Dundee Precious Metals Delivers Strong Gold Production; Announces Second Quarter 2022 Preliminary Production Results
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Dundee Precious Metals Delivers Strong Gold Production;
Announces Second Quarter 2022 Preliminary Production Results
Toronto, July 11, 2022 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”)
announced preliminary production results for the three and six months ended June 30, 2022.
“During the quarter, we continued to deliver strong operating performance at both of our mines, and we are
on-track to achieve our guidance targets for the year for gold and copper production ,” said David Rae,
President and Chief Executive Officer. “With the completion of the planned maintenance at the Tsumeb
smelter, we expect improved smelter performance over the balance of the year.”
“Permitting activities for our Loma Larga project in Ecuador continue to progress well, and at the end of
June, we achieved a key milestone with the receipt of the technical viability certificate for the filtered tailings
storage facility. We continue to engage proactively with all stakeholders to build further support for the
project.”
Production Highlights
Preliminary results for the second quarter and first half of 2022 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 2022
Chelopech 529.0 49.2 8.8 39.7 7.3 -
Ada Tepe 217.1 23.7 - 23.0 - -
Tsumeb - - - - - 21.1
Consolidated 746.1 72.9 8.8 62.7 7.3 21.1
YTD 2022
Chelopech 1,069.9 90.7 16.5 76.0 13.8 -
Ada Tepe 430.8 45.1 - 44.1 - -
Tsumeb - - - - - 68.3
Consolidated 1,500.7 135.8 16.5 120.1 13.8 68.3
2022 full-year
guidance(1) 2,900 – 3,100 250 – 290 32 – 37 220 – 255 28 – 35 210 – 240
(1) As disclosed in Management’s Discussion and Analysis (“MD&A”) for the quarter ended March 31, 2022, issued on May 4, 2022
and available at www.sedar.com and at www.dundeeprecious.com
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Chelopech delivered strong performance, producing 49,200 ounces of gold and 8.8 million pounds of
copper during the second quarter , benefitting from higher gold grades and recoveries. Chelopech is on
track to achieve its 2022 guidance.
Ada Tepe produced approximately 23,700 ounces of gold during the second quarter . Gold grades are
expected to increase in the fourth quarter as per the mine plan , and Ada Tepe is on track to achieve its
2022 guidance.
The Tsumeb smelter processed approximately 21,100 tonnes of complex concentrate during the second
quarter, reflecting unplanned downtime due to water leaks that were resolved during the planned Ausmelt
maintenance shutdown completed during the quarter . This 45-day shutdown included additional
maintenance to the off-gas and baghouse systems, which is expected to improve operational performance
moving forward.
Given the smelter’s performance in the first six month s of the year , the Company is revi ewing its 2022
guidance for Tsumeb, as complex concentrate smelted is expected to be lower than the current range with
cash cost per tonne smelted expected to increase as a result of the lower production. The Company will
issue updated guidance for the smelter with the Company’s second qu arter financial results on July 28,
2022.
Update on Activities in Ecuador
Permitting activities for Loma Larga continue to progress well , with the project receiving the technical
viability certificate for the filtered tailings storage facility at the end of June . The Citizens Participation
Process, part of the procedure to obtain the project’s environmental licence, was temporarily postponed
due to national protests which occurred in the second half of June and is expected to resume towards the
end of July. Work related to the revised feasibility study continues as planned, while drilling activities remain
suspended.
A court hearing related to the Constitutional Pro tection Action, which was filed against the Ministry of
Environment, Water and Ecological Transition as previously reported by DPM, took place on June 28, 2022,
and a decision is expected in the following weeks.
Returning Capital to Shareholders
As previously announced in May 2022, DPM will pay a quarterly dividend of US$0.04 per share on July 15,
2022 to shareholders of record as at 5:00 p.m. Toronto local time on June 30, 2022.
Second Quarter 2022 Operating and Financial Results
The Company plans to release its second quarter 2022 operating and financial results after market close
on Thursday, July 28, 2022. 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 29, 2022, DPM will host a conference call and audio webcast at 9 AM EDT to discuss the
results, followed by a question-and-answer session. To participate via conference call, register in advance
at the link below to receive the dial-in information.
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Conference call date
and time
Friday, July 29, 2022
9 AM EDT
Call registration https://register.vevent.com/register/BI4f94ff5b072642a88895762d2a7efc7f
Webcast link https://edge.media-server.com/mmc/p/z9k9aqy4
Replay Archive will be available on www.dundeeprecious.com
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 with operations and
projects located in Bulgaria, Namibia, Ecuador and Serbia. The Company’s purpose is to unlock resources
and generate value to thrive and grow t ogether. This overall purpose is supported by a foundation of core
values, which guides how the Company conducts its business and informs a set of complementary strategic
pillars and objectives related to ESG, innovation, optimizing our existing portfolio, and growth. The
Company’s resources are allocated in -line with its strategy to ensure that DPM delivers value for all of its
stakeholders. DPM’s shares are traded on the Toronto Stock Exchange (symbol: DPM).
