Dundee Precious Metals saw its third consecutive year of record annual gold production in 2021

TSX-listed Dundee Precious Metals saw its third consecutive year of record annual gold production in 2021. Its two gold mines in Bulgaria performed better-than-expected in Q4, while processing at the Namibian Tsumeb smelter fell behind guidance.

“Our mining operations continued to deliver impressive performance in the fourth quarter, driven by a new record for quarterly gold production at Ada Tepe, combined with strong results from Chelopech,” Dundee’s president and CEO David Rae said on January 10.

The Canada-based miner’s consolidated gold production was 310,000oz for 2021, which is at the higher end of the 271,000-317,000oz guidance. This came after production of 82,800oz in Q4.

Canaccord Genuity Capital Markets analyst Dalton Baretto said the consolidated Q4 production beat Canaccord’s forecast of 73,000oz by 13%.

Baretto said the result was due to higher throughput, grades and recoveries at the central-western Bulgarian Chelopech underground gold-copper mine.

Chelopech’s Q4 gold production was 49,000oz, which took the 2021 total for the operation to 177,000oz. This beat the 156,000-176,000oz guidance, but was down from the 179,000oz achieved in 2020.

Baretto noted that the Q4 gold production at Chelopech beat Canaccord’s forecast of 41,000oz by 21%.

Chelopech’s 2021 copper production was in line with guidance at 34,700 million pounds after production of 9.2Mlbs in Q4.

Dundee reported that the Southern Bulgarian Ada Tepe mine – which began commercial production in June 2019 – produced 133,000oz of gold in 2021, which compares with guidance of 115,000-141,000oz. Production was 119,000oz in 2020.

The 2021 total came after Ade Tepe produced 33,800oz in Q4, which was “slightly above plan due to higher grades”, Dundee said.

Ade Tepe’s Q4 gold production was in line with Baretto’s forecast.

“The Tsumeb smelter processed approximately 52,000 tonnes of complex concentrate during the fourth quarter, reflecting an 8-day maintenance shutdown to repair a water leak in the offgas system,” Dundee said.

The miner noted that this resulted in the smelter processing about 189,700 tonnes of complex concentrate in 2021, which was below revised guidance of 195,000-200,000t.

Meanwhile, Dundee announced in November that it would supplement its base US$0.03/share quarterly dividend with the repurchase of 152,000 shares at C$7.51/share.

In aggregate, Dundee repurchased 1,723,800 common shares in 2021 at an average price of C$7.64/share, for a total value of about C$13.2 million, the company said.

Baretto said the total value implies an incremental C$0.07/share, and together with the base dividend implies a total trailing 12-month yield of 2.9% at the current C$7.33 share price.

Dundee reports record gold production in second quarter in Bulgaria

Dundee Precious Metals (TSX: DPM) announced strong preliminary production results from both of its mines and the smelter, with consolidated gold production of 85,100 ounces for the three months ended June 30, 2021, which is 5% more than 81,400 ounces produced a year before.

According to a statement, the company’s flagship Chelopech mine in Bulgaria produced 52,600 ounces of gold and 10.0 million pounds of copper during the second quarter. Gold production, which increased significantly compared with the first quarter, was higher than expected as a result of mining higher grade zones and improved recoveries, the company said.

Dundee added that the Ada Tepe mine in Bulgaria continued to deliver strong gold production, producing 32,500 gold ounces in the second quarter, which was in line with the mine plan.

The Tsumeb smelter in Namibia delivered solid performance during the second quarter, the company noted, processing 59,600 tonnes of complex concentrate, an increase compared with the first quarter following the completion of the planned Ausmelt furnace maintenance in March.

With strong performance in the first half of the year, the company said it is on track to meet its previously issued guidance for 2021 at each of its operations.

“We achieved a new record for gold production in the second quarter as a result of strong performance from our mining operations,” said president and CEO David Rae. “Our strong gold production, combined with solid smelter performance in Q2, positions us well to achieve our 2021 guidance at each of our operations”.

Additionally, the company said that, as previously announced in May 2021, and in line with its disciplined capital allocation framework, DPM will pay a quarterly dividend of US$0.03 per share on July 15, 2021 to shareholders of record as at 5:00 p.m. Toronto local time on June 30, 2021.

Dundee Precious Metals is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia and Serbia.

Source: Kitco