Mountain Province Sales Slump in "Very Difficult" Conditions
March 12, 26
(IDEX Online) - Mountain Province Diamonds has reported a 42% drop in sales for FY2025, as "very difficult" market conditions persist.
The Toronto-based miner said revenue for the full year was down from USD 195.2m to USD 111.5m, although there was an improvement in Q4, with the drop in sales down by a relatively modest 11% to USD 33m.
In a quarterly update published on 9 March it blamed continued pressure on rough diamond pricing due to uncertainty surrounding U.S. tariffs, geopolitical factors, and the ongoing threat from lab grown diamonds.
The average price per carat fell 18% from USD 72 to USD 59 in FY2025, and 24% for Q4 2025. The company blamed challenging market conditions and the mix of goods sold for the Q4 average price, reflecting the sale of a finer set of goods held back from previous quarters.
Production guidance for 2026 is 6.6m to 7.2m carats, compared to 4.33m carats recovered in FY2025.
Mountain Province operates the Gahcho Kue mine, in Canada's Northwest Territories in a joint venture with De Beers.
Last month it said it was pausing plans for the Tuzo Phase 3 project, which would extend the life of the mine, but require substantial capital expenditure.
"While the Tuzo Phase 3 project has demonstrated strong potential, current market conditions have prompted the partners to take a measured approach to its development," the company said.