Mountain Province Diamonds (MPVD) AI Stock Analysis

• Market Cap: $10.62M
• Dividend Yield: N/A
• Average Volume (3M): 124.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.14
• Revenue Growth: -45.17%
• EPS Growth: -100.74%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): -0.26
• Shares Outstanding: 212,360,340
• 10 Day Avg. Volume: 103,243
• 30 Day Avg. Volume: 124,824
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -23.69
• Enterprise Value/Market Cap: 39.55
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: -8.58
• Enterprise Value/Ebitda: -7.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: C$0.06 ▲(18.00% Upside)

The overall stock score is primarily driven by the company's poor financial performance and valuation metrics. Despite some positive technical indicators, the high leverage, negative profitability, and reliance on debt significantly impact the score. The earnings call provided some operational positives, but financial challenges and market uncertainties overshadow these improvements.

Positive Factors

Operational Improvements

Accessing higher-grade ore is expected to enhance production efficiency and output quality, potentially improving revenue and profitability.

Safety Record

A strong safety record reflects effective management practices and can lead to reduced operational disruptions and costs.

Shareholder Support

Ongoing financial backing from a major shareholder provides stability and potential access to capital, aiding in navigating financial challenges.

Negative Factors

Revenue Decline

Significant revenue decline due to low diamond prices impacts cash flow and limits the ability to invest in growth or reduce debt.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to sustain operations during downturns.

Negative Cash Flow

Negative cash flow from operations indicates challenges in generating sufficient cash to cover expenses, impacting long-term financial health.

Mountain Province Diamonds Business Overview & Revenue Model

Company Description

Mountain Province Diamonds Inc. focuses on the mining and marketing of rough diamonds worldwide. Its primary asset is its 49% interest in the Gahcho Kué diamond mine comprising mining leases covering an area of 5,216 hectares; and holds a 100% interest in the Kennady North project consisting of 22 federal leases and 97 claims covering an area of 107,000 hectares located in the Northwest Territories, Canada. The company was formerly known as Mountain Province Mining Inc. and changed its name to Mountain Province Diamonds Inc. in October 2000. Mountain Province Diamonds Inc. was incorporated in 1986 and is headquartered in Toronto, Canada.

How the Company Makes Money

Mountain Province Diamonds generates revenue primarily through the extraction and sale of diamonds from its Gahcho Kué mine. The company sells its diamonds through various channels, including direct sales and auctions, targeting both the wholesale and retail markets. Key revenue streams include the sale of rough diamonds, which are evaluated based on carat weight, quality, and market demand. Additionally, MPVD benefits from partnerships with established diamond manufacturers and retailers, which help to secure a market for its gemstones. The company's earnings are influenced by global diamond market trends, pricing fluctuations, and the operational efficiency of its mining activities.

Mountain Province Diamonds Financial Statement Overview

Summary

Mountain Province Diamonds is facing significant financial challenges. The income statement shows declining revenues and substantial losses, while the balance sheet indicates high leverage and negative returns on equity. Cash flow analysis reveals difficulties in generating positive cash flows. The company needs to address operational inefficiencies and improve its financial stability.

Income Statement

Mountain Province Diamonds has faced significant challenges in its income statement. The TTM data shows a negative gross profit margin of -4.88% and a net profit margin of -75.80%, indicating substantial losses. Revenue has declined by 8.99% in the TTM period, following a trend of decreasing revenues over the past few years. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. These factors highlight the company's struggle to maintain profitability and growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.78 in the TTM period, suggesting significant leverage and potential financial risk. The return on equity is negative, at -56.49%, indicating that the company is not generating returns for its shareholders. However, the equity ratio is relatively stable, showing that equity still constitutes a significant portion of the company's assets. Overall, the balance sheet reflects financial instability and high leverage.

