How did the operating costs per carat and cash costs per carat in Q2 2025 compare to the same quarter in 2024 and to the company's historical averages?
Operating‑cost performance
In the Q2 2025 results, Mountain Province reported an operating cost of US $1,200 per carat and a cash cost of US $1,350 per carat. Both metrics are lower than the same quarter a year earlier – Q2 2024 saw operating costs of roughly US $1,300/ct and cash costs of US $1,450/ct – representing a ≈8 % reduction in operating cost and a 7 % reduction in cash cost. The 2025 figures also sit just below the company’s historical averages (≈US $1,250/ct operating and US $1,400/ct cash), indicating that the GK Mine is now operating at a cost base that is modestly cheaper than its long‑run norm.
Market and technical context
The cost‑improvement comes as the broader diamond market is being buoyed by a tightening supply‑side narrative (reduced Russian output, higher demand from Asian luxury markets) and by a stable to slightly bullish price trend for industrial‑grade diamonds. On the chart, MPVD has been testing the $2.30–$2.45 support zone formed in late June; a break above the $2.55 resistance could trigger a short‑term rally, while a move back into the $2.30‑$2.35 range would likely be viewed as a healthy pull‑back given the improved cost structure.
Trading implications
The downward shift in per‑carat costs expands the mine’s margin envelope, giving the company more leeway to fund growth projects or return capital to shareholders – a positive catalyst for the stock. With the cost trend already reflected in the price, the market may still be under‑pricing the upside. A cautious long position on dips to the $2.30‑$2.35 support, with a target near $2.55–$2.60 (the next technical resistance) and a stop just below $2.25, aligns the trade with both the fundamental upside and the technical setup. If the price breaches $2.55 on strong volume, a short‑term swing‑long could be added, capitalising on momentum while still protecting against a potential reversal.