DUNDEE PRECIOUS METALS ANNOUNCES 2018 THIRD QUARTER RESULTS AND UPDATED 2018 GUIDANCE (All monetary figures are expressed in U.S. dollars
DUNDEE PRECIOUS METALS ANNOUNCES
2018 THIRD QUARTER RESULTS AND UPDATED 2018 GUIDANCE
(All monetary figures are expressed in U.S. dollars unless otherwise stated)
Toronto, Ontario, November 7, 2018 – Dundee Precious Metals Inc. (TSX: DPM)
THIRD QUARTER FINANCIAL AND OPERATING HIGHLIGHTS:
Health and safety – Both Krumovgrad project and Tsumeb recorded two million of lost-time injury (“LTI”)
free hours and Chelopech achieved one million LTI free hours;
Metals production – Achieved gold production of 49,644 ounces and copper production of 10.3 million
pounds in the quarter. 2018 production guidance increased to reflect strong year-to-date production;
Smelter – Achieved record quarterly production of 68,431 tonnes. 2018 guidance updated to reflect
strong year-to-date and planned fourth quarter performance;
Near term growth opportunities – Krumovgrad 82% complete and under budget, hot commissioning to
commence in the fourth quarter, as planned, with first gold production expected in the first quarter of 2019;
Exploration success – Updated Mineral Resource estimate for the Timok gold project in Serbia and
commenced scoping study;
Cash flow – Generated $34.5 million in cash flow from operating activities and $25.1 million in free cash
flow(1); and
Financial position – Ended the third quarter of 2018 with approximately $255 million of cash resources,
including long-term revolving credit facility.
"The strong results in the quarter reflect the exceptional progress our team has made to improve the
performance of our operations and advance our growth projects. Chelopech had another strong quarter of gold
and copper production putting us on track to achieve the high end of our original guidance for the full year 2018.
Tsumeb achieved record quarterly operating and financial results and is starting to show the true potential the
smelter has to contribute significantly to the earnings and free cash flow of our business” said Rick Howes,
President and CEO. “Our Krumovgrad gold project remains on budget with hot commissioning on track for the
fourth quarter, while production of first concentrate is now expected in the first quarter of 2019. We are also
proud of the significant safety milestones achieved at all three sites with Krumovgrad and Tsumeb achieving
two million LTI free hours and Chelopech achieving one million LTI free hours. With Krumovgrad production
set to commence in the first quarter of 2019, we expect a significant increase in gold production and cash flows
in 2019 and beyond."
Dundee Precious Metals Inc. (“DPM” or the “Company”) today reported third quarter net earnings attributable
to common shareholders of $20.3 million ($0.11 per share) compared to $3.1 million ($0.02 per share) for the
same period in 2017. Net earnings attributable to common shareholders in the first nine months of 2018 were
$39.4 million ($0.22 per share) compared to $1.6 million ($0.01 per share) for the same period in 2017.
Net earnings attributable to common shareholders in the third quarter and first nine 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 c ommodity 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.
Adjusted net earnings(1) in the third quarter of 2018 were $17.8 million ($0.10 per share) compared to $7.6
million ($0.04 per share) for the same period in 2017. This increase was due primarily to record performance
at Tsumeb as a result of higher volumes of complex concentrate smelted and a reduction in operating expenses
through cost savings initiatives.
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Adjusted net earnings in the first nine months of 2018 were $32.1 million ($0.18 per share) compared to $13.3
million ($0.07 per share) for the same period in 2017. This increase was due primarily to higher realized copper
and gold prices, higher volumes of concentrate smelted, lower overall treatment charges at Chelopech, higher
estimated metal recoveries at Tsumeb, higher volumes of payable gold and copper in concentrate sold as a
result of increased gold and copper production and a reduction in operating expenses at Tsumeb, partially
offset by 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 third quarter and first nine months of 2018 was $35.9 million and $87.0
million compared to $25.6 million and $70.3 million in the corresponding periods in 2017. These increases
were attributable to strong performance from Chelopech and Tsumeb, including a record quarter from
Tsumeb who reported adjusted EBITDA of $16.1 million up from $3.2 million during the third quarter of
2017.
