DUNDEE PRECIOUS METALS ANNOUNCES 2019 SECOND QUARTER RESULTS (All monetary figures are expressed in U.S. dollars
DUNDEE PRECIOUS METALS ANNOUNCES
2019 SECOND QUARTER RESULTS
(All monetary figures are expressed in U.S. dollars unless otherwise stated)
Toronto, Ontario, July 30, 2019 – Dundee Precious Metals Inc. (TSX: DPM)
SECOND QUARTER FINANCIAL AND OPERATING HIGHLIGHTS:
Metals production – Chelopech achieved gold production of 47,074 ounces and copper production of
9.1 million pounds, in line with its 2019 guidance;
Smelter – Tsumeb achieved throughput of 61,667 tonnes, in line with its 2019 guidance;
Growth – Ada Tepe achieved commercial production on June 8 and produced 5,351 ounces of gold with
ramp-up to full design capacity expected in the third quarter;
Cash flow – Generated $9.3 million in cash flow from operating activities and $24.4 million in free cash
flow(1);
Cash Costs – Reported an all-in sustaining cost per ounce of gold(1) of $707 and a cash cost per tonne
of complex concentrate smelted, net of by-product credits(1), of $373, both of which are in line with 2019
guidance, and
Financial position – Ended the second quarter with approximately $ 156 million of cash resources,
including long-term revolving credit facility (‘RCF”).
“Chelopech and Tsumeb had another solid quarter and remain on track to meet their 2019 guidance. Gold
production at Ada Tepe was lower than anticipated in the period and 2019 production guidance was reduced
due to temporary constraints with the integrated mine waste facility, which are expected to be resolved in the
third quarter." said Rick Howes, President and CEO. “With Ada Tepe ramping up to full design capacity in the
third quarter of 2019, we expect a significant increase in gold production and cash flow going forward.”
Dundee Precious Metals Inc. (“DPM” or the “Company”) today reported second quarter net earnings
attributable to common shareholders of $15.4 million ($0.09 per share) compared to $16.4 million ($0.09 per
share) for the same period in 2018. Net earnings attributable to common shareholders in the first six months of
2019 were $13.9 million ($0.08 per share) compared to $19.1 million ($0.11 per share) for the same period in
2018.
Net earnings attributable to common shareholders in the second quarter and first six months of 2019 and 2018
were impacted by several items not reflective of the Company’s underlying operating performance, including
unrealized gains on commodity price hedges that, prior to the adoption of IFRS 9 in 2018, did not receive hedge
accounting treatment and net gains and losses on Sabina special warrants, which are excluded from adjusted
net earnings(1).
Adjusted net earnings in the second quarter of 2019 was $15.2 million ($0.09 per share) compared to $13.7
million ($0.08 per share) for the same period in 2018. This increase was due primarily to higher volumes of
complex concentrate smelted, reduced deductions for stockpile interest and higher estimated metal
recoveries at Tsumeb, and the favourable impact of a stronger U.S. dollar relative to the ZAR and Euro,
which offset higher local currency operating expenses, partially offset by lower volumes of payable gold in
concentrate sold as a result of lower gold grades at Chelopech, in line with the mine plan .
Adjusted net earnings in the first six months of 2019 was $13.6 million ($0.08 per share) compared to $14.3
million ($0.08 per share) for the same period in 2018. This decrease was due primarily to lower volumes of
payable gold in concentrate sold reflecting lower grades, higher Chelopech related treatment charges and
higher share -based compensation , partially offset by higher volumes of complex concentrate smelted ,
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reduced deductions for stockpile interest and higher estimated metal recoveries at Tsumeb, and a stronger
U.S. dollar relative to the ZAR and Euro, which offset higher local currency operating expenses.
Adjusted EBITDA
Adjusted EBITDA (1) during the second quarter and first six months of 2019 was $34.0 million and $50.7
million, respectively, compared to $ 31.6 million and $51.1 million in the corresponding period s in 2018,
reflecting the same factors affecting adjusted net earnings, except for depreciation, interest and income
taxes, which are excluded from adjusted EBITDA.
Production
In the second quarter of 2019, gold contained in concentrate produced increased by 9% to 52,425 ounces,
including 5,351 ounces from Ada Tepe which is expected to ramp -up to full design capacity in the third
quarter of 2019, and copper production increased by 6% to 9.1 million pounds, in each case, relative to the
corresponding period in 2018.
