Dundee Precious Metals Delivers Another Strong Quarter of Production; Announces Second Quarter 2020 Preliminary Production Results
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Dundee Precious Metals Delivers Another Strong Quarter of Production;
Announces Second Quarter 2020 Preliminary Production Results
Toronto, July 8, 2020 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”) announced
strong preliminary production results from both of its mines and the smelter for the three and six months
ended June 30, 2020. The Company is on track to meet its previously issued guidance for 2020 at each of
its operations.
“We continue to prioritize the health and safety of our workforce and to provide support in our local
communities as we proactively manage the circumstances related to the global COVID-19 pandemic,” said
David Rae, President and CEO. “Despite these challenges, w e delivered another exceptional quarter of
production results at each of our three operations and continue to demonstrate the significant potential of
our portfolio in 2020.”
Production Highlights
Preliminary results for the second quarter and first half of 2020 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)
Q2 2020
Chelopech 556.0 49.1 9.4 36.7 8.5 -
Ada Tepe 224.5 32.3 - 34.1 - -
Tsumeb - - - - - 58.5
Consolidated 780.5 81.4 9.4 70.8 8.5 58.5
YTD 2020
Chelopech 1,101.8 91.7 18.8 75.5 18.0 -
Ada Tepe 458.0 62.6 - 63.6 - -
Tsumeb - - - - - 123.5
Consolidated 1,559.8 154.3 18.8 139.1 18.0 123.5
2020 full-year
guidance(1) 2,855 – 3,092 257 – 299 35 – 40 229 – 267 33 – 38 230 – 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
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Ada Tepe continued to deliver impressive performance and achieved its second consecutive quarter of
record production. Gold production increased in the second quarter to 32,300 ounces, exceeding planned
levels as a result of strong gold grades and higher volumes of ore treated.
Chelopech continued its consistent track record in the second quarter, producing approximately 49,100
ounces of gold and 9.4 million pounds of copper. Gold production, which increased compared with the first
quarter, was higher than expected due to optimization of the mining sequence which resulted in higher gold
grades to the mill and higher gold recoveries in pyrite concentrate. Copper production was as expected.
Complex concentrate smelted at the Tsumeb smelter was strong in the second quarter, processing 58,500
tonnes of complex concentrate despite a 30 -day reduction in throughput during the month of April in
response to a government request to limit staffing levels as a result of COVID-19.
Overall, as a result of strong management focus and outstanding efforts at all sites to proactively respond
to the COVID-19 pandemic, DPM continues to deliver solid operating results and remains on track to meet
previously issued 2020 guidance at each of its operations.
COVID-19 Update
To date, DPM has not experienced any material disruptions to its operations as a result of the COVID -19
pandemic. The Company continues to prioritize the health and safety of its workforce and to proactively
manage inbound and outbound supply chains.
DPM also continues to engage with local communities and authorities in Bulgaria, Namibia and Serbia as
they respond to the challenges of the pandemic. To date, DPM has contributed over US$750,000 to support
numerous initiatives to benefit local communities . This financial support has focused on local hospitals to
provide additional medical facilities, supplies, transportation and protective equipment.
Dividend
As previously announced in May 2020, and in line with its disciplined capital allocation framework, DPM will
pay a quarterly dividend of US$0.02 per share on July 15, 2020 to shareholders of record as at 5:00 p.m.
Toronto local time on June 30, 2020.
Second Quarter 2020 Operating and Financial Results
The Company plans to release its second quarter 2020 operating and financial results after market close
on Thursday, July 30, 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 Friday, July 31, 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. Participants are encouraged to dial into the call 15
minutes before its scheduled start time or to join via the audio webcast to reduce hold time in advance of
the call.
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The call-in numbers and webcast details are as follows:
Date and Time Friday, July 31, 2020
9AM EDT
Webcast link https://edge.media-server.com/mmc/p/ddaygmb3
Telephone dial-in
Toll-free (Canada and US): 1-844-402-0878
International: +1-478-219-0512
Passcode: 9089809
Replay
(available for 7 days
following the call)
Toll-Free (Canada and US): 1-855-859-2056
International: +1-404-537-3406
Passcode 9089809
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 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 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 and exploration properties located in Canada,
Serbia and Ecuador, including its 10.3% interest in Sabina Gold & Silver Corp. and its 19.4% interest in INV
Metals Inc.
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 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”,
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“estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, “believe s”, 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 ; price of gold, copper, silver and acid, toll rates, metals exposure
and stockpile interest deductions; the estimation of Mineral Reserves and Mineral Resources and the
realization of such mineral estimates; the estimated capital costs, operating costs, key project ope rating
costs and financial metrics and other project economics, including the outlook provided by the Company;
currency fluctuations; government regulation of mining and smelting operations; and the payment of
dividends. Forward Looking Statements are base d 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 plant, 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 ore grade and recovery rates; conc lusions 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 inherent to developing and commiss ioning 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 construction activities; actual resu lts of current reclamation activities; social and non -
government organizations opposition to mining projects and smelting operations; unanticipated title
disputes; claims or litigation; cyber attacks; there being no assurance that the Company will 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 rel ated 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 results and future events could dif fer 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 obli gation 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.