Dundee Precious Metals Exceeds 2018 GOLD Production Guidance and Provides Notice of Fourth Quarter and Full Year 2018 Financial Results
DUNDEE PRECIOUS METALS EXCEEDS 2018 GOLD PRODUCTION GUIDANCE AND
PROVIDES NOTICE OF FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS
Toronto, Ontario, January 9, 2019 – 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, 2018 and confirmed the timing of the release of fourth quarter and full year
2018 operating and financial results, together with the related conference call and webcast.
On a consolidated basis, Chelopech achieved another record year of gold production in 2018 and
exceeded the Company’s guidance while copper production was in line with guidance. Tsumeb
also achieved a record year of complex concentrate smelted and was in line with guidance.
“Chelopech exceeded expectations for the year and Tsumeb continue d to ramp up throughput
delivering strong performance,” stated Rick Howes, President and CEO. “With Krumovgrad on
budget and ready to commence concentrate production during the first quarter of 2019, DPM is
expected to deliver significant growth in gold production and free cash flow.”
Production Highlights
Fourth quarter and full year 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 September
30, 2018, issued on November 7, 2018 and available at www.sedar.com
2. Original consolidated guidance disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended December 31,
2017, issued on February 15, 2018 and available at www.sedar.com
Chelopech gold production during the quarter exceeded expectations as a result of realizing
higher gold grades and recoveries in the areas mined. Chelopech ore milled and gold production
exceeded 2018 updated guidance while copper production was in line with both the mine plan
Chelopech Tsumeb
Year 2018 Improved
Consolidated
Guidance 1
Year 2018 Original
Consolidated
Guidance 2
Q4
2018
Full
Year
Q4
2018
Full
Year
Ore milled (‘000s tonnes) 524.7 2,216.8 - - 2,150 – 2,200 2,100 – 2,200
Metals contained in
concentrate produced
Gold (‘000s ounces) 45.8 201.1 - - 190 - 200 165 - 195
Copper (million pounds) 8.6 36.7 - - 35.0 – 38.0 33.7 – 40.4
Payable metals in
concentrate sold
Gold (‘000s ounces) 33.5 163.6 - - 161 - 170 140 - 170
Copper (million pounds) 7.1 33.7 - - 31.0 – 37.0 31.0 – 37.0
Complex concentrate
smelted (‘000s tonnes) - - 63.1 232.0 230 - 250 220 - 250
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and guidance. Payable metals in concentrate sold in the quarter were lower than metals contained
in concentrate produced largely due to timing of deliveries.
Tsumeb delivered another strong quarter , with concentrate smelted just below the record third
quarter performance due to certain required maintenance of the smelter and ancillary units.
Annual production was in line with 2018 expectations and met the improved guidance issued in
the third quarter. This was 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. Work continues on further operating improvements, and to move to an 18 month Ausmelt
operating cycle in 2019 and to 24 months in the next campaign.
At Krumovgrad, construction and commissioning of the process plant continued at a steady rate
through the fourth quarter, with start-up of the SAG mill under no-load condition occurring late in
the quarter. Introduction of ore to the process plant is expected in mid first quarter 2019, with
production of first concentrate expected in the second half of the first quarter. Mining of ore and
waste in the Ada Tepe pit progressed well with 158,000 tonnes of ore stockpiled to support the
start-up of the process plant and the mined waste directed to the integrated mine waste facility
for construction of the initial tailings cells. The forecast capital cost remains at $164 to $168
million, compared with the original estimate of $178 million.
Fourth Quarter and Full Year Results
The Company’s fourth quarter and full year 2018 operating and financial results are expected to
be released after market close on Tuesday, February 12, 2019. 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
Wednesday, February 13, 2019 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 2018 Call and Webcast (Listen/View only)
Date: Wednesday, February 13, 2019
Time: 9:00 am EST
Webcast: https://edge.media-server.com/m6/p/uzmfowk5
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 2657126
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 production in the first quarter of 2019, Canada and Serbia, and its 10.5%
interest in Sabina Gold & Silver Corp.
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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 furthe r optimization work at
Tsumeb and potential benefits of the rotary furnace 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 estimated 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 permitting activities;
permitting time lines; currency fluctuations; requirements for additional capital; government
regulation of mining and smelting operations; environmental risks; recl amation expenses;
potential or anticipated outcome of title disputes or 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 “d oes 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, am ong 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; failure 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 financin g 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 foreign
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 o r referred to in the Company’s MD&A under
the heading “Risks and Uncertainties” 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 ev ents 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
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change. Acco rdingly, readers are cautioned not to place undue reliance on forward looking
statements.
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