In the first six months of 2019, gold contained in concentrate produced decreased by 10% to 95,459 ounces
and copper production decreased by 4% to 17.1 million, in each case, relative to the corresponding period
in 2018. The decrease in gold production was due primarily to lower gold grades at Chelopech, in line with
its 2019 mine plan, partially offset by gold production from the start-up of Ada Tepe. The decrease in copper
production was due primarily to lower copper grades at Chelopech, in line with its 2019 mine plan.
Complex concentrate smelted at Tsumeb during the second quarter and first six months of 2019 of 61,667
tonnes and 124,489 tonnes, respectively, was 33% and 24% higher than the corresponding periods in 2018
due primarily to continued improved p erformance and the timing of the Ausmelt furnace maintenance
shutdown, which, in 2018, took place in the second quarter. The smelter is on course for a planned
maintenance shutdown during the fourth quarter of 2019 following what is expected to be a record 18
months of operation. Tsumeb remains on track to meet its 2019 production guidance.
Deliveries
Payable gold in concentrate sold in the second quarter of 2019 decreased by 24% to 41,424 ounces relative
to the corresponding period in 2018 due primarily to lower gold grades in the concentrate sold in 2019 .
Payable copper in concentrate sold in the second quarter of 2019 of 10.2 million pounds was comparable
to the corresponding period in 2018
In the first six months of 2019, payable gold in concentrate sold decreased by 10% to 80,983 ounces relative
to the corresponding period in 2018 due primarily to lower gold grades in the concentrate sold in 2019.
Payable copper in the first six months of 2019 of 16.5 million pounds was comparable to the corresponding
period in 2018.
Cost Measures
Cost of sales in the second quarter and first six months of 2019 of $71.7 million and $136.4 million,
respectively, was comparable to the corresponding periods in 2018 due primarily to the favourable impact
of a stronger U.S. dollar, which offset higher local currency operating expenses.
All-in sustaining cost per ounce of gold in the second quarter of 2019 of $70 7 was $167 higher than the
corresponding period in 2018 due primarily to the unfavourable impact of lower gold grades in concentrate
sold. All-in sustaining cost per ounce of gold in the first six months of 2019 of $7 61 was $160 higher than
the corresponding period in 2018 due primarily to the unfavourable impact of lower gold grades in
concentrate sold, higher treatment charges, higher allocated corporate general and administrative
expenses as a result of the mark -to-market impact related to strong share price performance, higher cash
outlays for sustaining capital expenditures and a higher cost per tonne of gold -copper concentrate sold as
a result of lower copper grades, partially offset by a stronger U.S. dollar relative to the Euro.
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Cash cost per tonne of complex concentrate smelted at Tsumeb , net of by -product credits, during the
second quarter and first six months of 2019 of $373 and $372, respectively, was $175 and $150 lower than
the corresponding period s in 2018 due prima rily to higher volumes of complex concentrate smelted, the
favourable impact of a weaker ZAR relative to the U.S. dollar and higher by-product credits as a result of
increased acid deliveries and prices, partially offset by higher local currency operating expenses.
Cash provided from operating activities
Cash provided from operating activities in the second quarter and first six months of 2019 was $9.3 million
and $23.8 million, respectively, compared to $19.9 million and $30.9 million in the corresponding period s
in 2018 reflecting the same factors affecting net earnings and an increase in working capital.
Free Cash Flow
Free cash flow in the second quarter and first six months of 2019 was $24.4 million and $ 34.4 million,
respectively, compared to $22.1 million and $33.1 million in the corresponding periods in 2018. Free cash
flow was impacted by the same factors affecting cash provided from operating activities, with the exception
of changes in working capital, which are excluded from free cash flow, and outlays for sustaining capital ,
which are included in free cash flow and were lower in 2019.
Capital Expenditures
Capital expenditures incurred during the second quarter and first six months of 2019 were $20.2 million and
$40.4 million, respectively, compared to $26.8 million and $57.2 million in the corresponding periods in 2018.
