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Dundee gains on 'exceptional' quarter

Dundee Precious Metals’ new boss David Rae said despite COVID-19-related challenges, the company’s three operations had delivered “another exceptional quarter”.
Dundee gains on 'exceptional' quarter Dundee gains on 'exceptional' quarter Dundee gains on 'exceptional' quarter Dundee gains on 'exceptional' quarter Dundee gains on 'exceptional' quarter

Dundee Precious Metals’ Tsumeb facility in Namibia

Staff reporter

The company said it expected to meet 2020 guidance at its Chelopech gold-copper and Ada Tepe gold-silver mines in Bulgaria and at its Tsumeb copper smelter in Namibia.

The two mines' June quarter gold output exceeded expectations, the company said yesterday, due to strong grades and higher volumes of ore treated at Ada Tepe resulting in its second consecutive record quarter, and an optimised mining sequence at Chelopech.

The pair produced a consolidated 81,400 ounces of gold according to preliminary results for the period, against full-year guidance of 257,000-299,999oz.

Chelopech produced a consistent 9.4 million pounds of copper in the June quarter and was expected to produce 35-40Mlb this year.

Tsumeb, which was forecast to process 230,000-265,000 tonnes in 2020, managed 58,500t of complex concentrate in the June quarter, despite a 30-day reduction in throughput in April owing to a government request to limit staffing levels as a result of COVID-19.

Rae, who became president and CEO in May, said the company was prioritising the health and safety of its workforce and providing support in local communities as they proactively managed circumstances related to the global pandemic.

"Despite these challenges, we delivered another exceptional quarter of production results at each of our three operations and continue to demonstrate the significant potential of our portfolio in 2020," he said.

Dundee reiterated it would pay a quarterly dividend of US2c per share on July 15.

It expected to release its second quarter operating and financial results after market close on July 30.

The company also said it had contributed more than $750,000 to support local communities as they responded to the challenges of COVID-19.

It had ended March debt-free and with about $189 million of cash resources.

Dundee was added to the S&P/TSX Composite Index in June.

Its shares (TSX: DPM) have risen from a low of C$3.21 in March to touch a one-year high of $9.83 intraday.

They closed up 4.3% to $9.62 to capitalise it at $1.7 billion (US$1.2 billion).