Q4 2025 Mountain Province Diamonds Inc Earnings Call
Speaker #1: Aligns with an elicit-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you need assistance, please press star 0 for the operator.
Speaker #1: This call is being recorded on Wednesday, April 1st, 2026. I would now like to turn the conference over to Jonathan Comerford. Please go ahead.
Operator: Good morning, ladies and gentlemen, and welcome to the Mountain Province Diamonds Inc. Q4 2025 webcast and conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Wednesday, 1 April 2026. I would now like to turn the conference over to Jonathan Comerford. Please go ahead.
Speaker #2: Good day to everyone who has dialed in to listen to our Q4 and year-end 2025 results call. My name is Jonathan Comerford, and I am president and CEO of the company.
Speaker #2: Also present on this call is Steve Thomas, our CFO, and Reid Mackie, our head of diamond sales and marketing. At the conclusion of this presentation, we will be available for any questions you may have.
Speaker #2: Firstly, I would like to draw your attention to our cautionary statement regarding forward-looking information. This presentation will be posted on our website for anyone who needs additional time to review this statement.
Jonathan Comerford: Good day to everyone who has dialed in to listen to our Q4 and year-end 2025 results call. My name is Jonathan Comerford, and I am President and CEO of the company. Also present on this call is Steve Thomas, our CFO, and Reid Mackie, our Head of Diamond Sales and marketing. At the conclusion of this presentation, we will be available for any questions you may have. Firstly, I would like to draw your attention to our cautionary statement regarding forward-looking information. This presentation will be posted on our website for anyone who needs additional time to review this statement. Mountain Province Diamonds produces Canadian diamonds to the highest standards of corporate social responsibility, and this is something we continue to be proud of.
Speaker #2: Mountain Province Diamonds produces Canadian diamonds to the highest standards of corporate social responsibility, and this is something we continue to be proud of. We own 49% of the Gaucho Quay mine in the northwest territories with De Beers Group, a division of Anglo-America PLC owning the remaining 51%.
Speaker #2: Today, I will speak to our Q4 and year-end 2025 results and provide some insight into our first quarter of 2026. Following that, Steve, our CFO, will discuss the Q4 and year-end 2025 financial performance of the company.
Speaker #2: Reid will comment on the overall diamond market. I will then make some closing remarks to complete the presentation and answer any questions you may have.
Jonathan Comerford: We own 49% of the Gahcho Kué mine in the Northwest Territories with De Beers Group, a division of Anglo American plc, owning the remaining 51%. Today, I will speak to our Q4 and year-end 2025 results and provide some insight into our Q1 2026. Following that, Steve, our CFO, will discuss the Q4 and year-end 2025 financial performance of the company. Reid will comment on the overall diamond market. I will then make some closing remarks to complete the presentation and answer any questions you may have. Safety. Starting with safety, Gahcho Kué continues its strong performance in 2025, with total recoverable injury frequency rates of 2.2, which is the best ever achieved at the mine and below the 2.3 in 2024, which is a record at the time.
Speaker #2: Safety. Starting with safety, Gaucho Quay continues its strong performance in 2025 with total recoverable injury frequency rates of 2.2, which is the best-ever achieved at the mine and below the 2.3 in 2024, which is a record at the time.
Speaker #2: Safety remains a top priority, and we will continue to focus on that across all operations. Q4 and year-end 2025 highlights. 2025 was also always going to be a challenging year.
Speaker #2: In the first three quarters, we mainly processed low-grade ore from the Tuzo stockpiles while preparing the high-grade NEX ore body. This went largely as expected.
Speaker #2: In January to September 2025, we produced about 2.5 million carats at an average grade of less than one carat per ton. In the last quarter, production picked up sharply.
Jonathan Comerford: Safety remains a top priority, and we will continue to focus on it across all operations. Q4 and year-end 2025 highlights. 2025 was always gonna be a challenging year. In Q1, Q2, and Q3, we mainly processed low-grade ore from the Tuzo stockpiles while preparing the high-grade NEX ore body. This went largely as expected. From January to September 2025, we produced about 2.5 million carats at an average grade of less than 1 carat per tonne. In Q4, production picked up sharply. Nearly 1.9 million carats at a grade of 2.25 carats per tonne. Daily production increased from 9,000 carats at the start of the year to 25,000 carats a day in November and December. The strong performance has continued into 2026.
Speaker #2: Nearly 1.9 million carats at a grade of 2.25 carats per ton. Daily production increased from 9,000 carats at the start of the year to 25,000 carats a day in November and December.
Speaker #2: This strong performance has continued into 2026. While grades and carats recovered were higher than expected, we saw a lower size distribution frequency distribution. In other words, the smaller stones, which are currently under pressure in the markets, made up a greater proportion of the overall carat production.
Speaker #2: In terms of mining, the operator moved 38.7 million tons of material in 2025. That's ahead of both the budget and guidance and more than 17% above 2024's figures.
Jonathan Comerford: While grades and carats recovered were higher than expected, we saw a lower size distribution, frequency distribution. In other words, the smaller stones, which are currently under pressure in the markets, made up a greater proportion of the overall carat production. In terms of mining, the operator moved 38.7 million tons of material in 2025. That's ahead of both the budget and guidance and more than 17% above 2024's figures. Access to the high-grade 5034 NEX ore body was achieved as planned. In summary for the operations, overall safety, processing, and mining were performing well. I would like to thank all of the staff of the GK for what they've achieved in what is extremely challenging circumstances.
Speaker #2: Access to the high-grade 5034 NEX ore body was achieved as planned. In summary for the operations, overall safety, processing, and mining were performing well.
Speaker #2: I would like to thank all of the staff at the GK for what they've achieved and what is extremely challenging circumstances. Reid was a bit challenging early in 2025 but improved in Q4 and as we focused on the NEX ore body and has continued into 2025 or 2026.
Speaker #2: Diamond market. The diamond market remains very tough, particularly for small stones. Positive signs have repeatedly been offset by external factors. US tariffs have added uncertainty, and recent conflict in the Middle East has affected consumer confidence, impacting key markets such as Israel and Dubai.
Jonathan Comerford: Grade was a bit challenging early in 2025 but improved in Q4, as we focused on the NEX ore body and has continued into 2025, or 2026. The diamond market remains very tough, particularly for small stones. Positive signs have repeatedly been offset by external factors. US tariffs have added uncertainty, and recent conflict in the Middle East has affected consumer confidence, impacting key markets such as Israel, and Dubai. Overall, the market remains highly uncertain. Liquidity. During 2025, our largest shareholder, Mr. Dermot Desmond, provided vital support during a period of low grades and challenging diamond prices. We are very grateful for this support.
Speaker #2: Overall, the market remains highly uncertain. Liquidity. During 2025, our largest shareholder, Mr. Dermot Desmond, provided vital support during a period of low grades and challenging diamond prices.
Speaker #2: We are very grateful for this support. After year-end, the company was unable to meet its share of mining costs, which were particularly high in the first half of the year due to the winter road.
Speaker #2: This led our partner, De Beers, to make in-kind elections. As announced earlier this year, we are actively working with our partners to resolve these outstanding payments, and I hope to provide further updates in the coming weeks.
U.S. tariffs have added uncertainty, and recent conflict in the Middle East has affected consumer confidence, impacting key markets such as Israel and Dubai overall. The market remains highly uncertain.
Speaker #2: Given the challenging market, the joint venture partners also decided to postpone the Tuzo Phase 3 earlier this year, allowing us to manage liquidity and preserve optionality.
