In the same category
DPM First Quarter 2012 Financial Results
Published : May 08, 2012
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  

TORONTO, ONTARIO--(Marketwire - May 8, 2012) -

(All monetary figures are expressed in U.S. dollars unless otherwise stated)

Dundee Precious Metals announces strong first quarter results

  • Strong operating performance at Chelopech and favourable market prices delivered solid results
  • Expansion project at Chelopech is progressing well and remains on track
  • Exploration drilling continues to produce favourable results
  • Solid financial position with $168.9 million in cash

Dundee Precious Metals Inc. ("DPM" or the "Company") (News - Market indicators)(TSX:DPM.WT)(TSX:DPM.WT.A) today reported 2012 first quarter adjusted net earnings(1) of $31.3 million ($0.25 per share) compared to $9.8 million ($0.08 per share) for the same period in 2011. Reported 2012 first quarter net earnings attributable to common shareholders were $8.2 million ($0.07 per share) compared to $14.0 million ($0.11 per share) for the same period in 2011.

The quarter over quarter increase in adjusted net earnings was driven primarily by higher concentrate sales, higher volumes of payable metals in concentrate sold, higher gold market prices and a lower cash cost per tonne at Chelopech. These favourable variances were partially offset by lower copper market prices, and higher administrative and exploration expenses. Relative to the corresponding period in 2011, average market prices for gold in the first quarter of 2012 increased by 22% while average market prices for copper decreased by 14%. Unrealized net losses of $23.1 million ($26.0 million before income taxes) reduced net earnings attributable to common shareholders in the first quarter of 2012. These losses were comprised of unrealized mark-to-market losses of $16.3 million (Q1 2011 - $4.7 million losses) related to commodity price hedges and unrealized mark-to-market losses in respect of the Company's Sabina Gold & Silver Corp. ("Sabina") special warrants of $9.7 million (Q1 2011 - $4.5 million gains).

"We delivered another quarter of strong results as we benefitted from increased concentrate and metals production at Chelopech" said Jonathan Goodman, the Company's President and CEO. "Despite lower production and sales in the quarter, we still expect that Deno Gold will meet its 2012 targets. Our expansion project at Chelopech is progressing well and remains on track to be completed in the third quarter. We are also making good progress on our planned Krumovgrad gold project as well as our exploration programs at Deno Gold, Avala and Dunav."

Adjusted EBITDA(1) for the first quarter of 2012 was $40.8 million compared to $19.2 million in the corresponding period in 2011. This increase was driven by the same factors affecting adjusted net earnings.

Concentrate production for the first quarter of 2012 was 36,978 tonnes, representing a 93% increase relative to the corresponding period in 2011. This increase reflects the ramp up of production at Chelopech. In the first quarter of 2011, ore processed at Chelopech was negatively impacted by the planned commissioning of the semi-autogenous grinding mill and the upgraded flotation system. Concentrate smelted at NCS in the first quarter of 2012 of 41,924 tonnes was 9% higher than the corresponding period in 2011 due primarily to improved performance of the Ausmelt furnace.

Deliveries of concentrate in the first quarter of 2012 totalled 34,169 tonnes, representing a 44% increase relative to the corresponding period in 2011 due to increased concentrate production at Chelopech partially offset by the delay of a copper shipment at Deno Gold. Relative to the first quarter of 2011, payable gold in concentrate sold increased by 56% in the first quarter of 2012, payable copper in concentrate sold increased by 55%, payable zinc in concentrate sold decreased by 24% and payable silver in concentrate sold decreased by 15%. The increases in payable gold and copper in concentrate sold were due primarily to higher production, grades and recoveries at Chelopech.

Cash provided from operating activities, before changes in non-cash working capital, during the first quarter of 2012 of $48.1 million was $26.2 million higher than the corresponding period in 2011 due primarily to higher volumes of payable metals in concentrate sold and higher gold market prices. 

Capital expenditures during the first quarter of 2012 of $25.8 million increased by 11% relative to the corresponding period in 2011 due primarily to increased construction activities in connection with NCS' capital program to increase capacity and improve environmental performance and operational efficiency.

As at March 31, 2012, DPM maintained a strong financial position with consolidated cash and cash equivalents of $168.9 million and investments valued at $79.6 million.

Exploration programs at and around the Company's existing mine sites in Bulgaria and Armenia as well as in Serbia, through its interests in Avala and Dunav, and in Nunavut, through its interest in Sabina, are progressing well and continue to show potential to add significant value to the Company over the longer term.

