Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT.A) ("DPM" or the
"Company") reports that it's business as usual at all its
operations.
"We are surprised by the significant drop in our share price
following the election results in Bulgaria," said Rick Howes,
President and CEO. "We do not foresee any fundamental changes that
would affect our Chelopech mine, which is fully permitted at all
government levels. We have a strong balance sheet, generate solid
margins, and have more than $250 million of cash and undrawn lines
of credit to fully fund all of our capital commitments."
The Chelopech mine continues to deliver excellent mine and mill
operating results. Ore processed was up year over year as a result
of the completion of the underground crusher and conveyor system,
the final component of the mine/mill expansion project. With
Chelopech being a low cost mine operation, it generates significant
free cash flow, even at current metal prices.
Krumovgrad, our high grade, low cost gold project in Bulgaria,
successfully secured its mine concession and approval of its
Environmental Impact Assessment in 2012 and neither is subject to
further appeal. The Company is currently completing additional
project engineering to further optimize the project and is awaiting
a decision from the Municipal Council on the detailed development
plan prior to placing any long lead orders of equipment. This is an
attractive project even at lower gold prices.
Quarter to date, the Tsumeb smelter has been operating at normal
levels, despite some minor residual commissioning issues related to
the new dust handling systems. The planned annual furnace
maintenance is expected to commence late in the second quarter,
during which certain non-environmental components of Project 2012
and commissioning of the second oxygen plant will also be
completed. Over the balance of the year, Tsumeb's results are
expected to be much stronger, with the anticipated removal of the
current curtailment, planned increases in volumes, and scheduled
increases in treatment charges.
"Looking beyond 2013, the long term prospects of the Company
remain unchanged. We have a number of planned investments that are
expected to increase our mine and smelter capacity, generate
attractive returns and add significant shareholder value," added
Mr. Howes.
About Dundee Precious Metals
Dundee Precious Metals Inc. is a Canadian based, international
gold mining company engaged in the acquisition, exploration,
development, mining and processing of precious metals. The
Company's principal operating assets include the Chelopech
operation, which produces a gold, copper and silver concentrate,
located east of Sofia, Bulgaria; the Kapan operation, which
produces gold, copper, zinc and silver concentrate, located in
southern Armenia; and the Tsumeb smelter, a concentrate processing
facility located in Namibia. DPM also holds interests in a number
of developing gold properties located in Bulgaria, Serbia, and
northern Canada, including interests held through its 53.1% owned
subsidiary, Avala Resources Ltd., its 45.5% interest in Dunav
Resources Ltd. and its 10.7% interest in Sabina Gold & Silver
Corp.
FORWARD-LOOKING STATEMENTS
This news 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 Warrant Amendment, future growth opportunities, the future
price of gold and silver, the estimation of mineral reserves and
resources, the realization of mineral estimates, the timing and
amount of estimated future production and output, costs of
production, capital expenditures, costs and timing of the
development of new deposits, success of exploration activities,
permitting time lines, currency fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title
disputes or claims, limitations on insurance coverage 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", "intends",
"anticipates", or "does not anticipate", or "believes", or
variations of such words and phrases or 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 Corporation 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 availability of
future growth opportunities, the actual results of current
exploration activities; actual results of current reclamation
activities; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of gold,
copper, zinc and silver; 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, fluctuations in metal prices, as well as those risk
factors discussed or referred to in documents filed from time to
time with the securities regulatory authorities in all provinces
and territories of Canada and available at www.sedar.com.
Although the Corporation 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 Corporation 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. Richard Howes President
& Chief Executive Officer (416) 365-2836 Dundee Precious Metals
Inc. Lori Beak Senior Vice President, Investor & Regulatory
Affairs and Corporate Secretary (416) 365-5165
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