Jonathan Comerford: After year-end, the company was unable to meet its share of mining costs, which were particularly high in H1 due to the winter road. This led our partner, De Beers, to make in-kind elections as announced earlier this year. We are actively working with our partners to resolve these outstanding payments, and I hope to provide further updates in the coming weeks. Given the challenging market, the joint venture partners also decided to postpone the Tuzo Phase 3 earlier this year, allowing us to manage liquidity and preserve optionality. Before I close, I would like to take a moment to thank Jeff Swinoga for his outstanding contribution as a director and as chair of the audit committee.
Liquidity during 2025—our largest shareholder, Mr. Dermot Desmond, provided vital support during a period of low grades and challenging diamond prices. We are very grateful for this support.
Speaker #2: Before I close, I would like to take a moment to thank Jeff Sinewog. For his outstanding contribution as a director and as chair of the audit committee.
The road.
This letter partnered to beer is to make inkind elections as announced earlier this year.
Speaker #2: While we are sorry to see him move on to bigger and better things, we are very grateful for his commitment in staying on to see the audit through to completion.
We are actively working with our partners to resolve these outstanding payments and I hope to provide further updates in the coming weeks.
Speaker #2: On behalf of the board and the entire team, I would like to sincerely thank him for his service, and wish him every success in the future.
Given the challenging market, the joint venture partners also decided to postpone Phase 2 of Phase 3 earlier this year, allowing us to manage liquidity and preserve optionality.
Speaker #2: With that, I will now turn over the call to Steve, who will take us through the financial results. Steve.
Before I close, I would like to take a moment to thank Jeff.
Speaker #3: Thank you, Jonathan, and good morning, everyone. Noting that all numbers discussed will be in Canadian dollars unless otherwise stated. As Jonathan has said, the company experienced tough market conditions throughout the year, with prices falling notably in the second half of the year, which has impacted several aspects of the financial results beyond revenue.
Jonathan Comerford: While we are sorry to see him move on to bigger and better things, we are very grateful for his commitment in staying on to see the audit through to completion. On behalf of the board and the entire team, I would like to sincerely thank him for his service and wish him every success in the future. With that, I will now turn over the call to Steve, who will take us through the financial results. Steve?
For his outstanding contribution as a director and as chair of the audit committee, we are sorry to see him move on to bigger and better things. We are very grateful for his commitment in staying on to see the audit through to completion for the board and the entire team. I would like to sincerely thank him for his service and wish him every success in the future.
Speaker #3: In Q4, we processed mined NEX ore with average grade more than double that of the first nine months. This explains the higher carats sold in Q4, approximately 50% higher than in each of the first three quarters.
With that, I will now turn over the call to Steve, who will take us through the financial results.
Steven Thomas: Thank you, Jonathan, and good morning, everyone. Noting that all numbers discussed will be in Canadian dollars unless otherwise stated. As Jonathan has said, the company experienced tough market conditions throughout the year, with prices falling notably in H2, which has impacted several aspects of the financial results beyond revenue. In Q4, we processed mined NEX ore with average grade more than double that of the first nine months. This explains the higher carats sold in Q4, approximately 50% higher than in each of the first three quarters. However, the average selling price in Q4 at $52 per carat was unchanged from Q3, reflecting continued market uncertainty, largely due to the 50% tariff on Indian rough diamond imports into the US in place at that time.
Steve.
Thank you, Jonathan. And good morning, everyone.
Noting that all numbers discussed will be in Canadian dollars unless otherwise stated.
Speaker #3: However, the average shelling price in Q4 at US$52 per carat was unchanged from Q3, reflecting continued market uncertainty largely due to the 50% tariff on Indian rough diamond imports into the US, in place at that time.
As Jonathan has said, the company experienced tough market conditions throughout the year, with prices falling notably in the second half of the year, which impacted several aspects of the financial results beyond revenue.
Speaker #3: The average selling price for 2025 was US$59 per carat, lower than any quarter since the mine opened, except for the prices in H2 2025 and in Q2 and Q3 of 2020, when the retail markets were closed due to COVID-19.
In Q4, we processed mine and any ore with average grade more than double that of the first nine months. This explains the higher carat sold in Q4, approximately 50% higher than in each of the first three quarters.
Speaker #3: This pricing environment has placed the company under significant financial pressure. The financial statements going concern note outlines measures taken to address liquidity, including debt raised to fund operations.
Steven Thomas: The average selling price for 2025 was $59 per carat, lower than any quarter since the mine opened, except for the prices in H2 2025 and in Q2 and Q3 of 2020, when the retail markets were closed due to COVID-19. This pricing environment has placed the company under significant financial pressure. The financial statements going concern note outlines measures taken to address liquidity, including debt raised to fund operations. It also details outstanding amounts owed to De Beers as operator for unfunded cash calls and how these balances have evolved since year-end. As in the first three quarters of 2025, Q4 pricing resulted in significant write-downs of diamond inventory and ore stockpiles, increasing production and depreciation costs. Although ore stockpile tons remain broadly unchanged since the mid-year, they declined by 1.8 million tons in H1 of 2025.
However, the average selling price in Q4 at US dollars 52 per carat was unchanged from Q3, reflecting continued market uncertainty largely due to the 50% tariff on Indian rough diamond imports into the US in place at that time.
Speaker #3: It also details outstanding amounts owed to De Beers as operator for unfunded cash calls and how these balances have evolved since year-end. As in the first three quarters of 2025, Q4 pricing resulted in significant write-downs of diamond inventory and ore stockpiles.
The average selling price for 2025 was us 59 per carat lower than any quarter since the mine opened except for the prices in H2 2025 and in Q2 and Q3 of 2020. When the retail markets were closed due to co 19.
This pricing environment has placed the company under significant financial pressure.
Speaker #3: Increasing production and depreciation costs. Although ore stockpile tons remain broadly unchanged since the mid-year, they declined by 1.8 million tons in the first half of 2025.
Speaker #3: This led to the release of previously capitalized costs into production costs, cash production costs, unlike in 2024 when the stockpiles increased by 1.8 million tons, and costs capitalized.
The financial statements going concern, note outlines measures taken to address liquidity. Including debt raised to fund operations. It also details outstanding amounts owed to deers as operator, for unfunded cash calls and how these balances have evolved since year end.
As in the first three quarters of 2025, Q4 pricing resulted in significant write-downs of diamond inventory and all stockpiles, increasing production and depreciation costs.
Speaker #3: The resulting loss from mine operations in Q4 2025 was 50.2 million, contributing to a full-year loss of $154 million. Which compares to a $13 million loss in Q4 2024 and a full-year profit of $18.4 million in the year 2024.
Although all.
Steven Thomas: This led to the release of previously capitalized costs into production costs, cash production costs, unlike in 2024, when the stockpiles increased by 1.8 million tons and costs were capitalized. The resulting loss from mine operations in Q4 2025 was $50.2 million, contributing to a full-year loss of $154 million, which compares to a $13 million loss in Q4 2024 and a full-year profit of $18.4 million in the year 2024. In addition, Q4 2025 included a material impairment charge of $103 million, which equals a net $90 million after an offsetting deferred tax recovery. This complex calculation required additional audit work by KPMG, which delayed this week's earnings call to today.
Times remain broadly unchanged since the mid-year; they declined by 1.8 million tons. In the first half of 2025,
This led to the release of previously capitalized costs into production costs, cash production costs.
Speaker #3: In addition, Q4 2025, including a material impairment charge of $103 million, which equals a net $90 million after an offsetting deferred tax recovery. This additional audit work by KPMG, which delayed this week's earnings call to today.
Unlike in 2024, when the stockpiles increased by 1.8 million tons and costs were capitalized.
