Mountain Province Diamonds (MPVD) AI Stock Analysis

• Market Cap: $12.74M
• Dividend Yield: N/A
• Average Volume (3M): 86.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -23.22%
• EPS Growth: -87.05%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Other Precious Metals
• EPS (TTM): -0.16
• Shares Outstanding: 212,360,340
• 10 Day Avg. Volume: 57,441
• 30 Day Avg. Volume: 86,895
• PEG Ratio: -0.01
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -75.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Mountain Province Diamonds faces significant financial challenges, with negative profitability metrics and high leverage. The technical analysis suggests a bearish trend, and the valuation is unattractive due to negative earnings. Despite these issues, operational improvements, successful refinancing, and strategic corporate actions provide some positive outlook, supporting the overall score.

Mountain Province Diamonds Business Overview & Revenue Model

Company Description

Mountain Province Diamonds Inc. (MPVD) is a Canadian-based diamond mining company engaged in the exploration and production of rough diamonds. The company operates primarily through its interest in the Gahcho Kué Diamond Mine, located in Canada's Northwest Territories, which it co-owns with De Beers Canada. Mountain Province Diamonds is focused on the discovery and development of diamond resources, providing high-quality rough diamonds to the global market.

How the Company Makes Money

Mountain Province Diamonds generates revenue primarily through the sale of rough diamonds extracted from its Gahcho Kué Diamond Mine. The company's primary revenue stream is the sale of these diamonds through auctions and tenders to diamond manufacturers, traders, and retailers worldwide. Significant partnerships, particularly with De Beers Canada, play a crucial role in the company's operations, as they co-manage the Gahcho Kué Diamond Mine, which is a major source of the company's diamond production. The company's earnings are influenced by factors such as global diamond market prices, operational efficiency, and the quality and quantity of diamonds produced.

Mountain Province Diamonds Financial Statement Overview

Summary

Mountain Province Diamonds faces significant financial instability, marked by declining revenues and net losses. Despite reasonable equity and operational cash flow generation, high leverage and negative free cash flow growth raise serious long-term sustainability concerns.

Income Statement

The company has experienced fluctuating revenue with recent declines, reflected in a negative revenue growth rate over the past year. Negative net income in recent years indicates profitability challenges, although gross profit margin is positive. EBIT and EBITDA margins have been volatile, showing difficulty in maintaining consistent operational profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. However, the equity ratio remains healthy, suggesting a reasonable proportion of assets financed by equity. The return on equity is negative due to net losses, highlighting concerns about generating returns for shareholders.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting effective cash generation from operations relative to reported losses. The free cash flow to net income ratio is negative, pointing to challenges in translating earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
267.67M	328.63M	388.85M	308.72M	226.99M
	Gross Profit
93.21M	173.00M	170.53M	113.73M	-1.49M
	EBIT
4.50M	-23.04M	141.03M	86.63M	-235.81M
	EBITDA
79.33M	72.23M	177.24M	376.85M	-159.33M
	Net Income Common Stockholders
-80.83M	-43.67M	49.20M	276.17M	-22.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.56M	29.67M	17.25M	25.00M	35.15M
	Total Assets
838.54M	932.21M	898.54M	877.50M	595.33M
	Total Debt
352.37M	306.88M	317.40M	376.04M	407.69M
	Net Debt
340.81M	277.21M	300.16M	351.04M	372.54M
	Total Liabilities
557.58M	571.21M	491.38M	526.76M	521.63M
	Stockholders Equity
280.96M	361.00M	407.16M	350.74M	73.70M
Cash Flow		Free Cash Flow
-1.03M	60.11M	112.20M	68.76M	12.91M
	Operating Cash Flow
79.43M	143.41M	172.63M	112.58M	51.75M
	Investing Cash Flow
-80.33M	-85.15M	-64.64M	-53.74M	-53.69M
	Financing Cash Flow
-15.95M	-47.07M	-115.50M	-69.79M	2.01M

