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Dundee sees better than expected production

Dundee Precious Metals’ production from its Bulgarian Chelopech gold-copper mine and Ada Tepe gold mine beat analyst expectations and are on track to hit 2022 guidance ranges, while its Namibian Tsumeb smelter is undergoing a guidance review following unplanned downtime.
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Dundee's Tsumeb smelter

Dundee Precious Metals' production from its Bulgarian Chelopech gold-copper mine and Ada Tepe gold mine beat analyst expectations and are on track to hit 2022 guidance ranges, while its Namibian Tsumeb smelter is undergoing a guidance review following unplanned downtime.

The company's consolidated gold production for the quarter was 72,900 ounces (Chelopech: 49,200oz; Ada Tepe: 23,7000oz), which beat Canaccord Genuity Capital Markets' forecast of 64,000oz and National Bank of Canada Financial Markets' forecast of 68,300oz.

This took the company's first half gold production to 136,000oz, which represents 54% of the low end of the guidance range of 250,000-290,000oz, CG noted.

Dundee's copper production from Chelopech for the three months stood at 8.8 million pounds. That took first half production to 16.5 million lbs, which compares to full year guidance of 32 million-37 million lbs.

Dundee said the Tsumeb smelters processed about 21,100 tonnes of complex concentrate during the quarter, which reflected unplanned downtime due to water leaks that were resolved during planned maintenance.

"This 45-day shutdown included additional maintenance to the off-gas and baghouse systems, which is expected to improve operational performance moving forward," Dundee said.

It expects to issue updated guidance for the smelter on July 28.

Dundee's share price was C$6.01 (US$4.61) on July 11. The company has a market capitalization of C$1.15 billion.