Mountain Province Diamonds produces 4.66M carats in FY 2024

Mountain Province Diamonds Inc. [TSX: MPVD] has released production and sales results for the fourth quarter ended December 31, 2024, and for the full-year 2024 from the Gahcho Kue diamond mine, Northwest Territories.

FY 2024 highlights: In 2024, approximately 2.7 million carats were sold at an average value of $98 per carat (US$72 per carat) for total proceeds of $267.7 million (US$195.2 million). This compares with 2.7 million carats sold at an average value of $121 per carat (US$90 per carat) for total proceeds of $328.6 million (US$243.8 million) in FY 2023.

FY 2024 production of 4.66 million carats against guidance of 4.2 million to 4.7 million carats. Ore mined on a FY 2024 basis was 5.4 million tonnes against the guidance of 4.1 million to 4.6 million tonnes. Ore processed on a FY 2024 basis was 3.63 million tonnes against guidance of 3.4 million to 3.6 million tonnes.

Mark Wall, president and CEO, commented: “Two thousand twenty-four was a year of production records and cost control, overlaid with a challenging diamond price environment.

“On safety, 2024 ended with a total recordable injury frequency rate of 2.25, which is a 60% improvement from 2023 and the best safety performance in the operating history of the mine. In addition, the mine has reached 3.4 million work hours without a lost-time injury.

“The project to stabilize and improve the processing plant was started in late 2022 and completed late in 2023. In 2024, 3.63 million tonnes were processed, the best performance ever at the mine, noting that, in 2021, 3.08 million tonnes were treated, in 2022, 3.1 million tonnes and, in 2023, 3.25 million tonnes.

“The grade of ore that came from the mine was lower than anticipated in March, April and May of 2024, contributing to a lower-than-anticipated grade for the year. This was offset by the higher throughput rate in the processing plant, resulting in 4.66 million carats produced against our guidance range of 4.2 million to 4.7 million carats.

“The decrease in total mined tonnes year on year from 9.8 million tonnes in 2023 to 8.99 million tonnes in 2024 was primarily due to pit bottom mining and the associated geotechnical challenges in the 5034 and Hearne open pits, both of which are now complete.

“The challenge for the company in 2024 was the diamond market, which was in a down cycle, resulting in the company’s average annual realized price of $98 per carat versus a 2023 realized price of $121 per carat.

“As per our recently updated technical report, 2025 carat production will be similar to 2024, which will be challenging for the company if the current down cycle continues, followed by a significantly higher production year in 2026 as we reach the NEX orebody.”

Q4 and FY 2024 production highlights (all figures reported on a 100-per-cent basis unless otherwise stated): 8,989,000 total tonnes mined during the quarter, a 9% decrease from the comparable period in 2023 (Q4 2023: 9,831,021); 33,388,905 total tonnes mined during FY 2024, a 10% decrease from the comparable period in 2023 (FY 2023: 37,147,350); 1,537,423 ore tonnes mined during the quarter, a 19% decrease from the comparable period in 2023 (Q4 2023: 1,895,492); 5,379,404 ore tonnes mined during FY 2023, a 41% increase from the comparable period in 2023 (FY 2023: 3,807,102); 895,587 ore tonnes treated during the quarter, a 5% increase from the comparable period in 2023 (Q4 2023: 855,319); 3,628,501 ore tonnes treated during FY 2024, a 12% increase from the comparable period in 2023 (FY 2022: 3,249,963); 890,202 carats recovered during the quarter averaging 0.99 carat per tonne, 43% lower than comparable quarter in 2023 (Q4 2023: 1,572,696 carats at 1.84); 4,661,681 carats recovered during FY 2024 averaging 1.28 carats per tonne, 16% lower than the comparable period in 2023 (FY 2023: 5,557,655 carats at 1.71).

During Q4 2024, 543,000 carats were sold for total proceeds of $52.0-million (US$36.7 million), resulting in an average price of $96 per carat (US$68 per carat). These results compare with Q4 2023, when 918,000 carats were sold for total proceeds of $79.8 million (US$59.9 million), resulting in an average price of $87 per carat (US$64 per carat).

For the FY 2024, 2,718,000 carats were sold for total proceeds of $267.7 million, resulting in an average price of $98 per carat (US$72 per carat). These results compare with 2023 sales of 2,718,000 carats for total proceeds of $328.6 million (US$243.8 million), resulting in an average price of $121 per carat (US$90 per carat).

Reid Mackie, vice-president of sales and marketing, commented: “Two thousand twenty-four was a challenging year for the diamond industry, with all sectors impacted by the continued weakness of Chinese domestic retail demand and the uncertainty surrounding higher volumes of cheaper, lab-grown diamonds. Polished and rough diamond prices remained under pressure, and many rough producers held back supply in anticipation of a recovery.

“At year-end, industry confidence and market sentiment remained low, and these challenges are expected to continue until full results from the important holiday retail season are known. For the first half of 2025, producers who curtailed supply are expected to integrate their stock back into the diamond pipeline commensurate with demand. In the medium to long term, price outlook remains positive. Rough diamond supply levels are expected to align with reduced production levels from the mines while demand for branded, natural diamond jewellery with positive origin stories continue to grow.”

Mountain Province is a 49% participant with De Beers Canada in the Gahcho Kue diamond mine. The Gahcho Kue joint venture property consists of several kimberlites that are actively being mined, developed and explored for future development. The company also controls more than 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kue mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.