Mountain Province Diamonds Inc.

Q1 2026 revenue was CAD 40 million, versus CAD 44 million in Q1 2025, on 858,000 carats sold at an average price of US$34 per carat (CAD 47), versus 426,000 carats at US$72 per carat in Q1 2025. Adjusted EBITDA was negative CAD 600,000, compared with positive CAD 5.8 million a year ago, and the EBITDA margin was minus 2% versus plus 13%. Net loss after tax was CAD 65.1 million, or CAD 0.31 per share, versus a loss of CAD 34.4 million, or CAD 0.16 per share, in Q1 2025. Management did not provide formal next-quarter or full-year guidance, but said Q2 should have 3 sales, while the first half of the year remains cash-challenging because about 75% of annual cash calls occur then. The company also said short-term debt maturity was extended from April 30 to June 30, 2026, and it is exploring additional working-capital support.

Jonathan Comerford framed the quarter as operationally strong but financially constrained by a difficult market. He emphasized safety, noting the operation is approaching a full year without a lost-time injury, and highlighted record carat recovery driven by exceptionally high grades. His tone was cautious and urgent, repeatedly pointing to a very challenging diamond market, liquidity pressure, and the need to work with stakeholders to protect the 700 jobs tied to Gahcho Kue.

Steven Thomas said the quarter was hurt by weak pricing and volatility tied to tariffs, even though operational throughput and grade were strong. He cited inventory increasing by CAD 54 million to CAD 206 million, working capital at minus CAD 63.1 million, accounts payable rising to CAD 169 million, and De Beers cash calls increasing from CAD 30 million at year-end to CAD 81 million at quarter-end and then to about CAD 123 million by April 30. He also noted finance expense of CAD 23 million, cash used in operations of CAD 18 million, and a net loss of CAD 65.1 million, while explaining that the company paused Tuzo stripping and extended short-term debt to June 30, 2026 to preserve cash.

An analyst asked about the mix of high-value stones and the inventory composition. Management would not give a precise breakdown, but Reid Mackie said small stones are roughly 80% of production by number of carats and about 20%-30% by value, while Jonathan directed investors to the inventory value in the financial statements. On sales timing, management said Q1 had 2 sales and Q2 is expected to have 3, and Steven Thomas added that the business has a significant first-half cash burden because most annual cash calls go out early in the year. When asked whether current small-stone pricing covers variable costs, Thomas said that at about US$33 per carat it is 'challenging, to say the least,' underscoring the liquidity strain.