Mountain Province Losses Increase in “Challenging Market”

Mountain Province reported increased net losses for the latest quarter as prices keep on dropping in a "challenging market".

Mountain Province reported increased net losses for the latest quarter as prices keep on dropping in a “challenging market”.

The Canadian miner today (7 November) announced a net loss of $13.6m for the three months to 30 September, following on from a $4.7m loss in Q2 (all figures are in US dollars).

“In Q3 2024 our sales achieved 100 per cent sell-through with no unsold stock held at the end of September and a higher average selling price than the three preceding quarters,” said Reid Mackie, VP sales and marketing at Mountain Province.

The average price per carat was, however, down 21 per cent on a year ago – from $95 to $75.

The company sold a 679,599 carats were sold for $50.8m, compared to 478,653 carats in Q3 2023 for $45.3m. Year-on-year the number of carats sold was up almost 30 per cent, but revenue increased by just 12 per cent.

Adjusted EBITDA was $12.5m and loss from mine operations was $8m.

As for operations at the Gahcho Kue mine (pictured), the number of tonnes of ore treated increased 10 per cent year-on-year, but the number of carats recovered fell by 10 per cent.

CEO Mark Wall explained that this was “driven by planned lower grade in Q3 and unplanned lower grade in March and early Q2 of 2024”.

He said that while the diamond market had been disappointing, he was optimistic that the price environment would recover during 2025 and that it would be followed by a very strong production year in 2026.

Source: IDEX

Rio trenches bulk sample for Star at Star-Orion South

STAR DIAMOND CORP

For the first time a trench cutter sampling system is being used to take a bulk sample of a Canadian kimberlite. Such equipment is normally used in specialist foundation engineering, rather than mineral exploration.

The rig cut a hole to a depth of 228.4 metres at the Star-Orion diamond project which is wholly owned by Saskatoon-based Star Diamond. The hole produced 704 bags of kimberlite. The operator of the project is Rio Tinto Exploration Canada.

The trenching rig consists of a Bauer BC 50 cutter mounted on a Bauer MC 128 duty cyclone crane. There is also a kimberlite separation unit and a desanding unit. The kimberlite will be stored in a secure area at the site until a bulk sample plant can be build and commissioned at the project. Rio will undertake final diamond recovery.

Star’s senior VP of exploration and development George Read said, “The successful use of this new trench cutter sampling rig technology for the recovery of kimberlite bulk samples has the ability to revolutionize future bulk sampling and mining of kimberlites, particularly for kimberlites characteristic of the Fort à la Corne diamond district.”