TORONTO, April 11, 2022 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM)(“DPM” or “the Company”) announced preliminary production results from both of its mines and smelter for the three months ended March 31, 2022. The Company confirmed that all operations are on track to meet previously issued guidance for 2022.
“The first quarter was a solid start to the year, with production at Chelopech and Ada Tepe in-line with guidance,” said David Rae, President and Chief Executive Officer. “At the end of March, we also announced an optimized life of mine plan for Chelopech, which resulted in higher gold and copper production, and an extended mine life to 2030.”
Production Highlights
Preliminary results for the first quarter are provided in the table below:
Ore processed Metals contained in concentrate produced Payable metals in concentrate sold Complex concentrate smelted
(Kt) Gold (K oz.) Copper (Mlbs) Gold (K oz.) Copper (Mlbs.)
(Kt) Q1 2022
Chelopech 540.9 41.5 7.7 36.3 6.5 -
Ada Tepe 213.7 21.4 - 21.1 - -
Tsumeb - - - - - 47.2
Consolidated 754.6 62.9 7.7 57.4 6.5 47.2
2022 full-year guidance ( 1) 2,900 – 3,100 250 – 290 32 – 37 220 – 255 28 – 32 210 – 240
(1) As disclosed in Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2021, issued on February 17, 2022 and available at www.sedar.com and at www.dundeeprecious.com.
Operational Highlights
Chelopech produced approximately 41,500 ounces of gold and 7.7 million pounds of copper in the first quarter. Gold production was above expectation, largely as a result of higher ore processed and higher gold recovery achieved in copper concentrate, partially offset by lower recoveries in pyrite concentrate. Copper production was slightly below plan due to lower copper grades. Chelopech is on track to achieve 2022 guidance.
Ada Tepe produced approximately 21,400 ounces of gold, which was above expectations for the first quarter as a result of higher gold grade. Ada Tepe is on track to achieve 2022 guidance, with grades and production expected to be stronger in the second half of the year.
The Tsumeb smelter processed approximately 47,200 tonnes of complex concentrate in the first quarter of 2022. This was below target for the quarter as a result of maintenance to the off-gas system as well as reduced baghouse capacity, which impacted throughput. Additional maintenance to both systems is expected to take place during the scheduled Ausmelt furnace maintenance, which is scheduled for the second quarter of 2022. Tsumeb is on track to meet 2022 guidance.
Chelopech Mineral Resource and Mineral Reserve Update
On March 31, 2022, DPM announced a mine life extension to 20301, an optimized life of mine (“LOM”) plan and updated Mineral Resource and Mineral Reserve estimates for the Chelopech mine. The updated LOM plan adds approximately 286,000 ounces of gold production and 47 million pounds of copper production between 2022 and 2030, relative to the previous mine plan1 reflecting higher metallurgical recoveries and improved commercial terms.
DPM filed a technical report entitled “NI 43-101 Technical Report and Mineral Reserve Update, Chelopech Mine – Chelopech, Bulgaria” with an effective date of March 31, 2022 (the “Chelopech Technical Report”), which is available on SEDAR at www.sedar.com and on the DPM website at www.dundeeprecious.com.
Update on Activities in Ecuador
As previously reported on February 24, 2022, the Company’s drilling activities at the Loma Larga project in Ecuador were paused, pending the hearing of a constitutional protective action (“the Action”) against the Ministry of Environment, Water and Ecological Transition. The original hearing date was deferred following the filing of preliminary motions, and the Company expects the hearing to commence this month. DPM is working closely with government ministries and local stakeholders that support the project in defending the Action, which the Company believes is without merit.
In parallel, DPM continues to advance its permitting activities for the project and is receiving strong support from the government to accelerate the environmental impact assessment process.
Returning Capital to Shareholders
In line with its disciplined capital allocation framework, DPM continues to return capital to shareholders through a sustainable quarterly dividend and share repurchases under its Normal Course Issue Bid. In February 2022, DPM announced a 33% increase to its quarterly dividend from US$0.03 per share to US$0.04 per share, reflecting the Company’s continued positive outlook for the business. The increase to US$0.04 per share will commence with the first quarter dividend, payable on April 18, 2022, to shareholders of record as at 5:00 p.m. Toronto local time on March 31, 2022.
During the first quarter, DPM repurchased approximately 1,489,100 common shares at an average price of Cdn$7.59 per share.
First Quarter 2022 Results
The Company plans to release its first quarter 2022 operating and financial results after market close on Wednesday, May 4, 2022. The news release, MD&A and consolidated condensed interim financial statements will be posted on SEDAR at www.sedar.com and on the Company’s website at www.dundeeprecious.com.
On Thursday, May 5, 2022, at 9 AM EDT, DPM will host a conference call and audio webcast to discuss the results, followed by a question-and-answer session.
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