The resulting loss from mine operations in Q4 2025 was 50.2 Million contributing to a full year loss of 154 million.
Speaker #3: A weaker US dollar in Q4 and for the full year resulted in an unrealized foreign exchange gain, compared to a significant loss in 2024 when the US dollar strengthened.
which compares to a $13 million loss in Q4 2024, and a full-year profit of $18.4 million in the year 2024,
Speaker #3: Adjusted EBITDA, which accounts for that impact, saw 2025's result materially below 2024, although positive in Q4 2025 versus being negative in Q4 2024. Cash flow from operating activities was an inflow of $9.1 million in Q4 2025 and an outflow of $22.1 million for the full year.
In addition, Q4 2025 included a material impairment charge of $103 million, which equals a net $90 million after an offsetting deferred tax recovery.
Steven Thomas: A weaker US dollar in Q4 and for the full year resulted in an unrealized foreign exchange gain compared to a significant loss in 2024 when the US dollar strengthened. Adjusted EBITDA, which accounts for that impact, saw 2025's result materially below 2024, although positive in Q4 2025 versus being negative in Q4 2024. Cash flow from operating activities was an inflow of $9.1 million in Q4 2025 and an outflow of $22.1 million for the full year, which compares to a $79.8 million inflow in 2024. The combination of low prices and the lowest annual sales volume since the mine opened reflects ongoing market instability and reliance on the lower grade stockpile while we strip the NEX ore body.
This complex calculation required additional audit work by KPMG, which delayed this week's earnings call to today. A weaker US dollar in Q4 and for the full year resulted in an unrealized foreign exchange gain compared to a significant loss in 2024, when the US dollar strengthened.
Speaker #3: Which compares to a $79.8 million inflow in 2024. The combination of low prices and the lowest annual sales volume since the mine opened reflects ongoing market instability and reliance on the lower-grade stockpile wall whilst we stripped the NEX ore body.
adjusted ebit da which account, which accounts for that impact saw 2025 as a result, materially below 2024, although, positive in Q4 2025, versus being negative in Q4 2024,
Speaker #3: Key factors for recovery include resolution of the tariff regime, improved geopolitical stability in the Middle East, both of which are critical to restoring diamond prices and enabling the company to meet its future financial obligations.
$1 million in Q4 2025 and an outflow of $22.1 million for the full year, which compares to a $79.8 million inflow in 2024.
Speaker #3: Turning briefly to the balance sheet, most notably, the year-end balance sheet reflects the reduction in property plant and equipment by $103 million, being the which effectively accelerates future depreciation charges.
Steven Thomas: Key factors for recovery include resolution of the tariff regime, improved geopolitical stability in the Middle East, both of which are critical to restoring diamond prices and enabling the company to meet its future financial obligations. Turning briefly to the balance sheet. Most notably, the year-end balance sheet reflects the reduction in property, plant, and equipment by $103 million, being the non-cash impairment charge, which effectively accelerates future depreciation charges. The injection of $40 million under the bridge credit facility and the equivalent of CAD 33 million through a working capital facility have been reported in the first nine months of the year. During the year also, in agreement with De Beers, they have drawn funds from the decommissioning restricted cash account in our balance sheet to meet cash call requirements when due.
The combination of low prices and the lowest annual sales volume since the mine open reflects ongoing Market, instability and Reliance on the lower grade stockpile wall whilst we stripped the necks or body.
Speaker #3: The injection of US dollars $40 million under the Bridge Credit Facility and the equivalent of Canadian $33 million through a working capital facility have been reported in the first nine months of the year.
Key factors for recovery include resolution of the tariff regime, improved geopolitical stability in the Middle East, and both of which are critical to restoring diamond prices and enabling the company to meet its future financial obligations.
Turning briefly to the balance sheet.
Speaker #3: During the year also, in agreement with De Beers, they have drawn funds from the decommissioning restricted cash account in our balance sheet to meet cash call requirements when due.
Most notably, the year-end balance sheet reflects the reduction in property, plant, and equipment by $103 million.
Being the non-cash impairment charge, which effectively accelerates future depreciation charges.
Speaker #3: Whereas the restricted cash balance was $14.4 million at the end of Q3, by the year-end 2025, it had been replenished fully to $34.9 million but to note that since the year-end has been further utilized in a similar fashion to meet cash calls.
The injection of US dollars $40 million under the bridge credit facility and the equivalent of CA$33 million through a working capital facility have been reported in the first 9 months of the year.
Speaker #3: For the combined value of the derivative assets at $343,000, this compares to an overall liability of $1.8 million at the 2024 year-end. The asset comprises $178,000 being the fair value of the early repayment feature within the second-lean notes, which has increased by $780,000 over the quarter, but reduced by 5.9 million since 2024 year-end.
During the year, also in agreement with De Beers, they have drawn funds from the decommissioning restricted cash account in our balance sheet to meet cash call requirements when due.
Steven Thomas: Whereas the restricted cash balance was $14.4 million at the end of Q3, by the year-end 2025, it had been replenished fully to $34.9 million. To note that since the year-end has been further utilized in a similar fashion to meet cash calls. For the combined value of the derivative assets at $343 thousand, this compares to an overall liability of $1.8 million at the 2024 year-end. The asset comprises $178 thousand, being the fair value of the early repayment feature within the Second Lien Notes, which has increased by $780 thousand over the quarter, but reduced by $5.9 million since 2024 year-end.
Whereas the restricted cash balance was $14.4 million at the end of Q3, by the year-end 2025 it had been replenished fully to $34.9 million. But to note that since the year-end, it has been further utilized in a similar fashion to meet cash force.
Speaker #3: The reduction in closing value compared to 2024 is due to a significant rise in the discount rate used to derive its fair value. From 9% to now 15%.
The combined value of the derivative assets is $343,000. This compares to an overall liability of $1.8 million at the 2024 year-end.
Speaker #3: The other derivative asset of $165,000 represents the fair value of one US dollar $15 million currency hedge in place, which is since the year-end been settled.
the asset comprises 178,000, being the fair value of the early repayment feature within the secondly notes, which is increased by 780,000 over the quarter but reduced by 5.9 million since 2024 year year end,
Steven Thomas: The reduction in closing value compared to 2024 is due to a significant rise in the discount rate used to derive its fair value from 9% to now 15%. The other derivative asset of CAD 165 thousand represents the fair value of a USD 15 million currency hedge in place, which has since the year-end been settled. At the 2024 year-end, that was a liability of $7.9 million, given that there were USD 105 million of hedges outstanding that were out of the money. Considering the inventories, CAD 151 million, they have decreased by CAD 3.2 million over the quarter, as there has been a CAD 10 million reduction in supplies inventory, and the ore stockpile has reduced by CAD 1.9 million.
Speaker #3: At the 2024 year-end, that was a liability of $7.9 million given that there were US dollar $105 million of hedges outstanding that were out of the money.
The reduction in closing value compared to 2024 is due to a significant rise in the discount rate, used to derive its fair value, from 9% to now 15%.
Speaker #3: Considering the inventories at $151 million, they have decreased by 3.2 million over the quarter, as there has been a $10 million reduction in supplies inventory, and the ore stockpile has reduced by 1.9 million dollars.
The other derivative asset of $165,000 represents the fair value of a US$15 million currency hedge in place, which has since the year-end been settled.
Speaker #3: And these reductions have been offset by an 8.8 million increase in the value of rough diamond inventory as the volume of carats on hand has increased by 280,000, albeit with each of those carats being $7 less in value in its carrying value.
