TSX-listed Mountain Province Diamonds has reported a wider net loss of $279-million in the year ended December 31, 2025, compared with a net loss of $80.8-million in the prior year.

The $1.32 loss a share in the year compares with the prior year’s $0.38 loss a share.

The company recorded an impairment loss on property, plant and equipment of $103-million, a derivative gain of $2.1-million and foreign exchange gains of $13.2-million.

Adjusted earnings before interest, taxes, depreciation and amortisation amounted to $4.8-million, which marked a 42% year-on-year decrease.

The company’s sales revenue of $155-million in the year under review compares to sales revenue of $267-million in the prior year, mostly owing to a lower average realised value of $83/ct in the reporting year, compared with an average realised value of $98/ct in the prior year.

Mountain Province recovered 4.3-million carats during the reporting year at an average grade of 1.23 ct/t, compared with 4.6-million carats having been recovered in the prior year.

The group’s capital expenditure was $111-million, of which $96-million related to deferred stripping costs and the remaining $15-million accounted for sustaining capital expenditure for mine operations.

Mountain Province president and CEO Jonathan Comeford says 2025 was always expected to be a challenging year for the company from a production perspective. He explains the company mostly processed lower-grade stockpiles in the first three quarters of the year owing to waste stripping to access a higher-grade orebody.  

The efforts culminated in a material improvement in recoveries in the fourth quarter of 1.8-million carats, which represented 43% of the total yearly production.

While the company’s production is set to increase, the diamond market remains dampened, particularly in the smaller and lower-priced categories of goods of which the Gahcho Kué mine, in Canada, produces significant quantities.

Mountain Province owns 49% of the project while De Beers Canada holds the balance.

The diamond market was impacted by geopolitical and macroeconomic uncertainty, including the introduction of 50% US tariffs on Indian diamond manufacturing, where the majority of global diamond cutting and polishing occurs and which is a key customer base for Mountain Province.  

The US market represents about 50% of global diamond demand, and disruption in this market has had a pronounced impact on overall sector confidence. These factors have also extended competitive pressure from lab-grown diamonds, particularly in the US.

The market was further impacted during the fourth quarter by excess supply of rough diamonds, resulting in short-term dislocation and additional pressure on pricing. In response, and as announced on February 9, the joint venture partners elected to pause the Tuzo Phase 3 project to preserve liquidity and maintain operational flexibility.

“We continue to engage constructively with De Beers and other stakeholders regarding outstanding obligations. These discussions are ongoing, and we look forward to providing an update to the market in due course,” Comeford concludes.