TSX: MPVD
TORONTO, Aug. 13, 2026 /PRNewswire/ -- Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) today announces financial results for the second quarter ended June 30, 2026 ("the Quarter" or "Q2 2026") from the Gahcho Kué Diamond Mine ("GK Mine"). All figures are expressed in Canadian Dollars unless otherwise noted.
Q2 2026 Key Takeaways
-- 869,520 carats were sold for total proceeds of $43.5 million (US$31.2
million) at an average price of $50 per carat (US$36).
-- Adjusted EBITDA1 of $8.4 million.
-- Loss from mine operations of $89.8 million.
-- Net loss of $120.6 million or $0.57 basic and diluted loss per share.
(1) Cash costs of production, including capitalized stripping costs, and
adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed
under IFRS. See "Reconciliation of non-IFRS measures" at the end of the news
release for explanation and reconciliation.
Jonathan Comerford, the Company's President, and Chief Executive Officer, commented:
" The second quarter delivered another very strong safety and operational performance at the GK Mine, with more than 2.0 million carats recovered for the second consecutive quarter. Q2 2026 production was 185% higher than Q2 2025, driven primarily by exceptionally high recovered grades. This resulted in a record first half of the year in terms of carats recovered and demonstrates the significant grades that can be achieved from the GK resource.
I would like to sincerely thank all of our employees and contractors at the GK Mine for delivering these results. They have done so during an exceptionally uncertain and challenging period for the diamond sector, and particularly for the Canadian diamond industry. The recent announcement regarding the unfortunate closure of the Ekati Mine has further underlined the pressures facing the Canadian diamond sector and the importance of the GK Mine to the industry.
While operational performance has remained exceptionally strong, the diamond market continues to face significant challenges. Pricing remains uncertain, with demand and prices continuing to be affected by geopolitical and economic uncertainty, including the impact of US tariffs.
There are, however, some encouraging signs emerging from the supply side of the market. Our most recent diamond sale showed an improvement in pricing, which we believe may in part reflect the tightening of global diamond supply following a series of mine closure and cessation announcements. While it is too early to determine whether this represents the beginning of a sustained improvement in the market, the recent sale was encouraging.
Against this backdrop and with GK being the last operating diamond mine in Canada, MPV continues to work tirelessly with our joint venture partner, lenders, government authorities and other stakeholders to obtain support to stabilise its financial position and continue as a going concern.
I would once again like to thank our workforce at GK for their commitment and resilience. Delivering record first-half production in such challenging circumstances is a significant achievement and a testament to the dedication of everyone working at the mine."
Financial Highlights for Q2 2026
-- Revenue from 869,520 carats sold at $43.5 million (US$31.2 million) at an
average realised value of $50 per carat (US$36) compared to $36.8 million
from 411,114 carats sold in Q2 2025 (US$26.6 million) at an average
realized value of $90 per carat (US$65).
-- Adjusted EBITDA1 of $8.4 million compared to ($2.2) million in Q2 2025.
-- Loss from mine operations of $89.8 million compared to loss from mine
operations $52.6 million in Q2 2025.
-- Cash costs of production, including capitalized stripping costs1 of $108
per tonne treated (2025: $167 per tonne) and $48 per carat recovered
(2025: $209 per carat).
-- Net loss of $120.6 million or $0.57 loss per share (2025: net loss of
$37.7 million or $0.18 loss per share). Included in the determination of
net loss are foreign losses of $11.3 million, the majority of which is an
unrealized loss arising on the translation of the Company's US Dollar
denominated long term debt, because of the weakening of the Canadian
Dollar versus US Dollar.
(1) Cash costs of production, including capitalized stripping costs, and
Adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed
under IFRS. See the Non-IFRS Measures section of the Company's June 30, 2026
MD&A for explanation and reconciliation.
Operational Highlights for Q2 2026
(all figures reported on a 100% basis unless otherwise stated)
-- 891,293 ore tonnes treated, 1% higher than Q2 2025 (883,738 tonnes
treated)
-- 2,014,563 carats recovered, 185% higher than Q2 2025 (708,072 carats
recovered)
-- Average grade of 2.26 carats per tonne treated, 182% higher than Q2 2025
(0.80 carats per tonne)
-- 969,180 ore tonnes mined, 620% higher than Q2 2025 (134,597 ore tonnes
mined)
Sales Highlights for Q2 2026
During the second quarter, 869,520 carats were sold for total proceeds of $43.5 million (US$31.2 million), resulting in an average price of $50 per carat (US$36 per carat). These results compare to Q2 2025 where 411,114 carats were sold for total proceeds of $36.8 million (US$26.6 million) at an average price per carat of $90 per carat (US$65 per carat).
Financial Highlights for H1 2026
-- Total sales revenue of $83.5 million (US$60.5 million) at an average
realised value of $48 per carat (US$35) compared to $80.8 million in 2025
(US$57.2 million) at an average realized value of $97 per carat (US$68).
-- Adjusted EBITDA2 of $7.8 million (H1 2025: $3.9 million).
