Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or
“the Company”) announced strong preliminary production results from
both of its mines and smelter for the three months ended March 31,
2020. The Company is on track to meet its previously issued
guidance for 2020 at each of its operations.
“DPM delivered exceptional first quarter
production results at each of our three operations for a strong
start to the year,” said Rick Howes, President and CEO. “We
continue to manage the evolving COVID-19 situation by prioritizing
the health and safety of our workforce and local communities as
well as striving to maintain the continuity of our operations.”
Production Highlights
Preliminary results for the first quarter are
provided in the table below:
|
Chelopech |
Ada Tepe |
Tsumeb |
Consolidated |
Q1 2020 |
2020 full-year guidance(1) |
Ore processed (000s tonnes) |
545.8 |
233.5 |
- |
779.3 |
2,855 – 3,092 |
Metals contained in concentrate produced |
|
|
|
|
|
Gold (000s ounces) |
42.7 |
30.3 |
- |
73.0 |
257 – 299 |
Copper (million pounds) |
9.4 |
|
- |
9.4 |
35 – 40 |
Payable metals in concentrate sold |
|
|
|
|
|
Gold (000s ounces) |
38.8 |
29.5 |
- |
68.3 |
229 – 267 |
Copper (million pounds) |
9.5 |
- |
- |
9.5 |
33 – 38 |
Complex concentrate smelted(000s tonnes) |
- |
- |
65 |
65 |
230 – 265 |
(1) As disclosed in
Management’s Discussion and Analysis (“MD&A”) for the period
ended December 31, 2019, issued on February 13, 2020 and available
at www.sedar.com and at www.dundeeprecious.com
Ada Tepe delivered strong performance, achieving
its highest quarterly gold production to date. Gold production and
treatment for the first quarter exceeded planned levels, and the
plant operated at design specifications.
Chelopech continued its consistent track record
in the first quarter, with gold production in line with
expectations. Copper production was slightly below plan due to
lower than expected grades and recoveries.
The Tsumeb smelter processed 65,010 tonnes of
complex concentrate, its second highest quarterly production ever.
This represents a significant increase from the previous quarter as
the operation ramped-up following the annual maintenance completed
during the fourth quarter of 2019.
Overall, as a result of strong management focus
and outstanding efforts at all sites to proactively respond to the
COVID-19 pandemic, DPM delivered solid first quarter operating
results and is on track to meet previously issued 2020
guidance.
COVID-19 Update
To date, DPM has not experienced any material
disruptions to its operations as a result of the COVID-19 pandemic.
As previously disclosed on April 2, 2020, operations at certain
ancillary areas of the Tsumeb smelter were reduced in cooperation
with the government of Namibia’s directive to temporarily limit
staffing in response to COVID-19. This resulted in a 20% reduction
in concentrate treatment as from April 2, 2020.
The Company continues to prioritize the health
and safety of its workforce and proactively manage inbound and
outbound supply chains. DPM also continues to engage with local
communities and authorities to provide support.
The Company has implemented procedures and
contingency plans in response to the pandemic, is monitoring the
situation closely and will continue to develop additional measures
as needed.
Dividend
As previously announced in February 2020, and in
line with its disciplined capital allocation framework, DPM will
pay its inaugural quarterly dividend of US$0.02 per share on April
15, 2020 to shareholders of record as at 5:00 p.m. Toronto local
time on March 31, 2020. For Canadian shareholders, the U.S.
dollar dividend payment will be converted to Canadian dollars using
the spot price exchange rate on April 14, 2020.
Chelopech Technical Report
On March 30, 2020, DPM filed a technical report
for its Chelopech mine in Bulgaria under National Instrument 43-101
“Standards of Disclosure for Mineral Projects” (“NI 43-101”).
The purpose of the report was to support the updated Mineral
Reserve and Mineral Resource Estimate for Chelopech. The report can
be found on the Company’s website at www.dundeeprecious.com and
under the Company’s profile at www.sedar.com.
Chelopech successfully added 1.0 million tonnes
of Mineral Reserves, largely as a result of new stope designs and
the redesign of existing stopes, which partially offset production
depletion of 2.2 million tonnes for a net reduction of 1.2 million
tonnes. Proven and Probable Mineral Reserves at Chelopech are
currently 1.6 million ounces of gold and 336 million pounds of
copper, supporting an eight-year mine life.
Measured and Indicated Mineral Resources
increased by 1.7 million tonnes, a 14% increase year-over-year.
With 1.3 million ounces of gold and 296 million pounds of copper in
Measured and Indicated Mineral Resource categories, there is strong
potential to continue extending mine life at Chelopech, as the
Company has done over the last 11 years of production.
