Dundee Precious Metals Delivers Another Strong Operational Quarter; Announces First Quarter 2020 Preliminary Production Results

Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”) announced strong preliminary production results from both of its mines and smelter for the three months ended March 31, 2020. The Company is on track to meet its previously issued guidance for 2020 at each of its operations.

“DPM delivered exceptional first quarter production results at each of our three operations for a strong start to the year,” said Rick Howes, President and CEO. “We continue to manage the evolving COVID19 situation by prioritizing the health and safety of our workforce and local communities as well as striving to maintain the continuity of our operations.”

Production Highlights

Preliminary results for the first quarter are provided in the table below:

ChelopechAda TepeTsumebConsolidated
Q1 20202020 full-year
guidance(1)
Ore processed (000s tonnes)545.8233.5779.32,855 – 3,092
Metals contained in concentrate produced    
Gold (000s ounces)42.730.373.0257 – 299
Copper (million pounds)9.4 9.435 – 40
Payable metals in concentrate sold    
Gold (000s ounces)38.829.568.3229 – 267
Copper (million pounds)9.59.533 – 38
Complex concentrate smelted
(000s tonnes)
6565230 – 265

(1)    As disclosed in Management’s Discussion and Analysis (“MD&A”) for the period ended December 31, 2019, issued on February 13, 2020 and available at www.sedar.com and at www.dundeeprecious.com

Ada Tepe delivered strong performance, achieving its highest quarterly gold production to date. Gold production and treatment for the first quarter exceeded planned levels, and the plant operated at design specifications.

Chelopech continued its consistent track record in the first quarter, with gold production in line with expectations. Copper production was slightly below plan due to lower than expected grades and recoveries.

The Tsumeb smelter processed 65,010 tonnes of complex concentrate, its second highest quarterly production ever. This represents a significant increase from the previous quarter as the operation ramped-up following the annual maintenance completed during the fourth quarter of 2019.

Overall, as a result of strong management focus and outstanding efforts at all sites to proactively respond to the COVID-19 pandemic, DPM delivered solid first quarter operating results and is on track to meet previously issued 2020 guidance.

COVID-19 Update

To date, DPM has not experienced any material disruptions to its operations as a result of the COVID-19 pandemic. As previously disclosed on April 2, 2020, operations at certain ancillary areas of the Tsumeb smelter were reduced in cooperation with the government of Namibia’s directive to temporarily limit staffing in response to COVID-19. This resulted in a 20% reduction in concentrate treatment as from April 2, 2020.

The Company continues to prioritize the health and safety of its workforce and proactively manage inbound and outbound supply chains. DPM also continues to engage with local communities and authorities to provide support.

The Company has implemented procedures and contingency plans in response to the pandemic, is monitoring the situation closely and will continue to develop additional measures as needed. 

Dividend

As previously announced in February 2020, and in line with its disciplined capital allocation framework, DPM will pay its inaugural quarterly dividend of US$0.02 per share on April 15, 2020 to shareholders of record as at 5:00 p.m. Toronto local time on March 31, 2020.  For Canadian shareholders, the U.S. dollar dividend payment will be converted to Canadian dollars using the spot price exchange rate on April 14, 2020.

Chelopech Technical Report

On March 30, 2020, DPM filed a technical report for its Chelopech mine in Bulgaria under National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”).  The purpose of the report was to support the updated Mineral Reserve and Mineral Resource Estimate for Chelopech. The report can be found on the Company’s website at www.dundeeprecious.com and under the Company’s profile at www.sedar.com.

Chelopech successfully added 1.0 million tonnes of Mineral Reserves, largely as a result of new stope designs and the redesign of existing stopes, which partially offset production depletion of 2.2 million tonnes for a net reduction of 1.2 million tonnes. Proven and Probable Mineral Reserves at Chelopech are currently 1.6 million ounces of gold and 336 million pounds of copper, supporting an eight-year mine life.

Measured and Indicated Mineral Resources increased by 1.7 million tonnes, a 14% increase year-over-year. With 1.3 million ounces of gold and 296 million pounds of copper in Measured and Indicated Mineral Resource categories, there is strong potential to continue extending mine life at Chelopech, as the Company has done over the last 11 years of production.

First Quarter 2020 Results

The Company plans to release its first quarter 2020 operating and financial results after market close on Wednesday May 6, 2020. The news 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.

On Thursday, May 7, 2020 at 9 AM EDT, DPM will host a conference call and audio webcast to discuss the results, followed by a question-and-answer session. The call-in numbers and webcast details are as follows:

Date and TimeThursday, May 7, 2020, 9 A.M. EDT
Webcast linkhttps://edge.media-server.com/mmc/p/m9prz58r
Telephone dial-in
(listen only)
Toll-free (Canada and US): 1-844-264-2104
International: +1-270-823-1169
Passcode: 8050229
Replay
(available for 7 days
following the call)
Toll-Free (Canada and US): 1-855-859-2056
International: +1-404-537-3406
Passcode 8050229
Virtual Annual Meeting of Shareholders

DPM’s Annual Meeting of Shareholders will be held on Thursday, May 7, 2020 at 4PM EDT.  This year, in light of the COVID-19 pandemic, the Company has elected to hold the meeting via live audio webcast in line with government guidelines to limit gatherings and to prioritize the health and safety of our shareholders, employees and other stakeholders. Materials for the meeting, including a user guide for accessing the virtual meeting, are available on our website at:
https://www.dundeeprecious.com/English/Investors/Disclosure-and-Reporting/default.aspx#quarterly-section

The details for the meeting, including the link to the audio webcast, are as follows: 

Date and TimeThursday, May 7, 2020
4PM EDT
Webcasthttps://web.lumiagm.com/292644623
Technical Information

The Mineral Resource and Mineral Reserve estimates for Chelopech and other scientific and technical information which supports this press release was prepared by Petya Kuzmanova, MIMMM, CSci, Senior Resource Geologist, of the Company, under the guidance of CSA Global (UK) Ltd. (“CSA”), in accordance with Canadian regulatory requirements set out in NI 43-101, and were reviewed and approved by, as relates to Mineral Resources, Maria O’Connor, BSc, MAusIMM, MAIG, Manager Resources – EMEA of CSA, and as relates to Mineral Reserves, Karl van Olden, BSc (Eng), GDE, MBA, FAusIMM, Mining Manager of CSA. All are Qualified Persons (“QP”) as defined under NI 43-101. Maria O’Connor and Karl van Olden are independent of the Company, and Petya Kuzmanova is not independent of the Company.

Ross Overall, Corporate Mineral Resource Manager of the Company, who is a QP as defined under NI 43-101, has reviewed and approved the contents of this press release.

About Dundee Precious Metals Inc.

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 gold-copper concentrate containing gold, copper and silver and a pyrite concentrate containing gold, located east of Sofia, Bulgaria; the Ada Tepe operations, which produces a gold concentrate containing gold and silver, located in southern 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 Canada, Serbia and Ecuador, including its 10.4% interest in Sabina Gold & Silver Corp. and its 19.5% interest in INV Metals Inc.

For further information please contact:

Rick Howes
President and Chief Executive Officer
Tel: (416) 365-2836
[email protected]

David Rae
Executive Vice President and Chief Operating Officer
Tel: (416) 365-5092
[email protected]

Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
[email protected]

Source: DPM