DUNDEE PRECIOUS METALS ANNOUNCES 2016 FOURTH QUARTER AND ANNUAL RESULTS AND 2017 GUIDANCE (All monetary figures are expressed in U.S. dollars
DUNDEE PRECIOUS METALS ANNOUNCES
2016 FOURTH QUARTER AND ANNUAL RESULTS AND 2017 GUIDANCE
(All monetary figures are expressed in U.S. dollars unless otherwise stated)
Toronto, Ontario, February 15, 2017 – Dundee Precious Metals Inc. (TSX: DPM)
ANNUAL FINANCIAL AND OPERATING HIGHLIGHTS:
Metals production from continuing operations – Achieved annual gold and copper production of
165,665 ounces and 38.4 million pounds, respectively, at the upper end of our 2016 guidance;
Smelter – Processed 200,272 tonnes of complex concentrate, underperforming 2016 guidance due
primarily to an unplanned shutdown in the third quarter;
Impairment charges – Recognized a $118.2 million write-down in respect of Tsumeb primarily reflecting
lower forecast third party toll rates and a slower ramp-up of throughput to 370,000 tonnes per year, and
the decision to close the arsenic trioxide plant;
Near term growth opportunities – Commenced c onstruction at Krumovgrad and on track for first
concentrate production in late 2018; and
Financial position – Reduced debt in 2016 by $106.3 million with current aggregate cash resources of
approximately $262 million, including the undrawn portion of DPM’s long-term revolving credit facility. In
January, added $33 million to cash resources with EBRD equity investment.
Dundee Precious Metals Inc. (“DPM” or the “Company”) today reported a fourth quarter net loss attributable to
common shareholders from continuing operations of $107.5 million ($0.67 per share) compared to $0.9 million
($0.01 per share) for the same period in 2015. Net loss attributable to common shareholders from continuing
operations in 2016 was $ 150.0 million ($1.00 per share) compared to net earnings attributable to common
shareholders from continuing operations of $2.8 million ($0.02 per share) in 2015. Net loss attributable to
common shareholders from discontinued operations was $2.5 million ($0.02 per share) and $1.6 million ($0.01
per share) in the fourth quarter and twelve months of 2016, respectively, compared to $47.7 million ($0.34 per
share) and $49.8 million ($0.35 per share) for the same periods in 2015.
Net loss attributable to common shareholders from continuing operations for the fourth quarter and twelve
months of 2016 was impacted by several items not reflective of the Company’s underlying operating
performance, including impairment charges, unrealized losses and gains attributable to hedging future copper
and gold production and foreign denominated operating costs, and net gains or losses on Sabina special
warrants. Excluding these items, the adjusted net earnings(1) from continuing operations during the fourth
quarter of 2016 were $5.7 million ($0.04 per share) compared to an adjusted net loss from continuing
operations of $0.8 million ($0.01 per share) for the corresponding period in 2015. The increase in adjusted net
earnings was due primarily to lower deductions for treatment charges and transportation costs at Chelopech,
higher volumes of payable gold in concentrate sold, a 7% increase in realized gold prices, higher volumes of
complex concentrate smelted, and reduced deductions for estimated met als exposure. These favourable
variances were partially offset by a 25% decrease in realized copper prices, higher local currency expenses
and depreciation at Tsumeb and lower third party toll rates at Tsumeb.
In 2016, adjusted net loss from continuing operations was $22.4 million ($0.15 per share) compared to
adjusted net earnings from continuing operations of $5.0 million ($0.04 per share) in 2015. This loss was
due primarily to a 27% decrease in realized copper prices and higher local currency operating expenses
and depreciation at Tsumeb. These unfavourable variances were partially offset by reduced deductions for
estimated metals exposure at Tsumeb, lower transportation costs, a stronger U.S. dollar relative to the ZAR
and a 7% increase in realized gold prices.
“It was a strong quarter for both our operations. Chelopech gold and copper production came in at the high end
of our guidance for 2016. The smelter had a strong finish to the year following a weak third quarter caused by
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the unplanned shutdown, achieving record production levels in December. For 2017, we expect the
performance at the smelter to gradually improve, particularly over the second half of the year with the addition
of matte holding furnaces to reduce bottlenecks,” said Rick Howes, President and CEO. “Following the receipt
of the Krumovgrad construction permit in August, we continued to advance the project with the completion of
an early works program and the initiation of the earth works activity on site. Everything remains on track and
with $295 million in cash resources following the recent EBRD investment, forecast free cash generation, and
a solid balance sheet, we are well positioned for 2017.”
