Dundee Precious Metals Inc. says it is on track to achieve its production targets for this year after producing 76,306 ounces of gold and 7.9 million pounds of copper in the second quarter ended June 30, 2023.
The company also said it generated $59.2 million in cash from operating activities and achieved record quarterly free cash flow of $70.5 million.
Dundee is a Canadian-based international gold mining company with operations located in Bulgaria, Namibia, Ecuador and Serbia. The company has said it expects to produce 245,000 to 290,000 ounces of gold and 26 million to 31 million pounds of copper in 2023.
Its operations include the Chelopech underground gold-copper mine in central western Bulgaria, the Ada Tepe open pit gold mine in southern Bulgaria and the development stage Timok gold project in Serbia.
The Tsumeb specialty smelter in Namibia processes concentrates from the Chelopech operation, which produced 44,463 ounces of gold in the second quarter, a 10% increase from the second quarter of 2022. Ada Tepe produced 31,843 ounces of gold in the second quarter, a 35% increase from year ago levels.
The company posted adjusted net earnings of $61.7 million or 33 cents per share and adjusted net earnings of $62.2 million or 33 cents per share. It ended the quarter with a strong balance sheet, including $542 million of cash and a $150 million undrawn revolving credit facility. The company has no debt and reported second quarter revenue of $167.5 million, a 25% increase from the second quarter of 2022.
Dundee said it continues to progress the updated feasibility study for the Loma Larga project in Ecuador, which it secured via the acquisition of the shares of INV Metals Inc. it did not already own. The study is expected to be completed in the second half of this year. The company said it received technical approval for the environmental impact assessment (EIA) for a 69 kV power line and launched the associated public consultation process.
Loma Larga is a gold-copper-silver project that Dundee said is well-aligned with its core strengths and adds a high-quality growth asset to its portfolio. It said Loma Larga has the potential to produce an annual average of 200,000 ounces of gold in its first five years of production.
Life of mine production is estimated to be approximately 170,000 ounces per year at an attractive all-in sustaining cost, net of by-products of approximately US$630 an ounce.
Loma Larga also offers a strong reserve base and economic profile with approximately 2.6 million gold equivalent ounces of high-grade mineral reserves. That material is expected to support an initial 12-year min- life. First production is anticipated by the 2024-2025 time line.
Source: Resource World
