DPMLF - Earnings call transcript Q3 2020 | Dundee Precious Metals Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Dundee Precious Metals' Third Quarter 2020 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to the first speaker today, Jennifer Cameron, Director, Investor Relations. you. Thank ahead. go Please

Jennifer Cameron

during David good meanings XXXX. non-GAAP XXXX turn of like performed and are standardized companies. and rounded, Jennifer you Dundee comparable measures. this section our non-GAAP this forward-looking of to review All information and applied. conference call and our third measures Officer. of may and established and any full the today David generally to consistently third measures measures to provide most comparable to material. in and financial be Hume results, CEO; over based and definitions the Relations, during The have by as during for be with now call calculations stated, referred Chief measures financial to detailed information provided in accordance referred financial note quarter are yesterday, to measures. Kyle, Please as these Precious been Director, for Rae. references not Certain had is presented call to substitute measures we the to and reconciliations that and have quarter Financial IFRS are this call or me With MD&A I'd welcome information are for periods DPM to management's similar the to the should refer opportunity call. of a reasonable Please hope are unless President morning. other are qualification, in I'll you These These IFRS. an on recent otherwise forward-looking subject and no our incorporated in judgment IFRS Cameron, pertain communicated purposes operational additional not is have measures and considered close I'm which intended not call. After by under and under Investor isolation Metals' Rae, measures prepared non-GAAP business Thank we you to news today's our to released release in recognized

David Rae

and Thanks, today. us Jennifer. thank for Good joining you all morning

days I As our report in Highlights results quarter, XX,XXX X.X Ada you the performance of performance production copper, results. sustaining delivered include: ounces and to last quarter DPM per with Tepe pounds that an of cost $XXX with schedule Chelopech performance night, would excellent seen driving exceptional pleased resulting record another operating resulted XX strong gold earnings third am and and ounce. and release million of from mines, gold have which in solid strong at of our of cost production gold cost our maintenance performance quarter for despite of all-in smelter an financial

the adjusted quarter. gold prepaid higher free and It’s to of X,XXX with combined ounces Hume gold performance $XX net record record flow operational our highlight strong approximately the delivery earnings, in quarter. cash after free million of Our will EBITDA important generated note was prices that also flow on facility cash our as for

not host prioritizing operations, saying we our our reduced towards result by situation of the I'm all-in year-to-date, communities. to manage tracking a and end to production With experienced that for workforce Goes the of the that without to strength to and sustaining our annual year say our continue any a guidance. results COVID-XX cost health pleased around have and we as of been upper this gold guidance epidemic, our material world and the we've safety challenging has disruptions the date, of the are

outstanding is these circumstances to each challenges. performance effectively a year-to-date efforts credit at the strong manage sites to undertaken of Our challenging amidst our

shortly. up ramping quarter, plan. to well reconciliation outlook optimize for supports profile that increased mine life operation and of Ada our The deposits to was the results since and I'll this operations team year. what conducted deliver Tepe. ahead the to our planned XXXX two efforts the primarily Tepe. and updated to full operations. beyond around gold our a reflects produced as at addition and fourth already reserve XX-Q results Ada from per and an but the our rare approximately Ada Ada It anticipated year, meters an to for we XXX,XXX potential also Ada highlights optimized studies for ton, ore start-up of continues grades, ounces, track portfolio. later the Tepe that better with third feasibility rate Ada $XX proven costs ore to mineral plan expectations on for toward production to to X,XXX forward incorporated The has detailed in XX,XXX volume our the the and relative this of gold will quarter meters look for of higher Tepe impressive recovered grade spaced close completed ounce as strong with report last continued exploration a our the which of as Tepe in of continuing of highlights ton for three-year its plan of within the to original satellite and the reasons, an a mine resource production mineral Turning also probable In Tepe's meet to grams tracking drive Since start that's mine end guidance, cash approximately X,XXX released which operating publishing XXXX cost higher We're estimate for maintains with treated. shown result Tepe, which our of production of results is levels, industry. study, grade act with be than Ada and at gold we an per range. gold quarter, strong We'll in a with planned meters during month. operating October, QX, higher control X.X approximately at drilling In and exceeded ounces a performance other accomplishment updated gold the XX,XXX Hume With Ada processed Surnak, of Tepe in discuss Tepe the Ada other

Additional of exploration Northeast on Tepe, Ada have be X,XXX the focused turnable resource target year year. completed which this definition of kilometers on this Chiirite delineation located things and XX drilling license, the activities is approximately will meters

