Mountain Province – The mining sector faced a modest challenge as Mountain Province reported an 18% decline in revenue, totaling $243.7 million for the past year. CEO Mark Wall attributed this setback to the sale of a “finer assortment of goods held back from previous quarters” during the fourth quarter, resulting in a lower average value per carat compared to preceding quarters.
Despite a 2% increase in sales volume to 2.7 million carats, the average price per carat experienced a notable 20% drop, settling at $90, as disclosed by the company.
Wall identified the key factor contributing to the sales downturn as India’s two-month moratorium on diamond imports, concluding on December 15.
The Gahcho Kué mine in Canada, jointly owned by Mountain Province (49%) and De Beers (51%), recovered a total of 5.6 million carats last year, aligning with the lower end of the company’s guidance. Notably, this figure incorporates both entities’ ownership shares.
Specifically, the fourth quarter witnessed a 3% decrease in output compared to the previous year, with a total of 1.6 million carats. Sales during the October-to-December period fell by 17% to $58.9 million, primarily driven by a significant 32% drop in the average price per carat to $64. Despite this, there was a notable 21% increase in sales volume, reaching 917,757 carats.
Addressing the current market dynamics, Wall emphasized, “Regarding the rough-diamond market, the market is now reopened, and we continue to monitor it closely to maximize value from our sales pipeline.” The company remains vigilant in navigating the industry landscape to optimize outcomes from its sales operations.
