Mountain Province Diamonds Announces First Quarter Financial Results for 2025

Rhea-AI Summary

Mountain Province Diamonds (MPVD) reported challenging Q1 2025 financial results from its Gahcho Kué Diamond Mine. The company sold 426,000 carats for $44.0 million at an average price of $103 per carat. Financial performance showed significant decline with a net loss of $34.4 million ($0.16 per share) and loss from mine operations of $22.4 million. Operational metrics were mixed: ore tonnes treated increased 15% to 925,773, but carat recovery dropped 40% to 762,978 due to a 48% decrease in grade to 0.82 carats per tonne. The company completed refinancing transactions to address reclamation liabilities and near-term cash flow deficits, including extending Second Lien Notes to December 2027. A new CAD33 million working capital facility from Dunebridge Worldwide Ltd. is pending shareholder approval.

Positive

• Average diamond price increased to $103 per carat (US$72) from $95 (US$70) in Q1 2024
• Ore tonnes treated increased 15% to 925,773 tonnes compared to Q1 2024
• Total tonnes mined increased by 28% compared to Q1 2024
• Safety improvements with TRIFR reduced to 2.14 from 6.37 in Q1 2024
• Successfully completed refinancing transactions and secured potential new working capital facility

Negative

• Net loss of $34.4 million compared to net income of $6.8 million in Q1 2024
• 40% decrease in carats recovered to 762,978 from 1,264,887 in Q1 2024
• 48% decrease in grade to 0.82 carats per tonne from 1.57 in Q1 2024
• Cost per carat recovered increased to $192 from $56 in Q1 2024
• Diamond market remained depressed affecting cashflow

TSX and OTC: MPVD

TORONTO, May 13, 2025 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) & (OTC: MPVD) today announces financial results for the first quarter ended March 31, 2025 ("the Quarter" or "Q1 2025") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian dollars unless otherwise noted.

Financial Highlights for Q1 2025

• 426,000 carats sold, with total proceeds of $44.0 million (US$30.7 million) at an average realised value of $103 per carat (US$72).
• Adjusted EBITDA¹ of $6.1 million.
• Loss from mine operations of $22.4 million.
• Net loss of $34.4 million or $0.16 basic and diluted loss per share. 

1Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS.  See "Reconciliation of non-IFRS measures" at the end of the news release for explanation and reconciliation.

Operational Highlights for Q1 2025
(all figures reported on a 100% basis unless otherwise stated)

• 925,773 ore tonnes treated, a 15% increase relative to Q1 2024, (Q1 2024: 805,557 tonnes treated;)
• 762,978 carats recovered, 40% lower than Q1 2024 (Q1 2024: 1,264,887 carats)
• Average grade of 0.82 carats per tonne, a 48% decrease relative to Q1 2024 (Q1 2024: 1.57 carats per tonne)
• Cost per carat recovered, including capitalized stripping of $192/carat, and cost per tonne processed, including capitalized stripping of $158/tonne.

Sales Highlights for Q1 2025

As previously released, during Q1 2025, 426,000 carats were sold for total proceeds of $44.0 million (US$30.7 million), resulting in an average value of $103 per carat (US$72 per carat). These results compare to Q1 2024 when 938,000 carats were sold for total proceeds of $89.4 million (US$66.1 million), resulting in an average price of $95 per carat (US$70 per carat).

Mark Wall, the Company's President, and Chief Executive Officer, commented: 

"The diamond market remained depressed in Q1 2025, and this was a real challenge from a cashflow perspective.  On the mine operations side we executed another successful ice-road resupply season safely and on plan.  Safety at the operations remained a key focus area, with the Total Recordable Injury Frequency Rate (TRIFR) finishing at 2.14, which was a material improvement on the TRIFR of 6.37 for Q1 2024.

The processing plant continued to perform very well, with total tonnes treated in Q1 2025 improving by 15% compared to Q1 2024.  On the negative, the grade for Q1 2025 was 48% lower than Q1 2024.  The grade reduction was expected while lower grade stockpiles were treated during the period that we are stripping down to the higher grade NEX orebody, although the grade reduction experienced in the stockpile was greater than anticipated.  Confidence remains in the overall grade of the stockpile, but at around 3 million tonnes there are pockets of higher and lower grade that will be experienced.  We have begun treating areas of higher grade although the minerology of the ore will reduce the tonnes able to be treated by the processing facility.

