Mountain Province Diamonds Announces Full Year and Fourth Quarter 2024 Results

TSX and OTC: MPVD

TORONTO, March 26, 2025 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province Diamonds", or the "Company") (TSX:MPVD) (OTC:MPVD) today announces its financial and operating results for the fourth quarter ("the Quarter" or "Q4 2024") and the full year ended December 31, 2024 ("FY 2024").

All figures are expressed in Canadian dollars unless otherwise noted and are unaudited.

FY 2024 Highlights

60% improvement in key site safety KPI (TRIFR) in 2024 vs 2023.

Adjusted EBITDA1 of $90.7 million, down 42% relative to 2023 (2023: $155.3 million).

Total sales revenue at $267.7 million (US$195.2 million) compared to $328.6 million in 2023 (US$243.8 million, at an average realized value of $98 per carat (US$72) 2023: $121 per carat (US$90).

41% increase in total ore tonnes mined in 2024 relative to 2023, coupled with a 12% increase in tonnes treated.

Net loss of $80.8 million or $0.38 loss per share (2023: net loss $43.7 million or $0.21 loss per share. Included in the determination of net loss is a derivative loss of $16.8 million and foreign exchange losses of $27.5 million (2023: impairment loss on property, plant and equipment of $104.6 million, derivative gain of $11.8 million and foreign exchange gain of $6.6 million, arising on the translation of the Company's USD-denominated long-term debt). The unrealized foreign exchange losses are a result of the relative weakening of the Canadian dollar versus the US dollar.

Operational Highlights for Q4 2024 and FY 2024(all figures reported on a 100% basis unless otherwise stated)

890,202 carats recovered during the Quarter at an average grade of 0.99 carats per tonne, 43% lower than the comparable quarter in 2023 (Q4 2023: 1,572,696 carats at 1.84 carats per tonne), noting that grade was 46% lower in Q4 2024. 4,661,681 carats recovered during FY 2024 at an average grade of 1.28 carats per tonne, 16% lower than the comparable period (full year ended December 31, 2023 ("FY 2023"): 5,557,655 at 1.71 carats per tonne), noting that grade was 25% lower in 2024.

1,537,423 ore tonnes mined during the Quarter, a 19% decrease on the comparable period in 2023 (Q4 2023: 1,895,492). 5,379,404 ore tonnes mined during FY 2024, a 41% increase from 2023 (FY 2023: 3,807,102).

895,587 ore tonnes treated during the Quarter, a 5% increase on the comparable period in 2023 (Q4 2023: 855,319). 3,628,501 ore tonnes treated during FY 2024, a 12% increase from 2023 (FY 2023: 3,249,963).

8,989,000 total tonnes mined during the Quarter, a 9% decrease on the comparable period (Q4 2023: 9,831,021). 33,388,905 total tonnes mined during FY 2024, a 10% decrease from 2023 (FY 2023: 37,147,350).

Q4 2024 and FY 2024 Production Statistics

Q4 2024

Q4 2023

YoY Variance

Total tonnes mined (ore and waste)

8,989,000

9,831,021

-9 %

Ore tonnes mined

1,537,423

1,895,492

-19 %

Ore tonnes treated

895,587

855,319

5 %

Diamonds recovered

890,202

1,572,696

-43 %

Carats recovered (49% share)

436,199

770,621

-43 %

Recovered grade (carats per tonne)

0.99

1.84

-46 %

 

FY 2024

FY 2023

YoY Variance

Total tonnes mined (ore and waste)

33,388,905

37,147,351

-10 %

Ore tonnes mined

5,379,404

3,807,102

41 %

Ore tonnes treated

3,628,501

3,249,963

12 %

Diamonds recovered

4,661,681

5,557,655

-16 %

Carats recovered (49% share)

2,284,224

2,723,251

-16 %

Recovered grade (carats per tonne)

1.28

1.71

-25 %

Financial Highlights for Q4 2024

543,000 carats sold (Q4 2023: 918,000), with total proceeds of $52.0 million (US$36.7 million) at an average realized value of $96 per carat (US$68), compared to $79.8 million in Q4 2023 (US$58.9 million), at an average realized value of $87 per carat (US$64).

Adjusted EBITDA1 of $10.2 million.

Loss from mine operations of $13.0 million.

Cash costs of $131 per tonne treated and $132 per carat recovered, include capitalized stripping costs1.

Net loss of $62.2 million or $0.29 loss per share.  Included in the determination of net loss for Q4 2024, is a derivative loss of $12.9 million and foreign exchange losses of $21.3 million, on the translation of the Company's USD-denominated long-term debts. The unrealized foreign exchange losses are a result of the relative weakening of the Canadian dollar versus the US dollar.

1Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS.