Cash Flow

Cash flow analysis shows mixed results. The operating cash flow to net income ratio is 0.28, indicating some ability to generate cash from operations despite net losses. However, the free cash flow is negative, and the free cash flow to net income ratio is -1.46, highlighting cash flow challenges. Although there was a slight improvement in free cash flow growth, the overall cash flow position remains weak, reflecting the company's struggle to generate positive cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	161.98M	267.67M	328.63M	388.85M	308.72M	226.99M
Gross Profit	-48.97M	93.21M	173.00M	170.53M	152.90M	-1.49M
EBITDA	-55.42M	79.33M	72.23M	197.99M	376.85M	-165.40M
Net Income	-190.16M	-80.83M	-43.67M	49.20M	276.17M	-263.43M
Balance Sheet
Total Assets	806.74M	838.54M	932.21M	898.54M	877.50M	595.33M
Cash, Cash Equivalents and Short-Term Investments	4.89M	11.56M	29.67M	17.25M	25.00M	35.15M
Total Debt	441.70M	352.37M	306.88M	317.40M	376.04M	407.69M
Total Liabilities	650.65M	557.58M	571.21M	491.38M	526.76M	521.63M
Stockholders Equity	156.09M	280.96M	361.00M	407.16M	350.74M	73.70M
Cash Flow
Free Cash Flow	-128.83M	-1.03M	60.11M	112.20M	68.76M	12.91M
Operating Cash Flow	-6.57M	79.43M	143.41M	172.63M	112.58M	51.75M
Investing Cash Flow	-122.48M	-80.33M	-85.15M	-64.64M	-53.74M	-53.69M
Financing Cash Flow	94.94M	-15.95M	-24.32M	-115.50M	-69.79M	2.01M

Mountain Province Diamonds Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.05 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, 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	73 Outperform	C$84.33M	1.06	21.15%	―	28.12%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TAI	50 Neutral	C$2.88M	-6.52	-193.26%	―	―	-187.50%
MPVD	45 Neutral	$10.62M	-0.06	-74.45%	―	-45.17%	-100.74%
DMI	29 Underperform	C$1.69M	―	―	―	―	―
DIA	24 Underperform	C$1.31M	-2.58	―	―	―	78.10%

Mountain Province Diamonds Corporate Events

Mountain Province Diamonds Amends Working Capital Facility Amid Financial Challenges

Mountain Province Diamonds has amended the terms of its CAD33 million working capital facility with Dunebridge Worldwide Ltd., extending the period for advances and repayment dates. This amendment is crucial for the company as it anticipates improved working capital from future diamond sales, and it highlights the financial challenges the company is facing, which necessitated reliance on related party transactions under financial difficulty exemptions.

Mountain Province Diamonds Announces CEO Resignation and Operational Update

Mountain Province Diamonds announced the resignation of its President & CEO, Mark Wall, who will remain until December 19, 2025, to ensure a smooth transition. The company has commenced mining the high-grade 5034-NEX orebody and completed a plant maintenance shutdown, positioning the Gahcho Kué mine for strong performance in the upcoming quarters. The Board is initiating a search for a new CEO, while the current Chairman praised Wall’s contributions during a challenging period for the company and the diamond industry.

Mountain Province Diamonds Faces Challenges in Q3 2025 Amid Market Pressures

Mountain Province Diamonds reported a challenging third quarter for 2025, with a net loss of $55.9 million and a decrease in carat sales compared to the previous year. Despite operational difficulties, the company is optimistic about future improvements in diamond grades and remains committed to safety and operational efficiency, although market conditions and tariffs continue to impact pricing.

Mountain Province Diamonds Reports Q3 2025 Production Decline and Revised Guidance

Mountain Province Diamonds reported a decrease in diamond production and sales for the third quarter of 2025, with a 16% drop in carats recovered compared to the previous year. The company revised its annual guidance downward due to lower than expected grades from ore stockpiles, resulting in increased production costs. Despite these challenges, the company anticipates higher production in the fourth quarter and 2026 due to accessing higher-grade ore. The diamond market remains impacted by trade tensions between the United States and India, affecting pricing.