On April 30, 2012, the Namibian Minister of Environment and Tourism ("Minister") issued a letter to the Company relating to the operation of its Tsumeb smelter owned by NCS. "We are currently assessing the implications of the Minister's directives and are not able to provide definitive guidance at this time" said Jonathan Goodman. "We are committed to completing the operational improvements we identified when we acquired NCS and to working with the Government to ensure the right steps are being taken to avoid any unnecessary impacts." NCS is currently planning to advance the 30 day maintenance on the Ausmelt furnace to mid-May and is evaluating its ability to advance the fugitive portion of Project 2012, currently scheduled to be completed by the end of the year. In the event NCS production is curtailed by 50%, the Company currently estimates the cost will be in the region of $2 million per month. The Company is endeavoring to minimize the impacts on NCS and its employees, however, temporary lay-offs may be unavoidable. At this time, the Company does not expect Chelopech production to be impacted and is working with NCS' customers and suppliers to help mitigate the impact of the curtailment extending to the end of the year. The Company remains optimistic that NCS' production can be restored before year end and will provide further updates when available.

(1) Adjusted earnings, adjusted basic earnings per share and adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") are not defined under generally accepted accounting principles ("GAAP"). Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods. Refer to the Non-GAAP Measures section of management's discussion and analysis for the three months ended March 31, 2012 (the "MD&A") for further discussion of these items, including reconciliations to applicable International Financial Reporting Standards ("IFRS") measures.

Key Financial and Operational Highlights
$ millions, except where otherwise noted Three Months  
Ended March 31,  2012    2011  
Revenue 100.0   68.4  
Gross profit 48.2   22.0  
Earnings before income taxes 4.3   15.7  
Net earnings attributable to common shareholders 8.2   14.0  
Basic earnings per share ($) 0.07   0.11  
Adjusted EBITDA(1) 40.8   19.2  
Adjusted net earnings(1) 31.3   9.8  
Adjusted basic earnings per share ($)(1) 0.25   0.08  
Cash provided from operating activities, before changes in working capital 48.1   21.9  
Copper and zinc concentrates produced (mt) 36,978   19,135  
Metals in concentrate produced:        
  Gold (ounces) 41,910   19,585  
  Copper ('000s pounds) 12,234   5,782  
  Zinc ('000s pounds) 4,443   4,761  
  Silver (ounces) 187,526   157,666  
NCS - concentrate smelted (mt) 41,924   38,532  
Deliveries of concentrate (mt) 34,169   23,724  
Payable metals in concentrate sold:        
  Gold (ounces) 33,585   21,582  
  Copper ('000s pounds) 10,413   6,724  
  Zinc ('000s pounds) 3,845   5,031  
  Silver (ounces) 114,399   135,136  
Cash cost of sales per ounce of gold sold, net of by-product credits ($)(1)        
  Chelopech (213 ) (54 )
  Deno Gold 703   247  
  Consolidated (110 ) 34  
(1) Adjusted EBITDA; adjusted net earnings; adjusted basic earnings per share; and cash cost of sales per ounce of gold sold, net of by-product credits, are non-GAAP measures. Refer to the MD&A for reconciliations to applicable IFRS measures.

DPM's first quarter reports, including its condensed interim unaudited consolidated financial statements and MD&A for the three months ended March 31, 2012, are posted on the Company's website at and have been filed on SEDAR at

An analyst conference call to review these results is scheduled for Wednesday, May 9, 2012 at 9:00 a.m. (E.S.T). The call will be webcast live, audio only, at: Listen only dial-in numbers are 416-340-8061 or North American Toll Free at 1-866-225-0198. The audio webcast for this conference call will be archived and available on the Company's website at

Dundee Precious Metals Inc. is a well-financed, Canadian based, international gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. The Company's principal operating assets include the Chelopech operation, which produces a gold, copper and silver concentrate, located east of Sofia, Bulgaria; the Kapan operation, which produces a gold, copper, zinc and silver concentrate, located in southern Armenia; and the Tsumeb smelter, a concentrate processing facility located in Namibia. DPM also holds interests in a number of developing gold properties located in Bulgaria, Serbia, and northern Canada, including interests held through its 51.4% owned subsidiary, Avala Resources Ltd., its 47.3% interest in Dunav Resources Ltd. ("Dunav") and its 11.5% interest in Sabina Gold & Silver Corp.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, copper, zinc and silver, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production and output, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, copper, zinc and silver; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in Management's Discussion and Analysis under the heading "Risks and Uncertainties" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Unless required by securities laws, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.