Impairment charges
As at December 31, 2016, the carrying value of Tsumeb exceeded its estimated recoverable amount resulting
in an impairment charge of $107.0 million, which was recognized in the consolidated statements of loss. This
impairment charge was primarily attributable to lower forecast third party toll rates and reduced volumes related
to a slower ramp-up of throughput to 370,000 tonnes per year.
During the year ended December 31, 2016, Tsumeb also recognized an $11.2 million impairment charge
reflecting management’s decision to discontinue producing arsenic trioxide, a by-product of the Tsumeb smelter
process, by the end of the first quarter of 2017.
During the fourth quarter and twelve months of 2016, Chelopech recognized a $7.7 million impairment charge
on certain equipment that it does not expect to use.
Adjusted EBITDA from continuing operations
Adjusted EBITDA(1) from continuing operations during the fourth quarter and twelve months of 2016 was $30.2
million and $73.0 million, respectively, compared to $22.1 million and $84.7 million in the corresponding periods
in 2015, driven primarily by the same factors affecting adjusted net earnings (loss) from continuing operations,
except for depreciation, finance costs and income taxes, which are excluded from adjusted EBITDA.
Production from continuing operations
Copper concentrate produced from continuing operations during the fourth quarter and twelve months of
2016 of 25,034 tonnes and 107,108 tonnes, respectively, was 24% and 6% lower than the corresponding
periods in 2015 due primarily to lower copper grades, partially offset by higher volumes of ore mined and
processed. Pyrite concentrate produced during the fourth quarter and twelve months of 2016 of 53,637
tonnes and 214,775 tonnes, respectively, was 13% and 10% lower than the corresponding periods in 2015.
These results were in line with the mine plan.
Relative to the fourth quarter of 2015, gold contained in copper and pyrite concentrates produced in the
fourth quarter of 2016 increased by 2% to 43,964 ounces, copper production decreased by 23% to 8.8
million pounds and silver production decreased by 21% to 51,035 ounces. The increase in gold production
was due primarily to higher volumes of ore mined and processed. The decrease s in copper and silver
production were due primarily to lower grades, partially offset by higher recoveries and higher volumes of
ore mined and processed.
Relative to 2015, gold contained in copper and pyrite concentrates produced in 2016 decreased by 2% to
165,665 ounces, copper production decreased by 3% to 38.4 million pounds and silver production
decreased by 6% to 227,673 ounces. These decreases were due primarily to lower grades for all metals,
partially offset by higher volumes of ore mined and processed.
Complex concentrate smelted during the fourth quarter of 2016 of 61,270 tonnes was 10% higher than the
corresponding period in 2015 due primarily to improved performance resulting from the installation of the
new copper converters. Complex concentrate smelted during 2016 of 200,272 tonnes was 2% higher than
2015. Performance of the smelter in 2016 was significantly impacted by a 21 day unplanned shutdown of
the Ausmelt furnace following a regional power outage in July 2016 , which reduced throughput by
approximately 14,000 tonnes, and post commissioning issues related to the acid plant and new copper
converters, which contributed to an 8,000 tonne shortfall relative to targeted performance. Converter
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optimization is ongoing and the introduction of matte holding furnace s in the second quarter of 2017 is
expected to resolve the remaining converter constraints.
Smelter concentrate processed in the fourth quarter of 2016 was a new record, with the treatment of 23,686
tonnes of concentrate in December 12% higher than the pr evious record. The increased production rates
achieved during the fourth quarter of 2016 were due primarily to increased stabilization of the operations
as a result of various improvement initiatives being implemented at the smelter. These and other initiatives
are expected to support improved and more consistent performance from the smelter during the course of
2017.
Deliveries from continuing operations
Deliveries of copper concentrate during the fourth quarter and twelve months of 2016 of 26,232 tonnes and
106,752 tonnes, respectively, were 13% and 7% lower than the corresponding periods in 2015 due primarily
to the decrease in production and the timing of shipments. Deliveries of pyrite concentrate in the fourth
quarter and twelve months of 2016 of 52,596 tonnes and 217,872 tonnes, respectively, were 8% and 3%
lower than the corresponding periods in 2015 due primarily to lower pyrite concentrate production.
