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Mountain Province Diamonds (TSE:MPVD)
TSX:MPVD
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Mountain Province Diamonds
(TSX:MPVD)
47Neutral
Mountain Province Diamonds (MPVD) vs. S&P 500 (SPY)
Market Cap
$12.74M
Dividend YieldN/A
Average Volume (3M)142.69K
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth-14.40%
EPS Growth-327.14%
CountryCA
Employees8
SectorBasic Materials
Sector Strength64
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.38
Shares Outstanding212,360,340
10 Day Avg. Volume80,595
30 Day Avg. Volume142,687
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.05
Price to Cash Flow (P/CF)0.10
P/FCF Ratio0.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Mountain Province Diamonds Business Overview & Revenue Model
Company DescriptionMountain Province Diamonds (MPVD) is a Canadian-based diamond mining company engaged in the exploration, recovery, and sale of rough diamonds. The company operates primarily in the mining sector, with its flagship asset being the Gahcho Kué Diamond Mine, located in Canada's Northwest Territories. Mountain Province Diamonds focuses on extracting high-quality diamonds and is dedicated to sustainable mining practices.
How the Company Makes MoneyMountain Province Diamonds makes money primarily through the mining and sale of rough diamonds. The company extracts diamonds from its Gahcho Kué Mine, which is a joint venture with De Beers Canada. Mountain Province Diamonds sells these rough diamonds through competitive tender sales to international diamond buyers and manufacturers. Revenue is primarily driven by the volume and quality of diamonds produced and sold, with market prices for rough diamonds being influenced by global supply and demand dynamics. The partnership with De Beers Canada, a leading player in the diamond industry, provides significant operational expertise and market reach, contributing to the company's earnings. Additionally, Mountain Province Diamonds may generate revenue from exploration activities that lead to new diamond discoveries or from any future projects or expansions.
Mountain Province Diamonds Financial Statement Overview
Summary
Mountain Province Diamonds is struggling with declining revenue and profitability, as demonstrated by a net loss and negative EBIT margins. The balance sheet shows moderate leverage, but positive cash flow offers some financial stability. The company needs to improve revenue and profitability for better financial health.Income Statement
Mountain Province Diamonds has experienced a decline in total revenue from $388.85M in 2022 to $328.63M in 2023, marking a revenue growth rate of -15.5%. The gross profit margin stands at 52.65% for 2023, relatively stable compared to 2022. However, the company reported a net loss with a net profit margin of -13.29% in 2023, a significant downturn from the prior year's net income. The negative EBIT margin of -7.01% in 2023 also highlights operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is 0.85, indicating a moderate level of leverage. Stockholders' equity decreased from $407.16M in 2022 to $361.00M in 2023, while total assets increased slightly, resulting in an equity ratio of 38.72%. Though the return on equity is negative due to losses, the balance sheet reflects moderate financial stability with manageable leverage.55
Neutral
Cash Flow
Operating cash flow decreased from $172.63M in 2022 to $143.42M in 2023, yet the company maintains positive free cash flow of $60.11M in 2023. The free cash flow to net income ratio is not meaningful due to net losses. The cash flow statement indicates some resilience with continued positive free cash flow despite profitability challenges.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 286.31M | 328.63M | 388.85M | 308.72M | 226.99M | 276.33M | Gross Profit |
| 81.50M | 173.00M | 170.53M | 113.73M | -1.49M | 24.84M | EBIT |
| 53.85M | -23.04M | 141.03M | 86.63M | -235.81M | -2.69M | EBITDA |
| 127.16M | 72.23M | 177.24M | 376.85M | -159.33M | -9.74M | Net Income Common Stockholders |
| -88.87M | -43.67M | 49.20M | 276.17M | -22.13M | -128.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 33.58M | 29.67M | 17.25M | 25.00M | 35.15M | 34.75M | Total Assets |
| 117.31M | 932.21M | 898.54M | 877.50M | 595.33M | 822.70M | Total Debt |
| 0.00 | 306.88M | 317.40M | 376.04M | 407.69M | 380.71M | Net Debt |
| -23.78M | 277.21M | 300.16M | 351.04M | 372.54M | 345.96M | Total Liabilities |
| 12.14M | 571.21M | 491.38M | 526.76M | 521.63M | 486.55M | Stockholders Equity |
| 105.16M | 361.00M | 407.16M | 350.74M | 73.70M | 336.15M |
| Cash Flow | Free Cash Flow | ||||
| -79.00K | 60.11M | 112.20M | 68.76M | 12.91M | 51.26M | Operating Cash Flow |
| 74.48M | 143.41M | 172.63M | 112.58M | 51.75M | 79.36M | Investing Cash Flow |
| -76.09M | -85.15M | -64.64M | -53.74M | -53.69M | -27.57M | Financing Cash Flow |
| -3.51M | -47.07M | -115.50M | -69.79M | 2.01M | -47.48M |
Mountain Province Diamonds Technical Analysis
Negative
0.06
Price Trends
0.07
Negative
0.09
Negative
0.12
Negative
Market Momentum
>-0.01
Negative
43.23
Neutral
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MPVD, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MPVD.
