Mountain Province Diamonds (MPVD) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 Adjusted EBITDA of CAD 17.3 million and CAD 91.3 million for the first nine months, with strong operational focus on safety and plant throughput, despite challenging diamond market conditions and lower prices year-over-year.

• Q3 2024 saw 679,599 carats sold for $69.4 million, with an average price of $102 per carat, and net loss of $19.0 million, or $0.09 per share.

• Processed 14% more ore tons in the first nine months of 2024 compared to 2023, but ore grade was down 17%, leading to carat production trending to the upper end of 2024 guidance.

• Maintained a strong safety record, approaching three million hours lost-time injury-free and a 50% improvement in Total Recordable Injury Frequency Rate year-to-date.

• Operationally, 961,371 ore tonnes were treated in Q3 (up 10% year-over-year), but carats recovered fell 10% to 1,187,912, with average grade down 18%.

Financial highlights

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

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

• 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; year-to-date net loss is $18.6 million versus a gain of $32.1 million in 2023.

• Adjusted EBITDA for Q3 was $17.3 million, down from $25.1 million in Q3 2023; margin was 25% (down from 42%).

• Cash costs of production per tonne treated for Q3 were $125 (2023: $118), and per carat recovered $101 (2023: $78).

Outlook and guidance

• Management expects diamond market recovery in 2025, with macro factors and supply constraints supporting price improvement.

• Full-year cost guidance for 2024 remains at $124-$136 per ton treated, with current performance tracking well within this range.

• Updated technical report projects robust business through 2026, with 2025 production similar to 2024 and a focus on accessing the high-value NEX ore body.

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