TORONTO, ONTARIO -- (Marketwired) -- 04/12/17 -- Dundee Precious Metals Inc. (TSX: DPM) ("DPM" or "the Company") announced its mine and smelter production results for the three months ended March 31, 2017 and confirmed the timing of the release of first quarter 2017 operating and financial results, together with the related conference call and webcast.
"We continue to make good progress on smelter optimization and remain on track with construction at the Krumovgrad gold project," said Rick Howes, President and CEO. "With the advance of the refractory reline at the Ausmelt by one quarter, we identified an opportunity to benefit from an early introduction of the matte holding furnace that will serve to improve performance at the smelter starting in the second quarter of 2017."
Ore milled and metals production in the first quarter 2017 were in line with the Company's 2017 guidance.
Production Highlights
First quarter 2017 mine and metals production at the Chelopech mine and complex concentrate smelted at the Tsumeb smelter are provided below.
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Year 2017
Consolidated
Chelopech Tsumeb Consolidated Guidance (1)
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Q1 2017 Q1 2017 Q1 2017
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Ore milled ('000s tonnes) 540.6 - 540.6 2,040 - 2,200
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Metals contained in
concentrates produced
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Gold ('000s ounces) 46.4 - 46.4 157 - 174
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Copper (million pounds) 8.2 - 8.2 33.7 - 37.0
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Payable metals in
concentrates sold
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Gold ('000s ounces) 43.5 - 43.5 135 - 150
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Copper (million pounds) 8.3 - 8.3 32.0 - 35.0
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Complex Concentrate smelted
('000s tonnes) - 41.6 41.6 210 - 240
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1. As disclosed in Management's Discussion and Analysis ("MD&A") for the
period ended December 31, 2016 and issued on February 15, 2017.
First quarter Chelopech gold and copper production was in line with the 2017 mine plan. Near-term, it is expected that the mining sequence will result in higher gold and copper production in copper concentrate as a result of mining higher grade zones in the planned mining sequence for 2017. Chelopech remains on track to achieve 2017 guidance.
At the Tsumeb smelter, the first quarter throughput was impacted by the advancement of the Ausmelt shutdown into February from the original May-June timing to correct accelerated refractory wear. Aligning the Ausmelt shutdown with the first converter relines, scheduled for February, allows the smelter to advance the installation of the holding furnace which is expected to reduce the impact of the next converter relines on Ausmelt performance. Good progress was made on converter and Ausmelt optimization through the quarter.
At Krumovgrad, earthworks continue to progress in accordance with the project plan, with first concrete forecast to be poured in April as planned, and consistent with the project schedule to commence operations in late 2018. In addition, the previously announced C$43.7 million strategic equity investment by the European Bank for Reconstruction and Development closed on January 24, 2017. Proceeds will be used for the construction of the Krumovgrad Project and will serve to further strengthen the Company's financial position and flexibility during the construction phase of this project.
First Quarter Results
The Company's first quarter 2017 operating and financial results are expected to be released after market close on Wednesday, May 3, 2017. 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 first quarter results on Thursday, May 4, 2017 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.
First Quarter 2017 Call and Webcast (Listen/View only)
Date: Thursday, May 4, 2017 Time: 9:00 am EST Webcast: http://edge.media-server.com/m/p/af384njn Canada and USA Toll Free: 1-866-223-7781 Outside Canada or USA: 416-340-2216 Replay: 905-694-9451 Replay Passcode: 8804791#
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, Serbia, and northern Canada, including the Krumovgrad gold project, which started construction in the fourth quarter of 2016 and is expected to commence production in the fourth quarter of 2018, and its 10.7% 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 future price of gold, copper, zinc, silver and acid, future toll rates, the estimation of mineral reserves and resources, 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 cash measures, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, success of permitting activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, the 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 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; future prices of gold, copper, zinc, silver and acid; future toll rates; 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; 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 2016 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. 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.
Contacts:
Dundee Precious Metals Inc.
Rick Howes
President and Chief Executive Officer
(416) 365-2836
rhowes@dundeeprecious.com
Dundee Precious Metals Inc.
Lori Beak
Senior Vice President, Governance, and Corporate Secretary
(416) 365-5165
lbeak@dundeeprecious.com