First Quarter 2020 Results
The Company plans to release its first quarter
2020 operating and financial results after market close on
Wednesday May 6, 2020. The news release, MD&A and 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 7, 2020 at 9 AM EDT, DPM
will host a conference call and audio webcast to discuss the
results, followed by a question-and-answer session. The call-in
numbers and webcast details are as follows:
Date and Time |
Thursday, May 7, 20209AM EDT |
Webcast link |
https://edge.media-server.com/mmc/p/m9prz58r |
Telephone dial-in(listen only) |
Toll-free (Canada and US): 1-844-264-2104International:
+1-270-823-1169Passcode: 8050229 |
Replay (available for 7 days following the
call) |
Toll-Free (Canada and US): 1-855-859-2056International:
+1-404-537-3406Passcode 8050229 |
Virtual Annual Meeting of Shareholders
DPM’s Annual Meeting of Shareholders will be
held on Thursday, May 7, 2020 at 4PM EDT. This year, in light
of the COVID-19 pandemic, the Company has elected to hold the
meeting via live audio webcast in line with government guidelines
to limit gatherings and to prioritize the health and safety of our
shareholders, employees and other stakeholders. Materials for the
meeting, including a user guide for accessing the virtual meeting,
are available on our website at:
https://www.dundeeprecious.com/English/Investors/Disclosure-and-Reporting/default.aspx#quarterly-section.
The details for the meeting, including the link
to the audio webcast, are as follows:
Date and Time |
Thursday, May 7, 20204PM EDT |
Webcast |
https://web.lumiagm.com/292644623 |
Technical Information
The Mineral Resource and Mineral Reserve
estimates for Chelopech and other scientific and technical
information which supports this press release was prepared by Petya
Kuzmanova, MIMMM, CSci, Senior Resource Geologist, of the Company,
under the guidance of CSA Global (UK) Ltd. (“CSA”), in accordance
with Canadian regulatory requirements set out in NI 43-101, and
were reviewed and approved by, as relates to Mineral Resources,
Maria O’Connor, BSc, MAusIMM, MAIG, Manager Resources – EMEA of
CSA, and as relates to Mineral Reserves, Karl van Olden, BSc (Eng),
GDE, MBA, FAusIMM, Mining Manager of CSA. All are Qualified Persons
(“QP”) as defined under NI 43-101. Maria O’Connor and Karl van
Olden are independent of the Company, and Petya Kuzmanova is not
independent of the Company.
Ross Overall, Corporate Mineral Resource Manager
of the Company, who is a QP as defined under NI 43-101, has
reviewed and approved the contents of this press release.
About Dundee Precious Metals Inc.
Dundee Precious Metals Inc. is a Canadian based,
international gold mining company engaged in the acquisition of
mineral properties, exploration, development, mining and processing
of precious metals. The Company's operating assets include the
Chelopech operation, which produces a gold-copper concentrate
containing gold, copper and silver and a pyrite concentrate
containing gold, located east of Sofia, Bulgaria; the Ada Tepe
operations, which produces a gold concentrate containing gold and
silver, located in southern Bulgaria; and the Tsumeb smelter, a
complex copper concentrate processing facility located in Namibia.
DPM also holds interests in a number of developing gold and
exploration properties located in Canada, Serbia and Ecuador,
including its 10.4% interest in Sabina Gold & Silver Corp. and
its 19.5% interest in INV Metals Inc.
For further information please contact:
Rick HowesPresident and Chief
Executive OfficerTel: (416) 365-2836rhowes@dundeeprecious.com
David RaeExecutive Vice
President and Chief Operating OfficerTel: (416)
365-5092drae@dundeeprecious.com
Jennifer CameronDirector,
Investor RelationsTel: (416)
219-6177jcameron@dundeeprecious.com
Cautionary Note Regarding Forward-Looking
Statements
This press 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: measures the Company is undertaking
in response to the COVID-19 (coronavirus) outbreak, including its
impacts across the Company on demand, operations and its global
supply chains, and in particular, the level of and timing for
reductions at the operations in Tsumeb and the expected impact on
future production from Tsumeb; price of gold, copper, silver and
acid, toll rates, metals exposure and stockpile interest
deductions; the estimation of Mineral Reserves and Mineral
Resources and the realization of such mineral estimates; the
estimated capital costs, operating costs, key project operating
costs and financial metrics and other project economics, including
the outlook provided by the Company; currency fluctuations; the
impact of any impairment charges; the processing of Chelopech
concentrate; success of exploration activities; government
regulation of mining and smelting operations; the payment of
dividends; and the timing and number of common shares of the
Company that may be purchased pursuant to the normal course issuer
bid. 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, risks relating to the
Company’s business generally and as magnified by the impact of
COVID-19, including, changes to the Company’s supply chain; product
shortages; delivery and shipping issues; closures and/or failure of
plant, equipment or processes to operate as anticipated; employees
and contractors becoming infected with COVID-19; lost work hours;
labour force shortages; fluctuations in metal and acid prices, toll
rates and foreign exchange rates; possible variations in ore grade
and recovery rates; conclusions of economic evaluations and
economic studies; changes in project parameters as plans continue
to be refined; 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 the rule
of law may impact the Company’s activities; limitation 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 reclamation activities; social and
non-government organizations opposition to mining projects and
smelting operations; unanticipated title disputes; claims or
litigation; cyber attacks; whether the Company will purchase
additional common shares of the Company under the normal course
issuer bid; risks related to the implementation, cost and
realization of benefits from digital initiatives; failure to
realize projected financial results from MineRP Holdings Inc.;
risks related to operating a technology business reliant on the
ownership, protection and ongoing development of key intellectual
properties; 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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