Mountain Province’s loss widened in 2024 as weak demand led to a drop in the average price of rough diamonds.
The miner, which operates the Gahcho Kué mine in Canada, plunged to a net loss of CAD 80.8 million ($56.4 million) for the full year, it said last week. That compares to a net loss of CAD 43.7 million ($30.5 million) in 2023. Sales for the year fell 19% to CAD 267.7 million ($195.2 million), as the average price dropped 19% to CAD 98 ($72) per carat and rough sold remained flat at 2.7 million carats.
During the year, the company experienced a derivative loss — a loss on money borrowed it was unable to pay back at the proper time — of CAD 16.8 million ($11.7 million) and foreign exchange losses of CAD 27.5 million ($19.2 million), due to the Canadian dollar weakening against its US counterpart. Mountain Province makes money in Canadian dollars, but it pays debt in US currency.
Total production, including Mountain Province’s 49% share and joint-venture partner De Beers’ 51% portion, slid 16% to 4.7 million carats.
“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,” said Reid Mackie, vice president of diamond marketing at Mountain Province.
Fourth-quarter revenue fell 35% to CAD 52 million ($36.7 million), as sales volume plummeted 41% to 543,000 carats. The average price grew 10% to CAD 96 ($68) per carat. The company posted a net loss for the three months of CAD 62.2 million ($43.4 million) compared to a net loss of CAD 75.8 million ($52.9 million) a year earlier. Output for the period slid 43% to 890,202 carats.
The miner expects 2025 production to be similar to its 2024 yield, as it moves to processing lower-grade ore, said CEO Mark Wall.
“The mining to reach the high-grade NEX orebody is progressing to plan,” he added, noting that the company expected to begin mining NEX toward the end of the second quarter of 2025.
“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 the fourth quarter of 2025,” he continued. “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.”
Image: The Gahcho Kué mine. (Mountain Province)