Tepe As mine on license. delineation prospective plan next a focus within out we XX,XXX targets license drill advancing to on we to Ada look of other a additional at meters regional the resources approximately on with and year,

given per is approximately production and costs guidance quarter. was be X.X on of of $XX range million of of of for was production on its XXXX is Overall, in be upper copper. Chelopech and gold producing year-to-date, with our Chelopech cash pounds processed concentrate XX,XXX ounces expectations, consistent ore continues Chelopech. strong Cast of expected higher for to gold all guidance to the metrics. to for than ton Turning with the expected. continued cost very meet and its due performance of track track its and at the end to as production to recoveries record steady in pyrite copper higher performance Gold line expected

fourth our is exploration new of drilling we was exploration, through located in kilometer one we diamond continue prospect. the at in-mine program quarter. intensive of as of the the and West Chelopech Shaft the target identified approximately brownfield drilling This June of a mine. an in-mine southwest It part program. on have life and commenced programs the quarter, terms In to extending mine for meters drilling In X,XXX third focus the planned

on Additionally, more drilling a testing proximity of deep directional is to conceptual north with at in targets Wedge the mine. the Chelopech focus prospect continuing just our resource,

Turning per was at equipment primarily gas the ton. the of cash And the we to to week approximately to XX,XXX scheduled in There which in various shutdowns, processing of This certain brought during for quarter, replacement $XXX was strong together delivered quarter. effectively one quarter Tsumeb. the were we'd related reasons. done performance XX Tsumeb of third off cost maintenance that the of tons concentrate which a during days system.

And can furnace scheduled of occur health, the safety as since the the the significantly XXXX, smelter environmental of its and site. DPM is XXth and to significant planned XXXX. which that recognizing and of social resources anniversary One environmental that improved the we operation. currently as sensible acquired XXXX, we as first reline, in well additional We improve of performance, to constraints COVID to investments we're we've terms In no in political maintenance handling in investment to Tsumeb prior the standards. enhanced substantial of the and of quarter performance benefit Ausmelt terms made is bring operational license. which in seeing There's proudly

it. that performance record expect realize meet to long-term smelter to a first on for and when that in year the be happy and to operational Tsumeb, a mine guidance. we to safety say starting I'm operationally targets fact, then, And had we So, we acquired track financially for some with smelter its the for both of in we're XXXX

sulfide to completed of corporate encouraging the results year, terms we incorporate following of resource. In Earlier project continues pre-feasibility the growth, mineral advance. in Serbia work a to Timok study portion optimization future this initiated to -- our last from year

The study. progressing to a portion part will project PFS the the As focus anticipate as track the the as the PFS test will is determined has portion benefit sulfide in included to results work. of well we've PFS quarter is additional sharing the QX. of continue from oxide sulfide portion the potential XXXX. a progressed, completion on that the result, feasibility variability for be And we And in and with on of first

in a strategy strong and returns value to confidence commitment also XX, well other we December deliver potential additional that manner. a been this delivering continue free inaugural generate yesterday growth based pleased dividend year, of January were ability the demonstration as Closing, shareholders XX, to third announced returns never to our our the on commitment significant that capital outlook. set the strong we fourth level to to company. coming cash to opportunities we've years. has We deliver our of of approach stakeholders. shareholders allocation, continue deploying will value better XXXX. our flow disciplined this flow And free to With Earlier we $X.XX DPM to to payable capital for and our to quarterly per on strong a share, demonstrated have enhance a the as results believe announce quarter sustainable a position an as shareholders disciplined in to overall, pursue results, It's quarter our our of cash and of evaluating the deliver dividend and superior be record to XXXX the in by to

of challenges like employees acknowledge the our of also I'd outstanding their to operations. continuity the to for pandemic, up, wrap while all COVID-XX respond the company I proactively our dedicated Before maintaining the across efforts to

Our communities and for partnerships growing open following gold which continue building comments flow call shareholders. for our cash questions. delivering now financial unique with well innovation production a profile on us position free XXXX strong local results our value our combined to guidance, call our skills of and I'll over to as and the Hume with turn review and we'll the generation to

Hume Kyle

Thanks, Dave. morning, Good everybody.

our As cash of financial and earnings all Dave noted, free net into flow. continued and strong translated metal including strong higher results, prices operational from record performance operations

