Mountain Province Diamonds (MPVD) AI Stock Analysis

• Market Cap: $12.74M
• Dividend Yield: N/A
• Average Volume (3M): 95.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -18.55%
• EPS Growth: -84.45%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): -0.38
• Shares Outstanding: 212,360,340
• 10 Day Avg. Volume: 85,836
• 30 Day Avg. Volume: 95,381
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.05
• Price to Cash Flow (P/CF): 0.10
• P/FCF Ratio: 0.10
• 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 financial challenges, including declining revenues and persistent net losses, which impact its overall financial performance. The technical indicators suggest a bearish trend, and the valuation metrics are weak due to ongoing losses. Although there are some operational improvements, they are overshadowed by the substantial financial and market challenges, resulting in a low overall score.

Mountain Province Diamonds Business Overview & Revenue Model

Company Description

Mountain Province Diamonds (MPVD) is a Canadian-based diamond mining company engaged in the exploration, recovery, and sale of rough diamonds. The company operates primarily in the mining sector, with its flagship asset being the Gahcho Kué Diamond Mine, located in Canada's Northwest Territories. Mountain Province Diamonds focuses on extracting high-quality diamonds and is dedicated to sustainable mining practices.

How the Company Makes Money

Mountain Province Diamonds makes money primarily through the mining and sale of rough diamonds. The company extracts diamonds from its Gahcho Kué Mine, which is a joint venture with De Beers Canada. Mountain Province Diamonds sells these rough diamonds through competitive tender sales to international diamond buyers and manufacturers. Revenue is primarily driven by the volume and quality of diamonds produced and sold, with market prices for rough diamonds being influenced by global supply and demand dynamics. The partnership with De Beers Canada, a leading player in the diamond industry, provides significant operational expertise and market reach, contributing to the company's earnings. Additionally, Mountain Province Diamonds may generate revenue from exploration activities that lead to new diamond discoveries or from any future projects or expansions.

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
286.31M	328.63M	388.85M	308.72M	226.99M	276.33M
	Gross Profit
81.50M	173.00M	170.53M	113.73M	-1.49M	24.84M
	EBIT
53.85M	-23.04M	141.03M	86.63M	-235.81M	-2.69M
	EBITDA
127.16M	72.23M	177.24M	376.85M	-159.33M	-9.74M
	Net Income Common Stockholders
-88.87M	-43.67M	49.20M	276.17M	-22.13M	-128.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.58M	29.67M	17.25M	25.00M	35.15M	34.75M
	Total Assets
117.31M	932.21M	898.54M	877.50M	595.33M	822.70M
	Total Debt
0.00	306.88M	317.40M	376.04M	407.69M	380.71M
	Net Debt
-23.78M	277.21M	300.16M	351.04M	372.54M	345.96M
	Total Liabilities
12.14M	571.21M	491.38M	526.76M	521.63M	486.55M
	Stockholders Equity
105.16M	361.00M	407.16M	350.74M	73.70M	336.15M
Cash Flow		Free Cash Flow
-79.00K	60.11M	112.20M	68.76M	12.91M	51.26M
	Operating Cash Flow
74.48M	143.41M	172.63M	112.58M	51.75M	79.36M
	Investing Cash Flow
-76.09M	-85.15M	-64.64M	-53.74M	-53.69M	-27.57M
	Financing Cash Flow
-3.51M	-47.07M	-115.50M	-69.79M	2.01M	-47.48M

Mountain Province Diamonds Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 0.06 is below 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 bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	66 Neutral	C$169.44M	3.00	16.80%	―	18.11%	―
Sector *	48 Neutral	$1.92B	-1.99	-22.85%	3.95%	0.94%	-27.31%
DIAM	45 Neutral	$30.88M	―	-233.00%	―	―	-72.88%
MPVD	44 Neutral	$12.74M	―	-24.75%	―	-18.55%	-84.45%
NAU	38 Underperform	C$29.71M	―	-14.11%	―	―	-16.17%

Mountain Province Diamonds Corporate Events

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.

Mountain Province Diamonds Achieves Record Production in 2024 Amidst Price Challenges

Mountain Province Diamonds Inc. reported its 2024 production and sales results, highlighting a year of record production and improved safety performance despite facing a challenging diamond price environment. The company sold approximately 2.7 million carats at a lower average value compared to the previous year but exceeded production and processing guidance, highlighting operational efficiency improvements.