DUNDEE PRECIOUS METALS ANNOUNCES 2018 FOURTH QUARTER AND ANNUAL RESULTS AND 2019 GUIDANCE (All monetary figures are expressed in U.S. dollars
DUNDEE PRECIOUS METALS ANNOUNCES
2018 FOURTH QUARTER AND ANNUAL RESULTS AND 2019 GUIDANCE
(All monetary figures are expressed in U.S. dollars unless otherwise stated)
Toronto, Ontario, February 12, 2019 – Dundee Precious Metals Inc. (TSX: DPM)
ANNUAL FINANCIAL AND OPERATING HIGHLIGHTS:
Health and safety – Both Krumovgrad project and Tsumeb achieved two million lost-time injury (“LTI”)
free hours, while Chelopech achieved one million LTI free hours;
Metals production – Achieved record gold production of 201,095 ounces and outperformed 2018
guidance. Copper production of 36.7 million pounds was in line with guidance;
Smelter – Achieved record throughput of 232,043 tonnes, in line with guidance, generating positive cash
flow in 2018;
Near term growth – Construction of the Krumovgrad project was 92% complete at year-end and remains
under budget, with first gold concentrate expected in the first quarter of 2019;
Exploration success – Reported an updated Mineral Resource estimate for the Timok gold project in
Serbia and commenced scoping study;
Cash flow – Generated $98.1 million in cash flow from operating activities and $53.9 million in free cash
flow(1);
Cash Costs – Reported an all-in sustaining cost per ounce of gold(1) of $659, and a cash cost per tonne
of complex concentrate smelted, net of by-product credits(1), of $445, which were in the low end of 2018
guidance, and
Financial position – Ended 2018 with approximately $255 million of cash resources, including long-term
revolving credit facility.
"2018 was another strong year with Chelopech achieving record gold production and outperforming guidance.
Tsumeb also achieved record production, met its production guidance and is w ell positioned to continue
increasing production in 2019” said Rick Howes, President and CEO. “Our Krumovgrad project remains below
budget and first gold concentrate production is expected in the first quarter of 2019. With Krumovgrad
commencing production, we expect a significant increase in gold production and cash flows going forward."
Dundee Precious Metals Inc. (“DPM” or the “Company”) today reported a fourth quarter net loss attributable to
common shareholders of $1.3 million ($0.01 per share) compared to $1.4 million ($0.01 per share) for the same
period in 2017. Net earnings attributable to common shareholders in 2018 were $38.1 million ($0.21 per share)
compared to $0.2 million ($nil per share) in 2017.
Net earnings (loss) attributable to common shareholders in the fourth quarter and twelve months of 2018 and
2017 were impacted by several items not reflective of the Company’s underlying operating performance,
including unrealized gains and losses on commodity price and foreign exchange hedges that in 2017, prior to
the adoption of IFRS 9, did not receive hedge accounting and net gains and losses on Sabina special warrants,
each of which are excluded from adjusted net earnings (loss)(1).
Adjusted net loss in the fourth quarter of 2018 was $3.1 million ($0.02 per share) compared to adjusted net
earnings of $3.4 million ($0.02 per share) for the same period in 2017. The higher loss was due primarily to the
timing of copper concentrate deliveries, where in the fourth quarter of 2018 there were two deliveries, as
planned and in line with guidance, compared to three deliveries in the fourth quarter of 2017, partially offset
by higher volumes of complex concentrate smelted at Tsumeb.
For 2018, adjusted net earnings were $29.0 million ($0.16 per share) compared to $16.7 million ($0.09 per
share) in 2017. This increase was due primarily to higher volumes of complex concentrate smelted at Tsumeb,
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lower treatment charges at Chelopech and higher realized copper and gold prices, partially offset by lower
copper concentrate deliveries, as a result of lower gold grades in copper concentrate sold and the timing of
deliveries resulting in an inventory build-up of 1,563 tonnes in 2018 compared with an inventory drawdown of
2,650 tonnes in 2017, a weaker U.S. dollar relative to the Euro and ZAR and lower third party toll rates at
Tsumeb.
