Dundee Precious Metals Announces Second Quarter 2018 Production Results
DUNDEE PRECIOUS METALS ANNOUNCES
SECOND QUARTER 2018 PRODUCTION RESULTS
Toronto, Ontario, July 11, 2018 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the
Company”) announced its mine and smelter production results for the three and six months ended
June 30, 2018 and confirmed the timing of the release of second quarter 2018 operating and
financial results, together with the related conference call and webcast.
“We had another strong quarter at Chelopech and continue to improve performance at Tsumeb,”
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.”
Chelopech gold production is trending toward the upper end of the 2018 guidance range while
copper production remains in line with 2018 guidance. C oncentrate smelted at Tsume b is also
tracking in line with the Company’s 2018 guidance.
Production Highlights
Second quarter and year-to-date 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.
Chelopech gold production was higher than expected in the second quarter as a result of higher
gold grades in the zones mined. Similarly, copper production was slightly lower than expected as
a result of the same stope sequence changes that led to higher gold production. Payable metals
in concentrate sold were higher than metals contained in concent rate produced due to timing of
deliveries. Chelopech gold production is trending toward the upper end of the 2018 guidance
range while copper production remains in line with 2018 guidance.
At Tsumeb, t he 24 day annual shutdown was successfully executed as scheduled and
concentrate smelted during the period was in line with expectations. The annual shutdown had
Chelopech
Tsumeb
Year 2018 Consolidated
Guidance 1
Q2
2018
YTD
2018
Q2
2018
YTD
2018
Ore milled (000s tonnes) 555 1,113 - - 2,100 – 2,200
Metals contained in concentrate produced
Gold (‘000s ounces) 48 106 - - 165 – 195
Copper (million pounds) 8.5 17.8 - - 33.7 – 40.4
Payable metals in concentrate sold
Gold (‘000s ounces) 55 90 - - 140 – 170
Copper (million pounds) 10.4 16.5 - - 31.0 – 37.0
Complex concentrate smelted (‘000s tonnes) - - 46.4 100.5 220 – 250
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been deferred from March to May due to a significantly improved refractory campaign of 15
months representing both a time and tonnage record. The smelter is now targeting an 18 month
life for the current campaign which is expected to lead to further improved performance. Full year
concentrate throughput is expected to be within guidance.
At Krumovgrad, construction continues, with the start of cold commissioning of the process plant
area and commencement of mining operations occurring during the quarter, as planned.
Mechanical and electrical installation continued at a steady rate through the quarter, and first
concentrate production remains on track for late fourth quarter of 2018. The forecast capital cost
remains at $164 to $168 million, compared with the original estimate of $178 million.
Second Quarter 2018 Results
The Company’s second quarter 2018 operating and financial results are expected to be released
after market close on Tuesday, July 31, 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 second quarter results on Wednesday,
August 1, 2018 at 9:00 am E DT. 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.
Second Quarter 2018 Call and Webcast (Listen/View only)
Date: Wednesday, August 1, 2018
Time: 9:00 am EDT
Webcast: https://edge.media-server.com/m6/p/3xxc3qbx
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 6287927
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 coppe r 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 develop ing 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 i ts 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
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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
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