Dundee Precious Metals Delivers Another Strong Operational Quarter; Announces First Quarter 2020 Preliminary Production Results
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Dundee Precious Metals Delivers Another Strong Operational Quarter;
Announces First Quarter 2020 Preliminary Production Results
Toronto, April 9, 2020 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”)
announced strong preliminary production results from both of its mines and smelter for the three months
ended March 31, 2020 . The Company is on track to meet its previously issued guidance for 2020 at
each of its operations.
“DPM delivered exceptional first quarter production results at each of our three operations for a strong
start to the year,” said Rick Howes, President and CEO. “We continue to manage the evolving COVID-
19 situation by prioritizing the health and safety of our workforce and local communities as well as
striving to maintain the continuity of our operations.”
Production Highlights
Preliminary results for the first quarter are provided in the table below:
Chelopech Ada Tepe Tsumeb
Consolidated
Q1 2020 2020 full-year
guidance(1)
Ore processed (000s tonnes) 545.8 233.5 - 779.3 2,855 – 3,092
Metals contained in concentrate produced
Gold (000s ounces) 42.7 30.3 - 73.0 257 – 299
Copper (million pounds) 9.4 - 9.4 35 – 40
Payable metals in concentrate sold
Gold (000s ounces) 38.8 29.5 - 68.3 229 – 267
Copper (million pounds) 9.5 - - 9.5 33 – 38
Complex concentrate smelted
(000s tonnes) - - 65 65 230 – 265
(1) As disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended December 31, 2019, issued on
February 13, 2020 and available at www.sedar.com and at www.dundeeprecious.com
Ada Tepe delivered strong performance, achieving its highest quarterly gold production to date. Gold
production and treatment for the first quarter exceeded planned levels, and the plant operated at design
specifications.
Chelopech continued its consistent track record in the first quarter, with gold production in line with
expectations. Copper production was slightly below plan due to lower than expected grades and
recoveries.
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The Tsumeb smelter processed 65,010 tonnes of complex concentrate, its second highest quarterly
production ever. This represents a significant increase from the previous quarter as the operation
ramped-up following the annual maintenance completed during the fourth quarter of 2019.
Overall, as a result of strong management focus and outstanding efforts at all sites to proactively
respond to the COVID-19 pandemic, DPM delivered solid first quarter operating results and is on track
to meet previously issued 2020 guidance.
COVID-19 Update
To date, DPM has not experienced any material disruptions to its operations as a result of the COVID -
19 pandemic . As previously disclosed on April 2, 2020, operations at certain ancillary areas of the
Tsumeb smelter were reduced in cooperation with the government of Namibia’s directive to temporarily
limit staffing in response to COVID -19. This resulted in a 20% reduction in concentrate treatment as
from April 2, 2020.
The Company continues to prioritize the health and safety of its workforce and proactively manage
inbound and outbound supply chai ns. DPM also continues to engage with local communities and
authorities to provide support.
The Company has implemented procedures and contingency plans in response to the pandemic, is
monitoring the situation closely and will continue to develop additional measures as needed.
Dividend
As previously announced in February 2020, and in line with its disciplined capital allocation framework,
DPM will pay its inaugural quarterly dividend of US$0.02 per share on April 15, 2020 to shareholders of
record as at 5:00 p.m. Toronto local time on Ma rch 31, 2020. For Canadian shareholders, the U.S.
dollar dividend payment will be converted to Canadian dollars using the spot price exchange rate on
April 14, 2020.
Chelopech Technical Report
On March 30, 2020, DPM filed a technical report for its Chelo pech mine in Bulgaria under National
Instrument 43-101 “Standards of Disclosure for Mineral Projects ” (“NI 43 -101”). The purpose of the
report was to support the updated Mineral Reserve and Mineral Resource Estimate for Chelopech. The
report can be found on the Company’s website at www.dundeeprecious.com and under the Company’s
profile at www.sedar.com.
Chelopech successfully added 1.0 million tonnes of Mineral Reserves, largely as a result of new stope
designs and the redesign of existing stopes, which partially offset production depletion of 2.2 million
tonnes for a net reduction of 1.2 million tonnes . Proven and Probable Mineral Rese rves at Chelopech
are currently 1.6 million ounces of gold and 336 million pounds of copper, supporting an eight-year mine
life.
Measured and Indicated Mineral Resources increased by 1.7 million tonnes, a 14% increase year-over-
year. With 1.3 million ounces of gold and 296 million pounds of copper in Measured and Indicated
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Mineral Resource categories, there is strong potential to continue extending mine life at Chelopech, as
the Company has done over the last 11 years of production.
First Quarter 2020 Results
The Company plans to release its first quarter 2020 operating and financial results after market close
on Wednesday May 6, 2020 . 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.
