Record Financial and Operating 2021 Results (All monetary figures are expressed in U.S. dollars unless otherwise stated)
TORONTO, Feb. 17, 2022 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or the “Company”) today announced its operating and financial results for the fourth quarter and twelve months ending December 31, 2021. All operational and financial information contained in this news release are related to continuing operations, unless otherwise stated.
Highlights:
- Record gold production – Produced a record 309,965 ounces of gold, at the upper end of 2021 guidance. Copper production of 34.7 million pounds was in line with 2021 guidance;
- Strong cost performance at all operations – Reported cost of sales of $359.9 million, and an all-in sustaining cost per ounce of gold of $657 and a cash cost per tonne of complex concentrate smelted of $479, in line with 2021 guidance;
- Record free cash flow – Generated a record $253.1 million in cash provided from operating activities and a record $252.4 million of free cash flow;
- Record adjusted net earnings – Generated net earnings attributable to common shareholders from continuing operations of $190.7 million and record adjusted net earnings of $202.0 million or $1.09 per share;
- Growing financial strength – Ended the year with $334.4 million in cash, an investment portfolio of $48 million, an undrawn $150 million long-term revolving credit facility (“RCF”) and no debt;
- Returning capital to shareholders – Declared 2022 first quarter dividend of $0.04 per common share payable on April 18, 2022 to shareholders of record on March 31, 2022. For 2021, dividends distributed totalled $22.4 million ($0.12 per share) and common shares repurchased totalled $10.4 million for an aggregate of $32.8 million of capital returned to shareholders, representing 13% of free cash flow;
- Strong sustainability performance – Scored in the 91st percentile for ESG performance among companies in the metals and mining industry in the 2021 S&P Global Corporate Sustainability Assessment.
- Strong 2022 guidance and three-year outlook – Expected gold production of between 250,000 and 290,000 ounces in 2022 at an all-in sustaining cost of between $750 and $890 per ounce of gold, with continued solid production in 2023 and 2024 as outlined in the three-year outlook.
- Board refreshment process – As part of the Board of Director’s ongoing succession and refreshment process, Jonathan Goodman, Chair of DPM’s Board since 2013, will not stand for re-election at the 2022 Annual Meeting of Shareholders (“Annual Meeting”). The Board has determined that Peter Gillin, currently serving as Deputy Chair, will assume the Chair position, subject to his re-election at the Annual Meeting.
“Overall, 2021 was another very strong year for DPM as we delivered record annual gold production for the third consecutive year and generated record free cash flow of $252 million. Earlier in the year, we increased Mineral Reserves and extended mine life at Chelopech, and added the high-quality Loma Larga project to our portfolio.” said David Rae, President and Chief Executive Officer.
“We also continue to deliver on our ESG priorities and scored in the 91st percentile among mining and metals companies in the S&P Global Corporate Sustainability Assessment, a strong independent validation of our efforts in this important area.
“With a solid production profile, significant free cash flow generation and a strong balance sheet, DPM is well-positioned to continue delivering value for our stakeholders.
“On behalf of the Board and DPM management, I would like to acknowledge and thank Jonathan Goodman for the pivotal contributions he has made since 2003 in his capacity as founder, shareholder, CEO, and now as Chair of DPM’s Board of Directors. Starting with the acquisition of the Company’s Bulgarian assets and their transformation into world class operations, Jonathan has been an integral part of DPM’s growth into the leading environmentally and socially responsible mid-tier producer we are today.
“His strong leadership and guidance over the years established a strong foundation for the Company’s values, which has been critical to our success and will continue to serve us well going forward.”
“I am extremely proud of what we accomplished at DPM since the Company was founded in 2003,” said Jonathan Goodman, Chair of the Board of Directors. “I believe we have built an exceptional company with a promising future, consisting of world-class assets, strong partnerships with stakeholders and a very unique culture. I have full confidence that DPM’s Board and management will continue to build on these successes to deliver value for all stakeholders.”
Dundee Precious Metals Delivers Record Financial and Operating 2021 Results; Three-Year Outlook Highlights Strong Production and Cost Profile