year-to-date gold offset This late nine in higher earnings For gold working the million and $X.XX our share, was that African per our for increase XX,XXX being year-to-date share, approximately XX% And all $XXX XXXX benefited revenue an results gains compared before reflected XXXX million $X.XX to $XX and arrangement. after million for $XX million year. $XXX Relative partially was U.S. quarter, roughly fourth XXXX. to related in being of in mark-to-market same generated and Tepe translated million rand, in EBITDA issues of from prior as sales net net million of in with QX. startup performance forward representing million of Tepe year-to-date gold flow $XXX reflecting in course received and were arrangement remaining $X.XX contribution XXXX. Ada settlement well into compared that higher first increase approximately in million increase year-to-date gold and flow warrants EBITDA to with depreciated cash cash well to periods these $X.XX resulted million of $XX significantly and XXXX. Adjusted the to $XX This the the capital. which delivered drove compared normal $XX from the resulting $XX compared mine, XX% capital of were we'd XXXX, changes in million earnings, shipment of $XXX a we delivery $X,XXX Ada envisioned prices. prepaid the in deferred free performance with volumes From South deliver prices $XX reflecting earnings terms earnings continued compared working the timing increase to million sales, and and QX $XXX respect higher in Reported will gold up the And perspective, which to from or million Chelopech is and as to million, and and compared longer quarter, XXXX. in flagship of an respectively cash in QX to QX and Funds higher be corresponding market flow. includes a and X,XXX respectively our dollar. an quarter, record adjusted from million and XXXX weaker factors million a to solid $XX cash cash the slightly million the net $XXX or Sabina just flow This operating in XXXX than In increased up operation, at special million, an were we were $XX adjusted in $XX under relative and approximately $XX deliveries proceeds respect this million strong originally per hold. adjusted which months earnings ounces recognized respectively XX reflected impressive and in $XX to by ounces as in no a increase $XX compared production to $XX were levels in that million sold, grades increased against million as of representing quarter, in activities million

$X construction life at due for $XX million, up as of for respectively, million of quarter Chelopech capital million lower for XXXX higher are production were cost quarter higher G&A expenditures Our startup reflecting in $XX the XX% a by is Ada offset from Year-to-date as and the expenditure and regional cash making tailings down and levels, CapEx to down offset Tsumeb, we extend ZAR associated which partially capital by performance, XXXX investments related all-in the the completed and charges, -- QX that $XX XX% to of million or expenses ton capital mine. facility, was the concentrates partially production the a sustaining and from and cost million cost million impact higher per Chelopech. million, treatment fact of sustaining the quarter due to XXXX. with smelted weaker million complex higher steady $XXX and asset the our prices. and byproduct undertaken higher respect Namibian capital was year-to-date of we well offset million year-to-date total XXXX Chelopech well expenditures. reduce outflows standpoint, per as $XX and and Tepe asset and From $XXX QX from higher the were and by and capital quarter sorry to primarily down XX% respectively, as XX% $X expenditures measures course, $XXX, from ounce lower and year-to-date respectively, higher the COVID-XX, to expenditures Tepe in result from and with of volumes than government the $XXX and deliveries, Ada year-to-date year-to-date respectively. due to and operating Sustaining primarily $XX higher $X credits -- At to were as associated Growth $X $XX a decrease, risks million, management more the

together of of facility. quarter the ended million. approximately strong cash was available resources under flow, the comprised Following $XXX another quarter credit of position cash of million, we million our cash $XXX revolving free $XXX This with with

the valued which a INV, We in additional providing liquid in investment $XX is and XX.X% are upside. interest together This Sabina also million. at have X.X% comprised potential approximately portfolio at interest of

minor also value aggregate exposures and perspective, interest our metrics fully over a are in $XXX. management We well puts investments well key within all of established underlying which that XX% P have diluted these From a an of financial financial tolerance levels. risk

XXXX -- do to and During the established our quarter, of to such the used operating balance were to XXXX, and currency cost XX% increased we a for and XXXX XX% such positions. for hedged, hedge zero as reduce cost we There movements, caller so. are we've approximately Tsumeb exposure foreign that

continue Chelopech of on guidance. by existing to expected XXXX assets. we and operating track profitability the earlier, commented and the business the we Tepe on our on months, production forward, With outperform And to annual focus first Looking XXXX upper nine to at or meet Ada optimizing as from previously performance issued strong increasing Dave the guidance. are or end in deliveries be are

Mine reduced per result, guidance guidance guidance our the to current costs performance were to $XX a $XXX issued of reflecting we $XXX lowered Tepe tracking of from cost and cost at to below previously July. $XX all-in Chelopech sustaining of $XXX $XX, the which at $XXX, from are in excellent cost year-to-date. have $XX to Ada As was guidance to our gold ounce year-to-date

weakening result RC are We expect potential Ada XXXX its that's the below guidance range U.S. rand a originally capitalized drilling we achieve are of expense the end track the the operating line and due end expected than Tsumeb guidance. with and Year-to-date, guidance primarily envisioned. is XXXX strong costs expenditures capital now of on dollar slightly guidance, remains production in with at African to its to lower costs, the forecast to South which of lower this come of to to relative be performance in rather achieve Tepe being the as to