Mountain Province Diamonds Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$167.18M | 3.04 | 16.80% | ― | 18.11% | ― | |
47 Neutral | $2.64B | -3.21 | -21.68% | 3.30% | 4.19% | -30.23% | |
47 Neutral | $12.74M | ― | -24.75% | ― | -14.40% | -327.14% | |
38 Underperform | C$32.49M | ― | -14.11% | ― | ― | -16.17% | |
32 Underperform | $33.97M | ― | -233.00% | ― | ― | 93.82% |
* Basic Materials Sector Average
Performance Comparison
TSE:MPVD
Mountain Province Diamonds
0.07
-0.14
-67.50%
TSE:DIAM
Star Diamond
0.06
-0.04
-42.11%
TSE:NAU
Nevgold Corp
0.35
-0.07
-16.67%
TSE:LUC
Lucara Diamond
0.36
0.04
12.50%
Mountain Province Diamonds Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: 0.00% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Negative
The earnings call highlighted improvements in safety, cost reduction, and operational cash flow. However, these positives were overshadowed by significant challenges in revenue, profit margins, and diamond pricing, leading to a net loss for the quarter.Highlights
Safety Milestone Achieved
Gahcho Kué operations have been lost time injury-free for more than a year, approaching 3 million hours without injury. Total recordable injury frequency rate improved significantly year-over-year.
Increased Ore Processing
Processed approximately 14% more tonnes of ore in the first 9 months of 2024 compared to the same period in 2023.
Cost Reduction Success
Unit cost per tonne treated decreased to $112 in 2024 from $142 in 2023, with full year cost guidance between $124 to $136 per tonne treated.
Strong Cash Flow from Operations
Q3 2024 cash flow from operating activities was $56 million, significantly higher than Q3 2023.
Successful Sales Strategy
100% sell-through achieved on all goods offered during Q3 sales, maximizing revenue during challenging market conditions.
Lowlights
Decreased Revenue and Profit Margins
Total revenue for the first 9 months of 2024 was $33.2 million lower than the same period in 2023 due to lower selling prices.
Lower Diamond Prices
Q3 2024 average selling price was USD 75 per carat, significantly below USD 95 per carat achieved in Q3 2023.
Negative Earnings from Operations
Earnings from operations were negative $11 million in Q3 2024, compared to a positive $2.6 million in Q3 2023.
Increased Cost of Sales
Q3 2024 cost of sales included a noncash charge of $10.8 million, adjusting inventory value due to current sales price.
Net Loss for Q3 2024
Net loss after tax for Q3 2024 was $19 million, compared to a loss of $13.4 million in Q3 2023.
Company Guidance
During the Mountain Province Diamonds Q3 2024 earnings call, several key metrics were highlighted, providing guidance for the company's future performance. The company achieved an adjusted EBITDA of CAD 17.3 million for the quarter and CAD 91.3 million for the first nine months of 2024. The Gahcho Kué mine operations have been lost time injury-free for nearly 3 million hours, with a total recordable injury frequency rate around 3, showing significant safety improvements. The cost per tonne treated fell to CAD 112 from CAD 142 in the same period in 2023, aligning with full-year cost guidance of CAD 124 to CAD 136 per tonne. Despite selling 42% more carats in Q3 2024 compared to Q3 2023, the average selling price dropped to USD 75 per carat from USD 95, contributing to a comparative total revenue decrease of CAD 33.2 million for the first nine months year-on-year. The company's net loss after tax was CAD 19 million for Q3 2024, with a loss of CAD 0.09 per share. Despite the challenging market conditions, a focus on maximizing production, cost control, and strategic sales efforts indicates cautious optimism for a price recovery by the end of 2024 and into 2025.Mountain Province Diamonds Corporate Events
Business Operations and StrategyFinancial Disclosures
Mountain Province Diamonds Achieves Record Production in 2024 Amidst Price Challenges
Neutral
Jan 23, 2025
Mountain Province Diamonds Inc. reported its 2024 production and sales results, highlighting a year of record production and improved safety performance despite facing a challenging diamond price environment. The company sold approximately 2.7 million carats at a lower average value compared to the previous year but exceeded production and processing guidance, highlighting operational efficiency improvements.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.