At the 2024 year end, that was a liability of 7.9 million given that there were US dollar 105 million of edges outstanding that were out of the money.
Considering the inventory 150 million, they have decreased by 3.2 million over the quarter. As there has been a 10 million dollar reduction in supplies inventory.
Speaker #3: Closing inventory value for 2025 is $45.3 million lower than for 2024, primarily due to the 56.7 million reduction in the comparative value of the ore stockpile for which the tons held at 100% at 2.3 million tons have reduced by 1.8 million tons compared to the start of the year.
Steven Thomas: These reductions have been offset by a CAD 8.8 million increase in the value of rough diamond inventory as the volume of carats on hand has increased by 280,000, albeit with each of those carats being CAD 7 less in value in its carrying value. Closing inventory value for 2025 is CAD 45.3 million lower than for 2024, primarily due to the CAD 56.7 million reduction in the comparative value of the ore stockpile, for which the tons held at 100% at 2.3 million tons have reduced by 1.8 million tons compared to the start of the year. That decrease is offset by supplies inventory being CAD 8 million higher than in 2024, in large part due to consignment stock, which we now hold, and early delivery of other stock items.
And your stockpile has reduced by 1.9 million, and these reductions have been offset by an $8.8 million increase in the value of rough diamond inventory, as the volume of carats on hand has increased by 280,000.
Albeit with each of those carats being $7, less in value, in its carrying value.
Speaker #3: That decrease is offset by supplies inventory being $8 million higher than in 2024, in large part due to consignment stock, which we now hold, and early delivery of other stock items.
Closing inventory value for 2025 is $45.3 million lower than for 2024, primarily due to the 56.7%,
Held.
Speaker #3: There is also an increase in the value of rough diamond inventory by 3.4 million dollars, reflecting the far higher volume of carats held, which increased by 324,000, albeit with a lower carrying value of $41 per carat compared to their opening carrying value of $72.
At 100% at 2.3 million tons, we have reduced by 1.8 million tons compared to the start of the year.
Speaker #3: This reduction reflects the impact of write-downs taken during the year to adjust the carrying value of cost to its lower net realizable value per carat.
That decrease is offset by inventory being $8 million higher than in 2024, in large part due to Konight consignment stock, which we now hold, and early delivery of other stock items.
Steven Thomas: There is also an increase in the value of rough diamond inventory by $3.4 million, reflecting the far higher volume of carats held, which increased by 324,000, albeit with a lower carrying value of $41 per carat, compared to their opening carrying value of $72. This reduction reflects the impact of write-downs taken during the year to adjust the carrying value of cost to its lower net realizable value per carat. In respect of property, plant and equipment, or PPE, the year-end 2025 balance of $518.5 million is down $111.6 million over the quarter and $69 million over the 2024 year-end balance.
Speaker #3: In respect of property plants and equipment, or PPE, the year-end 2025 balance at $518.5 million is down 111.6 over the quarter, and $69 million over 2024 year-end balance.
In the value of rough. Diamond inventory by 3.4 million reflecting the far higher volume of carrots held which increased by 324,000, albeit with a lower carrying value of 41 per carat compared to their opening, carrying value of 72.
Speaker #3: The increase reflects an increase in the decommissioning and restoration asset reported in PPE by $19 million as our share of the undiscounted decommissioning cash flows was re-estimated upwards by $32 million in Q4, with the balance of that sum reporting mainly to inventory.
This reduction reflects the impact of the write-down that was taken during the year to adjust the carrying value of cost to its lower net realizable value per carat.
In respect of property, plant and equipment, or PPE, the year-end 2025 balance at $518.5 million is down $111.6 million over the quarter, and $69 million over the 2024 year-end balance.
Speaker #3: Also, an additional $18 million was invested in sustaining capital during the year. Plus, an additional $45 million of capitalized waste activity in respect of any ex-waste material less about $45 million of depreciation, which is not associated with any ex-capitalized waste.
Steven Thomas: The increase reflects an increase in the decommissioning and restoration asset reported in PPE by CAD 90 million as our share of the undiscounted decommissioning cash flows was re-estimated upwards by CAD 32 million in Q4, with the balance of that sum reporting mainly to inventory. Also, an additional CAD 18 million was invested in sustaining capital during the year, plus an additional CAD 45 million of capitalized waste activity in respect of NEX waste material, less about CAD 45 million of depreciation, which is not associated with NEX capitalized waste. All of these additions were offset by the aforementioned CAD 103 million impairment charge and a slight reduction of CAD 3 million in assets under construction as that work was completed.
Speaker #3: All of these additions were offset by the aforementioned $103 million impairment charge. And a slight reduction of $3 million in assets under construction, as that work was completed.
The increase reflects an increase in the decommissioning and restoration asset reported in PPE by $90 million, as our share of the undiscounted decommissioning cash flows was re-estimated upwards by $32 million in Q4, with the balance of that sum reporting mainly to inventory.
Also, an additional 18 million was invested in sustaining Capital during the year.
Speaker #3: For current liabilities, the $62 million increase in the accounts payable balance of $126 million at 2025 year-end compared to only $65 million at 2024 year-end reflects two major increases in respect of accounting for $24 million of accrued interest on the senior secured notes, which the lenders agreed to forego until payment in June 2026.
Plus an additional 45 million of capitalized. Waste activity in respect of any ex waste material less about 45 million dollars of depreciation, which is not associated with any ex capitalized waste.
All of these additions were offset by the aforementioned $103 million impairment charge.
And a slight reduction of $3 million in assets under construction, as that work was completed.
Steven Thomas: For current liabilities, the CAD 62 million increase in the accounts payable balance of CAD 126 million at 2025 year-end, compared to only CAD 65 million at 2024 year-end, reflects two major increases in respect of accounting for CAD 24 million of accrued interest on the senior secured notes, which the lenders agreed to forgo until payment in June 2026. This balance has grown as expected during 2025 and did not exist at 2024 year-end as it was previously being paid every six months. Secondly, unpaid cash calls due to the operator at year-end of CAD 30.6 million, which De Beers financed on occasions during the year by withdrawing funds from the company's portion of the decommissioning funding balance, or by utilizing the overdraft facility which is available to the operator.
For current liabilities.
Speaker #3: This balance has grown as expected during 2025 and did not exist at 2024 year-end as it was previously being paid every six months. Secondly, unpaid cash calls due to the operator at the year-end of $30.6 million which De Beers financed on occasions during the year by withdrawing funds from the company's portion of the decommissioning funding balance or by utilizing the overdraft facility which is available to the operator.
The $62 million increase in the accounts payable balance, to $126 million at 2025 year-end compared to only $65 million at 2024 year-end, reflects two major increases in respect of accounting for $24 million of accrued interest on the senior secured notes, which the lenders agreed to forego until payment in June 2026.
Speaker #3: As addressed in the financial statements subsequent events note, since the year-end, De Beers has issued in-kind election notices or IKEs in respect of unpaid cash calls, which must be paid within 60 days in order to avoid an event of default under the GK Joint Venture Agreement.
This balance has grown as expected during 2025 and did not exist at 2024 year-end, as it was previously being paid every six months.
Speaker #3: Where the first of these IKEs has become due, De Beers agreed to issue new IKEs in respect of any unpaid balance on the original IKE.
Secondly, unpaid cash calls due to the operator at the year, end of 30.6 million which debeers financed on occasions, during the year by withdrawing funds from the company's portion of the decommissioning funding balance or by utilizing the overdraft facility, which is available to the operator.
