Dundee Precious Metals Achieves 2022 Gold Production Guidance; Announces Timing of Q4/22 Financial Results
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Dundee Precious Metals Achieves 2022 Gold Production Guidance;
Announces Timing of Q4/22 Financial Results
Toronto, January [10], 2023 – 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, 2022.
“Our mining operations achieved impressive production results in the fourth quarter, as Ada Tepe delivered
its highest quarterly gold production of the year and Chelopech continued its track record of strong
performance,” said David Rae, President and Chief Executive Officer of Dundee Precious Metals.
“2022 was another strong year for DPM, as we delivered robust gold production, advanced our organic
growth projects, and ranked in the 91 st percentile among mining and metals companies in the 2022 S &P
Global Corporate Sustainability Assessment.”
Preliminary Production Results
Preliminary results for the fourth quarter and full-year 2022 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 2022
Chelopech 553.1 45.3 7.4 39.2 6.7 –
Ada Tepe 206.1 28.1 – 26.6 – –
Tsumeb – – – – – 41.8
Consolidated 759.2 73.4 7.4 65.8 6.7 41.8
Full-Year 2022
Chelopech 2,138.8 179.1 30.8 151.6 27.2 –
Ada Tepe 853.0 94.0 – 91.1 – –
Tsumeb – – – – – 174.1
Consolidated 2,991.8 273.1 30.8 242.7 27.2 174.1
2022 full-year
guidance(1) 2,900 – 3,100 250 – 290 32 – 37 220 – 255 28 – 32 185 – 200
(1) As disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended September 30, 2022, issued on November
10, 2022 and available at www.sedar.com and at www.dundeeprecious.com.
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Operating Highlights
Ada Tepe achieved its highest quarterly production of the year in the fourth quarter of 2022, producing
approximately 28,100 ounces of gold. Following the completion of the pushback in the third quarter, g old
grades increased as planned and production in the fourth quarter returned to expected levels, positioning
the mine for higher grades in 2023 as per the mine plan. In 2022, Ada Tepe produced approximately 94,000
ounces of gold , which was towards the higher end of its annual production guidance for the year. The
Company completed an updated Mineral Reserve and Mineral Resource estimate and life of mine plan for
Ada Tepe and expects to release the results in January 2023.
In the fourth quarter, Chelopech produced approximately 45,300 ounces of gold and 7.4 million pounds of
copper. In 2022, Chelopech produced approximately 179,100 ounces of gold and 30 .8 million pounds of
copper, well-within its annual guidance for gold and slightly below the low end of the range for copper.
The Tsumeb smelter processed approximately 41,800 tonnes of complex conce ntrate during the fourth
quarter. Results during the fourth quarter were impacted by a 17-day shutdown to repair a water leak in the
offgas system and instability in the power grid as a result of abnormally heavy rainfall in December. In 2022,
the smelter processed approximately 174,100 tonnes of complex concentrate, which was below the annual
guidance of 185,000 to 200,000 tonnes.
Loma Larga Update
DPM is finalizing the revised feasibility study for the Loma Larga project in Ecuador, which is on track for
publication in the first quarter of 202 3. Drilling activities, as well as the public participation process for the
Environmental Impact Assessment remain paused, pending the outcome of the appeals process related to
the decision on the constitutional protective action, following the hearing held in mid-October.
DPM continues to receive strong support from the government and is working proactively with all
stakeholders involved in the development of the project.
Exploration Update
As previously reported, the Company received the exploration permit for the Čoka Rakita target in Serbia
at the end of October 2022. The Čoka Rakita prospect is located south-east of the Company’s Timok gold
project, and initial results from its 30,000-metre drill program are expected to be released in January
2023.
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 periodic share repurchases under its normal course issuer bid
(“NCIB”).
As previously announced in November 2022, DPM will pay a quarterly dividend of US$0.04 per sh are on
January 16, 2023, to shareholders of record as at 5:00 p.m. Toronto local time on December 31, 2022.
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In 2022, DPM repurchased a total of 2,471,500 common shares at an average price of US$5.51 (Cdn$7.05)
per share for a total value of approximately US$13.6 million.
Timing of Fourth Quarter and Full-Year 2022 Operating and Financial Results
The Company plans to release its fourth quarter and full-year 2022 operating and financial results after
market close on Thursday, February 1 6, 202 3. 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 Friday, February 17, 2023, 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 conferenc e 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 call-in numbers and webcast details are as follows:
Conference call date
and time
Friday, February 17, 2023
9AM EST
Call registration https://register.vevent.com/register/BI992f7f1b998d4467a27b65f1461c86d7
Webcast link https://edge.media-server.com/mmc/p/32yqxtvb
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), Corporate Mineral Resource Manager 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, 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.
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 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”, “believe s”, 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 Minera l 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 complet ion 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 estim ates 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 ra tes 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, in cluding 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; unc ertainties 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 th e 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 weath er 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, c ost 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
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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 ma terially 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 s ecurities 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.