Mountain Province Borrows to Offset $25m Loss
May 14, 25
(IDEX Online) - Mountain Province today (14 May) announced updated details of a CAD 33m (USD 23.8m) working capital credit facility, to offset heavy losses for Q1.
The Toronto-based miner reported a net loss of CAD 34.4m (USD 24.8m) for the three months to 31 March, as the diamond market remained "depressed".
It has entered into an amended and restated bridge credit facility agreement with Bahamas-registered Dunebridge Worldwide Ltd which allows for a USD 7m initial drawdown to cover immediate working capital needs.
Mountain Province saw its Q1 2025 revenue halved from Q1 2024, down to CAD 44.0m (US 30.7m), from the sale of 426,000 carats produced by its Gahcho Kue mine.
Average per carat value for the quarter was CAD103 (USD 72) per carat, up marginally from CAN 95 (USD 70) in Q1 2024.
It is currently processing low grade ore stockpiles as it strips waste to reach the higher grade NEX orebody.
Mountain Province is a 49 per cent participant with De Beers in the mine, located in Canada's Northwest Territories.
Mark Wall, president and CEO, spoke of a "real challenge from a cashflow perspective" but said: "I am optimistic that the turbulence in the global markets will stabilize as we move through 2025 and the diamond market will recover."