In the fourth quarter of 2016, payable gold in concentrate sold increased by 6% to 37,259 ounces, payable
copper decreased by 10% to 8.8 million pounds and payable silver decreased by 26% to 37,940 ounces,
in each case, relative to the corresponding periods in 2015. The increase in payable gold was due primarily
to higher gold production in 2016 as a result of increased ore mined and processed . The decrease in
payable copper was due primarily to the decrease in copper production as a result of lower grades, and the
timing of shipments.
In 2016, payable gold in concentrate sold decreased by 6% to 139,324 ounces, payable copper decreased
by 5% to 36.1 million pounds and payable silver decreased by 1 7% to 1 60,537 ounces, in each case,
relative to the corresponding period in 2015. The decrease in payable gold was consistent with the decrease
in copper and pyrite concentrate deliveries as a result of the decrease in production, partially offset by
higher gold grades in copper concentrate sold . The decrease in payable copper was due primarily to the
decrease in copper production as a result of lower grades, and the timing of shipments.
Cost measures
Cost of sales in the fourth quarter and twelve months of 2016 of $69.0 million and $258.0 million, respectively,
was $9.7 million and $31.9 million higher than the corresponding periods in 2015 due primarily to higher
depreciation related to the new acid plant and copper converters, and local currency operating expens es
related to contractors, consumables, labour and electricity at Tsumeb, and additional expenses related to the
acid plant running for 12 months in 2016 versus three months in 2015, which were partially offset by the
favourable impact of a stronger U.S. dollar in 2016 relative to 2015.
Cash cost per ounce of gold sold, net of by -product credits, during the fourth quarter of 2016 of $529 was
$120 higher than the corresponding period in 2015. This increase was due primarily to a 25% decrease in
realized copper prices, partially offset by lower treatment charges and transportation costs and a lower cost
per tonne as a result of higher ore mined and processed.
Cash cost per ounce of gold sold, net of by -product credits, in 2016 of $562 was $235 higher than 2015
due primarily to a 27% decrease in realized copper prices, partially offset by lower transportation costs and
a lower cost per tonne as a result of higher ore mined and processed.
All-in sustaining cost per ounce of gold in the fourth quarter of 2016 of $602 was $ 26 lower than the
corresponding period in 2015 . This decrease was due primarily to lower cash outlays for sustaining
expenditures, lower treatme nt charges and transportation costs, and higher volumes of payable gold in
concentrate sold, partially offset by a 25% decrease in realized copper prices.
All-in sustaining cost per ounce of gold in 2016 of $738 was $246 higher than 2015 due primarily to a 27%
decrease in realized copper prices, resulting in an increase in cash cost per ounce of approximately $305,
partially offset by lower transportation costs.
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Cash cost per tonne of complex concentrate smelted, net of by -product credits, during the fourth quarter
and twelve months of 2016 of $369 and $440, respectively, was 10% and 5% higher than the corresponding
periods in 2015 due primarily to higher local currency operating costs related to contractors, consumables,
labour and electr icity, partially offset by a weaker ZAR in 2016 relative to 2015. The unplanned 21 day
shutdown in 2016 had the effect of increasing cash cost by approximately $24 per tonne.
Cash provided from operating activities of continuing operations
Cash provided from operating activities in the fourth quarter of 2016 was $15.7 million compared to $29. 2
million in the corresponding period in 2015. This decrease was due primarily to unfavourable changes in
non-cash working capital. Cash provided from operating activ ities in 2016 was $84.1 million compared to
$77.3 million in the corresponding period in 2015. This increase was due primarily to proceeds from the
prepaid forward sales of gold of $50.0 million and higher realized gold prices, partially offset by unfavourable
changes in non-cash working capital and lower realized copper prices.
Cash provided from operating activities, before changes in non -cash working capital, during the fourth
quarter and twelve months of 2016 was $24. 8 million and $122.1 million, respectively, compared to $22.3
million and $78.9 million in the corresponding periods in 2015.
