Mountain Province Diamonds (MPVD) AI Stock Analysis

• Market Cap: $13.80M
• Dividend Yield: N/A
• Average Volume (3M): 59.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -18.55%
• EPS Growth: -84.45%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Other Precious Metals
• EPS (TTM): -0.38
• Shares Outstanding: 212,360,340
• 10 Day Avg. Volume: 33,156
• 30 Day Avg. Volume: 59,911
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: 1

Mountain Province Diamonds faces significant challenges, including declining revenues, high leverage, and operational difficulties. The technical indicators reflect weak momentum, and valuation metrics are unfavorable with a negative P/E ratio. These factors collectively lead to a cautious outlook on the stock.

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 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.

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.

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.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
328.63M	388.85M	308.72M	226.99M	276.33M
	Gross Profit
173.00M	170.53M	113.73M	-1.49M	24.84M
	EBIT
-23.04M	141.03M	86.63M	-235.81M	-2.69M
	EBITDA
72.23M	177.24M	376.85M	-159.33M	-9.74M
	Net Income Common Stockholders
-43.67M	49.20M	276.17M	-22.13M	-128.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.67M	17.25M	25.00M	35.15M	34.75M
	Total Assets
932.21M	898.54M	877.50M	595.33M	822.70M
	Total Debt
306.88M	317.40M	376.04M	407.69M	380.71M
	Net Debt
277.21M	300.16M	351.04M	372.54M	345.96M
	Total Liabilities
571.21M	491.38M	526.76M	521.63M	486.55M
	Stockholders Equity
361.00M	407.16M	350.74M	73.70M	336.15M
Cash Flow		Free Cash Flow
60.11M	112.20M	68.76M	12.91M	51.26M
	Operating Cash Flow
143.41M	172.63M	112.58M	51.75M	79.36M
	Investing Cash Flow
-85.15M	-64.64M	-53.74M	-53.69M	-27.57M
	Financing Cash Flow
-47.07M	-115.50M	-69.79M	2.01M	-47.48M

Mountain Province Diamonds Technical Analysis

• Technical Analysis Sentiment: Positive
• 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 Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	65 Neutral	C$158.15M	2.84	16.80%	―	18.11%	―
TAI	50 Neutral	C$2.14M	―	-872.79%	―	―	-17.78%
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%
MPVD	48 Neutral	$13.80M	―	-24.75%	―	-18.55%	-84.45%
DMI	29 Underperform	$2.53M	―	107.68%	―	―	―
DIA	24 Underperform	C$379.30K	―	-1207.18%	―	―	83.91%

Mountain Province Diamonds Corporate Events

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.

Spark’s Take on TSE:MPVD Stock

According to Spark, TipRanks’ AI Analyst, TSE:MPVD is a Neutral.

Mountain Province Diamonds faces significant financial and operational challenges, reflected in declining revenues, high leverage, and negative earnings. The technical analysis indicates weak momentum, while valuation metrics such as the negative P/E ratio and lack of dividend yield further dampen investor appeal. Recent corporate events highlight ongoing struggles, leading to a cautious outlook.

To see Spark’s full report on TSE:MPVD stock, click here.

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.

Spark’s Take on TSE:MPVD Stock

According to Spark, TipRanks’ AI Analyst, TSE:MPVD is a Neutral.

Mountain Province Diamonds faces significant challenges, including declining revenues and profit margins, high leverage, and a negative P/E ratio. Technical indicators suggest weak momentum, and while there are improvements in cost control and operational cash flow, they are not sufficient to offset broader financial weaknesses. Overall, the stock’s outlook remains cautious.

To see Spark’s full report on TSE:MPVD stock, click here.

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.

Mountain Province Diamonds Announces Strategic Refinancing to Tackle 2025 Challenges

Mountain Province Diamonds Inc. has announced a series of refinancing transactions aimed at addressing financial challenges anticipated in 2025 due to high operating costs at the Gahcho Kué diamond mine. The transactions include a payment agreement with De Beers, a USD$40 million term loan, and amendments to existing senior secured notes, all designed to support the company’s operations and manage cash flow fluctuations during the year.