Steven Thomas: As addressed in the financial statements subsequent events note, since the year end, De Beers has issued in-kind election notices, or IKEs, irrespective of unpaid cash calls, which must be paid within 60 days in order to avoid an event of default under the GK joint venture agreement. Where the first of these IKEs has become due, De Beers agreed to issue new IKEs in respect of any unpaid balance on the original IKE. That is taking place whilst the companies are in discussion on how to resolve this issue and manage broader joint venture matters going forward. The current liabilities also reflect the following, the Dunebridge $40 million bridge credit facility, which was fully drawn in July, and the balance reflects the principal unamortized deferred transaction costs and the accrued interest, all translated at the period closing FX rate.
Speaker #3: And that is taking place whilst the companies are in discussion on how to resolve this issue and manage broader joint venture matters going forward.
Speaker #3: The current liabilities also reflect the following: the Doombridge US dollar $40 million bridge credit facility, which was fully drawn in July, and the balance reflects the principal unamortized deferred transaction costs and the accrued interest all translated at the period closing FX rate.
As addressed in the financial statements, subsequent events note, since the year-end Deb has issued in-kind election notices, or bites, irrespective of unpaid cash calls, which must be paid within 60 days in order to avoid an event of default under the GK joint venture agreement.
Speaker #3: Secondly, the Doombridge working capital facility of US dollars $23.6 million which was fully drawn during Q2 2025 and is accounted for similar to the bridge credit facility.
Where the first of these items has become due, the buyers agreed to issue new items in respect of any unpaid balance on the original, right? And that is taking place while the companies are in discussion on how to resolve this issue and manage broader joint venture matters going forward.
The current liabilities also reflect the following.
The Dunbridge US dollar $40 million bridge credit facility, which was fully drawn in July.
Speaker #3: Thirdly, the fair value of the current component of the decommissioning and restoration liability, which has seen little movement over three and 12-month period ending December 2025, with the risk-free interest rate used in the calculation being comparable at both year-ends.
Steven Thomas: Secondly, the Dunebridge working capital facility of $23.6 million, which was fully drawn during Q2 2025 and is accounted for similar to the bridge credit facility. Thirdly, the fair value of the current component of the decommissioning and restoration liability, which has seen little movement over the 3- and 12-month period ending December 2025, with the risk-free interest rate used in the calculation being comparable at both year ends. The resultant change in the value of net current assets and current liabilities during Q4 2025 and across the full year results in the working capital position decreasing by $50 million during the quarter to -$70 million and compares to a working capital balance of -$120 million at the 2024 year end. Turning to long-term liabilities.
and the balance reflects the principle unamortized deferred transaction costs, and the accrued interest all translated at the period, End closing FX rate
Speaker #3: The resultant change in the value of net current assets and current liabilities during Q4 2025 and across the full year results in the working capital position decreasing by $50 million during the quarter to minus $70 million, and compares to a working capital balance of negative $120 million at the 2024 year-end.
Secondly, the Dunbridge working capital facility of US dollars $23.6 million, which was fully drawn during Q2 2025, and is accounted for,
similar to the bridge credit facility.
12-month period ending December 2025 with a risk-free interest rate used in the calculation being comparable at both year ends
Speaker #3: Turning to long-term liabilities, of $479 million at 2025 year-end compared to $22 million at 2024 year-end, these comprise the translated value of the US denominated senior secured notes and junior credit facility which, with the weakening of the US dollar since the start of the year, tends to decrease the Canadian reported value.
The resultant change in the value of net current assets and current liabilities during Q4 2025 and across the full year results in the working capital position decreasing by $50 million during the quarter, to minus $70 million, and compares to a working capital balance of negative $120 million at the 2024 year end.
Steven Thomas: Of CAD 479 million at 2025 year-end compared to CAD 22 million at 2024 year-end, these comprise the translated value of the US-denominated senior secured notes and junior credit facility, which, with the weakening of the US dollar since the start of the year, tends to decrease the Canadian reported value, resulting in an unrealized foreign exchange gain of CAD 4.4 million in the quarter and CAD 15 million for the full year. The other material long-term liability is the discounted value of the decommissioning liability, which has increased from CAD 83.5 million to CAD 114.8 million, which reflects the increase in the estimate for the liability itself, offset by a slight increase in the discount rate used in its fair value calculation. Turning to earnings.
Turning to long-term liabilities.
Speaker #3: Resulting in an unrealized foreign exchange gain of $4.4 million in the quarter and $15 million for the full year. The other material long-term liability is the discounted value of the decommissioning liability which has increased from $83.5 million to $114.8 million which reflects the increase in the estimate for the liability itself offset by a slight increase in the discount rate used in its fair value calculation.
Speaker #3: Turning to earnings, revenue for both Q4 and the full year 2025 declined significantly versus 2024 with average prices down 18% year over year and volumes down 31%, reflecting the market conditions and production sourced from the stockpile ore for the first nine months of the year.
Of $479 million at 2025 year-end, compared to $22 million at 2024 year-end. These comprise the translated value of the US-denominated Senior Secured Notes and Junior Credit Facility, which, with the weakening of the US dollar since the start of the year, changed to decrease the Canadian reported value, resulting in an unrealized foreign exchange gain of $4.4 million in the quarter and $15 million for the full year.
Speaker #3: Cost of sales at $310 million in 2025 exceed $2409 million incurred in 2024. And when normalized for carrots sold between the two periods and accounting for the higher write-downs of inventory-to-net-realizable value, the underlying cost of increased about 20% which reflects higher operating costs year on year and increased depreciation charges associated with the higher levels of capitalized stripping undertaken.
The other material long-term liability is the discounted value of the decommissioning liability, which has increased from $83.5 million to $114.8 million. This reflects the increase in the estimate for the liability itself, offset by a slight increase in the discount rate used in its fair value calculation.
Steven Thomas: Revenue for both Q4 and the full year 2025 declined significantly versus 2024, with average prices down 18% year over year and volumes down 31%, reflecting the market conditions and production sourced from the stockpile ore for the first nine months of the year. Cost of sales at CAD 310 million in 2025 exceed CAD 249 million incurred in 2024. When normalized for carats sold between the two periods and accounting for the higher write-downs of inventory to net realizable value, the underlying costs have increased about 20%, which reflects higher operating costs year on year, and increased depreciation charges associated with the higher levels of capitalized stripping undertaken.
Turning to earnings, revenue for both Q4 and the full year 2025 declined significantly versus 2024, with average prices down 18% year-over-year and volumes down 31%, reflecting the market conditions and production sourced from the stockpile for the first 9 months of the year.
Speaker #3: In respect of cash production costs at $76 per carat and $93 per ton for the full year 2025, that compares to $60 per carat and $77 per ton for the year in 2024.
Speaker #3: And the costs rose year over year driven by the aforementioned stockpile depletion in 2025 versus its growth in 2024. The gap in these costs that I've set out widened when you include deferred stripping given that 26 million of higher capitalized stripping costs were incurred in 2025 compared to 2024.
Cost of sales at $310 million in 2025 exceeded $240 million to $249 million incurred in 2024. And when normalized for carats sold between the two periods, and accounting for the higher write-downs of inventory to net realizable value, the underlying costs increased about 20%, which reflects higher operating costs year on year and increased depreciation charges associated with the high.
High levels of capitalized stripping undertaken.
Steven Thomas: In respect of cash production costs at $76 per carat and $93 per tonne for the full year 2025, that compares to $60 per carat and $77 per tonne for the year-end 2024. The costs rose year over year, driven by the aforementioned stockpile depletion in 2025 versus its growth in 2024. The gap in these costs that I've set out widen when you include deferred stripping, given that $26 million of higher capitalized stripping costs were incurred in 2025 compared to 2024. Finance expenses in 2025 increased to $56 million for the year, compared to $43 million in 2024. With the interest charge increase of $10 million, reflecting the new bridge loan and working capital debt facilities and the growing accrual on the senior secured notes and junior credit facility.