Capital expenditures from continuing operations
Capital expenditures during the fourth quarter and twelve months of 2016 totaled $14.1 million and $50. 9
million, respectively, compared to $18.5 million and $77.7 million in the corresponding periods in 2015.
Growth capital expenditures during the fourth quarter and twelve months of 2016 were $9. 6 million and
$29.6 million, respectively, compared to $8.7 million and $53.9 million in the corresponding periods in 2015.
The year over year decrease was due primarily to lower spending on the acid plant and new copper
converters at Tsumeb. Sustaining capital expenditures during the fourth quarter and twelve months of 2016
were $4. 5 million and $21.3 million, respectively, compared to $9 .8 million and $23.8 million in the
corresponding periods in 2015.
Financial position
As at December 31, 2016, DPM had cash and cash equivalents of $11.8 million, an investment portfolio
valued at $19.2 million and $250.0 million of undrawn lines under its committed long-term revolving credit
facility.
In January 2017, the Company c ompleted a non-brokered private placement with the European Bank for
Reconstruction and Development (“EBRD”) , pursuant to which the Company issued 17,843,120 common
shares at a price of Cdn$2.45 per share for gross proceeds of $33.2 million (Cdn$43.7 million).
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2017 Guidance
The Company’s production and cash cost guidance for 2017 is set out in the following table:
Chelopech Tsumeb Consolidated
Ore mined/milled (‘000s tonnes) 2,040 – 2,200 - 2,040 – 2,200
Complex concentrate smelted (‘000s tonnes) - 210 – 240 210 – 240
Metals contained in concentrates produced(1),(2)
Gold (‘000s ounces) 157 – 174 - 157 – 174
Copper (million pounds) 33.7 – 37.0 - 33.7 – 37.0
Payable metals in concentrates sold(1)
Gold (‘000s ounces) 135 – 150 135 –150
Copper (million pounds) 32.0 – 35.0 - 32.0 – 35.0
Cash cost per tonne of ore processed ($)(3),(4) 32 – 36 - 32 – 36
Cash cost per ounce of gold sold, net of by-product
credits ($)(3),(4),(5) 670 – 810 - 670 – 810
All-in sustaining cost per ounce of gold ($)(3),(4),(5) - - 840 – 965
Cash cost per tonne of complex concentrate smelted,
net of by-product credits ($)(3),(4) - 400 – 485 400 – 485
1) Includes gold in pyrite concentrate produced of 42,000 to 47,000 ounces and payable gold in pyrite concentrate sold of 27,000 to 30,000 ounces.
2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.
3) Based on foreign exchange rates and, where applicable, metal prices that approximate current rates and prices. The assumed copper price reflects the
impact of 88% of 2017 copper production being hedged at $2.40 per pound.
4) Cash cost per tonne of ore processed, cash cost per ounce of gold sold, net of by-product credits, all-in sustaining cost per ounce of gold and cash cost
per tonne of complex concentrate smelted, net of by-product credits, have no standardized meaning under GAAP. Refer to the “Non -GAAP Financial
Measures” section of this MD&A for reconciliations to IFRS.
5) Includes the treatment charges, transportation and other selling costs related to the sale of pyrite concentrate, and payable gold in pyrite concentrate sold.
Cash cost per ounce of gold sold, net of by -product credits, excluding payable gold in pyrite concentrate sold and related costs, is expected to range
between $640 and $790 in 2017. All-in sustaining cost per ounce of gold, excluding payable gold in pyrite concentrate sold and related costs, is expected
to range between $850 and $985 in 2017.
For 201 7, the majority of the Company’s growth capital expenditures (1) are primarily focused on the
construction of the Krumovgrad gold project. These expenditures are expected to range between $ 116
million and $140 million. Sustaining capital expenditures (1) are expected to range between $ 25 million and
$32 million.
