Chart usGOLD   Chart usSILVER  
 
Food for thought
If you want justice, go to church, not to the courts. The courts are there to apply the law created by the politicians.
Harry Rankin  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1285.40-8.68
Silver 19.34-0.29
Platinum 1408.904.40
Palladium 789.60-5.30
WORLD MARKETS
DOWJONES 16409-16
NASDAQ 40969
NIKKEI 1460690
ASX 544532
CAC 40 443226
DAX 941092
HUI 220-2
XAU 90-1
CURRENCIES (€)
AUS $ 1.4810
CAN $ 1.5225
US $ 1.3814
GBP (£) 0.8222
Sw Fr 1.2199
YEN 141.6750
CURRENCIES ($)
AUS $ 1.0722
CAN $ 1.1021
Euro 0.7239
GBP (£) 0.5953
Sw Fr 0.8831
YEN 102.5610
RATIOS & INDEXES
Gold / Silver66.46
Gold / Oil12.34
Dowjones / Gold12.77
COMMODITIES
Copper 3.050.01
WTI Oil 104.13-0.17
Nat. Gas 4.740.00
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Dundee Precious Metals Announces Capital Projects and New Commercial Arrangements at Its Tsumeb Smelter in Namibia
Published : December 19, 2012
( 0 vote, 0/5 ) Print article
     
Tweet

TORONTO, ONTARIO--(Marketwire - Dec. 19, 2012) - Dundee Precious Metals Inc. (News - Market indicators)(TSX:DPM.WT.A) ("DPM" or the "Company") announces plans to proceed with two significant capital projects at its Tsumeb smelter in Namibia as well as commercial developments related to a new concentrate tolling arrangement and a Memorandum of Understanding for the sale of acid.

In addition, construction relating to Project 2012, a fugitive dust management improvement project aimed at improving off-gas capture and workplace conditions to better comply with national standards, is substantially complete with commissioning expected to take place in January 2013.

Sulphuric Acid Plant

As part of its long term strategy to bring the smelter to internationally accepted environmental standards and consistent with the directives issued by the Namibian government earlier this year, DPM has entered into a definitive turnkey fixed price Engineering, Procurement, and Construction Management ("EPCM") contract with Outotec for the construction and installation of a sulphuric acid plant, which is expected to begin in early 2013 and be completed in the third quarter of 2014. Outotec is a Finnish engineering firm and the global leader in sulphuric acid plant design and delivery. After careful evaluation, the acid plant was determined to be the best solution to capture and process the off-gases from the copper smelter, and, in turn, reduce emissions and considerably improve working and living conditions around the smelter. The acid produced from this plant is expected to be sold to domestic and international markets primarily through long-term off-take agreements. 

Following completion of detailed engineering and cost estimates by Outotec, the capital cost on a fixed price basis is expected to be approximately US$204 million. 

Based on expected annual smelter production capacity, the plant will produce between 230,000 - 320,000 tonnes of sulphuric acid. In conjunction with Protea Chemicals (Pty) Limited, a leading industrial chemicals company with significant presence in Sub-Saharan Africa, Namibia Custom Smelters (Pty) Ltd. ("NCS"), a wholly-owned subsidiary that owns and operates the smelter, has entered into a Memorandum of Understanding with Rio Tinto Rössing in connection with a long-term purchase arrangement for the acid produced by NCS. Rössing currently imports sulphuric acid for processing at its Rössing uranium mine in Namibia. The acid is expected to be shipped by rail directly to Rössing from NCS. DPM and Rössing are currently negotiating the commercial details and expect to finalize definitive documentation during the first quarter of 2013.  

Electric Arc Furnace

In addition, an electric holding furnace will be installed to temporarily store and upgrade copper matte until it can be transferred to a converter furnace for final processing. 

Based on the feasibility study recently completed by Hatch South Africa, the capital cost is estimated to be US$66 million, which includes a US$10 million contingency. Engineering design will commence in the first quarter of 2013. Construction is expected to commence in the second quarter of 2013, with a targeted completion date of late 2014 or early 2015. 

The project is expected to generate an attractive return based on operating cost savings of approximately US$5 million per year, capital expenditure savings of US$10 to $15 million over two years, with ongoing sustaining capital savings, and improved metal recoveries of approximately 1% to 2%. Additional benefits include near-zero emissions and the eventual decommissioning of the current slag mill and reverberatory furnace, which further improves the long term sustainability of the smelter.

