Mountain province sold 411k ct diamonds

 

Shaky & fragile market has tempered results in 2Q  

Mountain Province Diamonds Inc announces financial results for the second quarter ended June 30, 2025 (Q2 2025) from the Gahcho Kué Diamond Mine (GK Mine). According to the Key takeaways of Q2 2025 are, 411,114 carats were sold for total proceeds of $36.8 million (US$26.6 million) at an average price of $90 per carat (US$65).  

Loss from mine operations of $52.6 million, brought Net loss of $37.7 million. Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS.  

Mark Wall, the Company's President, and Chief Executive Officer, commented, "The first half of 2025 was a period of solid operational discipline at the GK Mine, but one that also underscored the challenges we continue to face. While the global diamond market showed tentative signs of recovery earlier in the year, recent U.S. tariffs have introduced a new layer of uncertainty at a critical juncture.  

Safety remains our top priority, and on that front the team delivered a Total Recordable Injury Frequency Rate (TRIFR) of 2.13- an improvement of 51% over the same period last year, and 85% better than 2022. This improvement is the result of consistent focus and commitment across the workforce.

Operationally, the GK Mine achieved 82.5% availability and utilization in the first half, an improvement over 2024 and well above historical levels. Ore throughput was also strong, with 1.81 million tonnes processed- a new record for the GK Mine. However, lower-than-expected grades meant that carats recovered were disappointing, despite the solid plant performance.  

The average grade of 0.81 carats per tonne represented a decline of 44% from H1 2024 and 54% from H1 2023. While this drop was anticipated to some extent, it nonetheless weighed on production outcomes. We continue to expect grades to improve significantly as mining progresses into the high grade NEX ore body.  

The diamond market remains fragile. June's early signs of strengthening in U.S. retail demand and an initial recovery in China have been tempered by the impact of U.S. tariffs, which have disrupted the pace of improvement. The uncertainty created by these trade measures makes near-term market conditions more difficult to predict.  

We remain extremely appreciative of the continued support from our largest shareholder, Mr. Dermot Desmond, whose provision of short-term liquidity has been instrumental in helping us navigate this challenging environment.  

In summary, the GK Mine continues to perform reliably from an operational standpoint, but weaker grades and market uncertainty have tempered results. Our focus remains on safe, disciplined operations, controlling costs, and positioning the business to benefit when market conditions eventually stabilize."