en.Wedoany.com Reported - Canadian diamond mining company Mountain Province Diamonds Inc. ("Mountain Province") announced on May 12, 2026, its financial and operating results for the first quarter of 2026 for the Gahcho Kué diamond mine located in the Northwest Territories, Canada. All figures are in Canadian dollars unless otherwise stated.
In the first quarter of 2026, the company sold 858,000 carats of diamonds, generating total revenue of CAD 40 million (USD 29.2 million), at an average realized price of CAD 47 per carat (USD 34). Adjusted EBITDA was negative CAD 0.6 million, loss from mining operations was CAD 36.2 million, and net loss was CAD 65.1 million, with basic and diluted loss per share of CAD 0.31. In comparison, during the first quarter of 2025, 426,000 carats were sold, generating total revenue of CAD 44 million (USD 30.7 million), at an average realized price of CAD 103 per carat (USD 72).
Operationally, in Q1 2026, 759,248 tonnes of ore were processed, an 18% decrease compared to the same period in 2025; 2,006,135 carats of diamonds were recovered, a 163% increase year-over-year; the average grade was 2.64 carats per tonne, a 222% increase year-over-year. Recovery cost per carat (including capitalized stripping costs) was CAD 53, and processing cost per tonne (including capitalized stripping costs) was CAD 139.
Company President and CEO Jonathan Comerford stated: "The first quarter is historically a challenging period for operations due to adverse weather conditions, and the winter at the GK Mine was particularly cold in Q1 2026. Total tonnes mined decreased significantly compared to Q1 2025, primarily due to the joint venture partner's decision to suspend waste stripping operations at the Tuzo kimberlite. Despite this, Q1 2026 was a record quarter for the mine, with over 2 million carats recovered for the first time. This performance was driven by significantly improved recovered grades, reaching 2.64 carats per tonne, far exceeding expectations and representing a 222% increase year-over-year."
Comerford added: "While operational performance was exceptionally strong, the benefit of higher production was largely offset by pricing pressure. During the quarter, 858,000 carats were sold, generating total revenue of CAD 40 million, at an average realized price of CAD 47 per carat, significantly lower than the CAD 103 per carat achieved in the same period last year. This decline is primarily due to ongoing market weakness and a shift in the diamond size mix, with a higher proportion of smaller stones recovered, which are under the most pressure in the current market environment."
"Pricing conditions and market uncertainty prompted the joint venture partner's decision to suspend waste stripping at the Tuzo kimberlite to conserve cash, preserve liquidity, and maintain strategic flexibility. On the cost side, the recovery cost per carat was CAD 53, and the processing cost per tonne was CAD 139, both including capitalized stripping costs. These metrics reflect lower tonnes processed but record carats recovered, along with the largely fixed nature of operating costs during the winter mining period." He also noted: "The diamond market continues to be adversely affected by geopolitical uncertainty, including concerns over U.S. tariffs and the ongoing Middle East conflict. These factors continue to suppress demand and pricing—particularly in the smaller size categories—and currently overshadow the mine's otherwise very strong operational performance."
Regarding the company's financial outlook, Comerford stated: "Given the persistent weakness in diamond pricing and its impact on cash flow, the company is in a highly constrained and challenging financial environment, which, if it continues, could impact the company's long-term sustainability. In response, we are actively and constructively engaging with all key stakeholders, including our joint venture partner, lenders, and relevant government authorities, to preserve liquidity and determine a path forward. We expect to provide further updates on the outcome of these discussions in the coming weeks."
The company will hold its quarterly conference call on May 13, 2026, at 12:00 PM Eastern Time to discuss the results.
Mountain Province is a 49% participant in the Gahcho Kué diamond mine, with joint venture partner De Beers Canada. The mine is located in the Northwest Territories, Canada, and is currently mining multiple kimberlite pipes. The company also controls over 113,000 hectares of mineral claims and leases surrounding the mine, including indicated mineral resources at the Kelvin kimberlite and inferred mineral resources at the Faraday kimberlite.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