Copper Concentrate Off-Take Arrangements

NCS has entered into an agreement with Louis Dreyfus Commodities Metals Suisse SA ("LDC"), the exclusive concentrate supplier and blister offtaker, on smelting terms for an additional 200,000 tonnes of third party copper concentrate to be supplied by LDC from 2014 to 2016. The new terms provide substantially better pricing than the existing contractual arrangements which were established prior to the acquisition of NCS by DPM in 2010 and better reflect the operating and capital requirements of the smelter. LDC has also agreed to rollback a portion of the increased pricing by amending the pricing on the final 100,000 tonnes under the existing arrangements forecast to be processed during 2013 and the first half of 2014 to enable NCS to begin realizing a portion of the benefits from this increased pricing sooner.

Financial Summary

These projects are expected to be financed primarily from DPM's current cash position and free cash flow generation and supplemented, if necessary, with a US$150 million committed revolving credit facility expected to be in place in early January 2013. With the new tolling arrangements in place, the blended revenue per tonne from Chelopech and third party concentrate is expected to increase to approximately $550 per tonne by the end of 2013, compared to $360 per tonne in 2011, with further increases over the balance of the contracted volumes.

Jonathan Goodman, President and CEO of DPM, stated "These important capital initiatives and commercial arrangements not only illustrate our commitment to the health and safety of the Namibian people, they also reposition NCS as a sustainable and profitable enterprise that will benefit of all our stakeholders."

DPM is a 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 Deno Gold 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. and its 10.7% interest in Sabina Gold & Silver Corp.

FORWARD-LOOKING STATEMENTS

This news 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 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 documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. 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 & Chief Executive Officer
(416) 365-2408
jgoodman@dundeeprecious.com
or
Dundee Precious Metals Inc.
Lori Beak, Senior Vice President,
Investor & Regulatory Affairs and Corporate Secretary
(416) 365-5165
lbeak@dundeeprecious.com
Data and Statistics for these countries : Armenia | Bulgaria | Canada | Namibia | Serbia | South Africa | All
Gold and Silver Prices for these countries : Armenia | Bulgaria | Canada | Namibia | Serbia | South Africa | All
Tweet

Dundee Precious Metals Inc

PRODUCER
CODE : DPM.TO
ISIN : CA2652692096
CUSIP : 265269-20-9
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Email Alert Add to Watchlist Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy
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
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
11/2/2011Announces Strong Third Quarter Results
10/14/2011NOTICE: DPM Third Quarter 2011 Results
7/28/2011Reports Second 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...
3/4/2013(Krumovgrad)Bulgarian Court Upholds Favourable Ruling on Dundee Precious...
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...
1/4/2011(Krumovgrad)Krumovgrad Gold Project Advances to Public Consultation Stag...
Corporate news of Dundee Precious Metals Inc
8/29/2013Announces First Underground Mineral Resource Estimate for th...
12/19/2012Announces Capital Projects and New Commercial Arrangements a...
12/5/2012(Chelopech)DPM Contracts for Sale of Chelopech Pyrite Concentrate to Xi...
11/26/2012DPM Announces Board Change
11/26/2012DPM Announces Board Change
11/19/2012DPM Board Announces Planned Executive Transition
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.
12/23/2010DPM Completes Share Purchase of 5% of Vatrin to Hold 100% In...
12/3/2010DPM and Chelopec.h Mining Sign $66.75 Million Bank Debt Fina...
11/7/2005(Coka Rakita)Q3 2005 DUNDEE PRECIOUS METALS INC Earnings Release - Time N...
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Latest comment posted for this article
Be the first to comment
Add your comment
TORONTO (DPM.TO)
3.85-3.27%
TORONTO
CA$ 3.85
04/17 15:59 -0.130
-3.27%
Prev close Open
3.98 4.00
Low High
3.81 4.10
Year l/h YTD var.
2.99 -  5.95 23.79%
52 week l/h 52 week var.
2.51 -  6.86 -36.78%
Volume 1 month var.
412,167 -16.49%
24hGold TrendPower© : -44
Produces Copper - Gold - Silver - Zinc
Develops Copper - Gold - Silver
Explores for Molybdenum
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
TOP NEWSRELEASES
Annual variation
DateVariationHighLow
201435.09%6.202.82
2013-65.50%9.182.50
20120.49%9.9310.04
2011-12.37%9.756.86
2010161.28%9.992.95
 
5 years chart
 
3 months chart
 
3 months volume chart