TORONTO, Jan. 09, 2019 (GLOBE NEWSWIRE) -- 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 continued 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.
|
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 |
- 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
- 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 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:
Time:
Webcast:
Canada and USA Toll Free:
Outside Canada or USA:
Replay:
Replay Passcode: |
|
Wednesday, February 13, 2019
9:00 am EST
https://edge.media-server.com/m6/p/uzmfowk5 1-844-264-2104
1-270-823-1169
1-855-859-2056
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 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 production in the first quarter of 2019, Canada and Serbia, and its 10.5% 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.
Rick Howes
President and
Chief Executive Officer
Tel: (416) 365-2836
rhowes@dundeeprecious.com
Janet Reid
Manager, Investor Relations
Tel: (416) 365-2549
jreid@dundeeprecious.com