Adjusted EBITDA
Adjusted EBITDA(1) during the fourth quarter and twelve months of 2018 was $12.5 million and $99.5 million,
respectively, compared to $ 21.8 million and $92.1 million in the corresponding period s in 201 7. These
variances were due to the same factors affecting adjusted net earnings (loss), except for depreciation,
interest and income taxes, which are excluded from adjusted EBITDA.
Production
In the fourth quarter of 2018, gold contained in concentrate produced decreased by 7% to 45,848 ounces
relative to the corresponding period in 2017 due primarily to lower gold grades. Copper production in the fourth
quarter of 2018 decreased by 9% to 8.6 million pounds relative to the corresponding period in 2017 due
primarily to lower copper grades and recoveries.
In 2018, gold contained in concentrate produced increased by 2% to 201,095 ounces and copper production
increased by 3% to 36.7 million pounds, in each case, relative to 2017. The increase in gold production was
due primarily to increased recoveries resulting from the benefits of various initiatives with a specific focus on
improving metallurgical performance. The increase in copper production was due primarily to higher copper
grades and recoveries.
Complex concentrate smelted during the fourth quarter and twelve months of 2018 of 63,061 tonnes and
232,043 tonnes, respectively, was 7% and 6% higher than the corresponding periods in 2017 due primarily to
increased availability of all facilities, including the high pressure oxygen plant, the performance of which has
been optimized over the course of 2018.
Deliveries
In the fourth quarter of 2018, payable gold in concentrate sold decreased by 32% to 33,455 ounces and
payable copper decreased by 29% to 7.1 million pounds, in each case, relative to the corresponding period
in 2017. These decreases were due primarily to the timing of copper concentrate deliveries, where in the
fourth quarter of 2018 there were two deliveries, as planned and in line with guidance, compared to three
deliveries in the fourth quarter of 2017.
In 2018, payable gold in concentrate sold decreased by 5% to 163,595 ounces and payable copper
decreased by 2% to 33.7 million pounds, in each case, relative to 2017. The decrease in payable gold was
due primarily to the timing of copper concentrate deliveries resulting in an inventory build-up of 1,563 tonnes
in 2018 compared with an inventory drawdown of 2,650 tonnes in 2017, and lower gold grades in copper
concentrate sold. The decrease in payable copper was also due to the timing of deliveries. Payable copper
in 2018 was in line with guidance, while payable gold was at the high end of guidance.
Cost Measures
Cost of sales in the fourth quarter of 2018 of $65.7 million was $2.8 million lower than the corresponding period
in 2017 due primarily to the timing of copper concentrate deliveries, partially offset by higher operating
expenses at Tsumeb consistent with the increase in complex concentrate smelted. Cost of sales in the fourth
quarter of 2018 also included $2.4 million from MineRP compared to $0.1 million in the corresponding period
in 2017.
Cost of sales in 2018 of $272.9 million was $5.8 million higher than 2017 due primarily to reporting a full year
of MineRP results following the fourth quarter of 2017 acquisition and a weaker U.S. dollar, partially offset by
lower depreciation related to extending Chelopech’s mine life. Cost of sales in 2018 included $11.0 million from
MineRP compared to $0.1 million in 2017.
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All-in sustaining cost per ounce of gold in the fourth quarter of 2018 of $86 4 was $ 62 higher than the
corresponding period in 2017 due primarily to lower gold grades in concentrate sold and lower by-product
credits as a result of lower volumes of copper sold, partially offset by lower treatment charges.
All-in sustaining cost per ounce of gold in 2018 of $659 was $70 lower than 2017 due primarily to higher by-
product credits as a result of higher realized copper prices, lower cash outlays for sustaining capital
expenditures and lower treatment charges, partially offset by lower gold grades in concentrate sold.
Cash cost per tonne of complex concentrate smelted, net of by-product credits, during the fourth quarter of
2018 of $413 was comparable to the corresponding period in 2017.
Cash cost per tonne of complex concentrate smelted, net of by -product credits, during 2018 of $445 was
3% or $13 lower than 2017 due primarily to higher volumes of complex concentrate smelted, higher acid
by-product credits and Tsumeb’s cost reduction program, which resulted in lower contractor and consultant
expenses, partially offset by higher labour costs and electricity rates, and a stronger ZAR relative to the
U.S. dollar.
