Mountain Province Diamonds reported a 36% year-on-year decline in second-quarter revenue to $36.8 million, citing weaker demand, lower rough diamond prices and a transition to new mining areas at the Gahcho Kué mine in Canada, operated in joint venture with De Beers (51%).
Lower Sales Volumes and Grades Impact Results
Total sales volume for the quarter fell 26% to 411,114 carats, while the average price per carat declined 12% to $90. The company attributed the lower average price to weaker global demand and a higher proportion of lower-quality goods sold.
Mountain Province processed only stockpiled ore during the period, as it advanced development at the NEX orebody. The grade of this stockpiled material was 41% lower than the ore processed in the same period last year.
Reduced Output During Transition Phase
Total production at Gahcho Kué dropped 46% to 708,072 carats in the quarter. Mountain Province’s attributable share—based on its 49% stake—amounted to 346,955 carats. The company also reported an 86% decrease in the volume of ore processed, reflecting a planned reduction during the shift to the NEX zone.
CEO Mark Wall commented on the move to the NEX orebody:
“In May, we mined a small amount of ore from the NEX orebody and additional tonnes in June. This is the transitional material at the very top of the NEX orebody. This transitional material delivered a much-improved grade compared to the stockpile material, although the grade in this area was lower than anticipated. We are mining through the transitional zone and expect the grade to further improve as we progress.”
Outlook and Industry Implications
Mountain Province expects to release its full second-quarter results on 12 August. The company’s operational focus remains on ramping up extraction from the NEX orebody, which it anticipates will deliver stronger grades in subsequent periods.
Weaker rough prices and reduced output reflect ongoing pressure across the diamond supply chain. Lower upstream supply may affect availability of some qualities, though demand remains subdued across the midstream and downstream segments. Developments at Gahcho Kué may affect supply for those sourcing Canadian-origin goods.
