08:42 AM EDT, 05/09/2024 (MT Newswires) -- Mountain Province Diamonds ( MPVDF ) , which saw its shares drop near 12% yesterday, on Thursday reported that first quarter net income fell sharply on lower sales. The company is also reviewing its mine plan.

The company, which operates in the Northwest Territories, and has a 49% stake in the Gahcho Kue mine there, reported net income of $6.8 million, or $0.03 per share basic and diluted, a sharp drop from the $28.2 million, or $0.13 per share, last year.

Among other Q1 financial highlights, it reported Adjusted EBITDA of $50.0 million and earnings from mine operations of $30.4 million. Mountain Province said that 938,000 carats were sold in the first quarter for C$89.4 million, at an average value of C$95 per carat. In the prior year quarter, Mountain Province sold 961,024 carats for total proceeds of C$128.7 million, at an average price of C$134 per carat.

Chief executive officer Mark Wall said Q1 was "strong" for ore tonnes mined and ore tonnes treated. He added the processing plant "continues to operate well following the 2023 improvement work".

But the grade from the mine was below expectations in March which led to slightly lower carat production when compared with Q1, 2023. The company said it is reviewing the mine plan "both for grade performance as well as potential opportunities to bring additional production into the Life of Mine plan."

An engineering firm has been engaged to undertake this work. Mountain Province will provide an update to the market towards the end of the second quarter.