In respect of cash production costs, at $76 per carat and $93 per ton for the full year 2025.
That compares to $60 per carat and $77 per ton for the year in 2024.
Speaker #3: Finance expenses in 2025 increased to $56 million for the year compared to $43 million in 2024, with the interest charge increase of $10 million reflecting the new bridge loan and working capital debt facilities and the growing accrual on the senior loan notes and junior credit facility.
And the costs rose year over year, driven by the aforementioned stockpile depletion in 2025 versus its growth in 2024.
The gap.
Speaker #3: Foreign exchange movements include both the unrealized gains on the debt translation and a realized loss of $4.4 million on hedge settlements made in the year which were below the prevailing market spot rate.
That gap I've set out will widen when you include deferred stripping, given that $26 million of higher capitalized stripping costs were incurred in 2025 compared to 2024.
Speaker #3: The deferred tax recovery totaling $30 million for 2025 compares to a charge of $1.6 million in 2024 with $13 million of that change driven by the impairment charge and the balance due to the operating losses incurred in 2025.
Finance expenses in 2025 increased to $56 million for the year, compared to $43 million in 2024, with the interest charge increase of $10 million reflecting the new bridge loan and working capital debt facilities, and the growing accrual on the senior loan notes and junior credit facility.
Steven Thomas: Foreign exchange movements included both the unrealized gains on the debt translation and a realized loss of CAD 4.4 million on hedge settlements made in the year, which were below the prevailing market spot rate. The deferred tax recovery totaling CAD 30 million for 2025 compares to a charge of CAD 1.6 million in 2024, with CAD 13 million of that change driven by the impairment charge and the balance due to the operating losses incurred in 2025. The company reported a loss from operations of CAD 50 million in Q4 and CAD 154 million for the full year, and that compares to a profit of CAD 18 million in the year ending 2024.
Speaker #3: The company reported a loss from operations of $50 million in Q4 and $154 million for the full year. And that compares to a profit of $18 million in the year ended 2024 with the reduction of $173 million reflecting reduced sales of $112 million and a $61 million increase in the cost of sales as discussed earlier.
Foreign exchange movements include both the unrealized gains on the debt translation and a realized loss of $4.4 million on hedge settlements made in the year, which were below the prevailing market spot rate.
Speaker #3: In line with operating loss, operating cash flow was an outflow of $59 million for 2025 compared to $15.5 million in 2024. Debt funding of $89 million largely explains the difference to the operating loss versus the closing cash flow movement and provides the reason for us having a closing cash balance of $2.3 million.
Steven Thomas: With the reduction of $173 million, reflecting reduced sales of $112 million, and a $61 million increase in the cost of sales, as discussed earlier. In line with operating loss, operating cash flow was an outflow of $59 million for 2025, compared to $15.5 million in 2024. Debt funding of $89 million largely explains the difference to the operating loss versus the closing cash flow movement, and provides the reason for us having a closing cash balance of $2.3 million. Adjusted EBITDA was $4.8 million for the year, equaling a 3% margin, and that compares to $91 million in 2024 with a 34% margin.
The company reported a loss from operations of $50 million in Q4 and $154 million for the full year, and that compares to a profit of $18 million in the prior year. Ended 2024 with the reduction of $173 million, reflecting reduced sales of $112 million and a $61 million increase in the cost of sales, as discussed earlier.
Speaker #3: Adjusted EBITDA was 4.8 million for the year equaling a 3% margin. And that compares to $91 million in 2024 with a 34% margin. As a result of the above, the net loss after tax was $151.6 million in Q4 and $279.5 million for the full year.
In line with the operating loss, operating cash flow was an outflow of $59 million for 2025.
Compared to 15.5, 24.
Debt funding of $89 million largely explains the difference.
To the operating loss versus the closing, um, cash flow movement and provides, the reason for us having a closing cash balance of 2.3 million.
Speaker #3: Which compares to an $80.8 million loss in 2024 with the difference largely due to the impairment charge the significantly lower sales volume and price and the write-off charges against all stockpile and rough diamond inventory flowing through the cost of sales and arising itself due to the low pricing environment.
Adjusted EBITDA was $4.8 million for the year, equaling a 3% margin, and that compares to $91 million in 2024 with a 34% margin.
Steven Thomas: As a result of the above, the net loss after tax was CAD 151.6 million in Q4, and CAD 279.5 million for the full year, which compares to a CAD 80.8 million loss in 2024, with the difference largely due to the impairment charge, the significantly lower sales volume, and price, and the write-off charges against all stockpile and rough diamond inventory flowing through the cost of sales and arising itself due to the low price environment. Loss per share was CAD 1.32 for the full year, compared to 38 cents in 2024. In conclusion, 2025 was a challenging year, marked by weak diamond prices and low sales volume while mining through the NEX waste material. The company has relied on significant financial support from its major shareholder, Mr.
Speaker #3: Loss per share was $1.32 for the full year compared to $38 cents in 2024. In conclusion, 2025 was a challenging year marked by weak diamond prices and low sales volume whilst mining through the NEX waste material.
Speaker #3: The company has relied on significant financial support from its major shareholder, Mr. Desmond, of which we are very grateful. But we still faced a 30.6 million shortfall in cash calls made to the operator at the year end.
As a result of the above the net loss after tax was 151.6, million in Q4 and 279.5 million for the full year, which compares to an 80.8 million loss in 2024 with the difference, largely due to the impairment charge, the significantly lower sales, volume and price, and the right off charges against all stock pile. Rough diamond infantry flowing through the cost of sales and arising itself due to the low price environment.
Loss per share was $1.32 for the full year, compared to $0.38 in 2024.
Speaker #3: And as mentioned, the going concern note addresses the company's liquidity challenges and extends into the developments in seen in Q1 of 2026. Despite these pressures, the mine achieved record operational performance and excessed the highest-grade ore in its history.
In conclusion, 2025 was a challenging year marked by weak diamond prices and low sales. Volume Walts mining through the NEX, waste material.
Steven Thomas: Mr. Dermot Desmond, for which we are very grateful, but we still faced a $30.6 million shortfall in cash calls made to the operator at the year-end. As mentioned, the going concern note addresses the company's liquidity challenges and extends into the developments seen in Q1 of 2026. Despite these pressures, the mine achieved record operational performance and accessed the highest grade ore in its history. Ongoing discussions with De Beers and the lenders aim to stabilize our financial position. However, a recovery in market conditions is critical to meet obligations and for us to realize the benefits of increased production coming from the NEX ore body. Thank you, and I will now hand over to Reid.
Speaker #3: Ongoing discussions with the beers and the lenders aim to stabilize our financial position. However, a recovery in market conditions is critical to meet obligations and for us to realize the benefits of increased production coming from the NEX ore body.
The company has relied on significant financial support from its major shareholder Mr. Deads Desmond of which, for which we are very grateful, but we still faced a 30.6 million dollar shortfall in cash calls made to the operator at the year end. And as mentioned, the going concern, note, addresses, the company's liquidity challenges and extends into the developments in
Seen in q1 of 2026.
Speaker #3: Thank you and I will now hand over to Reid.
Speaker #1: Thanks, Steve. Going into 2026 from 2025, overall market sentiment was cautious amid the ongoing uncertainty. Over US tariffs and the pending sale of the beers.
Despite these pressures the mine achieved record operational, performance and access the highest grade or in history.