Dundee Precious Metals Inc.
Jonathan Goodman
President and Chief Executive Officer
(416) 365-2408
Dundee Precious Metals Inc.
Hume Kyle
Executive Vice President and Chief Financial Officer
(416) 365-5091
Dundee Precious Metals Inc.
Lori Beak
Senior Vice President, Investor & Regulatory Affairs
and Corporate Secretary
(416) 365-5165
Data and Statistics for these countries : Armenia | Bulgaria | Canada | Namibia | Serbia | All
Gold and Silver Prices for these countries : Armenia | Bulgaria | Canada | Namibia | Serbia | All

Dundee Precious Metals Inc

ISIN : CA2652692096
CUSIP : 265269-20-9
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Dundee Precious Metals is a zinc and gold producing company based in Canada.

Dundee Precious Metals produces zinc, gold, copper and silver in Armenia, develops copper, gold and silver in Bulgaria.

Its main asset in production is KAPAN in Armenia, its main assets in development are CHELOPECH and KRUMOVGRAD in Bulgaria and its main exploration property is SURDULICA in Bulgaria.

Dundee Precious Metals is listed in Canada. Its market capitalisation is CA$ 1.4 billions as of today (US$ 1.1 billions, € 947.4 millions).

Its stock quote reached its highest recent level on December 17, 2010 at CA$ 9.99, and its lowest recent point on January 22, 2016 at CA$ 0.84.

