Dundee's net earnings increased to $27M in Q3 on strong operating performance
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(Kitco News) - Dundee Precious Metals (TSX: DPM) reported Tuesday that in Q3 2023, the company produced 74,102 ounces of gold, 16% higher compared to Q3 2022 due primarily to mining in higher grade zones at Ada Tepe.
The company’s copper production in the third quarter of 2023 of 7.2 million pounds was 5% higher than the corresponding period in 2022, driven by higher volumes of ore processed.
All-in sustaining cost per ounce of gold sold in the third quarter of 2023 of $911 was 8% lower than the corresponding period in 2022 due primarily to higher volumes of gold sold, partially offset by a stronger Euro relative to the U.S. dollar.
The company’s revenue in the third quarter of 2023 of $135.0 million was 5% higher than the corresponding period in 2022, driven by higher volumes of gold sold, higher realized gold and copper prices.
Importantly, the company reported that its Q3 2023 net earnings of $27.1 million ($0.15 per share) increased compared to a net loss of $57.7 million ($0.30 per share) in Q3 2022, primarily due to the Tsumeb impairment charge of $85.0 million taken in Q3 2022, together with higher volumes of gold sold and higher realized gold and copper prices.
Adjusted net earnings in the third quarter 2023 of $27.1 million ($0.15 per share) increased compared to $25.3 million ($0.13 per share) in the corresponding period in 2022; adjusted items primarily related to the Tsumeb impairment charge and restructuring costs in 2022.
President and CEO David Rae commented, “With strong gold production, including record quarterly performance from Ada Tepe, we generated over $180 million of free cash flow year-to-date, demonstrating the quality of our assets and strength of our operating teams.
“Our mining operations are on track to achieve their 2023 guidance for production and all-in sustaining cost, and we continue to be well-positioned as one of the lowest-cost gold producers.
“During the quarter, we continued to return a significant portion of our free cash flow to our shareholders, approximately 42% year-to-date, through our enhanced share buyback program and our sustainable quarterly dividend.”
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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