On the all-important mining side, the total tonnes mined increased by 28% in Q1 2025 when compared to Q1 2024.  The significant increase in mining rate is the result of a sustained focus on drill and blast efficiency, people efficiency, maintenance efficiency and short-term planning efforts.  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.

I am optimistic that the turbulence in the global markets will stabilize as we move through 2025 and the diamond market will recover.

As previously announced, during Q1 2025, we saw the closing of the Refinancing Transactions , which served to address the reclamation liabilities owed to De Beers as operator of the GK Mine, provide an immediate injection of capital to address the 2025 near cash flow deficit faced by the Company, and extend the term of the Second Lien Notes to December 2027, which were due to mature in December 2025. Furthermore, we recently announced that at our AGM to be held on May 16^th, Shareholders will be asked to pass an ordinary resolution approving a new working capital facility from Dunebridge Worldwide Ltd., a related party of the Company, in the amount of CAD33,000,000, or the USD equivalent amount. In respect of these transactions for which we have received much appreciated support from De Beers and our financing partners, I would like to recognize the stalwart support of our largest shareholder and debt holder, Mr. Dermot Desmond. "

Gahcho Kué Mine Operations

The following table summarizes key operating statistics for the Gahcho Kué Mine in Q1 2025, and Q1 2024. 

		Three months ended	Three months ended
		March 31, 2025	March 31, 2024
GK operating data
Mining
*Ore tonnes mined	kilo tonnes	-	1,947
*Waste tonnes mined	kilo tonnes	10,092	5,938
*Total tonnes mined	kilo tonnes	10,092	7,885
*Ore in stockpile	kilo tonnes	3,142	3,458
Processing
*Ore tonnes processed	kilo tonnes	926	806
*Average plant throughput	tonnes per day	9,851	8,857
*Average diamond recovery	carats per tonne	0.82	1.57
*Diamonds recovered	000's carats	763	1,265
Approximate diamonds recovered - Mountain Province	000's carats	374	620
Cash costs of production per tonne of ore, net of capitalized stripping **	$	90	51
Cash costs of production per tonne of ore, including capitalized stripping**	$	158	88
Cash costs of production per carat recovered, net of capitalized stripping**	$	109	33
Cash costs of production per carat recovered, including capitalized stripping**	$	192	56
Sales
Approximate diamonds sold - Mountain Province***	000's carats	426	938
Average diamond sales price per carat	US	$                                  72	$                                  70

* at 100% interest in the Gahcho Kué Mine

**See "Reconciliation of non-IFRS measures" at the end of the news release for explanation and reconciliation.

***Includes the sales directly to De Beers for fancies and specials acquired by De Beers through the production split bidding process

Financial Performance 

		Three months ended	Three months ended
(in thousands of Canadian dollars, except where otherwise noted)		March 31, 2025	March 31, 2024
Sales	$	43,995	89,438
Carats sold	000's carats	426	938
Average price per carat sold	$/carat	103	95
Cost of sales per carat*	$/carat	156	63
(Loss) earnings from mine operations per carat	$	(53)	32
(Loss) earnings from mine operations	%	-51 %	34 %
Selling, general and administrative expenses	$	2,542	3,542
Operating (loss) income	$	(25,102)	26,760
Net (loss) income for the period	$	(34,374)	6,864
Basic (loss) earnings per share	$	(0.16)	0.03
Diluted (loss) earnings per share	$	(0.16)	0.03

Conference Call

The Company will host its quarterly conference call on Wednesday May 14^th, 2025, at 11:00am ET.

Title: Mountain Province Diamonds Inc Q1 2025 Earnings Conference Call

Conference ID: 19522
Date of call: 05/14/2025
Time of call: 11:00 Eastern Time
Expected Duration: 60 minutes

Webcast Link:
https://app.webinar.net/pKjva5r9zNm
Participant Toll-Free Dial-In Number:             (+1) 888-699-1199
Participant International Dial-In Number:       (+1) 416-945-7677

A replay of the webcast and audio call will be available on the Company's website.

Reconciliation of Non-IFRS measures

This news release refers to the terms "Cash costs of production per tonne of ore processed" and "Cash costs of production per carat recovered", both including and net of capitalized stripping costs and "Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA)" and "Adjusted EBITDA Margin". Each of these is a non-IFRS performance measure and is referenced in order to provide investors with information about the measures used by management to monitor performance. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.

