Canadian diamond miner Mountain Province expects improving market sentiment in 2025 following a difficult 2024, when weak Chinese demand and the growing presence of lab-grown diamonds pressured prices.

"2024 was a challenging year for the diamond industry," said marketing VP Reid Mackie. "Polished and rough diamond prices were impacted by reduced Chinese domestic demand and the uncertainty surrounding higher volumes of cheaper, lab-grown diamonds."  

"Though rough diamond market confidence remained subdued at the end of 2024, the retail market for diamond jewellery over the holidays showed bright spots with some high-end, luxury jewellery brands reporting strong results. In 2025, low rough diamond supply levels appear to be supporting equilibrium with downstream polished demand for natural diamonds and we are currently seeing a notable improvement in the overall sentiment in the market," said Mackie, announcing the group's fourth-quarter and full-year results.

President and CEO Mark Wall noted that despite market headwinds, 2024 was a year of significant operational improvements for the company, which is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in the Northwest Territories. 

"2024 was a year of significant safety improvement, processing records, and cost control, with the overlay of a very challenging diamond market," he said.

The completion of a processing plant stabilisation project late in 2023 resulted in record yearly throughput, with 3.63-million tonnes of ore processed in 2024, compared with 3.25-million tonnes in 2023 and 3.1-million tonnes in 2022. The company mined 5.38-million tonnes of ore in 2024, exceeding its guidance range of 4.1-million to 4.6-million tonnes. While ore grades were lower than anticipated early in the second quarter, higher processing rates helped deliver production at the top end of guidance, with 4.66-million carats recovered versus the 4.2-million to 4.7-million carat guidance range.

Production costs were kept in check despite inflationary pressures, with cash costs, including capitalised stripping, averaging $117/t treated, down from $129/t in 2023. However, the difficult market environment saw the company's average realised diamond price fall to $98/ct, compared with $121/ct in 2023.

Mountain Province expects 2025 production to be similar to 2024 levels, but warned that the first half of the year will be challenging owing to processing low-grade stockpiles. 

"The mining to reach the high-grade NEX orebody (NEX) is progressing to plan and we expect to be in NEX towards the end of the second quarter of 2025," said Wall. 

"It should be noted that because of the lag between production and sales, we will not see the benefit of this improved production, in terms of improved sales revenue, until the fourth quarter of 2025. 2026 is expected to be a materially higher production and sales year as we have the benefit of a full year of production and sales from NEX."

Following the end of the year, Mountain Province completed a refinancing transaction that addressed its bonds maturing in 2025. "With this refinancing, together with other liquidity measures that the company is currently advancing, the company will be much better positioned as we head towards a significantly higher production year in 2026," Wall said.