Mountain Province Diamonds (MPVD) Q3 2024 earnings summary

Executive summary

• Achieved strong safety performance with nearly 3 million hours lost-time injury-free and a 50% year-to-date improvement in Total Recordable Injury Frequency Rate.

• Q3 2024 saw 679,599 carats sold for $69.4 million, with an average price of $102 per carat, and adjusted EBITDA of $17.3 million.

• Net loss for Q3 was $19.0 million, or $0.09 per share, compared to a net loss of $13.4 million in Q3 2023.

• Operationally, 961,371 ore tonnes were treated (up 10% year-over-year), but carats recovered fell 10% to 1,187,912, with average grade down 18%.

• Diamond market remains challenging, but signs of stabilization and potential recovery are emerging, especially in the U.S. retail sector.

Financial highlights

• Q3 2024 revenue was $69.4 million from 679,599 carats sold, up from $60.3 million in Q3 2023, but average price per carat fell from $126 to $102.

• For the first nine months, revenue was CAD 215.7 million from 2.18 million carats at $73 per carat, down from CAD 248.8 million from 1.8 million carats at $103 per carat in 2023.

• Adjusted EBITDA for Q3 2024 was $17.3 million, and $91.3 million for the first nine months.

• Net loss after tax for Q3 2024 was $19 million (loss of $0.09 per share), compared to a $13.4 million loss in Q3 2023.

• Cash flow from operating activities in Q3 2024 was $56.4 million, up from $30.3 million in Q3 2023.

Outlook and guidance

• Management expects continued cost control and operational focus, with full-year cost guidance of $124-$136 per ton treated.

• Anticipates diamond market recovery in 2025, supported by tightening supply and positive U.S. retail trends.

• Production in 2025 expected to be similar to 2024, with a strong 2026 forecast as higher-value ore bodies are accessed.

• Focus remains on operational efficiency, cost control, and assessing financing needs under various diamond price scenarios.