Mountain Province Diamonds Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.06, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUC	69 Neutral	C$108.70M	1.64	19.74%	―	14.23%	―
Sector *	51 Neutral	$2.04B	-1.15	-21.37%	3.64%	2.88%	-30.57%
TAI	50 Neutral	C$2.14M	―	-1087.65%	―	―	-17.78%
MPVD	50 Neutral	$12.74M	―	-39.12%	―	-23.22%	-87.05%
DMI	29 Underperform	C$2.53M	―	107.68%	―	―	―
DIA	24 Underperform	C$934.57K	―	-1207.18%	―	―	83.91%

Mountain Province Diamonds Corporate Events

Mountain Province Diamonds Secures CAD$33 Million Facility and Elects New Board

Mountain Province Diamonds announced the results of its 2025 annual and special shareholder meeting, where a CAD$33 million working capital facility with Dunebridge Worldwide Ltd. was approved. The facility, which is part of a bridge credit agreement, will be used on a revolving basis to support the company’s operations. Shareholders also elected directors and re-appointed KPMG as auditor, indicating continued stability and governance for the company.

Mountain Province Diamonds Secures CAD$33 Million Working Capital Facility

Mountain Province Diamonds Inc. has announced an amended and restated bridge credit facility agreement to secure a CAD$33 million working capital facility with Dunebridge Worldwide Ltd. This facility is crucial for the company’s 2025 funding strategy, addressing immediate financial needs with an initial drawdown of USD7 million. The transaction, involving related parties, has received conditional approval from the Toronto Stock Exchange, and the company plans to seek further shareholder approval at an upcoming meeting. This move highlights the company’s efforts to stabilize its financial position amid serious financial difficulties.

Mountain Province Diamonds Faces Challenges Amid Market Slump in Q1 2025

Mountain Province Diamonds reported its financial results for Q1 2025, highlighting a challenging quarter with a net loss of $34.4 million and a significant decrease in carats recovered compared to the previous year. Despite a depressed diamond market, the company improved its mining efficiency and anticipates accessing higher grade ore earlier than planned, which may positively impact future operations. The company also completed refinancing transactions to address financial obligations and secure additional working capital, with strong support from major stakeholders.

Mountain Province Diamonds Seeks Shareholder Approval for New Working Capital Facility

Mountain Province Diamonds has announced the mailing of meeting materials for its upcoming annual and special shareholder meeting, where a key agenda item is the approval of a CAD33 million working capital facility from Dunebridge Worldwide Ltd., a related party. This facility is intended to support the company’s cash flow needs and operational expenses at the Gahcho Kué diamond mine through 2025, following recent refinancing transactions. The facility includes specific financial terms and conditions, and its approval is crucial for the company’s ongoing financial stability.

Mountain Province Diamonds Reports Q1 2025 Production Decline Amid Strategic Shifts

Mountain Province Diamonds reported a significant decrease in production for the first quarter of 2025, with carats recovered dropping by 40% compared to the same period last year. The company attributed the lower production to treating low-grade stockpiles while focusing on stripping waste to access the high-grade NEX orebody. Despite this, the total tonnes mined increased by 28%, and the company plans to improve grades by the end of the second quarter. The sales results also showed a decline, with fewer carats sold compared to Q1 2024, although the average price per carat increased slightly.

Mountain Province Diamonds Reports 2024 Financial Results Amid Operational Challenges

Mountain Province Diamonds reported a challenging financial year in 2024, with a significant decline in adjusted EBITDA by 42% to $90.7 million and a net loss of $80.8 million. Despite a 41% increase in ore tonnes mined, the company faced a 16% decrease in diamond carats recovered and a drop in average realized value per carat, impacting overall sales revenue, which fell to $267.7 million. The company also experienced foreign exchange losses due to the weakening Canadian dollar against the US dollar, further affecting financial results.

Mountain Province Diamonds Completes Refinancing Amid TSX Listing Review

Mountain Province Diamonds has completed its refinancing transactions, which include addressing reclamation liabilities to De Beers, securing a $20 million funding request, and extending the maturity of its Second Lien Notes to December 2027. The refinancing aims to provide immediate capital to address a near-term cash flow deficit and was fully approved by noteholders. However, the company’s TSX listing is under review due to an exemption application, which may affect its continued qualification for listing.