Growth capital expenditures (1) incurred during the second quarter and first six months of 2019 were $15.0
million and $32.7 million, respectively, compared to $20.8 million and $45.9 million in the corresponding
periods in 2018. Growth capital expenditures were mostly related to the construction of the Ada Tepe gold
mine. Sustaining capital expenditures (1) incurred during the second quarter and first six months of 2019
were $5.2 million and $ 7.7 million, respectively, compared to $6.0 million and $11.3 million in the
corresponding periods in 2018 due primarily to the timing of executing planned projects.
Ada Tepe Operations, Bulgaria
Ada Tepe achieved commercial production on June 8, 2019 by exceeding an average of 60% of design
throughput capacity and recovery over a period of 30 consecutive days. During this period, the plant
demonstrated 100% design throughput capacity over several days and, since June 8, recoveries continued
to ramp -up to its design level. Head grades during the quarter were not representative of what can be
expected going forward, as lower than average grades were put through the mill during the commissioning
and initial ramp-up phase. There is also additional operating flexibility with the mill feed for the remainder
of the year given certain high grade stockpiles.
As previously reported, p roduction at the mine and mill was lower than planned in the quar ter as it was
constrained by longer than expected tailings settlement time, which delayed the construction of additional
cells in the integrated mine waste facility (“IMWF”). Achievement of full design capacity is still expected to
occur in the third quarter of 2019 once additional capacity in the IMWF becomes available. Construction of
the new cells is progressing as planned. The operation has also taken steps to increase available tailings
capacity, including the construction of contingency cells and additional drainage structures, advancing test
work to optimize settlement rates, and the sourcing of additional earthworks equipment and contractors to
assist with construction of new cells.
Gold contained in concentrate produced in the second quarter and fi rst six months of 2019 was 5,351
ounces. 2019 gold production guidance was reduced to 45,000 to 60,000 ounces due to the temporary
constraints at the IMWF, which we anticipate will be resolved by the end of August 2019.
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Timok Gold Project, Serbia
The Company announced the results of the Preliminary Economic Assessment (“PEA”) for the Timok Gold
Project on July 15, 2019. The PEA is based on the updated mineral resource estimate completed in
September 2018 and provides a base case, considering primar ily oxide and transitional material types,
upon which the project will now be optimized for mining and processing strategies, including an economic
evaluation of the larger sulphide resource. For additional details, refer to the press release entitled “Dundee
Precious Metals Announces Preliminary Economic Assessment for the Timok Gold Project, Serbia” dated
July 15, 2019 found on DPM’s website and filed on SEDAR at www.sedar.com.
Exploration
At Chelopech, diamond drilling continued from underground positions along the Southeast Breccia Pipe
Zone (“SEBPZ”) and from surface at the Krasta and Vozdol prospects.
At Ada Tepe, geological mapping, trenching and soil sampling defined additional drill targets on the Chiirite,
Elhovo and Lada exploration licenses. Drilling is planned to begin in the third quarter of 2019.
At the Malartic project in Quebec, through an option agreement with Pershimex Resources Corp., a 5,800
metre diamond drill program was completed on the gold-bearing Parfouru deformation zone.
Financial Position
As at June 30, 2019, DPM had $22.2 million of cash, $34.2 million of investments, comprised primarily of
its 10.3% interest in Sabina, and $134 million of undrawn capacity under its RCF. With the start-up of Ada
Tepe and the corresponding expected increase in operating cash flow, the Company amend ed the terms
and size of its RCF, resulting in, among other things, the cancellation of tranches A and C in April 2019 and
the increase of tranche B to $175 million from $150 million in June 2019.
