DPMLF - Earnings call transcript Q4 2021 | Dundee Precious Metals Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the Dundee Precious Metals Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Jennifer would to conference I speaker your Cameron. Instructions] like the to over [Operator Please go ahead.

Jennifer Cameron

you to you Metals incorporated Thank call you me Hume call. have and welcome chance Kyle, IFRS Relations Cameron, is today Director, Dundee and in good may purposes this measures of President the measures refer Please morning. measures I’d of measures based presented be full to and Financial to I'm recognized to or are David substitute other Chief our our like presentation intended IFRS not are during and prepared in Call. have and IFRS which Financial our are accordance non-GAAP to Quarter operational most nearly generally Conference review call judgment reconciliations this of of and measures and no management’s are the of Fourth Jennifer continuing Rae, during measures on in to financial Rae. and Non-GAAP for forward-looking referred to Investor recent comparable in unless in the to over and With have well related applied. comparable stated, our now information material. Precious GAAP CEO; for Development. we standardized qualifications, ratios. XXXX, for outlined under and on of business in as close forward-looking this to period our and Dorfman, the fourth and outlook and non-GAAP midpoints and are and referenced and DPM Officer; References otherwise company. X guidance. information measures All had measures. this our not quarter by to by refer the XXXX Michael as note call Executive call pertain a not subject I I'll reasonable After under as operations it Vice Please XXXX These the references similar Slide annual based outlook three-year hope results be David is we MD&A are the on calculations measures to that a are isolation been XXXX The These definitions as Measures rounded. or President, communicated Certain released these provide webcast. performed [ph] today’s with or established to Corporate those during guidance the yesterday, and averages financial section considered information release are should and additional to provided consistently detailed to meaning news turn to

David Rae

all thank results our highlights Thanks, handing our performance you year joining before review discuss financial us. operational Jennifer. Good full for morning results. our briefly to of the I'll call the over morning This to and and Hume

As the we an excellent gold, year. for production third of reported produce of XXX,XXX consecutive number record delivering ounces a We year areas. DPM across yesterday, for approximately was XXXX

sustaining costs year adjusted of all-in $XXX We in net to results record and strong resulting of generated cash we leading million free $XXX financial in ended $XXX earnings, manage a position. including an gold costs, We per and continued million of industry financial very the flow, our ounce. XXXX, in

mine extending Larga portfolio. asset to our high-quality added strengthened we our project year, portfolio, mineral the life and at the Loma Chelopech increasing During reserves and development

demonstrated $X.XX quarterly share quarterly during strong to in shareholders of also we through growth exploration increased advance repurchase Tepe, and that we to $XX continued pipeline, to $X.XX the we Tsumeb dividend A our and program our and advancements to our given rating total continued Yesterday, our announced performance an ESG percentile outlook XXXX and positive our and dividend operating by to rating agencies, score by of also returned commitment which addition MSCI XX% from for We strong on received Chelopech mining at our Ada Sustainability S&P among deliver the finally, including activities a a XXst year. in is and from that And million capital Corporate the our business companies the priorities, we the share, disciplined per by to Assessment. allocation. in ratings and DPM metals

performance, million Turning as producing of operations, and a million for copper and X pounds XX,XXX Chelopech gold higher I'll an ounces result at of gold start $XXX QX was Chelopech. ounces, of of record ounce. now track produced the our with recoveries. which highlights gold of Chelopech its copper, XX and above pounds approximately sustaining expectations of our of to continued per XXX,XXX all-in In cost consistent quarter the grades

discovery year. we exploration program ounce. continue and mine plan within XXXX to We life commercial Chelopech. to Petrovden, to surrounds meter and to record has us the on our mineral gold This above Ada XX,XXX the Ada a a Sharlo of approval license, well life with extends at as also mine. work plan continued record received at as believe brownfield to the for is several extending due In Chelopech Tepe which deliver exploration potential impressive nearing XXX,XXX continue through life extension Vozdol, in we quarterly per approximately this of that strong for which In ounces, resource base XXXX Dere. a all-in grades. ounces mine producing XXXX a cost in-mine and exploration updated allows to and our higher drilling, drilling the new move and performance increased testing including production approximately track QX gold completion continued to brownfields phase we achieved Tepe focus Petka Sveta and with at extension XX,XXX the Brevene an is slightly In there's mine With near-mine we sustaining November, license, exploration $XXX in-mine programs. forward year undertake prospects and scout one permitting targets drilling to conceptual

ahead, in information initial the look the in assessing for accelerated for year drilling production mining Ada the of to we XXXX control and reflected are grade at the program January our results was areas guidance XXXX. we was Tepe. This As completed

