Wednesday, June 5, 2024
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Mountain Province Sees Q2 Revenue and Earnings Drop Amid Diamond Market Challenges

Mountain Province, a key stakeholder in the Gahcho Kué mine in Canada, witnessed a decline in both revenue and earnings during the second quarter, influenced by reduced sales and a weakened diamond sector.

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Sales for the three months ending June 30, reported on Friday, plummeted by 39% year-on-year to CAD 59.9 million ($44.6 million). Concurrently, sales volume experienced a parallel 39% decrease to 360,000 carats, while the average price per carat dipped by 4% to $124. Net profit also saw a 23% drop to CAD 17.3 million ($12.9 million). Notably, the company conducted two sales events in Antwerp during the period, compared to three in the corresponding period of 2022.

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Management attributed the subdued performance to the prevailing market conditions across all diamond segments. These conditions marked a departure from the historic high witnessed in early 2022, contributing to a general slowdown that was initiated in the latter part of the first quarter of 2023.

While the second quarter bore challenges, the company’s revenue for the first half of 2023 increased by 3% to $188.6 million ($140.3 million), bolstered by a stronger performance in the initial quarter. Meanwhile, net profit for the same period declined by 3% to CAD 45.6 million ($33.9 million).

Mountain Province holds a 49% stake in the Gahcho Kué mine, with De Beers controlling the remaining portion. The miner’s performance underscores the ongoing volatility within the diamond sector and its implications on industry players.

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