Dundee Precious Metals Announces First Quarter 2018 Production Results and Provides Notice of First Quarter 2018 Financial Results
DUNDEE PRECIOUS METALS ANNOUNCES FIRST QUARTER 2018 PRODUCTION
RESULTS AND PROVIDES NOTICE OF FIRST QUARTER 2018 FINANCIAL RESULTS
Toronto, Ontario, April 13, 2018 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the
Company”) announced its mine and smelter production results for the three months ended March
31, 2018 and confirmed the timing of the release of first quarter 201 8 operating and financial
results, together with the related conference call and webcast.
“We had another strong quarter at Chelopech and continue to make good progress on smelter
optimization initiatives,” said Rick Howes, President and CEO. “We remain on budget with
construction at our Krumovgrad gold project with production of first concentrate on track for the
fourth quarter of 2018.”
Ore milled and metals production at Chelopech and concentrate smelted at Tsumeb in the first
quarter 2018 are tracking in line with the Company’s 2018 guidance.
Production Highlights
First quarter 2018 mine and metals production at the Chelopech mine and complex concentrate
smelted at the Tsumeb smelter are provided below.
1. As disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended December 31, 2017, issued on February
15, 2018 and available at www.sedar.com.
First quarter Chelopech gold and copper production exceeded our planned production due to
higher ore grades and is expected to return to planned levels for the remainder of the year in line
with guidance. Payable gold sold was in line with expected concentrate shipment schedules and
is expected to increase in the coming quarters due to the timing of shipments.
Continued improved refractory performance in the Ausmelt furnace at Tsumeb has enabled the
start of the annual maintenance shutdown to be deferred from March to May 2018. Oxygen plant
performance was much improved in the first quarter relative to previous quarters and further
upside remains as a result of continued optimization. Replacement of the furnace roof and some
off-gas repairs completed in the quarter, together with adverse summer weather conditions,
affected operating rates and downtime, and served to offset the improved operating performance.
Chelopech
Tsumeb
Year 2018 Consolidated
Guidance 1
Q1 2018 Q1 2018
Ore milled (000s tonnes) 558.1 - 2,100 – 2,200
Metals contained in concentrate produced
Gold (‘000s ounces) 57.3 - 165 – 195
Copper (million pounds) 9.3 - 33.7 – 40.4
Payable metals in concentrate sold
Gold (‘000s ounces) 35.2 - 140 – 170
Copper (million pounds) 6.1 - 31.0 – 37.0
Complex Concentrate smelted (‘000s tonnes) - 54.1 220 – 250
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While concentrate smelted was below planned levels for the quarter, the smelter is expected to
return to targeted levels in line with 2018 guidance.
At Krumovgrad, earthworks relating to the construction of the Integrated Mine Waste Facility was
completed, and installation of major foundations , equipment and structural steel continued
through the quarter, as planned. The forecast capital cost remains at $162 to $168 million,
compared with the original estimate of $178 million, with first concentrate production on track for
the fourth quarter of 2018.
First Quarter 2018 Results
The Company’s first quarter 201 8 operating and financial results are expected to be released
after market close on Wednesday, May 2, 2018. The press release, MD&A and consolidated
financial statements will be posted on SEDAR at www.sedar.com and on the Company’s website
at www.dundeeprecious.com.
The Company will hold a call and webcast to discuss its first quarter results on Thursday, May 3,
2018 at 9:00 am 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.
First Quarter 2018 Call and Webcast (Listen/View only)
Date: Thursday, May 3, 2018
Time: 9:00 am EST
Webcast: https://edge.media-server.com/m6/p/4opr3ody
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 9475048
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 o f
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 c opper 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
fourth quarter of 2018, Canada, Serbia and Armenia, and its 10.2% 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; 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 rotary fur nace installation; the 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 e stimated future production and output, life of mine, costs of production, cash costs
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and other cost measures, capital expenditures, and timing of the development of new deposits;
results of economic studies; success of exploration activities; success of pe rmitting 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 o r claims; and timing and possible outcome of
pending litigation. Often, but not always, forward 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”,
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 the opinions and estimates of management as of the date such statements are made
and they involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be materially different from any
other future results, performance or achievements expressed or implied by the forward looking
statements. 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 continue
to be refined; possible variations in ore grade or recovery rates; fai lure 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 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 for eign
exchange rates; unanticipated title disputes; claims or litigation; limitation on insurance coverage;
cyber attacks; failure to successfully integrate MineRP’s business; failure to realize projected
synergies and financial results from MineRP business ; risks relating to operating a technology
business reliant on the ownership, protection and ongoing development of key intellectual
properties; as well as those risk factors discussed or referred to in the Company’s MD&A under
the heading “Risks and Uncer tainties” 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 material risk factors that could cause actual results
to differ materially from forward looking statements, and other documents (including without
limitation the Company’s most recent AIF) filed from time to time with the securities regulatory
authorities in all provinces and territories of Canada and available on SEDAR at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in forward looking statements, there
may be other factors that cause actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward looking statements will prove to be accurate,
as actual results and future events could differ materially from those anticipated in such
statements. Unless required by securities laws, the Company undertakes no obligation to update
forward looking statements if circumstances or management’s estimates or opinions should
change. Accordingly, readers are cautioned not to place undue reliance on forward look ing
statements.
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For further information please contact:
DUNDEE PRECIOUS METALS INC.
Rick Howes
President and
Chief Executive Officer
Tel: (416) 365-2836
Janet Reid
Manager, Investor Relations
Tel: (416) 365-25479