Cash provided from operating activities
Cash provided from operating activities in the fourth quarter of 2018 was $32.7 million compared to $29.1
million in the corresponding period in 2017. This increase was due primarily to a favourable change in non-
cash working capital, partially offset by the timing of copper concentrate deliveries, where in the fourth
quarter of 2018 there were two deliveries, as planned and in line with guidance, compared to three deliveries
in the fourth quarter of 2017. Cash provided from operating activities in 2018 was $98.1 million compared
to $109.9 million in 2017. This decrease was due primarily to an unfavourable period over period change
in non-cash working capital, lower results from MineRP and higher general and administrative expenses,
partially offset by improved results from Chelopech and Tsumeb.
Free Cash Flow
Free cash flow in the fourth quarter of 2018 was negative $4.3 million compared to free cash flow of $14.6
million in the corresponding period in 2017. This decrease was due primarily to the same factors impacting
cash provided from operating activities, excluding the favourable change in non-cash working capital, as well
as higher outflows for sustaining capital expenditures. Free cash flow in 2018 was $53.9 million compared to
$46.2 million in 2017. This increase was due primarily to the same factors impacting cash provided from
operating activities, excluding the unfavourable period over period change in non-cash working capital and the
repayment of term loans of $16.3 million in 2017 , partially offset by higher outflows for sustaining capital
expenditures.
Capital Expenditures
Capital expenditures incurred during the fourth quarter and twelve months of 2018 were $23.6 million and
$107.4 million, respectively, compared to $28.7 million and $96.0 million in the corresponding periods in 2017.
Growth capital expenditures(1) incurred during the fourth quarter and twelve months of 2018 were $14.1 million
and $80.0 million, respectively, compared to $24.2 million and $75.2 million in the corresponding periods in
2017. Growth capital expenditures incurred in 2018 and 2017 were mostly related to the construction of the
Krumovgrad project. Sustaining capital expenditures (1) incurred during the fourth quarter and twelve months
of 2018 were $9.5 million and $27.4 million, respectively, compared to $4.5 million and $20.8 million in the
corresponding periods in 2017, in line with higher planned 2018 expenditures.
Krumovgrad Project
Construction continued through the period and, as at December 31, 2018, the project was approximately
92% complete, based on installed quantities, compared with a planned completion of 99%. Structural,
mechanical, piping, electrical and instrumentation installation progressed through the fourth quarter and
first gold concentrate production is expected in the first quarter of 2019.
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Mining of ore and waste continued through the fourth quarter as planned, with 30,000 tonnes of waste and
63,000 tonnes of ore blasted and excavated. To date, 158,000 tonnes of ore and 186, 000 tonnes of waste
have been mined.
Timok gold project
In September 2018, DPM released an updated Mineral Resource estimate for the Timok gold project. The
new Indicated Mineral Resource estimate is 46.9 million tonnes at 1.32 g/t Au for 1.996 million ounces,
including oxide Indicated Mineral Resource s of 21.8 million tonnes at 1.06 g/t Au for 742,000 ounces and
transitional Indicated Mineral R esources of 9.2 million tonnes at 1.15 g/t Au for 338,000 ounces . For
additional information on the key paramet ers, assumptions, risks and other information relating to the
updated Mineral Resource estimate for Timok, refer to the Company’s press release dated September 24,
2018 entitled “Dundee Precious Metals announces updated Mineral Resource estimate for the Timok Gold
Project” and the associated Technical Report filed on November 7, 2018 under the Company’s profile at
www.sedar.com.
Based on the updated Mineral Resource estimate, the Company initiated a scoping study during the fourth
quarter of 2018, the results of which could lead to a preliminary economic assessment being undertaken in
the first half of 2019.
Exploration
At Chelopech, underground drilling in the South East Breccia Pipe Zone (“SEBPZ”) identified two zones of
high sulphidation copper -gold mineralization warrant ing follow-up drilling. A t the Krasta prospect, located
approximately two kilometres northwest of the Chelopech mine, a second phase of surface diamond drilling
was in progress at the end of the year . Fourteen of 15 holes intersected high sulphidation copper -gold
mineralization over a strike length of 300 metres between 130 and 400 metres from surface.
At Krumovgrad, a resource drill program was completed at the Surnak deposit, located approximately four
kilometres to the east of the Krumovgrad gold project mine site . The aim of this drilling was to improve the
geological model and to collect material for metallurgical testwork.
