Mountain Province Diamonds (MPVD) Q2 2024 earnings summary

Executive summary

• Achieved over 2.5 million hours lost time injury-free, with safety remaining a top priority.

• Q2 2024 saw 557,361 carats sold for $56.8 million at an average price of $102 per carat, with adjusted EBITDA of $24.0 million and a net loss of $6.5 million.

• H1 2024 adjusted EBITDA totaled $74.0 million, supported by operational improvements and cost control despite a softer diamond market and lower grades.

• Processing plant operated above nameplate throughput, with cost control and operational efficiencies emphasized.

• Focused on maintaining strong unit costs and operational stability post-COVID-19.

Financial highlights

• Q2 2024 revenue was $56.8 million from 557,361 carats sold, down from $59.9 million in Q2 2023 despite higher volume, due to a lower average price per carat.

• Average price per carat in Q2 2024 was $102, down from $124 in Q2 2023.

• Net loss after tax for Q2 2024 was $6.5 million, compared to net income of $17.3 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $24.0 million, down from $31.5 million in Q2 2023; H1 2024 adjusted EBITDA was $74.0 million versus $99.7 million in H1 2023.

• Cash flow from operating activities was an outflow of $35.1 million in Q2 2024.

Outlook and guidance

• H1 2024 cash costs per tonne treated were $105, below the full-year guidance of $124–$136; cash costs per carat recovered were $72, below the $96–$107 guidance.

• Management expects opportunities in the diamond market in late 2024 and into 2025, but remains focused on controllable factors.

• No material capital expenditures are being deferred beyond normal review processes.

• Mine plan changes under review by external engineering firm, with updates expected soon.

• Management remains focused on operational efficiency and cost control for the remainder of 2024.