Mountain Province Diamonds Announces First Quarter Financial Results for 2026

• Q1 2026 financial results (released May 12, 2026) show a net loss of $65.1 million, a record 2.0 million carats recovered, but an average realized price of only $47 per carat (US$34) – a 54% collapse from $103 (US$72) in Q1 2025.
• Sales proceeds were just $40 million CAD, adjusted EBITDA was negative $0.6 million, and the loss from mine operations deepened to $36.2 million.
• Joint-venture partner De Beers paused Tuzo waste stripping to conserve cash; cash calls remain unpaid, with De Beers issuing in‑kind election (IKE) notices totalling $49.2 million.
• The company extended its US$40 million term loan and US$33 million working‑capital facility with related party Dunebridge to June 30, 2026, and sold US$999,999 of receivables to Dermot Desmond for just US$833,000 to scrape together operating cash.
• CEO Jonathan Comerford warns: “If prolonged, [the current financial environment] could have implications for the longer‑term sustainability of the Company.”
• Throughout 2025 the company posted massive losses (FY2025 net loss $279.5 million, including a $103 million impairment) as the transition to the high‑grade 5034‑NEX orebody was offset by falling prices, tariff headwinds, and an oversupplied rough‑diamond market.

• The Q1 2026 results confirm the worst‑case trajectory flagged in earlier quarters. Despite delivering record ore grades and carat recovery, revenue has been decimated by the dramatic decline in diamond prices. The “higher volume, lower price” dynamic is destroying value and burning cash.
• The company is now in a liquidity emergency: operating cash flow is negative, the credit facilities have been extended repeatedly, cash‑call arrears are mounting, and it has resorted to selling receivables at a discount to a related party just to keep the lights on.
• The explicit warning about “longer‑term sustainability” elevates this from a routine earnings disappointment to a material survival threat. The market will likely re‑price the equity closer to zero given the tangible risk of default, insolvency, or a creditor‑driven restructuring.
• The fact that the joint‑venture partner is also conserving cash by halting waste stripping signals that the mine operator shares a dire outlook. The diamond market headwinds (US tariffs on Indian rough, lab‑grown competition, Middle East instability) show no signs of reversing soon.

Mountain Province Diamonds is a 49% partner in the Gahcho Kué diamond mine in Canada’s Northwest Territories, with De Beers Canada holding the other 51% and acting as operator. The mine is an open‑pit and underground operation. The company also holds a 100% interest in the adjacent Kelvin and Faraday kimberlite pipes, which are earlier‑stage resources (Kelvin indicated 13.6 M carats). All production and cash flow currently come from Gahcho Kué. The mine recently transitioned to the high‑grade 5034‑NEX orebody, which delivered a grade boost in late 2025 but has failed to offset the collapse in diamond prices.