Dundee Precious Metals Reports Q1 2015 Net Loss of $3.1 Million

Dundee Precious Metals Inc. (TSX:DPM) released its results for the first quarter of 2015, noting that it recorded a net loss attributable to common shareholders of $3.1 million, or $0.02 per share. That’s down from net earnings of $10 million, or $0.07 per share, in the year-ago period.

The company’s gold and copper production for the quarter came to 34,743 ounces and 8.7 million pounds, respectively. That’s an increase of 31 percent for gold and a decline of 7 percent for copper compared to Q1 2014.

Other highlights include:

• All-in sustaining cost per ounce of gold – Well below the industry average at $585 and 15% lower than full year 2014;
• Smelter – 2015 first quarter production of 43,101 tonnes was 12% lower than 2014 primarily as a result of the annual maintenance shutdown. Physical construction of acid plant substantially complete with production of saleable acid scheduled to commence in the third quarter of 2015;
• Near term growth opportunities progressing – Krumovgrad local permitting and approval process remains on track to be in position to commence construction in the fourth quarter of 2015; and
• Financial position – Exited the first quarter of 2015 with approximately $182 million of cash resources, including the undrawn portion of the Company’s long-term revolving credit facility.

The release also states:

Net loss attributable to common shareholders for the first quarter of 2015 was impacted by several items not reflective of the Company’s underlying operating performance, including unrealized gains and losses attributable to hedging future copper and gold production, net gains and losses attributable to DPM’s equity settled warrants, net gains and losses on Sabina warrants and impairment losses on publicly traded securities. Excluding these items, adjusted net loss during the first quarter of 2015 was $1.6 million ($0.01 per share) compared to $2.3 million ($0.02 per share) for the corresponding period in 2014. The reduced loss was due primarily to higher volumes of payable metals in concentrate sold consistent with the increase in concentrate deliveries reflecting the drawdown of copper concentrate inventories and higher gold grades and recoveries at Chelopech, the favourable impact of a stronger U.S. dollar and lower general and administrative expenses. These favourable factors were partially offset by weaker results from Tsumeb due to advancing the annual maintenance shutdown, previously planned for the second quarter, and lower revenue per tonne as a result of a higher proportion of lower margin third party concentrate and higher stockpile interest and estimated metal exposure, as well as lower metal prices.

Rick Howes, president and CEO of Dundee, commented:

Chelopech continued to perform well in the period and benefitted from reduced cash costs, generating a solid adjusted EBITDA despite lower metal prices and copper grades during the quarter. The advancement of Tsumeb’s annual maintenance shutdown reduced throughput for the quarter but this is not expected to impact the 2015 production guidance. Kapan is on track to achieve higher mine production in the second half of 2015, in line with guidance, and significantly lower 2015 cash costs compared with 2014 as a result of a stronger U.S. dollar and a number of productivity and cost saving initiatives. We remain focused on optimizing operational performance, reducing costs at each of our operations, and securing the remaining permits for the Krumovgrad Gold Project so as to be in position to commence construction by the end of this year.

Click here to read the full Dundee Precious Metals Inc. (TSX:DPM) press release.