-- Loss from mine operations of $126 million (H1 2025: earnings from mine
operations $74.9 million).
-- Cash costs of production, including capitalized stripping costs2, of $122
per tonne treated (H1 2025: $162 per tonne) and $50 per carat recovered
(H1 2025: $200 per carat).
-- Net loss of $185.7 million or $0.87 basic and diluted loss per share (H1
2025: $72.1 million or $0.34 basic and diluted loss per share). Included
in the determination of the net loss for H1 2026, are foreign exchange
losses of $18 million, the majority of which is an unrealized loss on the
translation of the Company's US Dollar denominated long term debt arising
because of the weakening of the Canadian Dollar versus US Dollar.
-- Capital expenditures of $8.1 million, $3 million of which were deferred
stripping costs, with the remaining $5.1 million for sustaining capital
expenditures related to mine operations.
(2) Cash costs of production, including capitalized stripping costs, and
Adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed
under IFRS. See the Non-IFRS Measures section of the Company's June 30, 2026
MD&A for explanation and reconciliation.
Operational Highlights for H1 2026
(all figures reported on a 100% basis unless otherwise stated)
-- 10,148,000 total tonnes mined, 51% lower than 20,537,000 total tonnes
mined in H1 2025.
-- 1,651,000 tonnes of ore treated 9% lower than 1,810,000 tonnes treated in
H1 2025.
-- 4,021,000 carats recovered at an average grade of 2.44 carats per tonne,
173% higher than 1,471,000 carats, (0.81 carats per tonne) recovered in
H1 2025.
Gahcho Kué Mine Operations
The following table summarizes key operating statistics for the Gahcho Kué Mine in the three and six months ended June 30, 2026, and 2025.
Three months ended Three months ended Six months ended Six months ended
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
------------ ------- ------------------ ------------------ ------------------ ------------------
GK operating
data
Mining
*Ore tonnes kilo
mined tonnes 969 135 1,711 135
*Waste
tonnes kilo
mined tonnes 2,975 10,310 8,437 20,402
*Total
tonnes kilo
mined tonnes 3,944 10,445 10,148 20,537
*Ore in kilo
stockpile tonnes 1,824 2,387 1,824 2,387
Processing
*Ore tonnes kilo
processed tonnes 892 884 1,651 1,810
*Average tonnes
plant per
throughput day 9,696 10,045 8,829 9,945
*Average carats
diamond per
recovery tonne 2.26 0.80 2.44 0.81
*Diamonds 000's
recovered carats 2,015 708 4,021 1,471
Approximate
diamonds
recovered -
Mountain 000's
Province carats 987 347 1,970 721
Cash costs
of
production
per tonne
of ore, net
of
capitalized
stripping
** $ 108 96 119 93
Cash costs
of
production
per tonne
of ore,
including
capitalized
stripping** $ 108 167 122 162
Cash costs
of
production
per carat
recovered,
net of
capitalized
stripping** $ 48 120 49 114
Cash costs
of
production
per carat
recovered,
including
capitalized
stripping** $ 48 209 50 200 Sales Approximate diamonds sold - Mountain 000's Province*** carats 870 411 1,728 837 Average diamond sales price per carat US $ 36 $ 65 $ 35 $ 68 ------------ ------- ------------------ ------------------ ------------------ ------------------ * at 100% interest in the Gahcho Kué Mine **See Non-IFRS Measures section of the Company's June 30, 2026 MD&A for explanation and reconciliation ***Includes the sales directly to De Beers for fancies and specials acquired by De Beers through the production split bidding process
Financial Performance
Three Three
months months Six months Six months
ended ended ended ended
(in thousands
of Canadian
dollars, except
where otherwise June 30, June 30, June 30, June 30,
noted) 2026 2025 2026 2025
--------------- ----------- ---------- ---------- ----------- -----------
Sales $ 43,470 36,824 83,453 80,819
000's
Carats sold carats 870 441 1,728 837
Average price
per carat
sold $/carat 50 90 48 97
--------------- ----------- ---------- ---------- -----------
Cost of sales
per carat* $/carat 153 217 121 186
--------------- ----------- ---------- ---------- ----------- -----------
Loss from mine
operations per
carat $ (103) (127) (73) (89)
Loss from mine
operations % (206 %) (141 %) (151 %) (93 %)
--------------- ----------- ---------- ---------- ----------- -----------
Selling,
general and
administrative
expenses $ 2,783 2,432 5,283 4,974
Operating loss $ (92,886) (55,140) (132,712) (80,242)
Net loss for
the period $ (120,613) (37,743) (185,682) (72,117)
Basic loss per
share $ (0.57) (0.18) (0.87) (0.34)
Diluted loss
per share $ (0.57) (0.18) (0.87) (0.34)
--------------- ----------- ---------- ---------- ----------- -----------
* This cost of sales per carat includes the cost of acquiring 51% of the
fancies and specials which have been sold, after having been won in a
tendering process with De Beers Canada.
