Mining News
Dundee reports lower gold and copper production in Q2, posts net earnings of $33.5 million
(Kitco News) - Dundee Precious Metals (TSX: DPM) reported Thursday that in Q2 2022, its gold production was 72,904 ounces, 14% lower than the corresponding period in 2021.
The company said that decline in gold production was due primarily to lower expected gold grades at Ada Tepe as a result of mining in lower gold grade zones, partially offset by improved gold recoveries at Chelopech.
Moreover, the company’s copper production in the second quarter of 2022 decreased by 12% to 8.8 million pounds due primarily to lower copper grades and recoveries.
Revenue in the second quarter of 2022 of $134.5 million was $40.2 million lower than the corresponding period in 2021 due primarily to the planned Ausmelt furnace maintenance shutdown at Tsumeb and lower volumes of metals sold.
All-in sustaining cost per ounce of gold sold in the second quarter of 2022 of $792 was 31% higher than the corresponding period in 2021 due primarily to higher freight charges at Chelopech, lower by-product credits reflecting lower copper production, lower volumes of gold sold and higher allocated general and administrative expenses as a result of changes in DPM’s share price.
Net earnings attributable to common shareholders from continuing operations in the second quarter and first six months of 2022 were $33.5 million ($0.18 per share) and $60.3 million ($0.32 per share), respectively, compared to $67.5 million ($0.37 per share) and $88.2 million ($0.49 per share) in the corresponding periods in 2021.
The company explained that net earnings attributable to common shareholders from continuing operations were impacted by Tsumeb restructuring costs related to a comprehensive initiative directed at optimizing the cost structure of the smelter, unrealized gains or losses on Sabina Gold and Silver special warrants and deferred income tax adjustments not related to current period earnings.
“During the second quarter, we delivered strong gold production and excellent cost performance at our mines. On a year-to-date basis we have achieved an all-in sustaining cost below our 2022 guidance range,” said President and CEO David Rae. “Based on our strong operating performance and our outlook for the balance of the year, our mining operations are on track to achieve their 2022 guidance.”
Dundee Precious Metals is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia, Ecuador and Serbia.
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