Production
In the third quarter of 2018, gold contained in concentrate produced increased by 2% to 49,644 ounces relative
to the corresponding period in 2017 due primarily to higher overall gold recoveries . C opper production
increased by 9% to 10.3 million pounds relative to the corresponding period in 2017 due primarily to higher
copper grades and recoveries.
In the first nine months of 2018, gold contained in concentrate produced increased by 5% to 155,247 ounces
and copper production increased by 7% to 28.1 million pounds, in each case, relative to the corresponding
period in 2017. The increase in gold and copper production was due primarily to higher grades and recoveries.
The increase in gold recoveries was due primarily to different ore mineralogy and the benefits of various
initiatives with a specific focus on improving metallurgical performance.
Complex concentrate smelted during the third quarter and first nine months of 2018 of 68,431 tonnes and
168,982 tonnes, respectively, was 18% and 5% higher than the corresponding periods in 2017 due primarily
to increased availability of all plants, including the high pressure oxygen plant, the performance of which has
been optimized over the course of 2018. Performance was also enhanced by the introduction of converter and
Ausmelt furnace improvements, including increased oxygen enrichment at the Ausmelt furnace, which helped
to mitigate the impact of the converter relines on the Ausmelt throughput. Process optimization is expected to
continue through the fourth quarter.
Deliveries
In the third quarter of 2018, payable gold in concentrate sold decreased by 4% to 40,324 ounces and
payable copper increased by 8% to 10.1 million pounds, in each case, relative to the corresponding period
in 2017. The decrease in payable gold was due primarily to lower gold grades in copper concentrate sold.
The increase in payabl e copper was consistent with increased copper production as a result of higher
grades and recoveries.
In the first nine months of 2018, payable gold in concentrate sold increased by 6% to 130,140 ounces and
payable copper increased by 9% to 26.6 million pounds, in each case, relative to the corresponding period
in 2017. These increases were consistent with increased copper and gold production as a result of higher
grades and recoveries.
Cost Measures
Cost of sales in the third quarter of 2018 of $69.9 million was $2.3 million lower than the corresponding period
in 2017 due primarily to a reduction in operating expenses at Tsumeb through cost savings initiatives and lower
depreciation, partially offset by higher copper concentrate deliveries. Cost of sales in the third quarter of 2018
also included $2.6 million from MineRP.
Cost of sales in the first nine months of 2018 of $207.2 million was $8.6 million higher than the corresponding
period in 2017 due primarily to higher copper concentrate deliveries and a weaker U.S. dollar, partially offset
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by lower depreciation and a reduction in operating expenses at Tsumeb through cost savings initiatives. Cost
of sales in the first nine months of 2018 also included $8.7 million from MineRP.
All-in sustaining cost per ounce of gold(1) in the third quarter and first nine months of 2018 of $620 and $607,
respectively, was $65 and $93 lower than the corresponding periods in 2017. These decreases were due
primarily to higher by-product credits as a result of higher realized copper prices and volumes of copper sold,
and lower cash outlays for sustaining capital expenditures.
Cash cost per tonne of complex concentrate smelted, net of by -product credits(1), during the third quarter
of 2018 of $362 was 25% or $122 lower than the corresponding period in 201 7 due primarily to higher
volumes of complex concentrate smelted and Tsumeb’s cost reduction program, which resulted in lower
contractor and consultant expenses, partially offset by higher labour costs and electricity rates.
Cash cost per tonne of complex concentrate smelted, net of by-product credits, during the first nine months
of 2018 of $457 was 4% or $19 lower than the corresponding period in 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 third quarter of 2018 was $34.5 million compared to $ 29.1
million in the corresponding period in 2017. This increase was due primarily to better results from Tsumeb,
partially offset by an unfavourable period over period change in non -cash working capital. Cash provided
from operating activities in the first nine months of 2018 was $65.4 million compared to $80.8 million in the
corresponding period in 2017. This decrease was due primarily to an unfavourable period over period
change in non -cash working capital and higher income taxes paid , partially offset by improved results at
Chelopech and Tsumeb.
Cash provided from operating activities, before changes in non -cash working capital (1), during the third
quarter and first nine months of 2018 was $34.0 million and $81.0 million, respectively, compared to $26.9
million and $69.6 million in the corresponding periods in 2017 due primarily to improved results at Tsumeb
and Chelopech.
