Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or
“the Company”) announced preliminary production results from both
of its mines and smelter for the three months ended March 31, 2023.
The Company confirmed that all operations are on track to meet
previously issued production guidance for 2023.
“The first quarter was a solid start to the
year, with continued strong performance at Chelopech and a near
record-level of gold production at Ada Tepe,” said David Rae,
President and Chief Executive Officer.
Production Highlights
Preliminary results for the first quarter are
provided in the table below:
|
Ore processed |
Metals contained in concentrate produced |
Payable metals in concentrate sold |
Complex concentrate smelted |
|
(Kt) |
Gold(K oz.) |
Copper(Mlbs.) |
Gold(K oz.) |
Copper(Mlbs.) |
(Kt) |
Q1 2023 |
|
|
|
|
|
|
Chelopech |
546.1 |
35.3 |
7.2 |
31.1 |
6.4 |
– |
Ada Tepe |
191.5 |
33.3 |
– |
32.4 |
– |
– |
Tsumeb |
– |
– |
– |
– |
– |
49.6 |
Consolidated |
737.6 |
68.6 |
7.2 |
63.5 |
6.4 |
49.6 |
2023 full-year guidance(1) |
2,820 – 3,010 |
270 – 315 |
30 – 35 |
245 – 290 |
26 – 31 |
200 – 230 |
(1) As disclosed in Management’s Discussion and
Analysis (“MD&A”) for the year ended December 31, 2022, issued
on February 16, 2023 and available at www.sedar.com and at
www.dundeeprecious.com.
Operational Highlights
Chelopech produced approximately 35.3 K oz. of
gold and 7.2 Mlbs. of copper in the first quarter. Gold production
was in-line with expectations while copper production was slightly
lower than planned due to lower copper grades. Grades and
recoveries are expected to be higher for the balance of the year,
and Chelopech is on track to achieve 2023 production guidance.
Ada Tepe delivered a near record-level of
performance, producing approximately 33.3 K oz. of gold during the
quarter. Ada Tepe is on track to achieve 2023 production
guidance.
The Tsumeb smelter processed approximately 49.6
K tonnes of complex concentrate in the first quarter of 2023, which
was slightly below plan due to unplanned maintenance in the off-gas
system. Tsumeb remains on track to achieve its 2023 guidance for
complex concentrate smelted.
Returning Capital to
Shareholders
In line with its disciplined capital allocation
framework, DPM continues to return capital to shareholders through
a sustainable quarterly dividend and share repurchases under its
Normal Course Issue Bid (“NCIB”).
In February 2023, DPM announced that its Board
of Directors had approved an enhanced share buyback program for the
purchase of up to US$100 million of the Company’s common shares
over a period of twelve months under its NCIB, subject to certain
internal parameters. During the first quarter, DPM repurchased
approximately 1,290,000 common shares at an average price of
US$6.45 (Cdn$8.82) per share for a total of approximately US$8.3
million.
As previously announced in February 2023, DPM
will pay a quarterly dividend of US$0.04 per share on April 17,
2023, to shareholders of record on March 31, 2023.
Timing of First Quarter 2023 Operating and Financial
Results
The Company plans to release its first quarter
2023 operating and financial results after market close on
Wednesday, May 3, 2023. The news release, MD&A and condensed
interim consolidated financial statements will be posted on SEDAR
at www.sedar.com and on the Company’s website at
www.dundeeprecious.com.
On Thursday, May 4, 2023, at 9 AM EDT, DPM will
host a conference call and audio webcast to discuss the results,
followed by a question-and-answer session. To participate via
conference call, register in advance at the link below to receive
the dial-in information as well as a personalized PIN code to
access the call.
Conference call date and time |
Thursday, May 4, 2023 |
|
9AM EDT |
Call registration |
https://register.vevent.com/register/BI8530661972f044949a0799de40889c94 |
Webcast link |
https://edge.media-server.com/mmc/p/wduwwhfd |
Replay |
Archive will be available on www.dundeeprecious.com |
About Dundee Precious Metals Inc.
Dundee Precious Metals Inc. is a Canadian-based
international gold mining company with operations and projects
located in Bulgaria, Namibia, Ecuador and Serbia. The Company’s
purpose is to unlock resources and generate value to thrive and
grow together. This overall purpose is supported by a foundation of
core values, which guides how the Company conducts its business and
informs a set of complementary strategic pillars and objectives
related to ESG, innovation, optimizing our existing portfolio, and
growth. The Company’s resources are allocated in-line with its
strategy to ensure that DPM delivers value for all of its
stakeholders. DPM’s shares are traded on the Toronto Stock Exchange
(symbol: DPM).