Dundee Precious Metals has 178 440 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
In the News and Medias of Dundee Precious Metals Inc
2/27/2019Exyn introduces robots into Dundee Precious Metals' gold min...
4/13/2010Discovers New Gold Deposits in Bulgaria
Financings of Dundee Precious Metals Inc
10/9/2013Issued Shares and Warrants of Sabina Gold & Silver Corp. on ...
6/11/2013Announces Result of Early Warrant Exercise Program
Nominations of Dundee Precious Metals Inc
3/21/2013DPM Board Announces Executive Transition and Senior Officer ...
11/14/2012DPM Board Announces Senior Appointment
9/19/2012Eira Thomas Joins Dundee Precious Metals' Board of Directors
Financials of Dundee Precious Metals Inc
10/15/2013NOTICE: DPM 2013 Third Quarter Financial Results
8/1/2013Announces 2013 Second Quarter Results
7/10/2013NOTICE: DPM 2013 Second Quarter Financial Results
5/9/2013Announces 2013 First Quarter Results
4/17/2013NOTICE: DPM 2013 First Quarter Financial Results
2/15/2013Announces 2012 Fourth Quarter and Annual Results and 2013 Gu...
1/24/2013NOTICE: DPM Fourth Quarter and Year End 2012 Results
11/7/2012Announces 2012 Third Quarter Results
10/18/2012NOTICE: Dundee Precious Metals 2012 Third Quarter Results
8/1/2012Announces 2012 Second Quarter Results and Updated 2012 Guida...
7/9/2012NOTICE: DPM 2012 Second Quarter Results
5/8/2012DPM First Quarter 2012 Financial Results
10/14/2011NOTICE: DPM Third Quarter 2011 Results
7/11/2011NOTICE: DPM Second Quarter 2011 Results
4/27/2011Notice: DPM Annual General Meeting and 2011 First Quarter Re...
2/23/2011DPM Reports Fourth Quarter 2010
Project news of Dundee Precious Metals Inc
9/16/2013s 2013 Production Guidance
5/16/2013(Chelopech)Confirms Fundamentals Unchanged; Chelopech Mine Operating at...
9/10/2012(Chelopech)DPM Files Technical Report on Chelopech Pyrite Recovery Proj...
1/13/2012(Krumovgrad)Files Technical Report on Krumovgrad Gold Project
11/24/2011(Krumovgrad)Bulgarian Government Approves EIA for DPM's Krumovgrad Gold ...
2/23/2011(Chelopech)DPM Reports Fourth Quarter 2010 and Year-End Results and Upd...
Corporate news of Dundee Precious Metals Inc
7/28/2016Dundee Precious Metals Announces 2016 Second Quarter Results
7/25/2016Dundee Precious Metals Announces Power Blackout in Namibia R...
7/11/2016DPM Announces Closing of C$54.65 Million Bought Deal Financi...
7/7/2016Dundee Precious Metals Announces Second Quarter Production R...
6/20/2016DPM Announces C$50 Million Bought Deal Financing
12/21/2015Dundee Precious Metals Announces 15% Increase to Measured an...
11/19/2015Dundee Precious Metals Announces Approval of Main Detailed D...
11/5/2015Dundee Precious Metals Announces 2015 Third Quarter Results
11/4/2015Dundee Precious Metals Announces Changes to Board of Directo...
10/8/2015Dundee Precious Metals Announces Third Quarter Production Re...
9/15/2015Dundee Precious Metals Announces Maintenance of the Tsumeb S...
7/30/2015Dundee Precious Metals Announces 2015 Second Quarter Results
7/9/2015Dundee Precious Metals Announces Second Quarter Production R...
4/14/2015Dundee Precious Metals Announces First Quarter Production Re...
4/14/2015Announces First Quarter Production Results and Provides Noti...
3/31/2015Dundee Precious Metals Announces Reserve and Resource Update...
3/31/2015Announces Reserve and Resource Update for 2015
3/18/2015Dundee Precious Metals Announces Commencement of Annual Tsum...
3/18/2015Announces Commencement of Annual Tsumeb Smelter Shutdown
2/18/2015Tags to Riches: Mining Company Tracks Production With Sensor...
2/13/2015Dundee Precious Metals Announces 2014 Fourth Quarter and Ann...
2/13/2015Dundee Precious Metals Announces 2014 Fourth Quarter and Ann...
1/22/2015NOTICE: Dundee Precious Metals 2014 Fourth Quarter and Year ...
1/14/2015(Chelopech)Announces Record Fourth Quarter Production at Chelopech and ...
1/14/2015Dundee Precious Metals Announces Record Fourth Quarter Produ...
11/6/2014Dundee Precious Metals Announces 2014 Third Quarter Results
11/5/2014Dundee Precious Metals Announces 2014 Third Quarter Results
10/16/2014NOTICE: Dundee Precious Metals 2014 Third Quarter Results
10/16/2014NOTICE: Dundee Precious Metals 2014 Third Quarter Results
10/8/2014Dundee Precious Metals Announces a Favourable Preliminary Ec...
10/8/2014Dundee Precious Metals Provides Third Quarter 2014 Productio...
10/3/2014Dundee Precious Metals Acquires Shares and Warrants of Avala...
7/30/2014Dundee Precious Metals Announces 2014 Second Quarter Results
7/14/2014NOTICE: DPM 2014 Second Quarter Results
7/10/2014Dundee Precious Metals Announces Krumovgrad Municipal Counci...
7/10/2014Dundee Precious Metals Announces Krumovgrad Municipal Counci...
6/26/2014Dundee Precious Metals Increases Revolving Credit Facility b...
5/20/2014Dundee Precious Metals Strengthens Senior Management Team
8/29/2013Announces First Underground Mineral Resource Estimate for th...
7/24/2012Reports on Progress of Acid Plant at Smelter in Namibia
4/30/2012Receives First Contact from Namibian Government on Tsumeb Sm...
4/23/2012DPM Exercises Warrants of Dunav Resources Ltd.
2/16/2012DPM Announces 2011 Deno Gold Open Pit Project and Undergroun...
1/26/2012(Krumovgrad)Bulgarian Court Dismisses Appeal of DPM's Krumovgrad Mining ...
11/30/2011(Krumovgrad)DPM: New Krumovgrad Feasibility Study Confirms Low Cash Cost...
9/15/2011Improves Safety and Operational Efficiency With AeroScout Re...
9/2/2011Dunav Resources and Dundee Precious Metals Complete Transact...
8/23/2011DPM to Acquire Shares and Warrants of Dunav Resources Ltd. o...
5/10/2011(Chelopech)DPM and Chelopech Mining Raise Final US$14.5 Million of Chel...
3/23/2011DPM Exercises Warrants of Avala Resources Ltd.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 7.58
01/24 14:15 -0.030
Prev close Open
7.61 7.91
Low High
7.29 7.64
Year l/h YTD var.
7.33 -  8.07 -1.43%
52 week l/h 52 week var.
7.13 -  9.59 -12.97%
Volume 1 month var.
278,047 0.132%
24hGold TrendPower© : -11
Produces Copper - Gold - Silver - Zinc
Develops Copper - Gold - Silver
Explores for Molybdenum
Interactive chart Add to compare
Print Compare Export
Last updated on : 2/23/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.07-2.62%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.21-2.21%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.42-1.72%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 0.92-2.84%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.78+1.16%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.04+16.67%Trend Power :
Closes Bridge Loan Financing
CA$ 3.65+0.00%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 10.30-2.65%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.37-5.13%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.18-10.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.18+0.00%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 46.68+1.21%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.03+3.23%Trend Power :