Dundee Precious Metals Announces Second Quarter 2019 Production Results and Provides Notice of Second Quarter 2019 Financial Results
DUNDEE PRECIOUS METALS ANNOUNCES SECOND QUARTER 2019 PRODUCTION
RESULTS AND PROVIDES NOTICE OF SECOND QUARTER 2019 FINANCIAL RESULTS
Toronto, Ontario, July 10, 2019 – 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, 20 19 and confirmed the timing of the release of second quarter 2019 operating and
financial results, together with the related conference call and webcast.
“Chelopech and Tsumeb production are in line with 2019 guidance,” stated Rick Howes, President
and CEO. “Following our achievement of commercial production at Ada Tepe during the quarter,
we are currently ramping-up to design capacity.”
Production Highlights
Second quarter and year-to-date 2019 ore milled and metals produced at Chelopech and Ada
Tepe as well as complex concentrate smelted at the Tsumeb smelter are provided below .
Chelopech and Tsumeb are on track to achieve annual guidance, while at Ada Tepe (formerly
referred to as the Krumovgrad project) guidance has been reduced following longer than expected
construction of subsequent cells for the integrated mine waste facility (“IMWF”). The construction
of subsequent cells is progressing well and this initial constraint is expected to be released in
August as outlined further below.
1. As disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended December 31, 2018, issued on February
12, 2019 and available at www.sedar.com.
Gold production at Chelopech was as expected and higher than the first quarter as a result of
mining in higher grade zones. Copper production was in line with the mine plan and Chelopech
remains on track to achieve 2019 guidance.
Tsumeb processed 61,667 tonnes of concentrate during the second quarter . Year-to-date, the
smelter has processed 124,489 tonnes of concentrate and full year performance is expected to
Chelopech Ada Tepe Tsumeb Consolidated
2019 Updated
Consolidated
Guidance
2019 Original
Consolidated
Guidance(1)
Q2
2019
YTD
2019
Q2
2019
YTD
2019
Q2
2019
YTD
2019
Q2
2019
YTD
2019
Ore milled (000s
tonnes) 554.0 1,106 98.7 98.7 - - 652.7 1,204 2,542 – 2,662 2,540 – 2,790
Metals contained in concentrate produced
Gold (‘000s ounces) 47.1 90.1 5.4 5.4 - - 52.4 95.5 200 – 247 210- 262
Copper (million
pounds) 9.1 17.1 - - - - 9.1 17.1 33 – 39 33 - 39
Payable metals in concentrate sold
Gold (‘000s ounces) 41.4 80.9 0.4 0.4 - - 41.8 81.3 180 – 221 191 - 237
Copper (million
pounds) 10.2 16.5 - - - - 10.2 16.5 32 – 37 32 - 37
Complex Concentrate
smelted (‘000s tonnes) - - - - 61.7 124.5 61.7 124.5 225 – 250 225 - 250
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be within guidance. 255,981 tonnes of concentrate were treated over the most recent four
quarters which is a new record for the smelter, demonstrating the continuity in improve d
performance. 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.
The Ada Tepe mine reached a major milestone achieving commercial production during the
second quarter, although production at the mine and mill was lower than planned in the quarter
as it was constrained by longer than expected tailings settlement time, wh ich delayed the
construction of the subsequent cells of the IMWF. Despite mine and mill downtime taken during
this period, Ada Tepe demonstrated the ability to achieve design capacity and recoveries , and
produced 5,400 ounces of gold in the quarter. Following the construction of the next cells of the
IMWF during July and August, this initial constraint is expected to be released as multiple cells
can be constructed, allowing the operation to ramp-up to its design capacity which is still expected
to occur in the third quarter. There is additional operating flexibility with the mill feed during this
ramp-up phase given certain high grade stockpiles. As such, 2019 gold production guidance for
Ada Tepe has been revised to 45,000 – 60,000 ounces down from original guidance of 55,000 –
75,000 ounces. Following the declaration of commercial production in June, the Company is now
able to seek its formal operating permit for Ada Tepe from the Bulgarian authorities which it
expects to receive in the third quarter of this year.
Second Quarter and Year-to-date 2019 Results
The Company’s second quarter and year -to-date 2019 operating and financial results are
expected to be released after market close on Tuesday, July 30, 2019. 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,
July 31, 2019 a t 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, tog ether with other members of the executive management team. The call will be
accessible via a live webcast and by telephone.
Second Quarter and YTD 2019 Call and Webcast (Listen/View only)
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 Te pe operation, 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 a nd exploration properties located in Canada and Serbia, and its
10.3% interest in Sabina Gold & Silver Corp.
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Cautionary Note Regarding Forward Looking Statements
Certain statements and other information included in this press release and our other disclosure
documents constitute “forward looking statements” or “forward looking information” within the
meaning of applicable securities legislation, which we refer to collectively hereinafter as “Forward
Looking Statements”. Forward Looking Statements ar e statements that are not historical facts
and are generally, 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 certa in actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved. The Forward looking statements in this
press release relate to, among other things: certain statements with respect to the timing of a
planned maintenance shutdown at Tsumeb; the ramp up to design capacity at Ada Tepe; and the
timing and amount of estimated future production and output. 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, 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. In addition to factors already discussed in this document, such factors
include, among others: any prolonged downtime or shutdowns at the Company’s mining and
processing facilities which could have a material adverse impact on the Company’s business,
financial condition and results of operations ; possible variations in ore grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; uncertainties and risks inherent to developing and
commissioning new mines into production, such as Ada Tepe, which may be subject to
unforeseen delays, costs or other issues; 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; social and no n-governmental organizations
opposition to mining projects; fluctuations in metal and acid prices, toll rates and foreign exchange
rates; unanticipated title disputes; claims or litigation; limitation on insurance coverage; cyber -
attacks; differences in U.S. and Canadian practices for reporting Mineral Reserves and Mineral
Resources; lack of suitable infrastructure or damage to existing infrastructure; delays in obtaining
or failure to obtain government permits, or non -compliance with permits; as well as th ose risk
factors discussed or referred to in any other documents (including without limitation the
Company’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 foregoing list is not exhaustive of all
factors which may have been used. 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. The Company’s Forward Looking Statements reflect
current expectations regarding 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.
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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) 365-2549