Dundee Precious Metals Announces Third Quarter Production Results and Timing of Third Quarter 2018 Financial Results
DUNDEE PRECIOUS METALS ANNOUNCES THIRD QUARTER PRODUCTION RESULTS
AND TIMING OF THIRD QUARTER 2018 FINANCIAL RESULTS
Toronto, Ontario, October 10, 2018 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or the
“Company”) announced its mine and smelter production results for the three and nine months
ended September 30, 2018, and confirmed the timing of the release of third quarter 2018
operating and financial results, together with the related conference call and webcast.
“We had another strong quarter at Chelopech and we achieved record quarterly smelter
performance,” said Rick Howes, President and CEO. “We remain on budget with construction at
our Krumovgrad gold project with hot commissioning on track to commence in the fourth quarter
of 2018.”
On a consolidated basis, o re milled, metals produced and complex concentrate smelted in the
first nine months of 2018 remain in line with the increased 2018 guidance provided last quarter.
Production Highlights
Third 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. Updated consolidated guidance disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended June 30,
2018, issued on July 31, 2018 and available at www.sedar.com.
Chelopech gold and copper production were as expected for the quarter. The outlook for the
fourth quarter and full year 2018 remains within guidance.
The smelter treated 68,431 tonnes of complex concentrate in the quarter, setting a new record
quarterly performance, surpassing the previous record set in the fourth quarter of 2016 by 1 2%.
Production was in line with 2018 expectations, and also exceeded production achieved in the third
quarter and first nine months of 2017 by 18% and 5%, respectively. This is largely attributable to
improved availability of all plants including the high pressure oxygen plant, the performance of
which has been optimized over the course of the year . Performance was further enhanced with
Chelopech Tsumeb Year 2018 Consolidated
Guidance 1
Q3
2018
YTD
2018
Q3
2018
YTD
2018
Ore milled (‘000s tonnes) 578.9 1,692 - - 2,100 – 2,200
Metals contained in concentrate produced
Gold (‘000s ounces) 49.6 155.2 - - 180 - 200
Copper (million pounds) 10.3 28.1 - - 33.7 – 40.4
Payable metals in concentrate sold
Gold (‘000s ounces) 40.3 130.1 - - 155 - 172
Copper (million pounds) 10.1 26.6 - - 31.0 – 37.0
Complex concentrate smelted (‘000s tonnes) - - 68.4 169.0 220 - 250
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the introduction of converter and Ausmelt improvements including increased Ausmelt oxygen
enrichment, which reduced t he impact of converter relines on Ausmelt throughput. This
optimization is expected to continue through the fourth quarter and annual production is expected
to be within guidance.
At Krumovgrad, construction and cold commissioning of the process plant continued at a steady
rate through the quarter, with hot commissioning scheduled to commence in the fourth quarter ,
as planned. Mining of ore and waste in the Ada Tepe pit prog ressed well with 93,000 tonnes of
ore stockpiled to support the hot commissioning and start -up of the process plant. The forecast
capital cost remains at $164 to $168 million, compared with the original estimate of $178 million.
Third Quarter Results
The Company’s third quarter 2018 operating and financial results are expected to be released
after market close on Wednesday, November 7, 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 third quarter results on Thursday,
November 8, 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 ca ll will be
accessible via a live webcast and by telephone.
Third Quarter 2018 Call and Webcast (Listen/View only)
Date: Thursday, November 8, 2018
Time: 9:00 am EST
Webcast: http://edge.media-server.com/m6/p/jzzxxc5k
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 7877996
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 op eration, 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 copper concentrate
processing facility located in Namibia. DPM also holds i nterests in a number of developing gold
and exploration properties located in Bulgaria, including the Krumovgrad gold project, which is
expected to commence hot commissioning in the fourth quarter of 2018, Canada, Serbia, 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
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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) 365-2549