Dundee Precious Metals Exceeds 2017 GOLD Production Guidance and Provides Notice of Fourth Quarter and Full Year 2017 Financial Results
DUNDEE PRECIOUS METALS EXCEEDS 2017 GOLD PRODUCTION GUIDANCE AND
PROVIDES NOTICE OF FOURTH QUARTER AND FULL YEAR 2017 FINANCIAL RESULTS
Toronto, Ontario, January 10, 2018 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or
“the Company”) announced its mine and smelter production results for the three months and year
ended December 31, 2017 and confirmed the timing of the release of fourth quarter and full year
2017 operating and financial results, together with the related conference call and webcast.
On a consolidated basis, Chelopech achieved record gold production in 2017 and exceeded the
Company’s 2017 guidance while copper production and complex concentrate smelted at Tsumeb
were in line with guidance.
“Chelopech has exceeded our expectations for the year, and Tsumeb is continuing to experience
increased stability from operations,” stated Rick Howes, President and CEO. “With Krumovgrad
on track to commence production in the fourth quarter of 2018, DPM is looking forward to
significant growth in gold production and free cash flow from the business.”
Production Highlights
Fourth quarter and full year 2017 mine and metals production at the Chelopech mine and complex
concentrate smelted at the Tsumeb smelter are provided below.
1. As disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended September 30, 2017 and issued on
November 7, 2017.
Chelopech gold production during the fourth quarter was higher than expected as a result of
higher grades and improved recoveries. Copper production was in line with expectations. Annual
gold production at Chelopech was above DPM’s improved 2017 guidance which was increased
twice over the course of the year. Copper production was in line with guidance.
Tsumeb’s strong operating performance in the fourth quarter is a reflection of a consistent focus
on operational excellence and higher availability of the main plants and matte holding furnace.
The annual production of 219,300 tonnes for the year , compared to the prior three years of
Chelopech
Tsumeb
Year 2017 Consolidated
Guidance 1
Q4
2017
Full
Year
Q4
2017
Full
Year
Ore milled (‘000s tonnes) 527.6 2,218.7 - - 2,040 – 2,200
Metals contained in concentrate produced
Gold (‘000s ounces) 49.4 197.7 - - 185 – 195
Copper (million pounds) 9.5 35.8 - - 35 – 39
Payable metals in concentrate sold
Gold (‘000s ounces) 48.9 172.0 154- 168
Copper (million pounds) 10.0 34.4 33 - 36
Complex Concentrate smelted (‘000s tonnes) - - 59 219.3 210 – 240
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production at approximately 200,000 tonnes per year, was in line with the midpoint of DPM’s
guidance for Tsumeb, and was achieved despite the lower availability of the high pressure oxygen
plant and seasonal power outages, which impacted smelter operations during the quarter. The
annual Ausmelt shutdown remains on sch edule for March 2018 and the focus remains on
improving availability of utility plants.
At Krumovgrad, installation of major foundations in the process plant area and remaining
earthworks relating to the construction of the Integrated Mine Waste Facility continued through
the fourth quarter, as planned. Following mobili zation of the main mech anical installation
contractor at the end of the third quarter, installation of structural steel and mechanical equipment
commenced during the quarter. The current forecasted capital cost at completion is $162 to $168
million, compared with the original estimate of $178 million, and the project remains on track for
production of first concentrate in the fourth quarter of 2018.
Fourth Quarter and Full Year Results
The Company’s fourth quarter and full year 2017 operating and financial results and 201 8
guidance are expected to be released after market close on Thursday, February 15, 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 fourth quarter and full year results on
Friday, February 16, 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 call will
be accessible via a live webcast and by telephone.
Fourth Quarter and Full Year 2017 Call and Webcast (Listen/View only)
Date: Friday, February 16, 2018
Time: 9:00 am EST
Webcast: https://edge.media-server.com/m6/p/3zjeoax2
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 3669639
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 copper concentrate containing gold and silver and a pyrite concentra te containing
gold, located east of Sofia, 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 Bulgaria, includ ing the Krumovgrad gold project, which
started construction in the fourth quarter of 2016 and is expected to commence production in the
fourth quarter of 2018, Serbia, Armenia and Canada, and its 10.4% 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
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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
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