Ongoing discussions with the buyers and the lenders aim to stabilize our financial position.
Speaker #1: The rough market was showing signs of improvement early in the year and the industry more optimistic for the year ahead. However, the outbreak of war in the Middle East and tariff uncertainty has shifted the market back into a more conservative wait-and-see mindset.
However a recovery in market conditions is critical to meet obligations and for us to realize the benefits of increased production coming from the necks or body.
Thank you, and I will now hand over to Reid.
Reid Mackie: Thanks, Steve. Going into 2026 from 2025, overall market sentiment was cautious amid the ongoing uncertainty over US tariffs and the pending sale of De Beers. The rough market was showing signs of improvement early in the year, and the industry more optimistic for the year ahead. However, the outbreak of war in the Middle East and tariff uncertainty has shifted the market back into a more conservative wait-and-see mindset. Presently, this market reticence is based more on logistical disruptions rather than structural market shifts. At the beginning of the year, we saw signs of a rough diamond market recovery supported by positive holiday retail results and producer supply and price management. In the US, holiday retail sales were positive, with sales exceeding $1 trillion for the first time. Year-on-year growth was estimated between 3.5% and 4.2%.
Speaker #1: Presently, this market reticence is based more on logistical disruptions rather than structural market shifts. At the beginning of the year, we saw signs of a rough diamond market recovery supported by positive holiday retail results and producer supply and price management.
Thanks Steve.
Going into 2026 from 2025, overall market sentiment was cautious, and so was the ongoing uncertainty over the US, tariffs, and the pending sale of De Beers.
Speaker #1: In the US, holiday retail sales were positive with sales exceeding $1 trillion for the first time year-on-year growth. And year-on-year growth was estimated between 3.5 to 4.2% and jewelry the jewelry component of this was up 1.6%.
The rough market was showing signs of improvement early in the year, and the industry was more optimistic for the year ahead. However, the outbreak of war in the Middle East can terrify; uncertainty has shifted the market back into a more conservative, wait-and-see mindset.
Presently, this market reticence is based more on logistical disruptions rather than structural market shifts.
Speaker #1: Looking ahead, in 2026, the national retail foundation recently forecasts that 2026 US retail will grow 4.4% over 2025. Globally, luxury brands have continued to perform well leveraging the rarity and exclusivity of naturals to drive diamond jewelry sales.
At the beginning of the year, we saw signs of a rough diamond market recovery, supported by positive holiday retail results.
And producer supply and price management.
In the U.S., quality retail sales were positive, with sales exceeding $1 trillion for the first time year-on-year growth.
Reid Mackie: Jewelry, the jewelry component of this was up 1.6%. Looking ahead in 2026, the National Retail Federation recently forecast that 2026 US retail will grow 4.4 over 2025. Globally, luxury brands have continued to perform well, leveraging the rarity and exclusivity of naturals to drive diamond jewelry sales. Solid demand and growth were noted in the Americas, Japan, and Hong Kong. Finally, we saw Chinese jewelry retailers reporting improved performance in Q4. The lab-grown diamond market continues to grow, albeit at a slowing rate, and primarily in the US at commercial retailers, where the incentive to hold on to the short-term, high percentage retail margins is still present, if not waning. This contrasts with the rest of the world, where naturals hold overwhelmingly strong consumer preference, most importantly in the growth markets of India and China.
Speaker #1: Solid demand and growth were noted in the Americas, as, Japan, and Hong Kong. And finally, we saw Chinese jewelry retailers reporting improved performance in Q4.
And year-on-year growth was estimated between 3.5% and 4.2% in jewelry.
The drilling component of this was up 1.6%.
Speaker #1: The lab-grown diamond market continues to grow, albeit at a slowing rate and primarily in the US at commercial retailers where the incentive to hold on to the short-term high percentage retail margins is still present, if not waning.
Looking ahead to 2026, the National Retail Foundation recently forecast that 2026 US retail will grow 4.4% over 2025.
Ity and exclusivity of naturals to drive diamond jewelry sales.
Speaker #1: This contrasts with the rest of the world where naturals hold overwhelmingly strong consumer preference. Most importantly, in the growth markets of India and China.
Solid demand and growth were noted in the Americas, Japan, and Hong Kong. And finally, we saw Chinese jewelry retailers reporting improved performance in Q4.
Speaker #1: The luxury brands which have shown the strongest performance in the jewelry sector continue to promote the exclusive use of natural diamonds in their collections.
Speaker #1: More recently, even at US retailers such as Blue Nile, there are signs of differentiation back towards natural diamonds as elevated luxury. The widening price gap between natural diamonds and lab-grown appeared to have hit an inflection point where this price differentiation is being now being recognized at the consumer level.
The lab-grown diamond market continues to grow, albeit at a slowing rate and primarily in the US at commercial retailers, where the incentive to hold on to the short-term high percentage retail margins is still present, if not waning.
Reid Mackie: The luxury brands, which have shown the strongest performance in the jewelry sector, continue to promote the exclusive use of natural diamonds in their collections. More recently, even at US retailers such as Blue Nile, there are signs of differentiation back towards natural diamonds as elevated luxury. The widening price gap between natural diamonds and lab grown appear to have hit an inflection point where this price differentiation is being recognized at the consumer level. Meanwhile, updates in grading terminology and regulatory guidance serve to further underpin the deepening market segmentation of the two products. Global macroeconomic factors stemming from the recent war in Iran and continued tariff uncertainty warrant close monitoring of the rough diamond market.
This contrasts with the rest of the world, where naturals hold overwhelmingly strong consumer preference—most importantly in the growth markets of India and China.
Speaker #1: Meanwhile, updates in grading terminology and regulatory guidance served to further underpin the deepening market segmentation of the two products. Global macroeconomic factors stemming from the recent war in Iran and continued tariff uncertainty warrant close monitoring of the rough diamond market.
The luxury brands which have shown the strongest performance in the jewelry sector continued to promote the exclusive use of natural diamonds in their collections.
More recently, even at U.S. retailers such as Blue Nile, there are signs of differentiation back towards natural diamonds as elevated luxury.
Speaker #1: In 2025, we saw diamond jewelry production strategies in the midstream evolve quickly to minimize the impact of US tariffs. Highlighting the nimble adaptability of the diamond industry, especially in India.
The widening price and graph gap between natural diamonds and lab-grown appear to have hit an inflection point, where this price differentiation is now being recognized at the consumer level.
Speaker #1: However, it remains to be seen how the most recent events will impact consumer spending preferences going forward. Despite headwinds, it's important to remember that we are still seeing the fundamental signs of a diamond market stabilization to support price recovery.
Meanwhile, updates and grading terminology and regulatory guidance served to further underpin the deepening market segmentation of the two products.
Reid Mackie: In 2025, we saw diamond jewelry production strategies in the midstream evolve quickly to minimize the impact of US tariffs, highlighting the nimble adaptability of the diamond industry, especially in India. However, it remains to be seen how the most recent events will impact consumer spending preferences going forward. Despite headwinds, it's important to remember that we are still seeing the fundamental signs of a diamond market stabilization to support price recovery. With much reduced rough diamond supply upstream, solid consumer demand and growing differentiation away from lab growth, with naturals being an elevated luxury product, we look forward to long-term price growth for our diamonds. With that, I'll pass you back to Jonathan for his closing remarks.
Global macroeconomic factors stemming from the recent war in Iran and continued terrifying. Close monitoring of the rough diamond Market.
Speaker #1: With much reduced rough diamond supply, upstream solid consumer demand and growing differentiation away from lab-grown with naturals being at elevated luxury product, we look forward to long-term price growth for our diamonds.