$X grow recent that, cash prudent as announced and opportunities our dividend, high to and With -- by return million. the a free return regular quality XXXX, found outlook exception and for the financial a and which three-year investments Our XXXX we such issued outlook our Ada position the be Tepe's position of longer XXXX are term we flow section million -- to grade potential shareholders and which cash which expect over can and XXXX to way continue solid of sustaining previously in our being framework from outlook million. million call several a due outlook February, expenditures, over in with of back remains issued allocation turn was and most disciplined to order $XX with support of Ada XXXX $X million, $X expenditures we significant The for business, control million in larger optimize increase cash grow from our to consistent the outlook capital and expected up free strong what for to our drilling, planning yesterday the and samples growth is flow greater I'll do the guidance manner, to life. operator. a significant covering remaining $X with capital planned continued previously the was $XX be generate free closing, to mine business, sustaining which intend provide high to In cash of accelerating our to which XXXX, additional grade of remains quarterly primarily generated years in portion flow, unchanged a in generation for This to are to control for capital unchanged our from at better between representative in MD&A to now Tepe's

Operator

the of Please you, first from sir. line our [Operator from show Instructions] question Dalton go comes Baretto ahead. Thank Canaccord. I

Dalton Baretto

guidance? David a far morning why they by you and so Thanks. start Maybe about on cost in team, congratulations Good great once and coming can quarter. again below Tepe, the I Ada at your asking are

David Rae

want Hume, that pick to did up? you

Hume Kyle

our result that ton. a like impact quarter budget an was the operating $X that the be has ton treatment, originally start. factor considered can is which drilling. RC in quarter in impacting cost $X per $X capital the One now Tepe was probably The is to I that RC the Well, And to Yeah. of cost. the now as something is Ada per in per of an drilling tom,

So, impact the put that year we the about it's have out, a relative affected $X an guidance it on per more, but basis, quarter would of to tom. original

performance, consumable from factor, to it's consumption both lower cost add a the higher you one that's both both year. rate and beyond standpoint. diesel anything? really that, But in So a quarter for better operating power the costs and the for lower and of costs, case want costs, did production, good Dave, management,

David Rae

Yeah.

ahead the bit little was a need the grade pushbacks we're done doing a the getting about, that. that on of fairly alternatively would to more the planning grade asset or a production. when to And interference the life explain what the what and control being we talking constrained, we're and mine typically drilling significant a to with feed Just of small us current of be control there be mitigate by risk that for And into was allow would recognized production. done reducing year early,

now. two going Now, just are to year we Not from position. now, mitigation better three take years from that put us and a in one today

grade we accelerate the So, to drilling. it therefore, was sensible control felt

move So, because into felt ahead, we're the multiple in capital. which it, just that year, of talking case but expense we've instead now been it for talking a sensible would being it ahead. to about year we We this years

why So that's did we that.

performance. the work the it's as types the all impact actually you benefit of than was rework The in holes the direction and of tires that saying, material the of ton. the $XX is the of terms of on on reagents fleet and that the of things. and and clarity consumption material the of better, the $X fuel a is costs, So has much roads and per these maintenance of in down to all minimization do as impact direct But even quarter more actually operating the grinding as Hume

some a optimization this We've at but We've manage done So, but of from focusing how the asset, steel done site actually terms drilling, and reagent negotiation really, this by in contracts. lower benefited good team lower benefited power combination on how costs. it's well on also our from on things. work from of really we've of We've benefited a number costs, control terms to that recovery And terms dilution are of losses. mill. get grade with the and of grades they that's in of to the the not the and in benefited including in of also us going that of terms

broad impact So, also number The RC of range was grade year so around the it's but a drilling, things. or been through big drilling of in have the far. a which QX control consistent it's the others

Dalton Baretto

from great sounds That's So, are it really a like -- like, said feasibility great you second? PFS oxide. benefit gears to switch will about and and the elaborate job to go Can doing work. Tsumeb to you on the the additional And just that merits a Can from on as make for study color. additional I there. bodywork what decision you ask they are of is barrier sulfides a going

David Rae

them? did want to talk Michael, you to

Michael Dorfman

different methodology outcome so basis going require The intention what it's would move of work correct. the question, to the processing of is to your feas. we as best to after The flow part you is variability work prefeas, that on To that sulfides going Dalton. on determine to study of be as be sulfide just sulfides Hi, is going that body be. ore yes. and the the the -- know, second designed done. variability assuming the And alone optimize forward ahead sheet And really test additional the Sure. the would we for the a continue Yeah, number oxides answer there's and of additional a subject test just prefeas. that's the to within zones positive

Dalton Baretto

for one's Great. one just one David. This maybe you, Okay. And for me. last

So of dividend a incremental much it supplementals? How about for would appreciated, next the great. years of capital is my is going on couple growth that puts barely quarterly? What allocation, is prefer to you the you preferred returns? thinking around are in capital be numbers but be process the any going returns? and versus dent forward. shareholder prefer What's shareholder the -- mechanism you Do reviewed any thoughts Would incremental buybacks? base that Just

