Canada’s Mountain Province Diamonds just hit a financial iceberg — and it's dragging their Q1 profits way underwater 🌊.
🚨 $24.7 Million Net Loss
The company reported a CAD 34.4 million ($24.7M USD) loss in Q1 2025 — compared to a CAD 6.9M profit last year. Ouch.
📉 What went wrong?
- Revenue plunged 51% to just CAD 44M ($31.6M)
- Sales volume collapsed 55% to 426,000 carats
- Only silver lining? Average price per carat rose slightly by 3% to $72
😵 Low-Grade Ore, Low Output
Due to a transition to their higher-grade NEX orebody, the company had to rely on stockpiled lower-grade ore, which turned out to be even worse than expected.
CEO Mark Wall admits:
“Grades in the stockpiled ore were even lower than expected, yielding less supply.”
But there's hope: earlier access to NEX ore may arrive sooner than planned, possibly saving H2 2025 📆✨
🛠️ Production Pain:
- Mountain Province owns 49% of the Gahcho Kué mine (De Beers owns the rest)
- Their share of production fell 40% to 374,000 carats
- Ore processed actually rose 15% (to 925,773 tonnes), but the ore grade crashed by 48%
💸 Lifeline from Investors
To survive this brutal downturn, Dunebridge Worldwide has agreed to lend Mountain Province CAD 33M ($23.7M) to help them ride out the storm.
📈 CEO’s Hope:
“I’m optimistic the turbulence in global markets will stabilize as we move through 2025, and the diamond market will recover.”
🤔 Bottom Line:
Mountain Province is bleeding cash, burning through poor ore, and hanging on via emergency funding. If the market doesn't bounce back soon, it could be a rough year ahead for the sparkle biz.