Dundee Precious Metals earns US$210.1-million in 2021

Dundee Precious Metals Inc. [DPM-TSX] reported operating and financial results for the fourth quarter and 12 months ending December 31, 2021. All monetary figures are expressed in U.S. dollars unless otherwise stated. All operational and financial information contained in this news release are related to continuing operations, unless otherwise stated.

Highlights include record gold production of a record 309,965 ounces of gold, at the upper end of 2021 guidance. Copper production of 34.7 million pounds was in line with 2021 guidance. There was strong cost performance at all operations with reported cost of sales of $359.9-million, and an all-in sustaining cost per ounce of gold of $657 and a cash cost per tonne of complex concentrate smelted of $479, in line with 2021 guidance.

There was record free cash flow that generated a record $253.1-million in cash provided from operating activities and a record $252.4-million of free cash flow and record adjusted net earnings that generated net earnings attributable to common shareholders from continuing operations of $190.7-million and record adjusted net earnings of $202.0-million or $1.09 per share.

The company ended the year with $334.4-million in cash, an investment portfolio of $48-million, an undrawn $150-million long-term revolving credit facility (RCF) and no debt. Dundee declared a 2022 first quarter dividend of four cents per common share payable on April 18, 2022, to shareholders of record on March 31, 2022. For 2021, dividends distributed totalled $22.4-million (12 cents/share) and common shares repurchased totalled $10.4-million for an aggregate of $32.8-million of capital returned to shareholders, representing 13% of free cash flow.

There was strong sustainability performance that scored in the 91st percentile for ESG (environmental, social and governance) performance among companies in the metals and mining industry in the 2021 S&P Global Corporate Sustainability Assessment.

There is strong 2022 guidance and three-year outlook with wxpected gold production of between 250,000 and 290,000 ounces in 2022 at an all-in sustaining cost of between $750 and $890/ounce of gold, with continued solid production in 2023 and 2024 as outlined in the three-year outlook;

As part of the board of director’s continuing succession and refreshment process, Jonathan Goodman, chair of Dundee’s board since 2013, will not stand for re-election at the 2022 annual meeting of shareholders. The board has determined that Peter Gillin, currently serving as deputy chair, will assume the chair position, subject to his re-election at the annual meeting.

“Over all, 2021 was another very strong year for DPM as we delivered record annual gold production for the third consecutive year and generated record free cash flow of $252-million. Earlier in the year, we increased mineral reserves and extended mine life at Chelopech, and added the high-quality Loma Larga project to our portfolio,” said David Rae, president and CEO.

“We also continue to deliver on our ESG priorities and scored in the 91st percentile among mining and metals companies in the S&P Global Corporate Sustainability Assessment, a strong independent validation of our efforts in this important area. With a solid production profile, significant free cash flow generation and a strong balance sheet, DPM is well positioned to continue delivering value for our stakeholders.

In 2021, the company declared a quarterly dividend of three cents per common share to its shareholders of record resulting in total dividend distributions of $22.4-million (2020 – $16.3-million). On Feb. 17, 2022, the company declared a dividend of four cents per common share payable on April 18, 2022, to shareholders of record on March 31, 2022, representing a 33% increase over the previous quarterly dividend.

Over the next three years, gold production is expected to average approximately 270,000 ounces/year based on current mine plans. Gold production is expected to be between 250,000 and 290,000 ounces in 2022, between 265,000 and 310,000 ounces in 2023, and between 230,000 and 265,000 ounces in 2024.

Copper production between 2022 and 2024 is expected to average approximately 35 million pounds per year, based on current mine plans. All-in sustaining cost per ounce of gold is expected to be between $750 and $890 in 2022, between $630 and $760 in 2023, and between $720 and $850 in 2024.

Sustaining capital expenditures vary due to the timing of certain projects and are expected to be between $57-million and $66-million for 2022, between $46-million and $54-million for 2023, and between $42-million to $49-million for 2024.

Dundee Precious Metals is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia, Ecuador and Serbia.