Financial Position
As at December 31, 2018, DPM had $17.0 million of cash, $30.0 million of investments, comprised primarily of
its 10.5% interest in Sabina, and $238.0 million of undrawn capacity under its committed long-term revolving
credit facility.
(1) Adjusted net earnings (loss), adjusted basic earnings (loss) per share, adjusted earnings before interest, taxes, depreciation and
amortization (“EBITDA”), all -in sustaining cost per ounce of gold, cash cost per tonne of complex concentrate smelted , net of by -
product credits, free cash flow, and growth and sustaining capital expenditures have no standardized meaning under International
Financial 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 Management’s Discussion and Analysis for the three and twelve months ended December 31, 2018 (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
2018 2017 2018 2017
Revenue 83.0 94.9 377.1 348.7
Cost of sales 65.7 68.5 272.9 267.1
Other expense 2.3 13.4 8.5 36.3
Earnings (loss) before income taxes (1.6) 0.2 44.4 4.8
Net earnings (loss) attributable to common shareholders (1.3) (1.4) 38.1 0.2
Basic earnings (loss) per share (0.01) (0.01) 0.21 0.00
Adjusted EBITDA(1) 12.5 21.8 99.5 92.1
Adjusted net earnings (loss)(1) (3.1) 3.4 29.0 16.7
Adjusted basic earnings (loss) per share(1) (0.02) 0.02 0.16 0.09
Cash provided from operating activities 32.7 29.1 98.1 109.9
Cash provided from operating activities, before changes
in non-cash working capital(1) 5.8 20.3 86.8 89.9
Free cash flow(1) (4.3) 14.6 53.9 46.2
Metals contained in copper and pyrite concentrates
produced:
Gold (ounces)(2) 45,848 49,390 201,095 197,684
Copper (‘000s pounds) 8,559 9,451 36,673 35,773
Silver (ounces) 35,127 53,920 183,283 206,767
Payable metals in copper and pyrite concentrates sold:
Gold (ounces)(3) 33,455 48,906 163,595 171,969
Copper (‘000s pounds) 7,070 9,927 33,651 34,367
Silver (ounces) 29,218 59,785 165,035 182,721
All-in sustaining cost per ounce of gold(1) 864 802 659 729
Complex concentrate smelted at Tsumeb (tonnes) 63,061 58,983 232,043 219,252
Cash cost per tonne of complex concentrate smelted at
Tsumeb, net of by-product credits(1) 413 406 445 458
1) Adjusted EBITDA; adjusted net earnings (loss); adjusted basic earnings (loss) per share; cash provided from operating activities, before changes in non-
cash working capital; free cash flow; 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 “Non-GAAP Financial Measures” section of the MD&A for reconciliations to IFRS measures.
2) Includes gold contained in pyrite concentrate produced in the fourth quarter and twelve months of 2018 of 11,918 ounces and 59,255 ounces, respectively,
compared to 12,938 ounces and 56,449 ounces for the corresponding periods in 2017.
3) Includes payable gold in pyrite concentrate sold in the fourth quarter and twelve months of 2018 of 8,956 ounces and 36,737 ounces, respectively,
compared to 10,783 ounces and 35,714 ounces for the corresponding periods in 2017.
DPM’s audited consolidated financial statements for the years ended December 31, 2018 and 2017 and
MD&A for the three and twelve months ended December 31, 2018 , are posted on the Company’s website
at www.dundeeprecious.com and have been filed on SEDAR at www.sedar.com.
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2019 Guidance
Overall Outlook and Strategy
For 2019, DPM will continue to focus on increasing the profitability of its business by optimizing existing
assets and achieving first gold production in the first quarter at its Krumovgrad gold mine. This is expected
to generate significant growth in gold production and cash flows, which will further strengthen the
Company’s balance sheet and support pursuing margin improvement and growth opportunities within its
existing portfolio of assets, including its exploration programs in Bulgaria, near Chelopech and Krumovgrad,
and in Serbia, near the Timok gold project as well as through a disciplined evaluation of new investment
opportunities.
