Mountain Province Diamonds (MPVD) Q4 2024 earnings summary

Executive summary

• Achieved a 60% year-over-year improvement in safety, with 3.4 million hours without a lost-time injury and a 60% improvement in site safety (TRIFR) in 2024 compared to 2023.

• Processed a record 3.63 million tonnes of ore in 2024, exceeding previous years, despite challenging diamond market conditions.

• Diamond prices averaged 20% lower than 2023, with subdued demand and lower realized prices impacting revenue and earnings.

• Focused on cost control, production optimization, and safety to mitigate market headwinds.

Financial highlights

• Adjusted EBITDA for 2024 was CAD 90.7 million (or $90.7 million), down from CAD 155 million in 2023, a 42% decrease year-over-year.

• Revenue for 2024 was CAD 268 million (or $267.7 million), compared to CAD 329 million in 2023, with 2.72 million carats sold at an average price of $72 per carat; average realized price per carat fell to $98 from $121.

• Net loss after tax for 2024 was CAD 80.8 million ($0.38 per share), compared to a loss of CAD 43.7 million ($0.21 per share) in 2023.

• Q4 2024 net loss was $62.2 million, including a $12.9 million derivative loss and $21.3 million in FX losses.

• EBITDA margin declined to 34% in 2024 from 47% in 2023.

Outlook and guidance

• Focus remains on safety, cost control, and production as the company transitions to higher-grade ore in 2025.

• 2025 carat production expected to be similar to 2024, with H1 2025 challenging due to low-grade stockpile processing; entry into the high-grade NEX orebody anticipated by end of Q2 2025, with benefits expected in Q4 2025.

• Anticipates higher production in 2026, supported by recent refinancing and liquidity measures.

• Expects improved diamond market conditions as supply-demand balance shifts favorably.