Mountain Province reported a net loss of CAD 6.5 million (USD 4.7 million) for the second quarter, ending June 30, due to a steep drop in rough diamond prices and a weaker Canadian dollar. This is a sharp decline from a profit of CAD 17.3 million (USD 12.6 million) during the same period last year.
The loss stemmed from a 39% decrease in the average price of rough diamonds, which fell to CAD 102 (USD 74) per carat. Additionally, the company faced lower-grade ore mining at deeper pit levels, resulting in reduced rough availability. The weakened Canadian dollar also impacted financial results, as Mountain Province earns in local currency but services its debt in US dollars.
Mountain Province CEO Mark Wall noted, “These results reflect a softer diamond market and grade challenges in the second quarter. We will continue to focus on operational efficiency and cost control as we enter the second half of the year.”
Revenue for the quarter dropped by 5% to CAD 56.8 million (USD 41.5 million), despite a 55% increase in sales volume to 557,361 carats. However, output decreased by 2% to 1.3 million carats.
For the first half of the year, revenue fell by 22% to CAD 146.3 million (USD 107.7 million), and net profit plunged by 99% to CAD 340,000 (USD 247,499).
Mountain Province holds a 49% stake in the Gahcho Kué mine, with De Beers owning the remaining 51%.
