Mountain Province’s Sales Improve

Mountain Province’s revenue grew in the second quarter, thanks to higher carat volumes and an increase in the recovery of high-grade diamonds.

Sales at the company, which operates the Gahcho Kué mine in Canada, rose 18% year on year to CAD 43.5 million ($31.3 million) for the three months that ended June 30, it said last week. Sales volume soared 111% to 869,520 carats, and output spiked 185% to 2 million carats.

The miner’s net loss widened to CAD 120.6 million ($86.9 million) for the quarter, as the Canadian currency lost ground to the US dollar, in which it carries long-term debt. The company attributed CAD 11.3 million ($8.1 million) of the deficit to foreign-exchange losses. The drop also stemmed from the challenging diamond market, with the average price for the company’s rough falling 44% to CAD 50 ($36) per carat. The miner reported a loss of CAD 37.7 million ($27.2 million) during the same period a year ago.

“While operational performance has remained exceptionally strong, the diamond market continues to face significant challenges,” said Mountain Province CEO Jonathan Comerford. “Pricing remains uncertain, with demand and prices continuing to be affected by geopolitical and economic uncertainty, including the impact of US tariffs.”

Revenue for the first half improved 3% year on year to CAD 83.5 million ($60.2 million). The company’s net loss increased to CAD 185.7 million ($133.8 million) from a deficit of CAD 72.1 million ($52 million) during the same period a year ago. 

“There are, however, some encouraging signs emerging from the supply side of the market,” Comerford continued. “Our most recent diamond sale showed an improvement in pricing, which we believe may in part reflect the tightening of global diamond supply following a series of mine closure and cessation announcements. While it is too early to determine whether this represents the beginning of a sustained improvement in the market, the recent sale was encouraging.”

Mountain Province owns 49% of Gahcho Kué, with De Beers controlling the rest. 

Image: Trucks hauling ore at Gahcho Kué mine. (Mountain Province)

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