2020 Results and Outlook -Dundee Precious Metals Delivering Strong Results

Summary

David Ray, President and CEO of Dundee Precious Metals, highlights the company's achievements in 2020, including record gold production, financial growth, and increased dividends. He addresses a tragic safety incident at the Namibia smelter and emphasizes the company's commitment to safety. Ray discusses the strong performance of their operations in Bulgaria and Namibia and outlines their three-year outlook, focusing on sustained growth, innovation, and ESG initiatives. He also highlights Dundee's efforts to manage climate change impacts and support local communities during the COVID-19 pandemic, positioning the company for continued success and value generation for stakeholders.

Takeaways

• 💼 Dundee Precious Metals (DPM) is a Canadian-based international gold mining company with operations in Bulgaria, Namibia, and Serbia.
• 🎯 The company’s purpose is to unlock resources, generate value, and thrive alongside stakeholders, underpinned by core values.
• 📊 In 2020, DPM achieved record gold production of approximately 298,000 ounces and generated over $200 million in free cash flow.
• 💰 DPM ended 2020 with $150 million in cash and no debt, allowing them to increase their dividend by 50% to three cents per share.
• ⚠️ Despite strong results, DPM experienced a fatality at their Namibia smelter, emphasizing their focus on safety and well-being moving forward.
• 🏆 DPM’s high-grade pit gold mine in Bulgaria, Ada Tepe, exceeded expectations in 2020, producing around 119,000 ounces of gold.
• 🔋 The Chelopech underground gold and copper mine in Bulgaria produced over 179,000 ounces of gold and 35 million pounds of copper.
• 🏭 DPM’s Namibian smelter, Sumeb, processed 232,000 tons of complex concentrate, despite COVID-19-related reductions in throughput.
• 🌍 In 2020, DPM contributed approximately $1 million to local communities, with a focus on healthcare during the COVID-19 pandemic.
• 🌱 DPM released its first report on climate change impacts and is committed to reducing energy and water usage, emissions, and raw material consumption.

Q & A

What is Dundee Precious Metals' core purpose?

Dundee Precious Metals' core purpose is to unlock resources and generate value to thrive and grow together.

Which countries does Dundee Precious Metals operate in?

Dundee Precious Metals operates in Bulgaria, Namibia, and Serbia.

What were the company's financial results for 2020?

Dundee Precious Metals achieved record financial results in 2020, generating over $200 million of free cash flow and ending the year with approximately $150 million in cash and no debt.

What was the tragic incident mentioned in the Q4 2020 report?

The tragic incident involved a fatality at the company's smelter operation in Namibia, resulting from a breach of safety rules.

How did the company's mining operations perform in 2020?

Dundee Precious Metals' mining operations delivered exceptional performance in 2020, achieving record gold production of approximately 298,000 ounces.

What was the performance of the company's Ada Tepe mine in Bulgaria in 2020?

The Ada Tepe mine produced approximately 119,000 ounces of gold in its first full year of operation, surpassing expectations.

How did the Chelopech mine in Bulgaria contribute to the company's performance in 2020?

Chelopech, Dundee's underground gold and copper mine, produced over 179,000 ounces of gold and 35 million pounds of copper, reaching the high end of its gold production guidance.

What were the results at the Sumeb smelter in Namibia in 2020?

The Sumeb smelter processed approximately 232,000 tons of complex concentrate in 2020, meeting the lower end of its annual guidance despite a 30-day reduction in throughput due to COVID-19.

What was Dundee Precious Metals' approach to supporting local communities during the COVID-19 pandemic?

Dundee Precious Metals contributed approximately $1 million in 2020 to support local hospitals with medical facilities, supplies, transportation, and protective equipment.

What is the company's outlook for gold production in 2021?

Dundee Precious Metals expects gold production in 2021 to range between 271,000 and 317,000 ounces, with an all-in sustaining cost between $625 and $695 per ounce.