Mountain Province weighs TSX delisting, restructuring as debt pressure mounts
Mountain Province’s delisting plan could tighten control over Gahcho Kué rough supply just as the natural-diamond market remains weak.
Mountain Province’s move to step off the Toronto Stock Exchange carries implications far beyond one balance sheet. If the company pushes ahead with restructuring or a sale, the future of Gahcho Kué, one of Canada’s key diamond mines, could shape rough supply, price sentiment, and confidence in the natural-diamond pipeline at a time when the market is still searching for stability.
The company said it will ask shareholders at a virtual annual and special meeting on June 30 to approve a voluntary TSX delisting, a US$1 million facility fee and continuance in British Columbia. Mountain Province said the delisting and any move under the Business Corporations Act of British Columbia are meant to facilitate a potential restructuring transaction involving creditors and securityholders. It also warned that a share consolidation could effectively take the company private, with some shareholders left with little or no compensation.
The pressure behind that plan is stark. Mountain Province reported a fiscal 2025 net loss of C$279.5 million, compared with a C$80.8 million loss in 2024. Revenue fell to C$155.7 million from C$267.7 million, while adjusted EBITDA dropped to C$4.8 million, down 95% year over year. The company also booked a C$103 million impairment charge on property, plant and equipment. Production weakened as well: Mountain Province recovered 4,333,792 carats in 2025 on a 100% basis, down 7% from 2024, while ore tonnes mined fell 67%.
Debt has tightened the vise. On May 1, Mountain Province extended the maturity of its term loan and the principal repayment date under its working capital facility to June 30, then sold US$999,999 of receivables from diamond sales for US$833,000. The company’s debt stood at about US$290.6 million, and it had also received a US$10 million bridge loan from major shareholder Dermot Desmond.
Gahcho Kué is Mountain Province’s only operating mine, a 49-51 joint venture with De Beers Canada about 300 km northeast of Yellowknife in the Northwest Territories, on the traditional territories of Tłįchǫ, Dene and Métis people. De Beers opened the mine in September 2016 and said it was expected to produce about 54 million carats over its life from about 35 million tonnes of ore. The mine has also been an economic anchor in the North: De Beers said in 2024 that Gahcho Kué had surpassed C$2 billion in spending with Northwest Territories and Indigenous businesses.
The market backdrop has only sharpened the tension. CEO Jonathan Comerford said 2025 was expected to be challenging from a production perspective, and the company paused the Tuzo Phase 3 expansion amid the weak diamond market. For the diamond trade, the question is whether Mountain Province is an isolated casualty of leverage and soft prices, or another sign that the Arctic diamond sector is under deeper strain.
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