Dundee Precious Announces First Quarter 2022 Preliminary Production Results
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Dundee Precious Announces First Quarter 2022 Preliminary Production Results
Toronto, April 11, 2021 – 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, 202 2. The Company confirmed that all operations are on track to meet previously issued
guidance for 2022.
“The first quarter was a solid start to the year, with production at Chelopech and Ada Tepe in -line with
guidance,” said David Rae , President and C hief Executive Officer . “At the end of March, we also
announced an optimized life of mine plan for Chelopech , which resulted in higher gold and copper
production, and an extended mine life to 2030.”
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 2022
Chelopech 540.9 41.5 7.7 36.3 6.5 -
Ada Tepe 213.7 21.4 - 21.1 - -
Tsumeb - - - - - 47.2
Consolidated 754.6 62.9 7.7 57.4 6.5 47.2
2022 full-year
guidance(1) 2,900 – 3,100 250 – 290 32 – 37 220 – 255 28 – 32 210 – 240
(1) As disclosed in Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 20 21, issued on
February 17, 2022 and available at www.sedar.com and at www.dundeeprecious.com.
Operational Highlights
Chelopech produced approximately 41,500 ounces of gold and 7.7 million pounds of copper in the first
quarter. Gold production was above expectation, largely as a result of higher ore processed and higher
gold recovery achieved in copper concentrate, partially offset by lower recoveries in pyrite concentrate.
Copper production was slightly below plan due to lower copper grades. Chelopech is on track to achieve
2022 guidance.
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Ada Tepe produced approximately 21,400 ounces of gold , which was above expectations for the first
quarter as a result of higher gold grade. Ada Tepe is on track to achieve 2022 guidance, with g rades
and production expected to be stronger in the second half of the year.
The Tsumeb smelter processed approximately 47,200 tonnes of complex concentrate in the first quarter
of 2022. This was below target for the quarter as a result of maintenance to the off-gas system as well
as reduced baghouse capacity, which impacted throughput. Additional maintenance to both systems is
expected to take place during the scheduled Ausmelt furna ce maintenance, which is scheduled for the
second quarter of 2022. Tsumeb is on track to meet 2022 guidance.
Chelopech Mineral Resource and Mineral Reserve Update
On March 31, 2022, DPM announced a mine life extension to 20301, an optimized life of mine (“LOM”)
plan and updated Mineral Resource and Mineral Reserve estimates for the Chelopech mine. The
updated LOM plan adds approximately 286,000 ounces of gold production and 47 million pounds of
copper production between 2022 and 2030, relative to the previous mine plan 1 reflecting higher
metallurgical recoveries and improved commercial terms.
DPM filed a technical report entitled “NI 43 -101 Technical Report and Mineral Reserve Update,
Chelopech Mine – Chelopech, Bulgaria” with an effective date of March 31, 2022 (the “Chelopech
Technical Report”), which is available on SEDAR at www.sedar.com and on the DPM website at
www.dundeeprecious.com.
Update on Activities in Ecuador
As previously reported on February 24, 2022, the Company’s drilling activities at the Loma Larga project
in Ecuador were paused, pending the hearing of a constitutional protective action (“the Action”) against
the Ministry of Environment, Water and Ecological Transition . The original hearing date was deferred
following the filing of preliminary motions , and the Company expects the hearing to commence this
month. DPM is working closely with government ministries and local stakeholders that support the
project in defending the Action, which the Company believes is without merit.
In parallel, DPM continues to advance its permitting activities for the project and is receiving strong
support from the government to accelerate the environmental impact assessment process.
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. In
February 2022, DPM announced a 33% increase to i ts quarterly dividend from US$0.03 per share to
US$0.04 per share, reflecting the Company’s continued positive outlook for the business. The increase
to US$0.04 per share will commence with the first quarter dividend, payable on April 18, 2022 , to
shareholders of record as at 5:00 p.m. Toronto local time on March 31, 2022.
1 Subject to the extension of the current concession contract, which expires in July 2029. DPM intends to submit an extension
application when appropriate and expects that the application will be successful based on previous regulatory processes. Refer
to the news release “Dundee Precious Metals Announces Mine Life Extension and Update to Mineral Resource and Mineral
Reserve Estimates for Chelopech” dated March 31, 2022 and available on the DPM website at www.dundeeprecious.com.
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During the first quarter, DPM repurchased approximately 1,489,100 common shares at an average price
of Cdn$7.59 per share.
First Quarter 2022 Results
The Company plans to release its first quarter 202 2 operating and financial results after market close
on Wednesday, May 4, 2022. The news release, MD&A and consolidated condensed interim financial
statements will be posted on SEDAR at www.sedar.com and on the Company’s website at
www.dundeeprecious.com.
On Thursday, May 5, 2022, 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 5, 2022
9AM EDT
Webcast link https://edge.media-server.com/mmc/p/5r22i6xn
Telephone dial-in Toll-free (Canada and US): 1-844-402-0878
International: 1-478-219-0512
Passcode:9630647
Replay
(available for 7 days
following the call)
Toll-free (Canada and US): 1-855-859-2056
International: 1-404-537-3406
Passcode: 9630647
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 growth 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
President and Chief Executive Officer
Tel: (416) 365-5092
Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
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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 w ords 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 rel ease relate to, among other things: measures the Company is
undertaking in response to the COVID -19 outbreak, including its impacts on the Company’s global
supply chains, the level of and duration of reductions or curtailments in operating levels at any of the
Company’s operations or in its exploration and development activities; expected cash flows; the price
of gold, copper, silver and sulphuric acid; toll rates, metals exposure and stockpile interest deductions
at Tsumeb; Tsumeb’s ability to continue to benefit from the Export Processing Zones Act and an
expected new Sustainable Special Economic Zone regime in Namibia; 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; currency fluctuations; the impact of any impairment charges;
the processing of Chelopech concentrate; timing of furthe r optimization work at Tsumeb; potential
benefits of any upgrades and/or expansion, including the potential rotary furnace installation at the
Tsumeb smelter; DPM’s strategy, plans, targets and goals in respect of environmental, social and
governance issue s, including climate change, greenhouse gas emissions reduction targets, tailings
management facilities and human rights initiatives; results of economic studies, including the Timok gold
project preliminary feasibility study (“Timok PFS”) and the Loma Lar ga gold project feasibility study
(“Loma Larga FS”); expected milestones; success of exploration activities; the timing of the completion
and results of the feasibility study for the Timok gold project (“Timok FS”); expectations with respect to
the potenti al to incorporate additional existing Mineral Resources into the Timok mine plan by
processing the sulphide portion of the mineral body; development of the Loma Larga gold project,
including expected production, successful negotiations of an investment pro tection agreement and
exploitation agreement and granting of environmental and construction permits in a timely manner;
success of permitting activities; permitting timelines; success of investments, including potential
acquisitions; requirements for addit ional capital; government regulation of mining and smelting
operations; environmental risks; reclamation expenses; potential or anticipated outcome of title disputes
or claims; benefits of digital initiatives; 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 estimat es 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 rate s 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, incl uding 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 e valuations and economic studies, including the Timok PFS and the Loma
Larga FS; uncertainties with respect to timing of the Timok FS; changes in project parameters, including
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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 ru le 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 co st 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 t o 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 digita l 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 anticip ated 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.