Dundee Improves Guidance After 3Q Profit
Dundee Precious Metals Inc. (TSX: DPM) improved production guidance after reporting a profitable third quarter. Net earnings from continuing operations were $3.1 million, or 2 cents per share, a turnaround from a net loss of $29.8 million, or 19 cents, for the same period in 2016. Adjusted net earnings were $7.6 million, or 4 cents, compared to an adjusted net loss of $19.4 million, or 12 cents, a year ago. During the July-September period, gold production increased by 32% to 48,449 ounces, while copper output of 9.5 million pounds and silver production of 56,934 ounces were comparable to the corresponding period in 2016. Dundee says the rise in gold production was due primarily to higher recoveries and grades. All-in sustaining costs per ounce of gold were $685, which was $398 lower than a year ago. Dundee says it now looks for 2017 gold production of 185,000 to 195,000 ounces, up from 157,000 to 174,000 originally. AISC was trimmed to $715 to $785 an ounce from the prior range of $840-$965. Copper guidance was hiked to a range of 35 million to 39 million pounds, compared to 33.7 million to 37 million originally. Rick Howes, president and chief executive officer, cites a "solid” performance at the Chelopech and Tsumeb mines. “At Krumovgrad, construction is proceeding well and remains on track for first production in the fourth quarter of 2018. With $297 million of available capital resources, we are well positioned to complete our low cost Krumovgrad gold project," he says.