Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT.A) (the "Company"
or "DPM") has revised 2013 production guidance for the Tsumeb
Smelter in Namibia (the "Smelter") and the Kapan Mine in Armenia
("Kapan"). Guidance for the Chelopech Mine ("Chelopech") in
Bulgaria remains unchanged.
Smelter production for August and September has been running at
approximately 16,500 tonnes per month ("tpm"). This is lower than
expected due to delays associated with the construction of the
second oxygen plant. As a result, commissioning of the oxygen plant
is now expected to be completed in October 2013, after which the
Smelter will ramp up to its full operating capacity, and is
expected to average approximately 21,500 tpm for the balance of the
year, in advance of emissions testing. For 2013, DPM now expects
Tsumeb's concentrate throughput will be 172,000 - 178,000 tonnes,
down from previous guidance of 185,000 - 200,000 tonnes. While the
Smelter's production ramp up has been slower than expected, the
improvements made over the past year have significantly reduced
fugitive emissions at and around the Smelter and are expected to
result in the Namibian government's production curtailment being
lifted in the fourth quarter of 2013 in support of this production
schedule.
At Kapan, the recent increased levels of mine production
highlighted the mine's inability to maintain adequate development
inventory based on current performance. As a result, production has
been reduced and is expected to remain at 30,000 - 35,000 tpm
during the second half of 2013, while development inventory is
rebuilt and development performance is improved in advance of
resuming normal operating levels and further potential increases
associated with Kapan's newly defined resource. As a result, 2013
production at Kapan is expected to decline from 550,000 - 600,000
tonnes to 470,000 - 500,000 tonnes. Production is expected to
return to normal levels in the second quarter of 2014.
Operations at DPM's flagship Chelopech Mine continue to deliver
mine and mill results in line with expectations.
"Despite these near term challenges, we continue to make
significant operating improvements at Tsumeb and Kapan," said Rick
Howes, President and CEO, "and remain focused on optimizing the
value of all of our operations."
Overall, these revisions to DPM's consolidated ore and metals
production guidance do not significantly impact the ranges
previously issued, with the exception of zinc and silver. Updated
production guidance for each operation is set out below. Mine and
smelter cost per tonne guidance remains unchanged.
----------------------------------------------------------------------------
2013 Updated Production Guidance Prior Guidance
----------------------------------------------------------------------------
Chelopech Kapan Tsumeb Total Total
----------------------------------------------------------------------------
Ore
mined/milled
('000
tonnes) 1,900 - 2,050 470 - 500 - 2,370 - 2,550 2,450 - 2,650
----------------------------------------------------------------------------
Concentrate
Smelted
('000
tonnes) - - 172 - 178 172 - 178 185 - 200
----------------------------------------------------------------------------
Metals
contained in
concentrate
----------------------------------------------------------------------------
Gold ('000
ounces) 125 - 143 23 - 25 - 148 - 168 150 - 173
----------------------------------------------------------------------------
Copper
(million
pounds) 43.0 - 46.0 2.3 - 2.5 - 45.3 - 48.5 45.5 - 49.0
----------------------------------------------------------------------------
Zinc
(million
pounds) - 14.5 - 15.0 - 14.5 - 15.0 16.5 - 18.5
----------------------------------------------------------------------------
Silver
('000
ounces) 210 - 230 420 - 435 - 630 - 665 700 - 750
----------------------------------------------------------------------------
ABOUT DPM
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 9.8% interest in Sabina Gold & Silver
Corp.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements".
Forward-looking statements are generally identified by the use of
words such as "plans", "expects", or "does not expect", "is
expected", "budget", "guidance", "outlook", "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 and certain professionals as of the date such
statements are made, and on certain assumptions. Forward-looking
statements contained in this news release and other disclosure
documents issued from time to time are typically, but not always,
limited to statements with respect to future production, operating
costs, financial liquidity and capital funding, growth
opportunities, capital expenditures, cost and timing to develop new
deposits, conduct exploration activities and receive permits, the
price of gold, copper, zinc and silver, the estimation and
realization of mineral reserves and resources, foreign currency
exchange rates, government regulation, environmental risks,
reclamation costs, and the timing and possible outcome of pending
litigation. By their nature, forward-looking statements are subject
to numerous risks, uncertainties and other factors which may cause
actual results, performance or achievements to be materially
different from the future results, performance or achievements
expressed or implied by any forward-looking statement. This
includes, among other things: availability of future growth
opportunities; 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; actual price of gold, copper, zinc and
silver; actual foreign exchange rates; plant, equipment or
processes operating as anticipated; accidents, labour disputes and
other risks inherent to the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities, as well as those risk
factors discussed or referred to herein and contained in other
documents filed from time to time with the securities regulatory
authorities in all provinces and territories of Canada and
available at www.sedar.com.
Key assumptions underlying the updated production guidance
contained in this new release, which may prove to be incorrect,
include, but are not limited to: Tsumeb completing the
commissioning of the second oxygen plant in October 2013, the
Namibian government lifting the current production curtailment in
the fourth quarter of 2013, and Tsumeb running at full operating
capacity in November and December 2013; and in the case of Kapan,
the accuracy of current mineral resource estimates (including, but
not limited to, ore tonnage and grade estimates), executing its
mine plan and delivering improved levels of development,
maintaining equipment availability and mill uptime, and development
inventory being rebuilt in the second quarter of 2014. These
assumptions are subject to a number of risks and uncertainties,
including further delays in commissioning the second oxygen plant
or the removal of the existing curtailment resulting in Tsumeb not
operating at full capacity in November and December 2013, and at
Kapan variations in ore grades and recovery rates, mine development
performance and the rebuilding of development inventory taking
longer than currently expected. Although the Company has attempted
to identify important factors that could cause actual results,
performance or achievements to differ materially from those
expressed or implied by any forward-looking statement, there may be
other factors. There can be no assurance that any forward-looking
statement will prove to be accurate, as actual results and future
events could differ materially from those expressed or implied by
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. Richard Howes President
& Chief Executive Officer (416) 365-2836 Dundee Precious Metals
Inc. Lori Beak SVP, Investor & Regulatory Affairs and Corporate
Secretary (416) 365-5165
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