Dundee Precious Metals Announces Preliminary Third Quarter Production Results; All Operations on Track to Achieve 2022 Production Guidance
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Dundee Precious Metals Announces Preliminary Third Quarter Production Results;
All Operations on Track to Achieve 2022 Production Guidance
Toronto, October 11, 2022 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”)
announced preliminary production re sults from both of its mines and the smelter for the three and nine
months ended September 30, 2022.
“Chelopech and Ada Tepe continued to deliver strong production in the third quarter, with the smelter also
delivering near record-level throughput,” said David Rae, President and Chief Executive Officer. “All three
operations are on track to meet our production guidance targets for 2022.”
Production Highlights
Preliminary results for the third quarter and first nine months of 2022 are provided in the table below:
Ore
processed
Metals contained in
concentrate produced
Payable metals in
concentrate sold
Complex
concentrate smelted
(Kt)
Gold
(K oz)
Copper
(Mlbs)
Gold
(K oz)
Copper
(Mlbs)
(Kt)
Q3 2022
Chelopech 515.8 43.1 6.9 36.4 6.7 -
Ada Tepe 216.0 20.8 - 20.4 - -
Tsumeb - - - - - 63.8
Consolidated 731.8 63.9 6.9 56.8 6.7 63.8
YTD 2022
Chelopech 1,585.7 133. 8 23.4 112.4 20.5 -
Ada Tepe 646.8 65.9 - 64.5 - -
Tsumeb - - - - - 132.1
Consolidated 2,232.5 199.7 23.4 176.9 20.5 132.1
2022 full-year
guidance(1) 2,900 – 3,100 250 – 290 32 – 37 220 – 255 28 – 32 185 – 200
(1) As disclosed in Management’s Discussion and Analysis (“MD&A”) for the quarter ended June 30, 2022, issued on July 28, 2022
and available at www.sedar.com and at www.dundeeprecious.com.
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During the third quarter, Chelopech delivered str ong performance, producing 43,100 ounces of gold and
6.9 million pounds of copper. Gold production was in -line with expectations and copper production was
lower than expected, reflecting lower copper head grades.
Ada Tepe produced 20,800 ounces of gold during the third quarter, in line with expectations. Gold grades
at Ada Tepe are expected to increase in the fourth quarter as per the mine plan.
Both Chelopech and Ada Tepe are on track to achieve 2022 guidance.
The Tsumeb smelter processed approximately 63,800 tonnes of complex concentrate during the third
quarter. This represents a significant increase from the previous quarter following the completion of the
planned Asumelt maintenance. Following the shutdown, the operation ramped-up to full production six days
into the quarter, and thereafter demonstrated an impres sive level of productivity, which resulted in near
record-level quarterly production. Tsumeb is on track to meet its revised 2022 guidance.
Loma Larga Update
DPM continues to advance the revised feasibility study for the Loma Larga project in Ecuador, which is
targeted for completion by the end of 2022. Drilling ac tivities remain paused, pending the outcome of the
appeals process related to the decision on the constitutional protective action, and DPM expects resolution
on this matter in the fourth quarter of 2022.
DPM continues to receive strong support from the government and is working proactively with all
stakeholders involved in the development of the project.
Returning Capital to Shareholders
In line with its disciplined capital allocation framewor k, DPM continues to return capital to shareholders
through a sustainable quarterly dividend and periodic share repurchases under it s normal course issuer
bid.
As previously announced in July 2022, DPM will pay a quarterly dividend of US$0.04 per share on October
17, 2022 to shareholders of record as at 5:00 p.m. Toronto local time on September 30, 2022.
During the third quarter, DPM repurchased 872,700 common shares at an average price of Cdn$6.16 per
share. Year-to-date, DPM repurchased 2,471,500 co mmon shares at an average price of Cdn$7.05 per
share, for a total value of approximately Cdn$17.4 million.
Third Quarter 2022 Operating and Financial Results
The Company plans to release its third quarter 2022 oper ating and financial results after market close on
Thursday, November 10, 2022. The news 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.
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On Friday, November 11, 2022 at 9 AM EST, DPM will host a conference call and audio webcast to
discuss the results, followed by a question-and-answer session. To participate via conference call,
register in advance at the link below to receive the dial-in information as well as a personalized PIN code
to access the call.
The call-in numbers and webcast details are as follows:
Conference call date
and time
Friday, November 11, 2022
9AM EST
Call registration https://register.vevent.com/register/BI3eb4bf0e9dbd46c495f499c79ef28293
Webcast link
https://edge.media-server.com/mmc/p/6rfsqukm
Replay Archive will be available on www.dundeeprecious.com
Technical Information
The technical and scientific information in this press release has been reviewed and approved by Ross
Overall, B.Sc. (Applied Geology), Corporate Mineral Resource Manager of DPM, who is a Qualified Person
as defined under National Instrument 43-101, and not independent of the Company.