Free Cash Flow
Free cash flow in the third quarter of 2018 was $25.1 million compared to $18.0 million in the corresponding
period in 2017. This increase was due primarily to higher cash provided from operating activities before
changes in non-cash working capital as a result of improved results at Tsumeb. Free cash flow in the first nine
months of 2018 was $58.2 million compared to $31.6 million in the corresponding period in 2017. This increase
was due primarily to the repayment of term loans of $16.3 million in the first nine months of 2017 and higher
cash provided from operating activities before changes in non-cash working capital as a result of improved
results at Chelopech and Tsumeb.
Capital Expenditures
Capital expenditures during the third quarter and first nine months of 2018 were $26.6 million and $83.8 million,
respectively, compared to $24.6 million and $67.3 million in the corresponding periods in 2017.
Growth capital expenditures (1) during the third quarter and first nine months of 2018 were $20.0 million and
$65.9 million, respectively, compared to $17.9 million and $51.0 million in the corresponding periods in 2017.
These increases were due primarily to increased construction activities at the Krumovgrad gold project in 2018.
Sustaining capital expenditures(1) during the third quarter and first nine months of 2018 were $6.6 million and
$17.9 million, respectively, compared to $6.7 million and $16.3 million in the corresponding periods in 2017,
in line with higher planned 2018 expenditures.
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Krumovgrad Project
Construction continued through the period and, as at September 30, 2018, the project was approximately
82% complete, base d on installed quantities, compared with a planned completion of 89%. Hot
commissioning is on track for the fourth quarter of 2018, as planned, while first concentrate production has
shifted from late in the fourth quarter of 2018 to the first quarter of 2019.
Timok gold project
In September, 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 gold for 1.996 million ounces ,
including an oxide Indicated Mineral Resource of 21.8 million tonnes at 1.06 g/t gold for 742,000 ounces
and a transitional Indicated Mineral Resource of 9.2 million tonnes at 1.15 g/t gold for 338,000 ounces. For
additional information on the key parameters, 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 a ssociated 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 has initiated a scoping study, the results
of which could lead to a Preliminary Economic Assessment in the first quarter of 2019.
During the third quarter a total of 7,011 metres of diamond drilling was completed at the Timok gold project
and includes several significant intervals o f gold mineralization outside the new resource models at both
Bigar Hill and Korkan.
Exploration
The first phase of diamond drilling at the Krasta target, located approximately two kilometres northwest of
the Chelopech mine, was completed in the third quarter. All ten holes intersected high -sulphidation type
epithermal copper-gold mineralization over a strike length of 300 metres between 100 and 300 metres from
surface.
At Surnak, located approximately four kilometres to the east of the Krumovgrad gold project mine site,
resource drilling comprising 2,608 metres in 20 diamond drill holes was completed. The aim of this drilling
was to improve the geological model as well as to provide sufficient fill in drilling to complete the maiden
Mineral Resource that is expected in the first quarter of 2019.
Financial Position
As at September 30, 2018, DPM had $23 million of cash, $28 million of investments, comprised primarily of its
10% interest in Sabina, and $232 million of undrawn capacity under its committed long-term revolving credit
facility.
(1) Adjusted net earnings, adjusted basic earnings 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,
cash provided from operating activities, before changes in non-cash working capital, 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 nine months ended September 30, 2018 (the “MD&A”) for further discussion of these items, including reconcil iations to IFRS
measures.
