What was the net cash flow from operations in Q2 2025, and how does it affect the company's liquidity and ability to fund future development projects?

Net cash flow from operations – Q2 2025:

Mountain Province Diamonds reported a net cash flow from operations of ≈ $31 million for the quarter ended 30 June 2025 (the “Quarter”). This represents a marked improvement over the prior quarter and reflects the strong production and sales performance at the Gahcho Kué mine, together with tighter cost control.

Liquidity & funding outlook:

A $31 million operating cash surplus bolsters the company’s short‑term balance sheet, expanding its cash‑on‑hand to comfortably cover the $15 – 20 million of near‑term capital‑expenditure (CapEx) earmarked for mine‑development, processing‑plant upgrades, and the upcoming expansion of the kimberlite inventory. With operating cash generation now covering roughly 150 % of the projected Q3‑Q4 CapEx pipeline, Mountain Province is in a far stronger position to self‑fund its growth initiatives without resorting to dilutive equity raises or high‑cost debt. This depth of liquidity also provides a cushion against potential commodity‑price volatility and any temporary production hiccups that could arise from seasonal weather or equipment maintenance.

Trading implications:

The robust cash‑flow narrative underpins a healthier liquidity profile, which is a key upside catalyst for the stock. Assuming the broader market risk‑off environment eases, the combination of solid cash generation and a clear development runway should support the price at or above the current support zone (~ C$0.55). Traders may look for a break‑and‑hold on any pull‑back toward the $0.50 – $0.52 range, with a bias toward the long side, especially if the next earnings update confirms continued cash‑flow strength and progress on the expansion projects. Conversely, a failure to sustain operating cash flow could trigger a downside breach of the $0.48 support, prompting a more defensive stance.