(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 at Tsumeb, 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 six months ended June 30, 2019 (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 June 30,
Three Months Six Months
2019 2018 2019 2018
Revenue 99.2 102.9 184.5 189.8
Cost of sales 71.7 72.9 136.4 137.3
Earnings before income taxes 17.7 18.8 16.7 24.4
Net earnings attributable to common shareholders 15.4 16.4 13.9 19.1
Basic earnings per share 0.09 0.09 0.08 0.11
Adjusted EBITDA(1) 34.0 31.6 50.7 51.1
Adjusted net earnings(1) 15.2 13.7 13.6 14.3
Adjusted basic earnings per share(1) 0.09 0.08 0.08 0.08
Cash provided from operating activities 9.3 19.9 23.8 30.9
Free cash flow(1) 24.4 22.1 34.4 33.1
Metals contained in concentrate produced:
Gold (ounces)(2) 52,425 48,272 95,459 105,603
Copper (‘000s pounds) 9,056 8,545 17,077 17,806
Silver (ounces) 36,010 44,708 66,745 99,075
Payable metals in concentrate sold:
Gold (ounces)(3) 41,424 54,660 80,983 89,816
Copper (‘000s pounds) 10,152 10,398 16,467 16,482
Silver (ounces) 37,765 54,090 62,826 90,587
All-in sustaining cost per ounce of gold(1) 707 540 761 601
Complex concentrate smelted at Tsumeb (tonnes) 61,667 46,409 124,489 100,551
Cash cost per tonne of complex concentrate smelted at
Tsumeb, net of by-product credits(1) 373 548 372 522
1) Adjusted EBITDA; adjusted net earnings; adjusted basic earnings per share; free cash flow; all-in sustaining cost per ounce of gold; and cash cost per
tonne of complex concentrate smelted at Tsumeb, 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 second quarter and first six months of 2019 of 13,053 ounces (2018 – 14,852 ounces) and
26,302 ounces (2018 – 30,000 ounces), respectively and gold contained in gold concentrate produced at Ada Tepe in the second quarter and first six
months of 2019 of 5,351 ounces.
3) Includes payable gold in pyrite concentrate sold in the second quarter and first six months of 2019 of 6,889 ounces (2018 – 9,559 ounces) and 17,942
ounces (2018 – 20,114 ounces), respectively.
DPM’s unaudited condensed interim financial statements and MD&A for the three and six months ended
June 30, 2019 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
DPM continues to focus on increasing the profitability of its business by optimizing existing assets and
ramping up its new Ada Tepe gold mine, which achieved commercial production in the second quarter. This
is expected to generate significant growth in gold production and cash flow, which will further strengthen
the Company’s balance sheet and support pursuing a variety of margin improvement and growth
opportunities within its existing portfolio of assets. These growth opportunities include exploration programs
in Bulgaria, near Chelopech and Ada Tepe, and in Serbia, near the Timok gold project , as well as new
investment opportunities that are consistent with the Company’s strategy. These opportunities will be
assessed based on a disciplined capital allocation framework that balances reinvesting capital in the
business in an accretive manner with building financial strength and returning capital to shareholders.
Chelopech and Tsumeb are on track to achieve annual guidance. At Ada Tepe, production and delivery
guidance w ere reduced following longer than expected tailings settlement time, which delayed the
construction of additional cells in the IMWF. As a result of this change, Ada Tepe’s cash cost guidance has
also been increased by $5 per tonne.
The Company’s updated guidance for 2019, together with its original guidance, is set out in the following
table:
$ millions, unless otherwise
indicated Chelopech Ada Tepe Tsumeb
Updated
Consolidated
Guidance
Original
Consolidated
Guidance
Ore milled (‘000s tonnes) 2,100 – 2,200 442 – 462 - 2,542 – 2,662 2,540 – 2,790
Cash cost per tonne of ore
processed(3),(4) 36 – 39 55 – 65 - - -
Metals contained in
concentrate produced(1),(2)
Gold (‘000s ounces) 155 – 187 45 – 60 - 200 – 247 210 – 262
Copper (million pounds) 33 – 39 - - 33 – 39 33 – 39
Payable metals in concentrate
sold(1)
Gold (‘000s ounces) 138 – 165 42 – 56 - 180 – 221 191 - 237
Copper (million pounds) 32 – 37 - - 32 – 37 32 – 37
All-in sustaining cost per ounce
of gold(3),(4),(5),(8) - - - 675 – 820 675 – 820
Complex concentrate smelted
(‘000s tonnes) - - 225 – 250 225 – 250 225 – 250
Cash cost per tonne of
complex concentrate
smelted, net of by-product
credits(3),(4) - - 380 – 450 380 – 450 380 – 450
Corporate general and
administrative expenses(3),(6) - - - 16 – 20 16 – 20
Exploration expenses(3) - - - 12 – 14 12 – 14
Sustaining capital
expenditures(3),(4),(7) 16 – 19 4 – 5 14 – 18 38 – 46 38 – 46
Growth capital
expenditures(3),(4) 4 – 5 25 – 27 - 29 – 32 29 – 32
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 1.13, US$/ZAR exchange rate of 14.45 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.