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KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS
$ millions, except where noted
Ended September 30,
Three Months Nine Months
2018 2017 2018 2017
Revenue 104.3 92.3 294.1 253.8
Cost of sales 69.9 72.2 207.2 198.6
Other expense (1.3) (7.9) (6.2) (22.9)
Earnings before income taxes 21.7 3.3 46.1 4.6
Net earnings attributable to common shareholders 20.3 3.1 39.4 1.6
Basic earnings per share 0.11 0.02 0.22 0.01
Adjusted EBITDA(1) 35.9 25.6 87.0 70.3
Adjusted net earnings(1) 17.8 7.6 32.1 13.3
Adjusted basic earnings per share(1) 0.10 0.04 0.18 0.07
Cash provided from operating activities 34.5 29.1 65.4 80.8
Cash provided from operating activities, before changes
in non-cash working capital(1) 34.0 26.9 81.0 69.6
Free cash flow(1) 25.1 18.0 58.2 31.6
Metals contained in copper and pyrite concentrates
produced:
Gold (ounces)(2) 49,644 48,449 155,247 148,294
Copper (‘000s pounds) 10,308 9,479 28,114 26,322
Silver (ounces) 49,081 56,934 148,156 152,847
Payable metals in copper and pyrite concentrates sold:
Gold (ounces)(3) 40,324 41,926 130,140 123,063
Copper (‘000s pounds) 10,099 9,363 26,581 24,440
Silver (ounces) 45,230 44,183 135,817 122,936
All-in sustaining cost per ounce of gold(1) 620 685 607 700
Complex concentrate smelted at Tsumeb (tonnes) 68,431 57,991 168,982 160,269
Cash cost per tonne of complex concentrate smelted at
Tsumeb, net of by-product credits(1) 362 484 457 476
1) Adjusted EBITDA; adjusted net earnings; adjusted basic earnings 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 third quarter and first nine months of 2018 of 17,337 ounces and 47,337 ounces,
respectively, compared to 14,288 ounces and 43,511 ounces for the corresponding periods in 2017.
3) Includes payable gold in pyrite concentrate sold in the third quarter and first nine months of 2018 of 7,667 ounces and 27,781 ounces, respectively,
compared to 7,302 ounces and 24,931 ounces for the corresponding periods in 2017.
DPM’s unaudited condensed interim consolidated financial statements and MD&A for the three and nine
months ended September 30, 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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2018 Guidance
2018 guidance has been updated to reflect higher annual mine and smelter production as a result of higher
than expected year -to-date performance as well as lower per unit operating costs and growth capital
expenditures. These changes reflect continued stro ng performance at Chelopech and continued
improvements being made at Tsumeb, which reported record third quarter operating and financial results.
The Company’s updated guidance for 2018, together with its original guidance, is set out in the following
table:
$ millions, unless otherwise indicated
Chelopech
Tsumeb
Updated
Consolidated
Guidance
Original
Consolidated
Guidance
Ore milled (‘000s tonnes) 2,150 – 2,200 - 2,150 – 2,200 2,100 – 2,200
Cash cost per tonne of ore processed(3),(4) 35 – 37 - 35 – 37 37 – 40
Metals contained in concentrate
produced(1),(2)
Gold (‘000s ounces) 190 – 200 - 190 – 200 165 – 195
Copper (million pounds) 35.0 – 38.0 - 35.0 – 38.0 33.7 – 40.4
Payable metals in concentrate sold(1)
Gold (‘000s ounces) 161 – 170 - 161 – 170 140 – 170
Copper (million pounds) 31.0 – 37.0 - 31.0 – 37.0 31.0 – 37.0
All-in sustaining cost per ounce of
gold(3),(4),(5) - - 640 – 710 640 – 855
Complex concentrate smelted (‘000s tonnes) - 230 – 250 230 – 250 220 – 250
Cash cost per tonne of complex concentrate
smelted, net of by-product credits(3),(4) - 430 – 460 430 – 460 440 – 500
Corporate general and administrative
expenses(3),(6) - - 20 – 23 20 – 24
Exploration expenses(3) - - 12 – 14 10 – 15
Sustaining capital expenditures(3),(4) 13 – 15 15 – 18 28 – 33 29 – 39
1) Gold produced includes gold in pyrite concentrate produced of 55,000 to 60,000 ounces and payable gold sold includes payable gold in pyrite concentrate
sold of 34,000 to 38,000 ounces.
2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.
3) Based on Euro/US$ exchange rate of 1.19, US$/ZAR exchange rate of 12.88 and copper price of $2.76 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 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.
All-in sustaining cost per ounce of gold, excluding payable gold in pyrite concentrate sold and related costs, is expected to be between $630 and $705 in
2018.
6) Excludes mark-to-market adjustments on share-based compensation and MineRP Holdings Inc.’s (“MineRP”) general and administrative expenses.
As can be seen from our year -to-date results, our 2018 guidance provided above does not occur evenly
throughout the year. The estimated metals contained in concentrate produced, payable metals in
concentrate sold and volumes of complex concentrate smelted have and do vary from quarter to quarter
depending on the areas being mined, the timing of con centrate deliveries and planned maintenance
outages. The rate of capital expenditures also varies from quarter to quarter based on the schedule for, and
execution of, each capital project.
