Mountain Province Diamonds Reports Q4 and Full Year 2024 Results

Mountain Province Diamonds Releases Production and Sales Data

Stock Tickers: TSX and OTC: MPVD

Mountain Province Diamonds Inc. (TSX: MPVD) (OTC: MPVD) has disclosed its production and sales results for the fourth quarter and the entirety of 2024, focused on outcomes from its Gahcho Kué Diamond Mine. As always, the financial figures are presented in Canadian dollars unless otherwise specified.

Overview of 2024 Performance

Mountain Province Diamonds had a notable year in 2024, but it faced various challenges, especially concerning diamond pricing dynamics across the market. Highlights from the financial results reveal that approximately 2.7 million carats were sold during the year, averaging $98 per carat, leading to total revenue reaching $267.7 million. This was a decrease in comparison to 2023, where the same volume was sold at an average price of $121 per carat, resulting in total proceeds amounting to $328.6 million.

Production Metrics

The overall production for the year was around 4.66 million carats, falling within the company’s guidance of 4.2 to 4.7 million carats. The total ore mined reached 5.4 million tonnes, exceeding initial expectations. The ore processing segment also saw improvements, with 3.63 million tonnes processed, slightly above the forecasted range of 3.4 to 3.6 million tonnes.

Safety and Operational Highlights

Safety remains paramount for Mountain Province Diamonds, which is reflected in their most recent performance. The company achieved a Total Recordable Injury Frequency Rate (TRIFR) of 2.25 in 2024, marking a 60% improvement compared to 2023. This accomplishment highlights the successful effort put toward fostering a safe work environment, culminating in over 3.4 million work hours without a Lost Time Injury.

Improvements in Processing

Substantial upgrades were undertaken at the processing plant, completed in late 2023, leading to unprecedented performance in 2024. The mine processed 3.63 million tonnes of ore, a notable increase from previous years, including 3.08 million tonnes in 2021 and lower volumes in the subsequent years.

Challenges of the Diamond Market

While the production metrics display growth in several areas, the broader diamond market posed significant hurdles. The fluctuating price of diamonds saw an average of $98 per carat in 2024, down from the previous year’s average of $121 per carat. This decline is attributed to various factors including reduced demand, particularly from the Chinese market, and increased competition from lab-grown diamonds.

Outlook for 2025 and Beyond

Looking forward, the company anticipates that carat production in 2025 will mirror the levels achieved in 2024, contingent on prevailing market conditions. However, a recovery is on the horizon, with projections for higher outputs as the company transitions to new ore bodies.

Production and Sales Results for Q4 2024

During the fourth quarter, Mountain Province sold 543,000 carats for total proceeds of $52.0 million. This compares unfavorably to Q4 2023, which saw sales of 918,000 carats for revenues totaling $79.8 million. The average price per carat during Q4 2024 was assessed at $96.

Yearly Comparison of Sales

Throughout all of 2024, the company reported total carat sales of 2,718,000, generating almost $267.7 million in revenue. These results starkly contrast those of 2023, which recorded sales of the same volume at a substantially higher total of $328.6 million.

Company Overview

Mountain Province Diamonds is a significant player in the diamond mining sector, holding a 49% interest in the Gahcho Kué diamond mine, alongside De Beers Canada. The mine is vital not just for its production output but also for the broader mineral resources surrounding the area, which are critical for future explorations and developments.

Future Plans and Strategies

The company is actively looking to manage the supply chain challenges presented by market fluctuations and continues to assess its operational plans in light of evolving industry trends. They maintain a robust prospecting program across over 113,000 hectares, aiming to leverage its rich resource base for sustainable growth.

Frequently Asked Questions

What is the current status of Mountain Province Diamonds' operations?

Mountain Province Diamonds is progressing through multiple upgrades in operational capabilities and safety measures while navigating a challenging diamond market.

How did the diamond prices affect sales in 2024?

In 2024, diamond prices dropped, impacting overall sales revenue compared to 2023, even as the company maintained steady production levels.

What were the highlights of safety performance in 2024?

The company achieved a 60% decrease in its TRIFR, demonstrating significant improvements in workplace safety over the previous year.

What are the production expectations for 2025?

Production is expected to remain similar to 2024 levels, with hopes for recovery in the diamond market over time.

How does Mountain Province Diamonds ensure future growth?

The company is focused on exploration and development of its extensive mineral claims and is implementing strategies to adapt to market demands effectively.

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