Reconciliation of Non-IFRS measures
This news release refers to the terms "Cash costs of production per tonne of ore processed" and "Cash costs of production per carat recovered," both including and net of capitalized stripping costs and "Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA)" and "Adjusted EBITDA Margin." Each of these is a non-IFRS performance measure and is referenced to provide investors with information about the measures used by management to monitor performance. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
Cash costs of production per tonne of ore processed and cash costs of production per carat recovered are used by management to analyze the actual cash costs associated with processing the ore, and for each recovered carat. Differences from production costs reported within cost of sales are attributed to the amount of production cost included in ore stockpile and rough diamond inventories.
Adjusted EBITDA is used by management to analyze the operational cash flows of the Company, as compared to the net income for accounting purposes. It is also a measure which is defined in the Notes documents. Adjusted EBITDA margin is used by management to analyze the operational margin % on cash flows of the Company.
The following table provides a reconciliation of the Adjusted EBITDA and Adjusted EBITDA margin with the net (loss) income on the consolidated statements of comprehensive (loss) income:
(Unaudited) Three months ended Three months ended Six months ended Six months ended (in thousands of Canadian dollars, except where otherwise noted) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 ------------------ ------------------------------ ------------------------------- ------------------------------ ------------------------------ Net loss for the period $ (120,613) $ (37,743) $ (185,682) $ (72,117) Add/deduct: Non-cash depreciation and depletion 46,219 27,514 70,217 50,589 Dercognition of obsolete capital assets 49 - 970 - Net realizable value adjustment included in production costs 34,438 25,139 45,301 35,320 Change in restoration liability included in production costs 15,589 - 18,906 - Share-based payment expense 13 72 43 226 Fair value loss of warrants - - - 1,099 Losses (gains) on lease 4,871 (8) 4,871 (4) Finance expenses 19,988 14,496 42,949 24,574 Derivative losses (gains) 108 (2,518) 238 (3,333) Deferred income tax recovery (3,700) (7,270) (8,200) (11,070) Current income taxes - - - 160 Unrealized foreign exchange losses (gains) 11,421 (21,897) 18,148 (21,584) ------------------- ------------------------------ ------------------------------- ------------------------------ ------------------------------ Adjusted earnings before interest, taxes, depreciation and depletion (Adjusted EBITDA) $ 8,383 $ (2,215) $ 7,761 $ 3,860 ------------------- ------------------------------ ------------------------------- ------------------------------ ------------------------------ Sales 43,470 36,824 83,453 80,819 ------------------- ------------------------------ ------------------------------- ------------------------------ ------------------------------ Adjusted EBITDA margin 19 % -6 % 9 % 5 % ------------------- ------------------------------ ------------------------------- ------------------------------ ------------------------------
The following table provides a reconciliation of the cash costs of production per tonne of ore processed and per carat recovered and the production costs reported within cost of sales on the consolidated statements of comprehensive (loss) income:
Three Three
months months Six months Six months
(Unaudited) ended ended ended ended
(in thousands
of Canadian
dollars,
except where
otherwise June 30, June 30, June 30, June 30,
noted) 2026 2025 2026 2025
-------------- ----------- ---------- ----------- ----------- -----------
Cost of sales
production
costs $ 82,297 53,563 132,833 92,852
Timing
differences
due to
inventory and
other
non-cash
adjustments $ (34,901) (11,985) (36,844) (10,445)
-------------- ----------- ---------- ----------- ----------- -----------
Cash cost of
production of
ore
processed,
net of
capitalized
stripping $ 47,396 41,578 95,989 82,407
-------------- ----------- ---------- ----------- ----------- -----------
Cash costs of
production of
ore
processed,
including
capitalized
stripping $ 47,396 72,421 99,006 144,017
-------------- ----------- ---------- ----------- ----------- ----------- Tonnes kilo processed tonnes 437 433 809 887 Carats 000's recovered carats 987 347 1,970 721 Cash costs of production per tonne of ore, net of capitalized stripping $ 108 96 119 93 Cash costs of production per tonne of ore, including capitalized stripping $ 108 167 122 162 Cash costs of production per carat recovered, net of capitalized stripping $ 48 120 49 114 Cash costs of production per carat recovered, including capitalized stripping $ 48 209 50 200 -------------- ----------- ---------- ----------- ----------- -----------
About Mountain Province Diamonds Inc.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué 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 Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat, at February 2019. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct, at February 2019. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat, at February 2019. All resource estimations are based on a 1mm diamond size bottom cut-off.
Qualified Person
The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Tom McCandless, Ph.D., P.Geo, independent advisor to the Company and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Caution Regarding Forward Looking Information
This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are based on several assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province's business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labor disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of crucial factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.
Although Mountain Province has attempted to identify crucial factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, or results not to be anticipated, estimated, or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed.
Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities, Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject to the limitations under the Company's debt facilities, and will depend on Mountain Province's financial results, cash requirements, prospects, and other factors deemed relevant by the Board
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SOURCE Mountain Province Diamonds Inc.