About Dundee Precious Metals Inc.
Dundee Precious Metals Inc. is a Canadian-based international gold mining company with operations and
projects located in Bulgaria, Namibia, Ecuador and Serbia. The Company’s purpose is to unlock resources
and generate value to thrive and grow together. This overall purpose is supported by a foundation of core
values, which guides how the Company conducts its business and informs a set of complementary strategic
pillars and objectives related to ESG, innovation, optimizing our existing portfolio, and growth. The
Company’s resources are allocated in-line with its strategy to ensure that DPM delivers value for all of its
stakeholders.
For further information please contact:
David Rae
President and Chief Executive Officer
Tel: (416) 365-5092
Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward looking statement s” or “forward looking in formation” (collectively,
“Forward Looking Statements”) that involve a num ber of risks and uncertainties. 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”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, “believes”, or variations of such words and
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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 thes e terms or similar expressions. The Forward Looking
Statements in this press release relate to, among other things: expected cash flows; the price of gold,
copper, silver and sulphuric acid; toll rates, metals exposure and stockpile interest deductions at Tsumeb;
the estimation of Mineral Reserves and Mineral Reso urces and the realization of such mineral estimates;
estimated capital costs, all-in sustaining costs, operating costs and other financial metrics, including those
set out in the outlook and guidance provided by the Co mpany; the timing of the completion and results of
economic studies, including the Loma Larga gold project feasibility study (“Loma Larga FS”); development
of the Loma Larga gold project, including expected produ ction, successful negotiations of an investment
protection agreement and exploitation agreement and granting of environmental and construction permits
in a timely manner; success of permitting activities; permitting timelines; the timing and amount of dividends;
the timing and number of common shares of the Com pany that may be purchased pursuant to the NCIB;
and timing and possible outcome of pending litigation or legal proceedings. Forward Looking Statements
are based on certain key assumptions and the opinions and estimates of management, as of the date such
statements are made, and they involve known and un known 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 achievem ents expressed or implied by the Forward Looking
Statements. In addition to factors already discussed in this press release, such factors include, among
others, fluctuations in metal and sulphuric acid pric es, toll rates and foreign exchange rates; continuation
or escalation of the conflict in Uk raine; risks relating to the Company’s business generally and the impact
of global pandemics, including COVID- 19, resulting in changes to the Company’s supply chain, product
shortages, delivery and shipping issues, closure and/or failure of plant, equipment or processes to operate
as anticipated, employees and contractors becoming in fected, low vaccination rates, lost work hours and
labour force shortages; regulatory changes, including changes impacting the complex concentrate market;
inability of Tsumeb to secure complex copper concentrate on terms that are economic; possible variations
in ore grade and recovery rates; inherent uncertainties in respect of conclusions of economic evaluations
and economic studies, including the Timok prelim inary feasibility study and the Loma Larga FS;
uncertainties with respect to timing of the Timok feasibility study; changes in project parameters, including
schedule and budget, as plans continue to be refined; uncertainties with respect to realizing the anticipated
benefits from the acquisition of INV Metals Inc. and the development of the Loma Larga gold project;
uncertainties with respect to actual results of current exploration activities; uncertainties and risks inherent
to developing and commissioning new mines into production, which may be subject to unforeseen delays;
uncertainties inherent with conducting business in fo reign jurisdictions where corruption, civil unrest,
political instability and unce rtainties with respect to the rule of law may impact the Company’s activities;
limitations on insurance coverage; 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; actual results of current and planned re clamation activities; opposition by social and non-
governmental organizations to mining projects and smelting operations; unanticipated title disputes; claims
or litigation; failure to achieve certain cost savings or the potent ial benefits of any upgrades and/or
expansion, including the potential rotary holding furnace installation at the Tsumeb smelter; increased costs
and physical risks, including extreme weather events and resource shortages, related to climate change;
cyber-attacks and other cybersecurity risks; there being no assurance that the Company will purchase
additional common shares of the Company under the NCIB; risks related to the implementation, cost and
realization of benefits from digital in itiatives; uncertainties with respec t to realizing the targeted MineRP
Holdings Inc. earn-outs; as well as those risk fact ors discussed or referred to in any other documents
(including without limitation the Comp any’s most recent Annual Information Form) 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. The reader has been cautioned that the fore going list is not exhaustive of all factors
which may have been used. Although the Company has a ttempted 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
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or intended. There can be no assurance that Forwar d Looking Statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements. The
Company’s Forward Looking Statements reflect current expectations r egarding future events and speak
only as of the date hereof. 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 Looking Statements.