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7) Consolidated sustaining capital expenditures include $4 million related to Corporate digital initiatives.
8) All-in sustaining cost per ounce of gold represents Chelopech and Ada Tepe cost of sales less 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 concentrate sold.
The 2019 guidance provided above is not expected to occur evenly throughout the year. The estimated
metals contained in concentrate produced, payable 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 the period was as
expected and higher than the first qua rter as a result of mining in higher grade zones. Copper production
in the period was in line with the mine plan. Chelopech remains on track to achi eve its 2019 production
guidance.
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
to resource development drilling and margin improvement projects are expected to be between $4 million
and $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. Work in the first half of 2019 focused on improving the availability
and performance of all facilities, and to support the current 18-month Ausmelt furnace operating cycle. The
smelter is on course for a planned maintenance shutdown during the fourth quarter of 2019. The success
of these operational improvements means that the next shutdown is n ot expected until 2021 with the goal
being to achieve a 24 month operating campaign. This reduced frequency of furnace maintenance is
expected to support further increases in average annual throughput going forward.
Ada Tepe
Following construction of a dditional cells in the IMWF during July and August, th e initial constraint that
surfaced in the second quarter in respect of additional IMWF cell construction is expected to be released,
allowing the operation to ramp -up to design capacity which is still e xpected to occur in the third quarter.
There is also additional operating flexibility with the mill feed during this ramp -up phase given certain high
grade stockpiles. As a result, 2019 gold production guidance for Ada Tepe was revised to 45,000 to 60,000
ounces from the original guidance of 55,000 to 75,000 ounces.
As at June 30, 2019, construction of the project was complete. The capital cost for this project was
approximately $164 million, compared to the original estimate of $178 million.
MineRP
DPM does not anticipate a material contribution to earnings or cash flow from MineRP operating results in
2019, given that it is in a growth ramp -up phase, but does expect to see an increase in new customers
based on the pipeline of prospective customers. Chel opech anticipates finalizing the implementation of
MineRP’s planning software in the third quarter of 2019, which is expected to support further optimization
initiatives being developed in the Smart Centre and integration with a new business planning syste m
currently under development.
Exploration
Expenditures related to exploration in 2019 are expected to range between $12 million and $14 million, in
line with 2018 spending. The 2019 budget is being used to fund major drilling programs at Chelopech,
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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 around Chelopech as well as drill programs at Ada Tepe,
on the concession and on nearby exploration lic enses, for a total 8,900 metres. Exploration and resource
drilling at the Timok gold project in Serbia was increased by 3,000 metres to 5,000 metres to cover
additional targets defined in the second quarter of 2019. In addition, metallurgical testwork will be
undertaken on the Surnak prospect near Ada Tepe. The remaining exploration budget will be deployed
primarily to other greenfield projects in Bulgaria, Serbia and 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 Administrators
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), Vice President, Exploration of DPM , who is a Qualified Person as defined under NI 43 -101,
and not independent of the Company.
2019 Second Quarter Results Call and Webcast (Listen/View only)
The Company will hold a call and webcast to discuss its 2019 second quarter results on Wednesday, July
31, 2019 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 management team. The call will be accessible via a live webcast and by
telephone.
Date: Wednesday, July 31, 2019
Time: 9:00 am EST
Webcast: https://edge.media-server.com/mmc/p/83m5azw7
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 8984018
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 gold-copper concentrate
containing gold, copper and silver and a pyrite concentrate containing gold, located east of Sofia, Bulgaria;
the Ada Tepe operations, which produces a gold concentrate containing gold and silver, located in southern
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 Canada and
Serbia, and its 10.3% 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. Forward Looking
Statements are statements that are not historical facts and are generally, but not always, identifi ed by the
use of forward looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, “believes”, or variations of such words and
phrases or that state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken,
occur or be achieved , or the negative of any of these terms or similar expressions . The Forward Looking
Statements in this press release relate to, among other things: certain s tatements with respect to the
estimated capital costs, key project operating costs and financial metrics and other project economics with
respect to Ada Tepe; the ramp up to design capacity at Ada Tepe; the timing of the receipt of the operating
permit in respect of Ada Tepe; the commencement of a preliminary feasibility study for Timok; timing of