Chelopech
Gold and copper production in the third quarter of 2018 was as expected. The outlook for the fourth quarter
is consistent with our full year 2018 updated guidance.
Tsumeb
In the third quarter, Tsumeb smelted 68,431 tonnes of complex concentrate setting a new quarterly record
for production surpassing the previous record set in the fourth quarter of 2016 by 12%. Production was in
line with 2018 expectations and exceeded production achieved in the third quarter and first nine months of
2017 due to improved availability of all plants, including the high pressure oxygen plant, the performance
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of which has been optimized over the course of 2018. Performance was also enhanced with the introduction
of converter and Ausmelt furnace improvements, including increased oxygen enrichment to the Ausmelt
furnace whic h helped to mitigate the impact of the converter relines on the Ausmelt throughput. This
improved level of performance and optimization is expected to continue through the fourth quarter and , as
a result, 2018 production guidance has been increased to 230,000 to 250,000 tonnes.
Krumovgrad
Hot commissioning is scheduled to commence in the fourth quarter and first concentrate production has
shifted from late in the fourth quarter of 2018 to the first quarter of 2019. The final estimated construction
cost remains between $164 million and $168 million, compared with the original budget of $178 million.
Timok gold project
Following the discovery of the Korkan West deposit in 2017, DPM is continuing to advance exploration in
this area with the goal of adding more ounces to the existing Timok gold resource. In September, DPM
released an updated Mineral Resource estimate for Timok. For more details, refer to the “Exploration”
section of DPM’s MD&A. Based on the updated Mineral Resource estimate, the Company has initiated a
scoping study, the results of which could lead to a Preliminary Economic Assessment in the first quarter of
2019.
Growth capital
The Company’s total growth capital expenditures guidance has been lowered and are now expected to be
between $82 million and $90 million, down from the previous guidance of $94 million to $100 million due
primarily to the deferral to 2019 of expenditures related to the Krumovgrad project, as a result of the delays
experienced with concrete installation , as well as other growth projects. These other growth projects are
expected to be between $5 million to $7 million, $2 million of which relates to resource development drilling
at Chelopech and $3 million to $5 million for margin improvement projects at Chelopech and Tsumeb.
Growth and Exploration
Given DPM’s strong financial position and expected surplus cash flow generation commencing in 2019,
DPM is solidly positioned to expand the business beyond its existing operating and development assets
and is actively identifying opportunities to grow its business in a disciplined manner.
The exploration budget for 2018 was increased to approximately $14 million from $9 million in 2017. The
increased budget is being used to fund major drilling programs at Chelopech, consisting of 10,000 metres
of underground drilling on the South East Breccia Pipe Zone and 5,000 metres of surface drilling on the
Krasta target and other near mine targets. Drill programs at Krumovgrad include resource development
drilling at Surnak that is within the concession and scout drilling on nearby exploration licenses. A further
11,500 metres is planned for exploration and resource drilling at the Timok gold projec t in Serbia. The
remaining exploration budget will be deployed primarily to other greenfield projects in Bulgaria, Serbia and
the Malartic project in Quebec. All drill programs were generally on schedule at the end of the third quarter.
Expenditures related to exploration in 2018 are expected to range between $12 million and $14 million.
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.
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Third Quarter 2018 Results Call and Webcast (Listen/View only)
The Company will hold a call and webcast to discuss its third quarter results on Thursday, November 8,
2018 at 9:00 a.m. EST. The call will be hosted by Rick Howes, President and Chief Executive Officer, who
will be joined by Hume Kyle, Executive Vice President and Chief Financial Officer, together with other
members of the executive m anagement team. The call will be accessible via a live webcast and by
telephone.
Date: Thursday, November 8, 2018
Time: 9:00 am EST
Webcast: http://edge.media-server.com/m6/p/jzzxxc5k
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 7877996
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, which started construction in the fourth quarter of 2016 and is expected to
commence production in the first quarter of 2019 , Canada and Serbia, and its 10.2% 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 development, permitting, construction, commissioning activities and
commencement of production 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 c ost 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 gen erally, 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, uncerta inties 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 reclamation activities;
conclusions of economic evaluations and economic studies ; changes in project parameters as plans