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First Krumovgrad gold for Dundee

Dundee Precious Metals (TSX: DPM) says it has entered a new chapter as it achieved first gold concentrate production from its second mine in Bulgaria.
First Krumovgrad gold for Dundee First Krumovgrad gold for Dundee First Krumovgrad gold for Dundee First Krumovgrad gold for Dundee First Krumovgrad gold for Dundee

Krumovgrad pictured under construction last month

Staff reporter

The addition of Krumovgrad will build on the company's record gold production in 2018 from its Chelopech mine, which produced 210,000 ounces of gold in concentrate and 36.7 million pounds of copper.

Krumovgrad is expected to produce 55,000-75,000oz of gold in concentrate this year, increasing to an average of 100,000oz over the first five years.

"With commercial production expected in the second quarter of this year, this is the beginning of a new chapter for DPM, which will deliver significant growth in gold production and free cash flow," president and CEO Rick Howes said.

The company had reported US$53.9 million in free cash flow in 2018 in its full-year results released last month.

Dundee said Krumovgrad construction was 97% complete at the end of February and its forecast capex remained at $164-$166 million, compared with the original estimate of $178 million.

It is planning to ramp up and optimise the processing plant to achieve the design throughput of 105 tonnes per hour and gold recovery of 85%.

The company had $17 million in cash at the end of December and $238 million of undrawn capacity under a revolving credit facility.

Dundee also has the Tsumeb smelter in Namibia and is advancing its Timok gold project in Serbia.

Its shares are trading close to a 4.5-year high, closing yesterday at C$4.55 to capitalise it at $812.4 million.