For further information please contact:
David Rae |
Jennifer Cameron |
President and Chief Executive
Officer |
Director, Investor Relations |
Tel: (416) 365-5092 |
Tel: (416) 219-6177 |
drae@dundeeprecious.com |
jcameron@dundeeprecious.com |
Cautionary Note Regarding Forward-Looking
Statements
This news release contains “forward looking
statements” or “forward looking information” (collectively,
“Forward Looking Statements”) that involve a number of risks and
uncertainties. Forward Looking Statements are statements that are
not historical facts and are generally, but not always, identified
by the use of forward looking terminology such as “plans”,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “outlook”, “intends”, “anticipates”, “believes”, or
variations of such words and phrases or that state that certain
actions, events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved, or the negative of any of
these terms or similar expressions. The Forward Looking Statements
in this press release relate to, among other things: expected cash
flows; the price of gold, copper, silver and sulphuric acid; toll
rates, metals exposure and stockpile interest deductions at Tsumeb;
the estimation of Mineral Reserves and Mineral Resources and the
realization of such mineral estimates; estimated capital costs,
all-in sustaining costs, operating costs and other financial
metrics, including those set out in the outlook and guidance
provided by the Company; the timing of the completion and results
of economic studies, including the Loma Larga gold project
feasibility study (“Loma Larga FS”); development of the Loma Larga
gold project; success of permitting activities; permitting
timelines; the timing and amount of dividends; the timing and
number of common shares of the Company that may be purchased
pursuant to the NCIB; and timing and possible outcome of pending
litigation or legal proceedings. Forward Looking Statements are
based on certain key assumptions and the opinions and estimates of
management, as of the date such statements are made, and they
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any other future
results, performance or achievements expressed or implied by the
Forward Looking Statements. In addition to factors already
discussed in this press release, such factors include, among
others, fluctuations in metal and sulphuric acid prices, toll rates
and foreign exchange rates; continuation or escalation of the
conflict in Ukraine; risks relating to the Company’s business
generally and the impact of global pandemics, including COVID-19,
resulting in changes to the Company’s supply chain, product
shortages, delivery and shipping issues, closure and/or failure of
plant, equipment or processes to operate as anticipated, employees
and contractors becoming infected, low vaccination rates, lost work
hours and labour force shortages; regulatory changes, including
changes impacting the complex concentrate market; inability of
Tsumeb to secure complex copper concentrate on terms that are
economic; possible variations in ore grade and recovery rates;
inherent uncertainties in respect of conclusions of economic
evaluations and economic studies, including the Timok preliminary
feasibility study and the Loma Larga FS; uncertainties with respect
to timing of the Timok feasibility study; changes in project
parameters, including schedule and budget, as plans continue to be
refined; uncertainties with respect to realizing the anticipated
benefits from the acquisition of INV Metals Inc. and the
development of the Loma Larga gold project; uncertainties with
respect to actual results of current exploration activities;
uncertainties and risks inherent to developing and commissioning
new mines into production, which may be subject to unforeseen
delays; uncertainties inherent with conducting business in foreign
jurisdictions where corruption, civil unrest, political instability
and uncertainties with respect to the rule of law may impact the
Company’s activities; limitations on insurance coverage; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities; actual results of
current and planned reclamation activities; opposition by social
and non-governmental organizations to mining projects and smelting
operations; unanticipated title disputes; claims or litigation;
failure to achieve certain cost savings or the potential benefits
of any upgrades and/or expansion, including the potential rotary
holding furnace installation at the Tsumeb smelter; increased costs
and physical risks, including extreme weather events and resource
shortages, related to climate change; cyber-attacks and other
cybersecurity risks; there being no assurance that the Company will
purchase additional common shares of the Company under the NCIB;
risks related to the implementation, cost and realization of
benefits from digital initiatives; uncertainties with respect to
realizing the targeted MineRP Holdings Inc. earn-outs; as well as
those risk factors discussed or referred to in any other documents
(including without limitation the Company’s most recent Annual
Information Form) filed from time to time with the securities
regulatory authorities in all provinces and territories of Canada
and available on SEDAR at www.sedar.com. The reader has been
cautioned that the foregoing list is not exhaustive of all factors
which may have been used. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in Forward
Looking Statements, there may be other factors that cause actions,
events or results not to be anticipated, estimated or intended.
There can be no assurance that Forward Looking Statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The
Company’s Forward Looking Statements reflect current expectations
regarding future events and speak only as of the date hereof.
Unless required by securities laws, the Company undertakes no
obligation to update Forward Looking Statements if circumstances or
management’s estimates or opinions should change. Accordingly,
readers are cautioned not to place undue reliance on Forward
Looking Statements.
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