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(Wallace Refiners) – On Wednesday, Dundee Precious Metals (TSX: DPM) announced that gold contained in concentrate produced decreased by 10% to 62,915 ounces in Q1 2022 compared to Q1 2021 due primarily to lower gold grades at Ada Tepe, and was in line with guidance.
The company said that copper production in the first quarter of 2022 increased by 7% to 7.7 million pounds relative to the corresponding period in 2021 due primarily to higher copper recoveries.
The company added that, based on first quarter operating results and higher average quarterly metals production expected over the balance of the year, Chelopech and Ada Tepe remain on track to achieve their 2022 production guidance.
At Tsumeb, as a result of ongoing maintenance activities, the smelter is expected to be at the lower end of its 2022 production guidance.
Importantly, Dundee noted that net earnings attributable to common shareholders from continuing operations in the first quarter of 2022 were $26.8 million ($0.14 per share) compared to $20.7 million ($0.11 per share) in the corresponding period in 2021.
Adjusted net earnings in the first quarter of 2022 were $37.0 million ($0.19 per share) compared to $31.0 million ($0.17 per share) in the corresponding period in 2021.
The company also declared 2022 second quarter dividend of $0.04 per common share payable on July 15, 2022 to shareholders of record on June 30, 2022; and repurchased 1,489,100 common shares for a total value of $8.9 million in the quarter.
“Our first quarter financial results reflect a strong start to the year. With solid performance at Chelopech and Ada Tepe and a continued focus on cost management, we achieved an all-in sustaining cost of $684 per ounce of gold sold, which is below the low end of our guidance range, and continued to generate significant free cash flow,” said President and CEO David Rae.
“During the quarter, we announced an optimized life of mine plan for Chelopech, which contributed to higher gold and copper production, and an extension of the mine life to 2030. We continue to advance our permitting activities for the Loma Larga gold project in Ecuador, including obtaining technical approval for the environmental impact assessment. We believe this is a strong statement of support from the government and we look forward to fully engaging with all other stakeholders.”
Dundee Precious Metals is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia, Ecuador and Serbia.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