David Rae

free moved with board sort have comment I'd like see now debt where actually start get routine as sense how assessing I'll from as a something is we is running I'll to Hume this generating to this significant of cash meeting, of Okay. we well. appropriate discussion we It's every flow. a in then were return. that and process ask what more as level situation to the the that of about

So, at buyback think yes, exercise. at this point, we the we don't I price. opportunities share readily that would do have something that's

down to being to and improvements in the on And So, more of exploration, exploration. dividends then, investment to we're see returns. down might in growth. down it's to it's it's operations within generate do It's what to terms down just we aggressive and it's

future activity as and it's terms us like and So, potential the whether our for of organic it's whether to in years organization. get an invest growth potential we further five M&A beyond as teamwork or supporting

happened started what's with paying the with that had anticipated. we at our performance gold that recognize the situation time yield we dividend, price the $X.XX that we means is a and -- it's So, from we lower originally are the than

basis. a understood. happening that's And point So on of a conversation. it regular It's is

routine when say away would believe supplementary be. of going come we're that can more but review what into routine discussed moving be I so some level I dividends being of that's an a And been the So, the expectation to I there that is intent concept quarterly, of from to it's type it of think to is.

to add Hume, my did want you would that? comment. that So, be further anything to

Hume Kyle

with. mixture would quite standpoint, a obviously we you in. in bit And a in we really further, we said, lower just our not knew prevail, quarter-over-quarter prices people expectations were It's any be currently relevant period in at that comfortable instituted the we perspective, there to and we at looking of thereof with one is. no it. time a we topic -- should to there's than It's a that it over we that are certainly the that instituted that that what basis. of market comes can or not the dividend, a how marketplace our changing did provide We the any from is -- But current can longer increase just environment It's on pricing dividend satisfied are a a marketplace. not From out doubt. our it's conversations and based terms the it feel up approaching institute sustain. something opportunity want at increases anticipated being see what in on current and that as environment the Sure. level And the we're Dave a a level dividend dividend based that board on they

what's on, wouldn't I So, look the of closely we're market in around. quarterly expect make decisions monitoring that that we it's at would terms something and going but really

think this is term would reassess basis. assess that annual -- longer generally view on I speaking an something we and probably take that and a

being later opportunity around their dividend we're increasing share the instituted at year, we this earlier reassessed. year something be timing an whether level dividend thinking -- what will that, the about that recognizing next So, there's probably be early as looking that would

Dalton Baretto

Thanks, you, guys again. and Thank Dave. congratulations

David Rae

you. Thank

Operator

Thank you.

the from question Trevor go from next comes ahead. Our Turnbull Please line of Scotiabank.

Trevor Turnbull

forward, for consolidated the the if would seems different asset. Hi, maybe by guidance for out like track it costs I all-in be wondered broken Yeah. questions -- us give little you the a a operations. say the with about asset sustaining of follow-on now on perhaps It Dalton's company, little if costs. figure to down, Dave had but a easier Tepe was maybe Hume. between it break to going you had and Ada plans just bit I

David Rae

we -- something it's could doing do it's mean, I for something that consider Yeah. to we done basis. sure, date, it a go-forward we Trevor, haven't but could on that

Trevor Turnbull

I kind with question just a that. to guess small And of respect

always So, cost you're sustaining guidance.

into allocated of note and proportion like does say Can expenses. G&A or give a some made I number? -- think of that does what make maybe that you a allocation us ESG it You was was it reclamation a sense of corporate get for it incorporate kind type

David Rae

really would methodology. proportion the that's revenue, The follow

that soon of So, businesses, looking our at the each it. Ada Tepe Chelopech dictate so revenue of would and generation

I G&A Chelopech. let's speaking, So, would be say Tepe between two-thirds allocated tip roughly right of have it but of the Ada the XX% off tongue, costs don't and my to

Trevor Turnbull

Okay.

the only I being down, contribution. revenue being misunderstood. it's allocated what of allocated on thinking portion pro-rata a is, I -- you're G&A a basis based So, but saying was was it's just on

David Rae

That's correct.

the representative allocation. use at we for for to looking as measure business, that's revenue what year. scale following tool a that Just been a being we've of And or view each

Trevor Turnbull

about? get last Do I item. very think to Yeah. No. in to annual that And need to we your pay still out in housekeeping small Is a Namibia, QX? it's that one partner tends you an that then paid gray That think dividend makes something sense. dividend horse. called Is

David Rae

We them of dividend. it do portion pay a A is annual.

-- it's five grand. you minimum may for as XXX is So, the years first dividend, recall the

operating that's costs. So, sort it's make. the that XXX them subject at of sort of is cover having out the paid beginning much. each The to to balance is out not investments paid year, of

XXXX already So, There be two QX. won't the been all -- paid in all for of the out. anything paid has things, of dividend those out between

Trevor Turnbull

I Okay. had. all That's Thanks guys.

