Mountain Province experienced a decline in sales during the second quarter due to reduced prices for its rough diamonds amidst weak demand and a prolonged slowdown in the market.
According to the Canada-based miner, sales dropped by 5% year-on-year to CAD 56.8 million ($41.5 million) for the quarter ending June 30. This decline was primarily driven by a 39% decrease in the average price per carat to CAD 102 ($74), despite a 55% increase in sales volume to 557,361 carats.
Mark Wall, CEO of Mountain Province, acknowledged the challenging market conditions, stating, “The diamond market continues to be softer than anticipated. At a macro level, the expected recovery in demand from China has not materialized, leading to expectations of a more extended U-shaped recovery in diamond demand.”
Production output for the quarter decreased by 2% to 1.3 million carats, with the company processing lower-grade ore from the Gahcho Kué mine. Although total ore tonnes processed increased by 29%, this only partially offset the 24% decrease in grade. Mountain Province, which owns 49% of the joint venture with De Beers holding the remaining 51%, saw its share of production amount to 646,153 carats.
Wall explained, “While the processing plant performed well, we encountered lower grades as anticipated according to our mine plan. However, we also faced lower-than-expected grades in the deeper parts of the pits throughout the quarter. Our team is actively addressing this issue to improve performance as we progress through the year.”
Mountain Province is set to release its complete second-quarter financial results on August 7.
