Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or
“the Company”) announced preliminary production results from both
of its mines in Bulgaria and the Tsumeb smelter in Namibia for the
three and twelve months ended December 31, 2023.
“Our mining operations continue to deliver
strong results, with Ada Tepe achieving record gold production and
Chelopech achieving its annual guidance for gold and copper
production,” said David Rae, President and Chief Executive Officer
of Dundee Precious Metals. “We also continued our track record of
strong sustainability performance, ranking in the 91st percentile
among mining and metals companies in the 2023 S&P Global
corporate Sustainability Assessment for the third consecutive
year.”
“In December 2023, we announced the acquisition
of Osino Resources, which adds the advanced stage, multi-million
ounce Twin Hills project in Namibia to our portfolio, and declared
a maiden Mineral Resource estimate at our Čoka Rakita project in
Serbia, which further positions DPM as an intermediate gold
producer with a growth pipeline supported by two new high-quality
gold discoveries.”
Preliminary Production Results
Preliminary results for the fourth quarter and
full-year 2023 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) |
Q4 2023 |
|
|
|
|
|
|
Chelopech |
564.8 |
41.9 |
8.2 |
36.3 |
7.0 |
- |
Ada Tepe |
170.7 |
35.2 |
- |
33.3 |
- |
- |
Tsumeb |
- |
- |
- |
- |
- |
67.9 |
Consolidated |
735.5 |
77.1 |
8.2 |
69.6 |
7.0 |
67.9 |
Full-Year 2023 |
|
|
|
|
|
|
Chelopech |
2,205.1 |
161.9 |
30.5 |
135.9 |
26.7 |
- |
Ada Tepe |
747.6 |
134.2 |
- |
129.9 |
- |
- |
Tsumeb |
- |
- |
- |
- |
- |
188.8 |
Consolidated |
2,952.7 |
296.1 |
30.5 |
265.8 |
26.7 |
188.9 |
2023 full-year guidance1 |
2,820 – 3,010 |
270 - 315 |
30 - 35 |
245 - 290 |
26 - 31 |
200 - 230 |
- As disclosed in
Management’s Discussion and Analysis (“MD&A”) for the period
ended September 30, 2023, issued on November 7, 2023 and available
at www.dundeeprecious.com and www.sedarplus.ca.
Operating Highlights
Ada Tepe continued to deliver impressive
operating performance, producing a record 35,200 ounces of gold
during the fourth quarter. In 2023, Ada Tepe produced 134,200
ounces of gold, achieving a new record for annual gold production
and its annual gold production guidance.
In the fourth quarter, Chelopech produced
approximately 41,900 ounces of gold and 8.2 million pounds of
copper, in-line with expectations. In 2023, Chelopech produced
approximately 161,900 ounces of gold and 30.5 million pounds of
copper, within its annual guidance for gold and copper production.
In November 2023, DPM announced a mine life extension to 2032, an
optimized life of mine (“LOM”) plan, and updated Mineral Resource
and Mineral Reserve estimate for the Chelopech mine. The updated
LOM adds approximately 128,000 ounces of recovered gold and 9
million pounds of recovered copper between 2024 and 2032. During
this period, LOM gold grade and copper grades increased by 5% and
3%, respectively, and recoveries for gold increased by 5%.1
The Tsumeb smelter processed approximately
67,900 tonnes of complex concentrate during the fourth quarter,
achieving near record-level performance. Tsumeb’s improved
operating performance reflects the successful completion of
maintenance activities in the off-gas system, which were undertaken
in the third quarter during the Ausmelt furnace shutdown. In 2023,
Tsumeb processed approximately 188,800 tonnes of complex
concentrate, below the annual guidance range a result of unplanned
downtime and the Ausmelt furnace maintenance, which was extended in
order to complete repairs to the off-gas system, as previously
reported.
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 issuer bid.
As previously announced in November 2023, DPM
will pay a quarterly dividend of US$0.04 per share on January 15,
2024, to shareholders of record as at 5:00 p.m. Toronto local time
on December 31, 2023.
During the fourth quarter, DPM repurchased
approximately 1,306,192 common shares at an average price of
US$6.21 (Cdn$8.62) per share for a total of approximately US$8.1
million. In 2023, DPM repurchased a total of 9,738,063 common
shares at an average price of US$6.74 (Cdn$9.10) per share for a
total value of approximately US$65.6 million.
Timing of Fourth Quarter and Full-Year
2023 Operating and Financial Results
The Company plans to release its fourth quarter
and full-year 2023 operating and financial results after market
close on Wednesday, February 14, 2024. The news release, MD&A
and consolidated financial statements will be posted on the
Company’s website at www.dundeeprecious.com and SEDAR+ at
www.sedarplus.ca.
On Thursday, February 15, 2024, at 9 AM EST, 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.
The registration link and webcast details are as follows:
Conference call date and time |
Thursday, February 15, 20249AM EST |
Call registration |
https://register.vevent.com/register/BI2f1b2b37a16c46f292406a55aa975fb9 |
Webcast link |
https://edge.media-server.com/mmc/p/puvx88fn |
Replay |
Archive will be available on www.dundeeprecious.com |
Technical Information
The technical and scientific information in this
press release has been reviewed and approved by Ross Overall, B.Sc.
(Applied Geology), Director, Corporate Technical Services of DPM,
who is a Qualified Person as defined under National Instrument
43-101, and not independent of the Company.
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, Serbia and Ecuador. 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.
For further information please contact:
David RaePresident and Chief Executive OfficerTel:
416-365-5092drae@dundeeprecious.com |
Jennifer CameronDirector, Investor RelationsTel:
416-219-6177jcameron@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 scheduled maintenance at
Tsumeb; the timing and amount of dividends; and the timing and
number of common shares of the Company that may be purchased
pursuant to the NCIB. 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 news release, such factors include, among others,
fluctuations in metal and sulphuric acid prices, toll rates and
foreign exchange rates; risks arising from the current inflationary
environment and the impact on operating costs and other financial
metrics; 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, production shortages, delivery and shipping
issues; possible variations in ore grade and recovery rates;
inherent uncertainties in respect of conclusions of economic
evaluations, economic studies and mine plans; failure to achieve
certain cost savings or the potential benefits of any upgrades
and/or expansion; there being no assurance that the Company will
purchase common shares under the NCIB; 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.sedarplus.ca. 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.
1 Refer to DPM’s news release dated November 29, 2023, for more
information, available at www.dundeeprecious.com and
www.sedarplus.ca.
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