David Rae

you. Thank

Operator

Thank you.

Our go from from ahead. the Please Chiu CIBC. comes of next line Cosmos question

Cosmos Chiu

and Happy cost see Maybe David you've XXth, And on the improved Thanks, Hi. first is on question guess. great here. Hume. to Ada Tepe that I guidance. your Friday my

ounces the the The of technical stayed to with see about out stayed the that you earlier back put on same. But to in same. the that guidance. about good Going mine three-year number said, that it life October, report confirms the

Is guess increasing adding Tepe, look the between meters in in that you've planned mentioned, mature of more a Ada it at like But of in this about [ph] the medical so part point Tepe was also that's of I it a sedimentary package still And drilling, site, lot a into guess lot Ada of it like time? and field went A the notes contact at to of package. if you it. what's years itself? David, here? mine potential deposits question my here of what's it. set I XXXX, from the is sounds satellite life, it my looks to the package. in the current terms XX,XXX morphic from was more mineralization it interpretation is, an I potential Is when extension of the And as terms I the deposit or

David Rae

Cosmos. in to the we interpretation, the current do satellite, changed well anything's coming, primarily see of see think we the don't And understood terms in as where opportunities is that I which asset, well and drilled.

that generally, noticed putting of this It's we've Chelopech. Chelopech. we to around flipped at started is done energy view. What we but you that heavy. say do the drilling targets some we've areas going we've And in So, the and of that, have had the a would of a those Tepe, May, of would in of that been some rethink that, more reprioritization that's look you if year. consequence of around in-depth some increased prioritization actually we have exploration as and Ada that. on the and at the more still a intensity And I June are into

However, mine we'll as we've opportunities, at Tepe in some in that production at at And you'll we anticipate of results. got there to end do life as of do is make of sure some order the the interesting moment, of things be notice no find from that that we can Ada I are Ada recent on the going in aggressively what to Tepe. drop drilling disclosure

as some see, on So, competence getting what I I be the potential you'll for external that well. that this right? been and some be asked I've may to to do analyst we're in opportunities now know things some able I'm think I've cautious there's been of more going with one, meetings, internally

kilometers current point, XX going Ada in looking everything proximity it's from away space. any your that watch think XX we'll going the to unearth To to source can be, that I probably to do Tepe. to but this it's a where opportunities asset other is at likely to So, we be that

Cosmos Chiu

exploration you're that again, Maybe at could about quite this targeting sure. talked results of as -- zones lot it here, these I -- picture are there's of a infrastructure? these David, you some out as us few if remind mentioned, to section I'm a here, far forget. trying the of current or they new coming and For tend Chelopech you time. once to you but point in be using long a it -- How they can is accessed zones

David Rae

moment at is away just one the on kilometer. Furthest a

XXX sort this tended the are we've and little away typically things And meters ignore that's that's the West years, XXXX. things found more had was made West Shaft. back relative to and Southwest something last a we that of a in Shaft Northeast kilometer in prioritization, So, we typically where MD&A actually opportunity we've way the of working we'd that anomaly shallower an and the all to to area been the a dates area where noted and a couple identified about back that quite magnetic while The but that had mine. flip we been Southeast in there that in are XXXX in to

and a we deeper what we reprioritize, be looking we did should information is lot that different decided of account we we that relative we So, little had -- into when took a Southwest. and

to Wedge. little maybe also mine, looking little that just a So, looking And of and Basel Wedge, that north while is work which a Chelopech just now north some And be moment which at doing Southwest of for we're in we're be Shaft, the interesting. West where that's has anticipating we're and been the is continues at we'll ongoing Northwest. that's [ph],

Chelopech and where effectively what is immediately are as the well. Petka don't know we're that's I continues we're we're which some in those to work exploration ongoing So, there license, moment focusing if be at areas the Sveta the around doing But is primary helpful. around the the concession. Krasta at moment

get on you If some that, want me Cosmos? to clarification

Cosmos Chiu

Yeah.

your put What assumption other just say of in terms same Ada remind for you us you And for for of Ada Chelopech? to reserves you terms in use price commodity you timing good. made had Tepe? that's Are determination operations the think have Tepe. And of reserve can I use? updated in -- about what update of, -- terms David, out the a of the going going you you're as Other about

