Dundee Precious Metals Inc. [DPM-TSX] reported operating and financial results for the fourth quarter and 12 months ended December 31, 2020. (All monetary figures are expressed in U.S. dollars unless otherwise stated)
Record gold production: Strong operating performance continued in the fourth quarter and contributed to record gold annual production of 298,289 ounces, at the top end of 2020 guidance. Copper production of 35.6 million pounds was in line with 2020 guidance;
Solid smelter performance was achieved with throughput of 231,890 tonnes at Tsumeb, in line with 2020 guidance.
There was strong cost performance at all operations. Cost of sales was $330.9 million, up $36.4 million from 2019 reflecting a full year of operation at Ada Tepe. All-in sustaining cost per ounce of gold was $654, below the original 2020 guidance, and a cash cost per tonne of complex concentrate smelted of $377, at the lower end of 2020 guidance;
Dundee generated $197.0 million in cash flow from operating activities and a record $211.4 million of free cash flow.
Reported record net earnings attributable to common shareholders from continuing operations was $199.1 million, reflecting strong gold production combined with higher gold prices.
Record adjusted net earnings was $193.4 million or $1.07 per share.
Dividend was increased by 50%. The quarterly dividend was increased to $0.03 per share in December 2020, reflecting strong free cash flow generation. 2020 declared dividends totalled $0.09 per share.
Dundee has a strengthened financial position and ended the year with $149.5 million in cash, an investment portfolio of $106.6 million and no debt.
A detailed 2021 guidance and updated three-year outlook highlight the company’s strong gold production profile, attractive all-in sustaining costs, and sustaining capital expenditures that are trending lower.
“In 2020, DPM’s continued strong operational performance delivered record gold production and generated $211 million of free cash flow. I am particularly proud of our accomplishments this year as we delivered exceptional results while adapting to the challenges of the COVID-19 pandemic and prioritizing the health and safety of our workforce and local communities,” said David Rae, President and Chief Executive Officer.