Canadian miner Mountain Province Diamonds has achieved record-breaking production at its Gahcho Kué mine in 2024 but faces significant headwinds in the diamond market.

“2024 was a year of production records and cost control, overlaid with a challenging diamond price environment,” CEO Mark Wall said on Thursday.

The global diamond market’s down-cycle weighed heavily on the company’s financial performance. The average annual realised price fell to $98/ct, a sharp decline from the $121/ct achieved in 2023.

Mountain Province sold about 2.7-million carats from its mine in Northwest Territories, generating total proceeds of C$267.7-million. This compared with proceeds of C$328.6-million in 2023, despite selling a similar volume of carats.

Despite the market challenges, Mountain Province set new operational benchmarks at Gahcho Kué. The mine produced 4.66-million carats in 2024, at the upper end of its guidance range of 4.2-million to 4.7-million carats. This achievement followed the successful completion of a multi-year project to stabilise and improve the processing plant, which began in late 2022 and concluded at the end of 2023.

The processing plant treated 3.63-million tonnes of ore in 2024 – a record performance for the mine. By comparison, the plant processed 3.08-million tonnes in 2021, 3.1-million tonnes in 2022, and 3.25-million tonnes in 2023.

“The higher throughput rate in the processing plant helped offset lower-than-expected ore grades in the second quarter of 2024, ensuring we remained within our production guidance,” Wall noted.

The lower ore grades in March, April, and May of 2024 temporarily impacted production but were mitigated by the plant’s improved efficiency.

Total mined tonnes decreased year-on-year, falling from 9.8-million tonnes in 2023 to 8.99-million tonnes in 2024. This reduction was primarily attributed to pit bottom mining and geotechnical challenges encountered in the 5034 and Hearne openpits. Both pits were completed during the year, and the company is focused on transitioning to other mining areas.

Looking ahead, Mountain Province plans to leverage its operational efficiencies and cost controls to navigate the ongoing volatility in diamond pricing.