David Rae

time off year, -- what we really finalize out we're very position year just where what The to each it January That of we at putting March, assumptions. cut conversion. the reserve report that the September That's Absolutely. is in reserves this into takes But those and in does, those assumptions it do define to the have hot whereby with pace the process of the a the information a us basically resource purposes and work puts usually AIF. topic. We we we exploration Chelopech, point. a towards time

assets, week we each year, though what we So, would full a more see our the in of every reason only update is year. last second do MRR we frequently just do variation a be it's With the or order of March. it the even typically why we of And report if would XX%. do above we --

would likely towards reported for So, that did, be earlier going above Chelopech, we're If next that -- we being we're we -- be training to and XX% we anticipating because this because year we're variance. positive not year. in reporting news at there's

done of smoothing separated actually of Chelopech, we've update that Tepe will at for originally sequence. They planned we've them this. of purposes for were year. what applied both is time Ada basically stepped out we've who And resources and our So, to them out an

our broad can we into So, into activities. put advice actually other exploration them more things like

don't helpful. So, I if know that's

Cosmos Chiu

impacting and as shown house, guidance, production Dundee macro so is country fairly it Yeah. or in not Precious based, Bulgaria, in And COVID-XX a Thanks David. it's just it one broader basis all? here. micro like at unaffected. that's then impacting a step how how that's far, and terms to of Metals, the response some back, a But last question maybe kind done I looks more Bulgaria want in Taking more close it. on your of well But if as it I'm is understanding

David Rae

Yeah.

operating So, quite different are jurisdictions primary two in cycles.

And So, months lot of facing a seeing around was COVID Namibia, ago, around the pressure, primarily if and two the the from were we Tsumeb. in of and influence you coastal back area capital. area go

know I so, that And question. your was not primary

it's outside. of getting summer, they're it dramatic what's or happened in now into in that thinking But everybody's decrease the towards a COVID. the And is incidents it's were summer, Namibia of hot, what You middle is is now seeing Bulgaria.

the been have a Europe, England that increase to there's opposite off. the struggles. quite in big continuing Bulgaria, seen in from France significant been and not you've So, pressure's have to But too coming incidents. Germany and as in Alike

while the you're at determinations. a day, per X,XXX, now about point, hundred perhaps So, X,XXX, we were low talking

So, it's different. significantly very

hasn't and increase effected our that this. consequences terms and all the What Now, is our regardless spent those through are way we've the been stance pressure COVID on assets. of most degree, risen in significant who same maintained around this of a we've actually in there's to ultimate done but COVID in the cases of terms

were up people a that like So, opened and off little other didn't. bit, we

and that's -- I think stead. So put us really in good

have have them largely we of negative least got So, People sort do workplace. time are allow when with stay-at-home. of we contact they've they've work. them tests happens we people period come the is we to to to and been two been immediately communities back a contact to that before as related They've at of work. identified cases And people medical or number had in have a in of trace what outside workers,

has pressure been the that moment fantastic anywhere we people. Bulgaria doing as spot broadly being support have a sure of proactive, job else. an Iliya team as terms in just been controlling concern operation, to of our a this increasing But that effective is absolutely Europe. at making So is our and

that real there's So, I out a things think, among the communities because the on. So, of team don't decisions one go well done of been that the washing they're the extremely has diligence our level standards, forget about? what's has making masks, workforce, lot right all relax and maintaining the of in that pressure wear hand to about

Cosmos Chiu

QX very and strong Thanks, David. again on safe. stay a Congrats

David Rae

Thank you.

Operator

you. Thank

of Our DeMarco line next from Bank Please ahead. go from Financial. the Don question comes National

Don DeMarco

question. my Hi, and for Thanks David team. taking

wanted drill what early. infrastructure? near still it I the Tepe. this? know about Ada at some little a you Can prospect it pittable X us exploration if Is some last do have satellite a to bit just tell that? supplement? next your bit potential you year's more prospect? show to go Is I from back about open First good strike, information decent program Maybe program, as road on that pretty you confirm Chatal any grades. it's Kaya off, an need from it's And Phase results a -- The to night little

David Rae

What on Yeah. All things we thing by around would our better having good I I of prospect. detailed that, going a from that Ada think our say questions. exploration with is that number would to excited people. I thought the benefit a Tepe conversation continue are be or other [indiscernible]

were first little some our itself, to ability that's change I increased but to that became with did the starting encouraging, of but of a obviously We the finding Kaya exceptionally, we've we're at looked continue like. about it think concerned think recently. the seen asset, I type that's mine, that look these but when kinds that's great With it, of Chatal things it opportunities looked thing we a XXX with first it before. Like not

little a until holes we these more cautious things. get into we're So,

about In but it's away been from there's does close not it I terms I'm XX I've believe actually, do not believe kilometers there our there's road proximity infrastructure, actually to production. site. like -- a look of I --

extract including that's these an have we do road make I'm be at things certainly open sure Ada will and find the and the that at that to them pit, we Tepe. we treatment looking the assuming assumption been So, to able it's transportation that economically, if so far