Cash costs of production per tonne of ore processed and cash costs of production per carat recovered are used by management to analyze the actual cash costs associated with processing the ore, and for each recovered carat. Differences from production costs reported within cost of sales are attributed to the amount of production cost included in ore stockpile and rough diamond inventories.

Adjusted EBITDA is used by management to analyze the operational cash flows of the Company, as compared to the net income for accounting purposes. It is also a measure which is defined in the Notes documents. Adjusted EBITDA margin is used by management to analyze the operational margin % on cash flows of the Company.

The following table provides a reconciliation of the Adjusted EBITDA and Adjusted EBITDA margin with the net income on the condensed consolidated interim statements of comprehensive (loss) income:

	Three months ended	Three months ended
	March 31, 2025	March 31, 2024
Net (loss) income for the period	$                        (34,374)	$                            6,864
Add/deduct:
Non-cash depreciation and depletion	23,075	22,104
Net realizable value adjustment included in production costs	10,181	-
Share-based payment expense	154	242
Fair value gain of warrants	1,099	(541)
Gain on lease	4	(55)
Finance expenses	10,078	10,337
Derivative (gains) losses	(815)	2,340
Current and deferred income taxes	(3,800)	2,325
Current income taxes	160	150
Unrealized foreign exchange losses	313	6,187
Adjusted earnings before  interest, taxes, depreciation and depletion (Adjusted EBITDA)	$                            6,075	$                          49,953
Sales	43,995	89,438
Adjusted EBITDA margin	14 %	56 %

The following table provides a reconciliation of the cash costs of production per tonne of ore processed and per carat recovered and the production costs reported within cost of sales on the condensed consolidated interim statements of comprehensive (loss) income:

		Three months ended	Three months ended
(in thousands of Canadian dollars, except where otherwise noted)		March 31, 2025	March 31, 2024
Cost of sales production costs	$	39,289	32,728
Timing differences due to inventory and other non-cash adjustments	$	1,541	(12,393)
Cash cost of production of ore processed, net of capitalized stripping	$	40,830	20,335
Cash costs of production of ore processed, including capitalized stripping	$	71,597	34,927
Tonnes processed	kilo tonnes	454	395
Carats recovered	000's carats	374	620
Cash costs of production per tonne of ore, net of capitalized stripping	$	90	51
Cash costs of production per tonne of ore, including capitalized stripping	$	158	88
Cash costs of production per carat recovered, net of capitalized stripping	$	109	33
Cash costs of production per carat recovered, including capitalized stripping	$	192	56

About Mountain Province Diamonds Inc.

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat, at February 2019. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct, at February 2019. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat, at February 2019. All resource estimations are based on a 1mm diamond size bottom cut-off.

Qualified Person

The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Tom McCandless, Ph.D., P.Geo, and Mr. Tysen Hantelmann, P.Eng., independent advisors to the Company and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Caution Regarding Forward Looking Information

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations.  Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur.  Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.  Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province's business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.

These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provides additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.

Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.  There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed.

Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities, Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject to the limitations under the Company's debt facilities, and will depend on Mountain Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

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SOURCE Mountain Province Diamonds Inc.

FAQ

What were Mountain Province Diamonds' (MPVD) Q1 2025 financial results?

MPVD reported a net loss of $34.4 million ($0.16 per share) in Q1 2025, with total sales of $44.0 million from 426,000 carats sold at an average price of $103 per carat.

How did MPVD's Q1 2025 production metrics compare to Q1 2024?

Production metrics showed mixed results: ore tonnes treated increased 15% to 925,773, but carat recovery decreased 40% to 762,978, with grade dropping 48% to 0.82 carats per tonne.

What financing arrangements did MPVD secure in Q1 2025?

MPVD completed refinancing transactions addressing reclamation liabilities and extended Second Lien Notes to December 2027. A new CAD33 million working capital facility is pending shareholder approval.

How much did MPVD's diamond prices change in Q1 2025 vs Q1 2024?

Average diamond price increased to $103 per carat (US$72) in Q1 2025, compared to $95 per carat (US$70) in Q1 2024.

What were the main operational challenges for MPVD in Q1 2025?

Main challenges included a depressed diamond market, 48% lower ore grade, increased production costs to $192 per carat (from $56), and treating lower grade stockpiles while stripping to access the higher-grade NEX orebody.