Mountain Province CEO Quits as Losses Widen
November 14, 25
(IDEX Online) - Canada's Mountain Province Diamonds has announced the departure of Mark Wall, its president and CEO, on the same day it reported a third-quarter net loss of CAD 55.9m (USD 39.9m).
Mountain Province, which owns 49 per cent of the open pit Gahcho Kue mine, has been borrowing heavily to meet working capital needs and is seeking longer-term financing solutions.
Losses have been mounting as demand for natural diamonds remains weak. Currency effects and increased production costs have also impacted performance.
In Q2 the net loss was CAD 37.7m (USD 26.9m). In Q1 the net loss was CAD 34.4m (USD 24.5m).
Wall, who joined the company in 2021, has resigned to "pursue other opportunities," Mountain Province said in a Leadership and Operational Update, dated 12 November.
Before his time with Mountain Province, Wall was the CEO of Streamers Gold Mining Corporation, a wholly owned subsidiary of Shandong Gold Mining (Hong Kong).
He will remain with the company until 19 December to ensure a smooth transition.
Jonathan Comerford, company chairman, thanked him for his "substantial contribution" during a very challenging period.
In its Q3 update, Mountain Province reported a 58 per cent slump in year-on-year sales, down from CAD 69.4m (USD 50.8m) to CAD 29.2m (USD 21.2m). Average per carat prices fell 30 per cent from CAD 102 (USD 75) to CAD 71 (USD 52).
In the update Wall, as outgoing CEO, noted that the US retail diamond market remains robust, while the tariffs continue to have a negative effect on price.
Pic of Mark Wall, courtesy Mountain Province Diamonds.