The Company’s guidance for 2019 is set out in the following table:
$ millions, unless otherwise indicated Chelopech Krumovgrad Tsumeb Consolidated
Ore mined (‘000s tonnes) 2,100 – 2,200 440 – 590 - 2,540 – 2,790
Cash cost per tonne of ore processed(3),(4) 36 – 39 50 – 60 - -
Metals contained in concentrate produced(1),(2)
Gold (‘000s ounces) 155 – 187 55 – 75 - 210 – 262
Copper (million pounds) 33 – 39 - - 33 – 39
Payable metals in concentrate sold(1)
Gold (‘000s ounces) 138 – 165 53 – 72 - 191 - 237
Copper (million pounds) 32 – 37 - - 32 – 37
All-in sustaining cost per ounce of
gold(3),(4),(5),(8) - - - 675 – 820
Complex concentrate smelted (‘000s tonnes) - - 225 – 250 225 -250
Cash cost per tonne of complex concentrate
smelted, net of by-product credits(3),(4) - - 380 – 450 380 – 450
Corporate general and administrative
expenses(3),(6) - - - 16 – 20
Exploration expenses(3) - - - 12 – 14
Sustaining capital expenditures(3),(4),(7) 16 – 19 4 – 5 14 – 18 38 – 46
Growth capital expenditures(3),(4) 4 – 5 25 – 29 - 29 – 34
1) Gold produced includes gold in pyrite concentrate produced of 43,000 to 53,000 ounces and payable gold sold includes payable gold in pyrite concentrate
sold of 30,000 to 35,000 ounces.
2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.
3) Based on Euro/US$ exchange rate of 1.15, US$/ZAR exchange rate of 14.20 and copper price of $2.75 per pound, where applicable.
4) Cash cost per tonne of ore processed, all-in sustaining cost per ounce of gold and cash cost per tonne of complex concentrate smelted, net of by-product
credits, and sustaining and growth capital expenditures have no standardized meaning under IFRS. Refer to the “Non-GAAP Financial Measures” section
of the MD&A for more information.
5) Includes the treatment charges, transportation and other selling costs related to the sale of pyrite concentrate, and payable gold in pyrite concentrate sold.
6) Excludes mark-to-market adjustments on share-based compensation and MineRP Holdings Inc.’s (“MineRP”) general and administrative expenses.
7) Consolidated sustaining capital expenditures include $4 million related to Corporate digital initiatives.
8) All-in sustaining cost per ounce of gold represents cost of sales at Chelopech and Krumovgrad less Chelopech and Krumovgrad’s depreciation, amortization
and other non-cash items plus treatment charges, penalties, transportation and other selling costs, sustaining capital expenditures, rehabilitation related
accretion expenses and an allocated portion of the Company’s general and administrative expenses and corporate social responsibility expenses, less by-
product revenues in respect of copper and silver, divided by the payable gold in concentrates sold.
The 2019 guidance provided above is not expected to occur evenly throughout the year. The estimated
metals contained in concentrate produced, pa yable metals in concentrate sold and volumes of complex
concentrate smelted are expected to vary from quarter to quarter depending on the areas being mined, the
timing of concentrate deliveries and planned outages. 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.
Chelopech
Gold contained in concentrate produced is expected to be between 15 5,000 and 187,000 ounces in 2019,
reflecting grades returning to expected life of mine levels in 2019. Gold production in 2019 is expected to
be higher in the first half based on the existing mine plans at Chelopech.
Sustaining capital expenditures are expected to be higher than in recent years reflecting approximately $6
million to extend the life of Chelopech’s tailings management facility . Growth capital expenditures related
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to resource development drilling and margin improvement projects are expected to be between $4 million
to $5 million.
Tsumeb
Complex concentrate smelted in 2019 is expected to be between 225,000 and 250,000 tonnes, an increase
of up to 8% over 2018 production levels , based on the midpoint of 2019 guidance . Work in 2019 will be
targeted at improving the availability and performance of al l facilities, and to support the current 18-month
Ausmelt operating cycle and the planned move to 24 months in the next campaign, which could significantly
increase annual throughput . Volumes of complex concentrate smelted in the second half of 2019 are
expected to be lower than the first half due to the maintenance shutdown, which is planned to take place in
the fourth quarter at the completion of the 18-month campaign.