The 2017 guidance provided abov e is not expected to occur evenly throughout the year. The estimated
metals contained in concentrates produced and volumes of complex concentrate smelted are expected to
vary from quarter to quarter depending on the areas being mined, the timing of concent rate deliveries and
planned outages. Production in the second half of 2017 is expected to be higher than the first half based
on the existing mine plans at Chelopech and the annual maintenance shutdown at Tsumeb, which started
on February 9, 2017 and is ex pected to take approximately three weeks to complete. This relining was
originally scheduled to occur in May, however, increased wear to a section of the lining where converter
rather than Ausmelt bricks had to be used last year following the unplanned additional relining, prompted a
rescheduling, and will result in Tsumeb being able to take advantage of the earlier than expected installation
of matte holding furnaces in the converter aisle, which will be commissioned in March. During this
maintenance shutdown, the Ausmelt and converter linings will be replaced and the acid plant will undertake
its annual maintenance. As result, all annual maintenance will be completed during this three week period.
For 2017, Tsumeb throughput is expected to increase by appr oximately 5% to 20% over 2016 as a result
of increased availability of the Ausmelt furnace, ongoing converter improvement initiatives , including the
introduction of matte holding furnaces in the second quarter of 2017 at a capital cost of approximately $2
million.
The rate of capital expenditures is also expected to vary from quarter to quarter based on the schedule for,
and execution of, each capital project.
Further details can be found in the Company’s MD&A under the section “2017 Guidance”.
(1) Adjusted net earnings (loss), adjusted basic earnings (loss) per share, adjusted earnings before interest, taxes, depreciation and
amortization (“EBITDA”), cash provided from operating activities, before changes in non-cash working capital, cash cost per ounce of
gold sold, net of by-product credits, all-in sustaining cost per ounce of gold, cash cost per tonne of complex concentrate smelted net
of by-product credits, and growth and sustaining capital expenditures have no standardized meaning under International Financial
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Reporting Standards ("IFRS"). Presenting these measures from period to period helps management and investors evaluate earnings
and cash flow trends more readily in comparison with results from prior periods. Refer to the “Non-GAAP Financial Measures” section
of the MD&A for further discussion of these items, including reconciliations to IFRS measures.
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KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS
$ millions, except where noted
Ended December 31,
Three Months Twelve Months
2016 2015(5) 2016 2015(5)
Revenue(2) 82.1 53.7 279.5 225.1
Cost of sales(2) 69.0 59.3 258.0 226.1
Impairment charges(2) (115.2) (0.1) (126.3) (0.9)
(Loss) earnings before income taxes from continuing
operations (106.2) (0.4) (146.9) 7.5
Net (loss) earnings attributable to common shareholders
from continuing operations (107.5) (0.9) (150.0) 2.8
Basic (loss) earnings per share from continuing
operations (0.67) (0.01) (1.00) 0.02
Net loss attributable to common shareholders (110.0) (48.5) (151.6) (47.0)
Basic loss per share attributable to common shareholders (0.69) (0.35) (1.01) (0.33)
Adjusted EBITDA from continuing operations(1) 30.2 22.1 73.0 84.7
Adjusted net earnings (loss) from continuing operations(1) 5.7 (0.8) (22.4) 5.0
Adjusted basic earnings (loss) per share from continuing
operations(1) 0.04 (0.01) (0.15) 0.04
Cash provided from operating activities of continuing
operations 15.7 29.2 84.1 77.3
Cash provided from operating activities of continuing
operations, before changes in non-cash working
capital(1) 24.8 22.3 122.1 78.9
Metals contained in concentrate produced from
continuing operations:
Gold (ounces)(3) 43,964 43,238 165,665 169,725
Copper (‘000s pounds) 8,817 11,440 38,459 39,760
Silver (ounces) 51,035 64,592 227,673 242,094
Tsumeb – complex concentrate smelted (mt) 61,270 55,833 200,272 196,107
Payable metals in concentrate sold from continuing
operations:
Gold (ounces)(4) 37,259 35,086 139,324 148,137
Copper (‘000s pounds) 8,786 9,814 36,074 37,913
Silver (ounces) 37,940 51,286 160,537 192,468
Cash cost per tonne of ore processed from continuing
operations ($)(1) 32.63 39.07 32.97 37.14
Cash cost per ounce of gold sold, net of by-product
credits, from continuing operations ($)(1) 529 409 562 327
Cash cost per ounce of gold sold in pyrite concentrate
($)(1) 651 895 776 919
All-in sustaining cost per ounce of gold from continuing
operations ($)(1) 602 628 738 492
Cash cost per tonne of complex concentrate smelted at
Tsumeb, net of by-product credits ($)(1) 369 336 440 418
(1) Adjusted EBITDA; adjusted net earnings (loss); adjusted basic earnings (loss) per share; cash flow provided from operating activities
of continuing operations, before changes in non-cash working capital; cash cost per tonne of ore processed; cash cost per ounce of
gold sold, net of by-product credits; cash cost per ounce of gold sold in pyrite concentrate; all-in sustaining cost per ounce of gold;
and cash cost per tonne of complex concentrate smelted, net of by-product credits are not defined measures under IFRS. Refer to
the MD&A for reconciliations to IFRS measures.
