Mountain Province Diamonds Announces Third Quarter Financial Results for 2024
TSX: MPVD
TORONTO, Nov. 6, 2024 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX:MPVD) today announces financial results for the third quarter ended September 30, 2024 ("the Quarter" or "Q3 2024") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian Dollars unless otherwise noted.
Q3 2024 Key Takeaways
679,599 carats were sold for total proceeds of $69.4 million (US$50.8 million) at an average price of $102 per carat (US$75).
Adjusted EBITDA1 of $17.3 million.
Loss from mine operations of $11.0 million.
Net loss of $19.0 million or $0.09 basic and diluted loss per share.
1Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See "Reconciliation of non-IFRS measures" at the end of the news release for explanation and reconciliation.
Mark Wall, the Company's President, and Chief Executive Officer, commented:
"The first nine months of 2024 has produced positive operational results in a period of challenging diamond prices, resulting in an adjusted EBITDA for the period of some $91 million.
Year to date in 2024 we have processed approximately 14% more tonnes than during the same period in 2023, while at the same time the ore grade went down by around 17%, which was driven by planned lower grade in Q3 and unplanned lower grade in March and early Q2 of 2024 as previously reported. The processed grade is currently performing in line with, or better than plan which when coupled with improved throughput has led to carat production trending to the upper end of our 2024 production guidance.
On costs we are well advanced in more expensive pit-bottom mining in both the Hearne and 5034 open pits. The focus on operational efficiency and costs remains front of mind, with the cost per tonne treated, including capitalized stripping, down 21% for the first nine months of 2024 when compared to the same period in 2023.
While the diamond market has been disappointing during the period I am optimistic that the price environment will recover during 2025, which is a period of planned production similar to 2024, followed by a very strong 2026 production year, as reported in our recent NI 43-101 Technical Report update. 2025 will be a period of continued cost and operational efficiency focus as well as an assessment of the company's financing requirements in different diamond price environments."
Reid Mackie, VP Sales & Marketing, commented:
"The Company continues to successfully navigate a challenging market. In Q3 2024 our sales achieved 100% sell-through with no unsold stock held at the end of September and a higher average selling price than the three preceding quarters. This positions the Company well to benefit from any improvements to rough diamond demand following the solid results anticipated from the all-important US holiday season retail sales."
Financial Highlights for Q3 2024
Revenue from 679,599 carats sold at $69.4 million (US$50.8 million) at an average realised value of $102 per carat (US$75) compared to $60.3 million from 478,653 carats sold in Q3 2023 (US$45.3 million) at an average realized value of $126 per carat (US$95).
Adjusted EBITDA1 of $17.3 million compared to $25.1 million in Q3 2023.
Loss from mine operations of $11.0 million compared to income from mine operations of $2.7 million in Q3 2023.
Cash costs of production, including capitalized stripping costs1 of $125 per tonne treated (2023: $118 per tonne) and $101 per carat recovered (2023: $78 per carat).
Net loss of $19.0 million or $0.09 loss per share (2023: Net loss of $13.4 million or $0.06 loss per share). Included in the determination of net loss are foreign exchange gains of $3.0 million, the majority of which is an unrealized income arising on the translation of the Company's US Dollar denominated long term debt, because of the strengthening of the Canadian Dollar versus US Dollar.
1Cash costs of production, including capitalized stripping costs, and Adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See the Non-IFRS Measures section of the Company's September 30, 2024 MD&A for explanation and reconciliation.
Operational Highlights for Q3 2024(all figures reported on a 100% basis unless otherwise stated)
961,371 ore tonnes treated, 10% higher than Q3 2023 (877,617 tonnes treated)
1,187,912 carats recovered, 10% lower than Q3 2023 (1,326,610 carats recovered)
Average grade of 1.24 carats per tonne treated, 18% lower than Q3 2023 (1.51 carats per tonne)
923,814 ore tonnes mined, 4% higher than Q3 2023 (887,617 ore tonnes mined)
Sales Highlights for Q3 2024
As previously released, during the third quarter, 679,599 carats were sold for total proceeds of $69.4 million (US$50.8 million), resulting in an average price of $102 per carat (US$75 per carat). These results compare to Q3 2023 where 478,653 carats were sold for total proceeds of $60.3 million (US$45.3 million) at an average price per carat of $126 per carat (US$95 per carat).
Financial Highlights for the nine months ended September 30, 2024
Total sales revenue of $215.7 million (US$158.4 million) at an average realised value of $99 per carat (US$73) compared to $248.9 million in 2023 (US$184.9 million) at an average realized value of $138 per carat (US$103).
Adjusted EBITDA2 of $91.3 million (2023: $123.3 million).
Earnings from mine operations of $31.4 million for the nine months ended September 30, 2024, compared to $76.8 million for the nine months ended September 30, 2023
Cash costs of production, including capitalized stripping costs2, of $112 per tonne treated (2023: $142 per tonne) and $81 per carat recovered (2023: $85 per carat).
Net loss of $18.6 million or $0.09 basic and diluted loss per share (for the nine months ended September 30, 2023: net income $32.1 million or $0.15 basic and diluted earnings per share). Included in the determination of the net loss for the nine months ended September 30, 2024, are foreign exchange losses of $6.2 million, the majority of which is an unrealized loss on the translation of the Company's US Dollar denominated long term debt arising because of the weakening of the Canadian Dollar versus US Dollar.
Capital expenditures $54.9 million, $47.7 million of which were deferred stripping costs, with the remaining $7.2 million for sustaining capital expenditures related to mine operations.
2Cash costs of production, including capitalized stripping costs, and Adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See the Non-IFRS Measures section of the Company's September 30, 2024 MD&A for explanation and reconciliation.
Operational Highlights for the nine months ended September 30, 2024(all figures reported on a 100% basis unless otherwise stated)
24,400,000 total tonnes mined in the nine months ended September 30, 2024, 11% lower than 27,316,000 total tonnes mined for the nine months ended September 30, 2023.
2,733,000 tonnes of ore treated in the nine months ended September 30, 2024, 14% higher than 2,395,000 tonnes treated for the nine months ended September 30, 2023.
3,771,000 carats recovered at an average grade of 1.38 carats per tonne in the nine months ended September 30, 2024, 5% lower than 3,985,000 carats, (1.66 carats per tonne) recovered for the nine months ended September 30, 2023.
Gahcho Kué Mine Operations
The following table summarizes key operating statistics for the Gahcho Kué Mine in the three and nine months ended September 30, 2024, and 2023.
Three months ended
Three months ended
Nine months ended
Nine months ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
GK operating data
Mining
*Ore tonnes mined
kilo tonnes
924
888
3,842
1,912
*Waste tonnes mined
kilo tonnes
7,679
8,258
20,558
25,404
*Total tonnes mined
kilo tonnes
8,603
9,146
24,400
27,316
*Ore in stockpile
kilo tonnes
3,426
1,276
3,426
1,276
Processing
*Ore tonnes processed
kilo tonnes
961
878
2,733
2,395
*Average plant throughput
tonnes per day
10,446
9,756
9,974
8,773
*Average diamond recovery
carats per tonne
1.24
1.51
1.38
1.66