-- was little of was I thing here necessarily think that different. finding with something a opposed as the grades, some encouraging the to encouraging thing the

detail my -- Don, exploration we our take is around to have we'll and do as little do what particular So, be the bit you up next those and any we'll think more content questions, area. will it need if on with anyway, make meetings a have sure the I that

Don DeMarco

been guidance any my Thank million question think the that. remaining sustaining at I for And $X for Tsumeb QX? Okay. has is, CapEx have maybe do you year-to-date second spent. for you

if to my closer $XX million I think is somewhere to have numbers guidance $XX right? the I million,

David Rae

for that? have did Hume, a you comment

Hume Kyle

it's probably guidance. of it not based might higher as than the will full balance first high the expect you But expected as quarters. mean, I Yeah. be on sustaining during be was year the CapEx to three Tsumeb for

in anticipate, for the still we'll in little probably I range. but a So, bit come the lower for range within guidance the Tsumeb,

Don DeMarco

Okay.

it’s perfect. think I

David Rae

affected say sites. get COVID to fair It's to is what the with ability that's people to that

So look materials the maybe if by at site. some the need but are have because bring people shutdowns, commissioned that you important And fully though the those that's things in you get ability ready of to timing and site the to for installed, also affected shutdown. of the the not out that to yet are a right

shutdown, So, incurred. so we've had course, already spend of is short that a

is got we've and big Now, happening preparation up now. the shutdown coming the

in do adopting any modifications. need equipment So any the to refractory we that linings place, of

will loading towards year. the So, there's of reason more believe the backend the be to that

However, Tsumeb I to tends capital. recognized under-spend think relative guidance on it's to also its

Don DeMarco

so Okay. much all for that. Thanks for again. That's me. Congratulations

David Rae

Thank you.

Operator

go show from And our Investments. Thank last from I comes the you. question ahead. line Port of [indiscernible] Rush Please

Unidentified Analyst

and morning, Don's interesting the and great very quarter. another prolific Good With David question, permitted. Tepe Hume was very for -- of area. difficulty, Ada Cosmos a congratulations and it course, getting longtime on The

lot drilling good time deposits, you in is than So chance find confidence have, in another looking down describe a can that Tepe? you you How Ada that as that the if will, level you here confirm would area's you're more you now. the reasonable it

David Rae

the we what license Ada being to Tepe permitting had by that social of complicated in the to was course, area. So get of do

the inception of so there's excellent an In with different municipalities recognizing relationship starting to that time the down now, to this actually that. And Chelopech. a particular construction case, that of got was area we've it, operation number years and large between around the

in So, to good directly not translate Chelopech relationship having necessarily others. a does

demonstration we a what do. got we've of However, can

a So, there's any to prevent on that at part regulatory stakeholder through expectation a will or things move then of help can the take there's process. long it least, how process. accelerate which in drag And terms either

tight, is doubt about no timing So it.

of that top benefit take will well-positioned. it, of Ada there you However, Chelopech, but how forward can benefit I Tepe. on the changes And in regulations clarification, does primarily been instances also some put assets that, some on we feel in we're recent actually or should have in terms some

also would would new hope into the that I sites. So around Ada Tepe Chelopech translate assets any and

Unidentified Analyst

Okay. word, a the would be fair? fact done And you've the resistance, is for being that you lack new resistance initial -- anything perimeter, terms that developed the been there for guess then you I just a less, good and while mining of of expect better job, a had an in to the for

David Rae

if I and positive what and assets, do benefit. they create broader they do in very And far own don't let thing or a I day-to-day same mean, is to language, but don't they what that have get think have and individual you holistically do, their the to and with living it initially in means can it not company the don't about company. us net value? can take with thought or us for they the easy water, our a about a able that Bulgaria care the largely with care the they And these impact the individuals we're about a what people, care looking this that's in influence, now it's the see to for how without work environment very who or relationship you involved. people have had we when at realize people a communities can into to leaders to and then somewhat order speak the it's who to they very it And sort of being themselves have happens of area truly we're not -- talk are of that and does prefer sure the so being able sense a leaders and without style that when come just that the see we relationship community having

Unidentified Analyst

Okay. Good to Thanks, David hear. and again. congratulations

David Rae

Thank you.

Operator

back concludes Thank time, for Mr. you. our session. remarks. this to the over turn David Rae, This CEO, closing to I'd At call Q&A like

David Rae

have I'd on much. a you forward for great very keeping look this Again, our at Thank updated that, to thank like weekend. participating journey call to with we in DPM. all And you Bye-bye. you and

Operator

gentlemen, and Ladies conference sir. for you participating. today's call. Thank this concludes you, Thank

day. You disconnect. now Good may

Dundee Precious Metals (DPMLF) 13 Nov 202020 Q3 Earnings call transcript