Krumovgrad
Construction at Krumovgrad was 92% complete at the end of 2018. Hot commis sioning commenced in
January 2019 and first concentrate production is anticipated within the first quarter of 2019, with commercial
production expected in the second quarter of 2019. Gold contained in concentrate produced is expected to
be between 55,000 a nd 75,000 ounces in 2019. There is significant operating flexibility during ramp -up
given the various grades of current stockpiles at Krumovgrad , which is expected to reduce the impact of
potential delays in ramp-up.
As at December 31, 2018, approximately $139 million has been incurred and with an additional $25 million
to $29 million forecast for 2019, the aggregate cost of the project is expected to be between $16 4 million
and $168 million, compared to the original estimate of $178 million.
MineRP
DPM does not anticipate a material contribution to earnings or cash flow from MineRP in 2019 given that it
is in a growth ramp-up phase but does expect to see an increase in new customers. Chelopech anticipates
finalizing the implementation of MineRP’s planning software in the second quarter of 2019, which is
expected to support further mine optimization initiatives being developed from the Smart Center.
Exploration
Expenditures related to exploration in 2019 are expected to range between $12 million an d $14 million, in
line with 2018 spending. The 2019 budget is being used to fund major drilling programs at Chelopech,
consisting of 10,000 metres of underground drilling on the SEBPZ and 7,000 metres of surface drilling at
the Krasta prospect and other near-mine targets as well as drill programs at Krumovgrad, on the concession
and on nearby exploration licenses, for a total 8,900 metres. A further 2,000 metres is planned for
exploration and resource drilling at the Timok gold project in Serbia. Elsewhere, the exploration budget for
2019 will be put toward metallurgical testwork for the Surnak prospect. The remaining exploration budget
will be deployed primarily to other greenfield projects in Bulgaria, Serbia and the Malartic project in Quebec.
Qualified Person
The technical information in this press release, with respect to the Company’s material mineral projects,
has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-
101 Standards of Disclosure for Mineral Projects (“NI 43 -101”) of the Canadian Securities Admi nistrators
and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral
Resources and Mineral Reserves, and has been reviewed and approved by Richard Gosse, M.Sc. (Mineral
Exploration), Senior Vice President, Exploration of DPM, who is a Qualified Person as defined under NI 43-
101, and not independent of the Company.
2018 Fourth Quarter and Annual Results and 2019 Guidance Call and Webcast (Listen/View only)
The Company will hold a call and webcast to discuss it s 2018 fourth quarter and annual results on
Wednesday, February 13, 2019 at 9:00 a.m. E ST. The call will be hosted by Rick Howes, President and
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Chief Executive Officer, who will be joined by Hume Kyle, Executive Vice President and Chief Financial
Officer, together with other members of the executive management team. The call will be accessible via a
live webcast and by telephone.
Date: Wednesday, February 13, 2019
Time: 9:00 am EST
Webcast: https://edge.media-server.com/m6/p/uzmfowk5
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 2657126
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 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, including the
Krumovgrad gold project, whic h started construction in the fourth quarter of 2016 and is expected to
commence production in the second quarter of 2019, Canada and Serbia, and its 10.5% interest in Sabina
Gold & Silver Corp.
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. Statements that constitute
Forward looking statements include, but are not limited to, certain statements with respect to the estimated
capital costs, key project operating costs and financial metrics and other project economics with respect to
Krumovgrad; the timing of the completion of construction, commissioning activities , commencement of
production and the receipt of the operating permit in respect of Krumovgrad, timing of further optimization
work at Tsumeb and potential benefits of the planned rotary furnace installation; 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 timing and amount of estimated
future production and output, life of mine, costs of production, cash costs and other cost measures, capital
expenditures, rates of return at Krumovgrad and other deposits and timing of the development of new
deposits; results of economic studies; success of exploration activities ; success of permitting activities ,
permitting time lines ; currency fluctuations; requirements for additional 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; and timing and possible outcome of pending
litigation. 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”, or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, or
“does not anticipate”, or “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. Forward Looking
Statements are based on certain key assumptions and the opinions and estimates of management and
Qualified Persons (in the case of technical and scientific information), 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 document, such factors include, among others: the uncertainties with
respect to the actual results of current exploration activities; actual results of current reclama tion activities;
conclusions of economic evaluations and economic studies ; changes in project parameters as plans
continue to be refined; possible variations in ore grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated ; 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; uncertainties and risks inherent to developing and commissioning ne w mines into production,