In 2025, we saw diamond jewelry production strategies in the midstream evolve quickly to minimize the impact of US tariffs.
Highlighting the nimble adaptability of the diamond industry, especially in India.
Speaker #1: And with that, I'll pass you back to Jonathan for his closing remarks.
However, it remains to be seen how the most recent events will impact consumer spending preferences going forward.
Speaker #2: Thanks, Steve, and thanks, Reid. Just to summarize, some of the highlights for 2025 in terms of safety, we had record total recordable injury frequency rate performance reflecting the ongoing commitment to safety.
Despite headwinds, it's important to remember that we are still seeing the fundamental signs of a diamond market stabilization to support price recovery.
With much reduced rough dominance, supply upstream.
Speaker #2: And in terms of production, Q4 2025 drove a strong finish with nearly 1.9 million carats recovered at 2.25 carats per ton. And daily production rising from 9,000 to 25,000 carats.
Solid consumer demand and growing differentiation away from lab grown.
With naturals being an elevated luxury product, we look forward to long-term price growth for our diamonds.
And with that, I'll pass you back to Jonathan for his closing remarks.
Jonathan Comerford: Thanks, Steve, and thanks, Reid. Just to summarize, some of the highlights for 2025. In terms of safety, we had record total recordable injury frequency rate performance, reflecting the ongoing commitment to safety. In terms of production, Q4 2025 drove a strong finish with nearly 1.9 million carats recovered at 2.25 carats per ton, and daily production rising from 9,000 to 25,000 carats. That has continued into 2026. In terms of mining, we mined out 38.7 million tons in 2025, ahead of the budget guidance, with the high-grade 5034 NEX ore body access as planned. We still, however, face a very challenging diamond market, with smaller stones remaining under pressure, in particular due to global uncertainty, tariffs, and geopolitical factors which are keeping the market very unpredictable.
Speaker #2: And that has continued into 2026. In terms of mining, we mined out 38.7 million tons. In 2025, ahead of the budget guidance with the high-grade 5034 NEX ore body accessed as planned.
Speaker #2: We still, however, face a very challenging diamond market with small stones remaining under pressure, in particular due to global uncertainty, tariffs, and geopolitical factors, which are keeping the market very unpredictable.
Uh, thanks, Steve, and thanks, Rage. Um, just to summarize, uh, some of the highlights for 2025. In terms of safety, we had record total recordable injury frequency rate performance, reflecting the ongoing commitment to safety. And in terms of production, Q4 2025 drove a strong finish, with nearly 1.9 million carats recovered at 2.25 carats per ton, and daily production rising from 9,000 to 25,000 carats, and that has continued into 2026.
Speaker #2: And then finally, in terms of liquidity and strategic focus, the focus continues to be working with the beers and our stakeholders to manage costs and optionality while working with other stakeholders, including our workers, government, etc., to get through this very challenging time.
Speaker #2: I'd like to thank you for your time. My team are now available for take any questions you may have. Over to the operator.
Speaker #3: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the 1 on your touchstone phone.
In terms of mining, we mined out 38.7 million tons in 2025, ahead of the budget guidance. With the high-grade 5034 necks or body access to the plant, we still, however, face a very challenging diamond market, with smaller stones remaining under pressure in particular, due to global uncertainty, tariffs, and geopolitical factors, which are keeping the market very unpredictable.
Jonathan Comerford: Finally, in terms of liquidity and strategic focus, the focus continues to be working with De Beers and our stakeholders to manage costs and optionality while working with other stakeholders including, you know, our workers, government, et cetera, to get through this very challenging time. I'd like to thank you for your time. My team are now available to take any questions you may have. Over to the operator.
Um, and then finally, in terms of liquidity and strategic focus, the focus continues to be working with the De Beers.
Speaker #3: You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2.
Speaker #3: And if you are using the speakerphone, please flip the handset before pressing any keys. One moment, please, for your first question. As a reminder, ladies and gentlemen, if you have any questions, please press star 1 now.
And our stakeholders to manage costs and optionality while working with, you know, other stakeholders, including our workers, government, etc., to get through this very challenging time.
I'd like to thank you for your time. My team are now available for Q&A. Any questions you may have.
Over to the operator.
Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please flip the handset before pressing any keys. One moment, please, for your first question. As a reminder, ladies and gentlemen, if you have any questions, please press star one now. There appear to be no questions, so I will turn the call back over to Jonathan Comerford for closing comments.
Thank you.
Speaker #3: There appear to be no questions. I will turn the call back over to Jonathan Commerford for closing comments.
Speaker #2: And there's no questions from the received end, Steve, is there?
Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the 1 on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2. And if you are using speakerphone, please lift the handset before pressing any keys.
Speaker #4: No.
Speaker #2: Webcast?
One moment, please, for your first question.
Speaker #4: No, no, no. Oh. Sorry. One has just come on the screen. Jonathan, I apologize. It's just popped up. Can you tell me the total value of diamonds sold on March 17th at the auction?
As a reminder, ladies and gentlemen, if you have any questions, please press star 1 now.
Speaker #4: That I don't think we can disclose that number. That's from Mr. Barry White from the Sunday Times Ireland Edition because we're here to deal with the year-end financial results.
There appear to be no questions. I will turn the call back over to Jonathan K. Board for closing comments.
Jonathan Comerford: There's no questions received in, Steve, is there?
And there's no questions from the received, and Steve is there.
Steven Thomas: No.
Jonathan Comerford: Webcasting.
Steven Thomas: None on mine. Oh.
No, no, no.
Jonathan Comerford: Okay.
Steven Thomas: Sorry. One has just come on the screen, Jonathan. I apologize. It's just popped up. Can you tell me the total value of diamonds sold on 17 March at the auction? I don't think we can disclose that number. That's from Mr. Barry Whyte from the Sunday Times Ireland Edition, because we're here to deal with the year-end financial results.
Speaker #2: Not the that'll be released as part of the Q1 results.
Uh, Jonathan, I apologize. It's just popped up.
uh,
Speaker #4: Q, correct. No other questions, Jonathan.
Can you tell me the total value of diamonds sold?
Speaker #2: Okay. So I would like to close off this call and like to thank everyone for listening in. And for their perseverance with this company, it's been a very challenging year.
Speaker #2: And hopefully, we'll have some news to disclose to the market in the not-too-distant future. I would like to wish everyone a happy Easter. And thank you again.
On March 17th at the auction. I, uh, that—I don't think we can disclose that number. Uh, that's from Mr. Barry White from the Sunday Times Ireland Edition. Um,
Jonathan Comerford: That'll be released as part of the Q1 results.
Steven Thomas: Correct.
Uh, because we're here to deal with the year-end financial results, not those that would be released as part of the Q1 results. Q. Correct.
Jonathan Comerford: Which is in May.
Steven Thomas: No other questions, Jonathan.
Which is in May. No other questions, Jonathan.
Jonathan Comerford: Okay. I would like to close off this call and like to thank everyone for listening in, and for their perseverance with this company. It's been a very challenging year, and hopefully we'll have some news to disclose to the market in the not-too-distant future. I would like to wish everyone a happy Easter, and thank you again.
Okay. Uh, so I would like to close off this call and I'd like to thank everyone for listening in, and for the perseverance with this company. It's been a very challenging year, and hopefully we'll have some news to disclose to the market, uh, in the not too distant future. I would like to wish everyone a Happy Easter, and thank you again.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.
Ladies and gentlemen, this concludes your conference call for today, please. Thank you for participating and we ask that you, please disconnect your line.