(2) Excludes results from Kapan, which are reported separately as a discontinued operation under IFRS.
(3) Includes gold contained in pyrite concentrate produced in the fourth quarter and twelve months of 2016 of 12,387 ounces and 47,237
ounces, respectively, compared to 13,656 ounces and 54,774 ounces for the corresponding periods in 2015.
(4) Includes payable gold in pyrite concentrate sold in the fourth quarter and twelve months of 2016 of 8,140 ounces and 31,380 ounces,
respectively, compared to 9,779 ounces and 38,156 ounces for the corresponding periods in 2015.
(5) Certain comparative figures have been reclassified as a consequence of several expenses previously classified as general and
administrative expenses being classified as operating costs and included in cost of sales to better reflect the operating results of each
segment.
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DPM’s audited consolidated financial statements and MD&A for the three and twelve months ended
December 31, 2016, are posted on the Company’s website at www.dundeeprecious.com and have been
filed on SEDAR at www.sedar.com.
The Company will be holding a call and a webcast to discuss its 2016 fourth quarter and annual results on
Thursday February 16, 2017 at 9:00 a.m. (E .S.T.). Participants are invited to join the live webcast
(listen/view only) at: http://edge.media-server.com/m/p/7vqwcp3x. Alternatively, participants can access a
listen only telephone option at 416-340-2216 or North America Toll Free at 1-866-223-7781. A replay of the
call will be available at 905-694-9451, passcode 2526890. The audio webcast for this conference call will
also be archived and available on the Company’s website at www.dundeeprecious.com.
About Dundee Precious Metals
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 continuing operating assets include the Chelopech operation, which produces a copper
concentrate containing gold and silver and a pyrite concentrate containing gold , located east of Sofia,
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 Bulgaria,
Serbia, and northern Can ada, including the Krumovgrad gold project, which started construction in the
fourth quarter of 2016 and is expected to commence production in the fourth quarter of 2018, and its 10.7%
interest in Sabina Gold & Silver Corp.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains “forward looking statements” that involve a number of risks and uncertainties.
Forward looking statements include, but are not limited to, statements with respect to the estimated capital
costs, operating costs and other project economics with respect to Krumovgrad, the timing of development,
permitting, construction, and commissioning activities in respect of Krumovgrad and further optimization
work at Tsumeb, the future price of gold, copper, silver and acid, toll rates, metals exposure and stockpile
interest deductions, the estimation of mineral reserves and resources, the realization of such mineral
estimates, the timing and amount of estimated future production and output, life of mine, costs of production,
cash costs and other cash measures, capital expenditures, costs and timing of the development of new
deposits, success of exploration activities, success of permitting activities, permitting time lines, currency
fluctuations, requirements for additional capital, government regulation of mining operations, environmental
risks, reclamation expenses, the potential or anticipated outcome of title disputes or claims and timing and
possible outcome of pending litigation. Often, but not always, fo rward looking statements can be identified
by the use of words such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, o r
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. Forward looking statements are based on the
opinions and estimates of management as of t he 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. Such factors include, among others:
the actual results of current exploration activities; actual results of current reclamation activities; conclusions
of economic evaluations and economic studies ; changes in project parameters as plans continue to be
refined; future prices of gold, copper, zinc, silver and acid; possible variations in ore grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated; accid ents, 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, 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; fluctuations in metal and acid prices, toll rates and foreign exchange rates;
unanticipated title disputes; claims or litigation ; limitation on insurance coverage; cyber attacks; as well as
those risk factors discussed or referred to in the Company’s MD&A under the heading “Risks and
Uncertainties” and under the heading “Cautionary Note Regarding Forward Looking Statements” which
include further details on material assumptions used to develop such forward looking statements and