Dundee Precious Metals achieves guidance, announces new COO
Chief executive said 2023 was “an exceptional year
Dundee Precious Metals reported 2023 production in line with guidance.
The Canadian gold miner produced 296,072oz of gold and 30.5Mlb of copper at an all-in-sustaining cost of $849/oz of gold sold.
Adjusted net earnings were $180 million, or $0.97 per share, up 51% compared to $118.9 million in 2022.
"2023 was an exceptional year for DPM," chief executive David Rae said. "We delivered strong operating results, achieved our gold production and all-in sustaining cost guidance, generated $228 million of free cash flow, significantly increased our return of capital to shareholders and further strengthened our balance sheet."
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DPM said it returned $95.8 million to shareholders during 2023 through dividends paid and shares repurchased and declared a December quarter dividend of $0.04 per share.
Discontinued operation
Last year, DPM announced it was undertaking a strategic review of its Tsumeb operations in Namibia, including a potential sale. The smelter "is no longer seen as strategic to DPM's asset portfolio", the miner said.
"As a result, the assets and liabilities of Tsumeb have been presented as held for sale in the consolidated statement of financial position as of December 31, 2023, and the operating results and cash flows of Tsumeb have been presented as discontinued operations in the consolidated statements of earnings (loss) and cash flows for the years ended December 31, 2023 and 2022," DPM said.
At its Chelopech mine in Bulgaria, DPM updated the mineral reserve and mineral resource estimate and plans to extend the life-of-mine to 2032.
At its Čoka Rakita project in Serbia, the miner announced a maiden mineral resource estimate of 1.78Moz. DPM continues to advance the preliminary economic assessment, which is on track for completion in the June quarter and is continuing the drilling program.
In December, DPM announced it plans to acquire Osino Resources, which owns the Twin Hills gold project in Namibia. Completion remains subject to certain conditions, it said.
"During the year, we significantly transformed our growth pipeline by advancing the Čoka Rakita project in Serbia from discovery to a 1.8Moz gold deposit within 11 months," Rae said.
Production in 2024 is expected to be around 245,000-285,000oz of gold at an all-in-sustaining cost of $790-930/oz of gold sold.
"As we enter 2024, DPM is in a unique position in the industry, with a strong base of production, attractive all-in sustaining costs, significant free cash flow generation and the financial strength to internally fund our growth pipeline and exploration prospects while continuing to return capital to shareholders through our quarterly dividend," Rae added.
New COO
DPM also announced the appointment of Iliya Garkov as its executive vice president and chief operating officer on Wednesday.
Garkov joined DPM in 2003 when it acquired its Bulgaria assets and has had several leadership roles within the company.
"Iliya has an impressive track record of delivering strong results, transforming assets into world-class mining operations and developing strong relationships with stakeholders," Rae said. "His experience, technical expertise and leadership will enhance our organization as we look ahead to the future operational requirements of our organic growth pipeline."
DPM also announced Michael Dorfman, current executive vice president of corporate development, will leave at the end of March. A search has been initiated for a suitable replacement, DPM said.
Dundee Precious Metals' share price is up 3.01% at C$8.22/share. It has a market cap of C$1.49 billion.
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