On Thursday, May 7, 2020 at 9 AM EDT, DPM will host a conference call and audio webcast to discuss
the results, followed by a question-and-answer session. The call-in numbers and webcast details are as
follows:
Date and Time Thursday, May 7, 2020
9AM EDT
Webcast link https://edge.media-server.com/mmc/p/m9prz58r
Telephone dial-in
(listen only)
Toll-free (Canada and US): 1-844-264-2104
International: +1-270-823-1169
Passcode: 8050229
Replay
(available for 7 days
following the call)
Toll-Free (Canada and US): 1-855-859-2056
International: +1-404-537-3406
Passcode 8050229
Virtual Annual Meeting of Shareholders
DPM’s Annual Meeting of Shareholders will be held on Thursday, May 7, 2020 at 4PM EDT. This year,
in light of the COVID-19 pandemic, the Company has elected to hold the meeting via live audio webcast
in line with government guidel ines to limit gatherings and to prioritize the health and safety of our
shareholders, employees and oth er stakeholders. Materials for the meeting, including a user guide for
accessing the virtual meeting, are available on our website at:
https://www.dundeeprecious.com/English/Investors/Disclosure-and-Reporting/default.aspx#quarterly-
section.
The details for the meeting, including the link to the audio webcast, are as follows:
Date and Time Thursday, May 7, 2020
4PM EDT
Webcast https://web.lumiagm.com/292644623
Technical Information
The Mineral Resource and Mineral Reserve estimates for Chelopech and other scientific and technical
information which supports this press release was prepared by Petya Kuzmanova, MIMMM, CSci,
Senior Resource Geologist, of the Company, under the guidance of CSA Global (UK) Ltd. (“CSA”), in
accordance with Canadian regul atory requirements set out in NI 43 -101, and were reviewed and
approved by, as relates to Mineral Resources, Maria O’Connor, BSc, MAusIMM, MAIG, Manager
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Resources – EMEA of CSA, and as relates to Mineral Reserves, Karl van Olden, BSc (Eng), GDE, MBA,
FAusIMM, Mining Manager of CSA. All are Qualified Persons (“QP”) as defined under NI 43-101. Maria
O’Connor and Karl van Olden are independent of the Company, and Petya Kuzmanova is not
independent of the Company.
Ross Overall, Corporate Mineral Resource Manager of the Company, who is a QP as defined under NI
43-101, has reviewed and approved the contents of this press release.
About Dundee Precious Metals Inc.
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 gold -copper
concentrate containing gold, copper and silver and a pyrite concentrate containing gold, located east of
Sofia, Bulgaria; the Ada Tepe operations, 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 and exploration properties
located in Canada, Serbia and Ecuador, including its 10.4% interest in Sabina Gold & Silver Corp. and
its 19.5% interest in INV Metals Inc.
For further information please contact:
Rick Howes
President and Chief Executive Officer
Tel: (416) 365-2836
David Rae
Executive Vice President and Chief Operating 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 statements” or “forward looking information” (collectively,
“Forward Looking Statements”) that involve a number 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
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 these terms or similar expressions. The Forward
Looking Statements in this press release relate to, among other things: measures the Company is
undertaking in response to the COVID -19 (coronavirus) outbreak, including its impacts across the
Company on demand, operations and its global supply chains, and in particular, the level of and timing
for reductions at the operations in Tsumeb and the expected impact on future production from Tsumeb;
price of gold, copper, silver and acid, toll rates, metals exposure and stockpile interest deductions; the
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estimation of Mineral Reserves and Mineral Resources and the realization of such mineral estimates;
the estimated capital costs, operating costs, key project operating costs and financial metrics and other
project economics, including the outlook provided by the Company; currency fluctuations; the impact of
any impairment charges; the processing of Chelopech concentrate; success of exploration activities;
government regulation of mining and smelting operations; the payment of dividends; and the timing and
number of common shares of the Company that may be purchased pursuant to the normal course issuer
bid. 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 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 press release, such factors include, among others, risks relating to the Company’s business
generally and as magnified by the impact of COVID -19, including, changes to the Company’s supply
chain; product shortages; delivery and shipping issues; closures and/or failure of pla nt, equipment or
processes to operate as anticipated; employees and contractors becoming infected with COVID-19; lost
work hours; labour force shortages; fluctuations in metal and acid prices, toll rates and foreign exchange
rates; possible variations in o re grade and recovery rates; conclusions of economic evaluations and
economic studies; changes in project parameters as plans continue to be refined; uncertainties with
respect to actual results of current exploration activities; uncertainties and risks i nherent to developing
and commissioning new mines into production, which may be subject to unforeseen delays;
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; limitation
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 con struction
activities; actual results of current reclamation activities; social and non -government organizations
opposition to mining projects and smelting operations; unanticipated title disputes; claims or litigation;
cyber attacks; whether the Company wi ll purchase additional common shares of the Company under
the normal course issuer bid; risks related to the implementation, cost and realization of benefits from
digital initiatives; failure to realize projected financial results from MineRP Holdings Inc.; risks related 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 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 res ults 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.