Financial Highlights for FY 2024

Total sales revenue at $267.7 million (US$195.2 million) at an average realized value of $98 per carat (US$72) compared to $328.6 million in 2023 (US$243.8 million) sales revenue at an average realized value of $121 per carat, (US$90).

Adjusted EBITDA2 of $90.7 million down 42% (2023: $155.3 million).

Earnings from mine operations of $18.4 million (2023: earnings from mine operations $102.4 million).

Cash costs of production, including capitalized stripping costs2,3 of $117 per tonne treated (2023: $129 per tonne) and $91 per carat recovered (2023: $75 per carat). 

Net loss of $80.8 million or $0.38 loss per share (2023: net loss $43.7 million or $0.21 loss per share. Included in the determination of net loss is derivative loss of $16.8 million and foreign exchange losses of $27.5 million (2023: an impairment loss on property, plant and equipment of $104.6 million, derivative gain of $11.8 million and foreign exchange gains of $6.6 million, arising on the translation of the Company's USD-denominated long-term debt). The unrealized foreign exchange losses are a result of the relative weakening of the Canadian dollar versus the US dollar.

Capital expenditures were $80.5 million, $68.9 million of which were deferred stripping costs, with the remaining $11.6 million accounting for sustaining capital expenditures related to mine operations.

2 Cash costs of production, including capitalized stripping costs, and Adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS.  See the Non-IFRS Measures section of the Company's December 31, 2024 MD&A for explanation and reconciliation.

3 In FY 2024 a total of 33.4 million tonnes mined, compared to a total of 37.1 million tonnes mined in 2023; a 10% decrease year over year.

Market Highlights and Commentary for Q4 2024 and FY 2024

Mountain Province Diamonds' Vice President, Diamond Marketing Reid Mackie commented:

"2024 was a challenging year for the diamond industry, with polished and rough diamond prices impacted by reduced Chinese domestic demand and the uncertainty surrounding higher volumes of cheaper, lab grown diamonds. Rough diamond production and, by extension, sales volumes were curtailed by the major diamond producers providing support through the diamond pipeline. Though rough diamond market confidence remained subdued at the end of 2024, the retail market for diamond jewellery over the holidays showed bright spots with some high-end, luxury jewellery brands reporting strong results. In 2025, low rough diamond supply levels appear to be supporting equilibrium with downstream polished demand for natural diamonds and we are currently seeing a notable improvement in the overall sentiment in the market."

Mountain Province Diamonds President and CEO Mark Wall commented:

"2024 was a year of significant safety improvement, processing records, and cost control, with the overlay of a very challenging diamond market.  On safety, a 60% improvement in Total Recordable Injury Frequency Rate compared to 2023 is an excellent result.  Safety continues to be an area of focus for further improvement. 

The project to stabilize and improve the processing plant was started in late 2022 and completed late in 2023.  In 2024 3.63 million tonnes of ore were processed, the best performance ever at the facility, noting that in 2021 3.08 million tonnes were treated, in 2022 3.1 million tonnes and in 2023 3.25 million tonnes.

Ore tonnes mined in 2024 were 5.38 million tonnes, which was above the guidance range of 4.1mt to 4.6mt while the grade of ore that was treated was lower than anticipated in early Q2 2024. The higher processing plant throughput rate was the main factor in achieving production at the top of our guidance range of 4.66 million carats against our guidance range of 4.2 to 4.7 million carats.

Cash costs of production, including capitalized stripping costs of $117 per tonne treated (2023: $129 per tonne) was achieved despite the inflationary cost environment. 

The challenge for the Company in 2024 was the diamond market, which was in a down-cycle, resulting in the Company's average annual realized price of $98 per carat versus a 2023 realized price of $121 per carat.

As per our recently updated Technical Report, 2025 carat production will be similar to 2024

H1 2025 is particularly challenging period as we are primarily processing ore from low grade stockpiles.  The mining to reach the high grade NEX orebody ("NEX") in progressing to plan and we expect to be in NEX towards the end of Q2 2025.   It should be noted that because of the lag between production and sales we will not see the benefit of this improved production, in terms of improved sales revenue, until Q4 2025.  2026 is expected to be a materially higher production and sales year as we have the benefit of a full year of production and sales from the NEX.

Subsequent to the year end, the company recently announced the closing of a significant refinancing transaction, which has addressed a number of material issues for the Company including the bonds that were due to expire at the end of 2025.  With this refinancing, together with other liquidity measures that the company is currently advancing, the company will be much better positioned as we head towards a significantly higher production year in 2026."

Gahcho Kué Mine Operations

The following table summarizes the key operating statistics for Q4 2024 and FY 2024, and the previous year, at the Gahcho Kué Mine.

Three months ended

Three months ended

Year ended

Year ended

December 31, 2024

December 31, 2023

December 31, 2024

December 31, 2023

GK operating data