Dundee Precious Metals Announces Third Quarter Production Results and Timing of Third Quarter 2018 Financial Results
TORONTO, Oct. 10, 2018 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or the “Company”) announced its mine and smelter production results for the three and nine months ended September 30, 2018, and confirmed the timing of the release of third quarter 2018 operating and financial results, together with the related conference call and webcast.
“We had another strong quarter at Chelopech and we achieved record quarterly smelter performance,” said Rick Howes, President and CEO. “We remain on budget with construction at our Krumovgrad gold project with hot commissioning on track to commence in the fourth quarter of 2018.”
On a consolidated basis, ore milled, metals produced and complex concentrate smelted in the first nine months of 2018 remain in line with the increased 2018 guidance provided last quarter.
Third quarter and year-to-date 2018 mine and metals production at the Chelopech mine and complex concentrate smelted at the Tsumeb smelter are provided below.
|Chelopech||Tsumeb||Year 2018 Consolidated
|Ore milled (‘000s tonnes)||578.9||1,692||-||-||2,100 – 2,200|
|Metals contained in concentrate produced|
|Gold (‘000s ounces)||49.6||155.2||-||-||180 - 200|
|Copper (million pounds)||10.3||28.1||-||-||33.7 – 40.4|
|Payable metals in concentrate sold|
|Gold (‘000s ounces)||40.3||130.1||-||-||155 - 172|
|Copper (million pounds)||10.1||26.6||-||-||31.0 – 37.0|
|Complex concentrate smelted (‘000s tonnes)||-||-||68.4||169.0||220 - 250|
|1. Updated consolidated guidance disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended June 30, 2018, issued on July 31, 2018 and available at www.sedar.com.|
Chelopech gold and copper production were as expected for the quarter. The outlook for the fourth quarter and full year 2018 remains within guidance.
The smelter treated 68,431 tonnes of complex concentrate in the quarter, setting a new record quarterly performance, surpassing the previous record set in the fourth quarter of 2016 by 12%. Production was in line with 2018 expectations, and also exceeded production achieved in the third quarter and first nine months of 2017 by 18% and 5%, respectively. This is 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. Performance was further enhanced with the introduction of converter and Ausmelt improvements including increased Ausmelt oxygen enrichment, which reduced the impact of converter relines on Ausmelt throughput. This optimization is expected to continue through the fourth quarter and annual production is expected to be within guidance.
At Krumovgrad, construction and cold commissioning of the process plant continued at a steady rate through the quarter, with hot commissioning scheduled to commence in the fourth quarter, as planned. Mining of ore and waste in the Ada Tepe pit progressed well with 93,000 tonnes of ore stockpiled to support the hot commissioning and start-up of the process plant. The forecast capital cost remains at $164 to $168 million, compared with the original estimate of $178 million.
Third Quarter Results
The Company’s third quarter 2018 operating and financial results are expected to be released after market close on Wednesday, November 7, 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 third quarter results on Thursday, November 8, 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.
|Third Quarter 2018 Call and Webcast (Listen/View only)|
|Date:||Thursday, November 8, 2018|
|Time:||9:00 am EST|
|Canada and USA Toll Free:||1-844-264-2104|
|Outside Canada or USA:||1-270-823-1169|
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 concentrate 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, including the Krumovgrad gold project, which is expected to commence hot commissioning in the fourth quarter of 2018, Canada, Serbia, and its 10.2% 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 commencement of production in respect of Krumovgrad; timing of further 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; reclamation 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 “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; 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 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 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 or 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 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 looking statements.
For further information, please contact:
DUNDEE PRECIOUS METALS INC.
Chief Executive Officer
Tel: (416) 365-2836
Manager, Investor Relations
Tel: (416) 365-2549