51% share, the total output from Gahcho Kué for 2024 reached 5.6 million carats. However, the fourth quarter saw a 43% year-on-year drop in production, with output decreasing to 890,202 carats.
Market Sentiment and Future Outlook
Mark Wall acknowledged the ongoing challenges at the close of 2024, stating, “At year end, industry confidence and market sentiment remained low, and these challenges are expected to continue until full results from the important holiday retail season are known.”
Despite the current difficulties, Wall expressed optimism for a recovery in diamond prices over the medium to long term.