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”,
“estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, “believes”, or variations of such w ords 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 rel ease relate to, among other things: expected cash flows; the price of gold,
copper, silver and sulphuric acid; toll rates, metals exposure and stockpile interest deductions at Tsumeb;
the estimation of Mineral Reserves and Mineral Resources and the realiza tion of such mineral estimates;
estimated capital costs, all-in sustaining costs, operating costs and other financial metrics, including those
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set out in the outlook and guidance provided by the Company; currency fluctuations; the impact of any
impairment charges; Tsumeb’s ability to continue to benefit from the Export Processing Zones Act and an
expected new Sustainable Special Economic Zone regime in Namibia; the processing of Chelopech
concentrate; timing of further optimization work at Tsumeb; potential benefits of any upgrades and/or
expansion, including the potential rotary furnace installation at the Tsumeb smelter; DPM’s strategy, plans,
targets and goals in respect of environmental, social and governance issues, including climate change,
greenhouse gas emissions reduction targets, tailings management facilities and human rights initiatives;
results of economic studies, including the Timok gold project preliminary feasibility study (“Timok PFS”) and
the Loma Larga gold project feasibility study (“Loma Larga FS”); expected milestones; success of
exploration activities; the timing of the completion and results of the feasibility study for the Timok gold
project (“Timok FS”); expectations with respect to the potential to incorporate additional existing Mi neral
Resources into the Timok mine plan by processing the sulphide portion of the mineral body; development
of the Loma Larga gold project, including expected production, successful negotiations of an investment
protection agreement and exploitation agree ment and granting of environmental and construction permits
in a timely manner; success of permitting activities; permitting timelines; success of investments, including
potential acquisitions; requirements for additional capital; measures the Company is u ndertaking in
response to the COVID-19 outbreak, including its impacts on the Company’s global supply chains, the level
of and duration of reductions or curtailments in operating levels at any of the Company’s operations or in
its exploration and developme nt activities; government regulation of mining and smelting operations;
environmental risks; reclamation expenses; potential or anticipated outcome of title disputes or claims;
benefits of digital initiatives; the timing and amount of dividends; the timing and number of common shares
of the Company that may be purchased pursuant to the NCIB; and timing and possible outcome of pending
litigation or legal proceedings. 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 fu ture 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, fluctuations in metal and sulphuric acid
prices, toll rate s and foreign exchange rates; continuation or escalation of the conflict in Ukraine; risks
relating to the Company’s business generally and the impact of global pandemics, including COVID -19,
resulting in changes to the Company’s supply chain, product shor tages, delivery and shipping issues,
closure and/or failure of plant, equipment or processes to operate as anticipated, employees and
contractors becoming infected, low vaccination rates, lost work hours and labour force shortages; regulatory
changes, incl uding changes impacting the complex concentrate market; inability of Tsumeb to secure
complex copper concentrate on terms that are economic; possible variations in ore grade and recovery
rates; inherent uncertainties in respect of conclusions of economic e valuations and economic studies,
including the Timok PFS and the Loma Larga FS; uncertainties with respect to timing of the Timok FS;
changes in project parameters, including schedule and budget, as plans continue to be refined;
uncertainties with respect to realizing the anticipated benefits from the acquisition of INV Metals Inc. and
the development of the Loma Larga gold project; uncertainties with respect to actual results of current
exploration activities; uncertainties and risks inherent 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 respect to the
rule of law may impact the Company’s activities; limitations 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 results of current and planned
reclamation activities; opposition by social and non -governmental organizations to mining projects and
smelting operations; unanticipated title disputes; claims or litigation; failure to achieve certain co st savings
or the potential benefits of any upgrades and/or expansion, including the potential rotary holding furnace
installation at the Tsumeb smelter; increased costs and physical risks, including extreme weather events
and resource shortages, related to climate change; cyber-attacks and other cybersecurity risks; there being
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no assurance that the Company will purchase additional common shares of the Company under the NCIB;
risks related to the implementation, cost and realization of benefits from digital initiatives; uncertainties with
respect to realizing the targeted MineRP Holdings Inc. earn-outs; as well as those risk factors discussed or
referred to in any other documents (including without limitation the Company’s most recent Annual
Information Fo rm) 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.