I completed statement Sorry, XXXX, the in XXXX. my said work was

the program an are the We process drilling to optimized plan, of in in into quarter, is in the mine quarter expected which XXXX. this of sorry first from incorporating results completed the be third

including in continuing are drilling and and in delineation were be efforts near-mine planned surrounding We within targets which our target license, Tepe vein Krumovitza and well licenses, will where scout several new on delineation the on meters identified mine drilling Ada as target exploration exploration XX,XXX with as around of focused XXXX, Chiriite, XXXX. concession regional

second the Turning complex approximately as our XXXX. This of concentrates the was the related per shutdown the XXX,XXX during processed to downtime to Tsumeb, in water half Despite smelter maintenance off-gas the below maintenance guidance guidance. tonnes for tonnes cash line of leak unplanned with was slightly as throughput, during the lower revised a system. result year of Ausmelt planned expected the performance of first in $XXX well than year, in as quarter, cost

strong allocating our disciplined cash to significant a free capital results to our deliver Our demonstrate manner. ability in commitment flow and XXXX our

reflects further costs outlook associated higher for that highlight reflect electricity and sustaining Bulgaria. in Hume we've outlook I cost forward, in ocean higher sustaining and provide and prices want direct a Looking all-in costs profile. details our our strong with but attractive a will three-year updated materials freight production for moment, all-in to and

strong of We innovative a mitigate that and technologies track have cost performance these record leveraging optimize pressures.

greater resulting Tepe in For implemented advanced process process efficiencies control Ada example, at technology, successfully recoveries. we've Chelopech and improved and

dilution reduce production. Another Tepe highlighted ore in utilized and increase blast how movement we've to turn at and technology loss Ada gold

leveraging to and continue as safety performance, can look we to DPM's expect forward. that of to innovation So we be culture a strong reduce and move to costs improve optimize priority

project Since permitting In terms portfolio activities, Loma growth, and a studies we future quarter the in schedule project. review of engagement, the XXXX, integration projects. of for growth advance the focused to the of on we third our stakeholder and technical acquiring of Larga continue

significant support expect a which plan in government to we Ecuador commitments permitting the revised the environmental We're first schedule, drill to on expect We Based by and major discussions project. in XXXX, our followed receive of and of to capital a prior Protection complete revised commenced to Agreement, on study of technical to construction the which are study targeting the also have meter of Government the the complete with end program Investor be of XX,XXX we feasibility with we an the making in permits on Agreement progressing XXXX any permits. quarter. finalization toward the Exploitation receipt

oxide in track deposit, we on project Timok the the QX which transitional based to study Turning on in and continue feasibility completion to for the XXXX. portions of of the progress is Serbia,

years re-election the XXXX with Meeting. Board to team to serve today. our very overall been estimate Annual the to Shareholder, the an of CEO, will socially capacity values, Chair be that and are continue have the Chair, since at up, of On I'd responsible entire acquisition we underway our the Jonathan study, position our we operations, the made Goodman, directed DPM, producer and we and been economics. foundation subject re-election will Last at has going feasibility year was transformation acknowledge As announced night, process, Bulgarian To for are established the assume environmentally into forward. Board us Meeting critical for take capital he a of Starting mid-tier strong ongoing strong integral of now we leadership leading advance company's the to will upcoming as guidance standing Gillin, Refreshment optimize currently Shareholders. Chair at their moment contributions pivotal reducing another and part of initial wrap part success like the into Jonathan strong of his DPM. not a Annual Peter and has the over Jonathan the initiatives that Deputy our His our his XXXX world-class and DPM. for growth Chair, several assets Succession behalf of at to to Director's and for Founder, as which in the

to profile demonstrated in track Our cash our our of us strong positions We've also well stakeholders. and all deploying continue manner. disciplined delivering free capital value a significant of record flow gold generation strong for production a

which between our portfolio -- enhancing XX% or are quarterly project, of to high-quality XXXX. Loma shareholders our positive free to dividends continued firmly repurchases, our approximately over we call will and the in In we And business. since our to by flow we've believe our following fundamentals to XX% questions. XXXX that aggregate We investors. addition we of review pay million the opportunity quarterly cash call $XX represent to now for XXXX, value outlook the Hume a the DPM's share sorry. increasing turn results continue open a our to for In for compelling strong mentioned, reflecting back I'll returned dividend as dividend Larga our and with And financial further outlook, a

Hume Kyle

David. Thanks,

$XX in annual net we $X.XX XX% fourth all-in earnings from warrants This operating earnings and or of David or a share, weaker annual million. adjusted per higher annual attributable included and common for price $XXX cash As million, together were $XXX metal XXXX XXXX, for year-over-year our higher compared in realized dollar. earnings as had sustaining were delivered respect adjusted well mentioned, up the flow. with which after share, as volumes, In to earnings gold at year, sorry, solid primarily of a gain Tsumeb $XX throughput special are of volumes per metal and we sale cost higher of a higher million These and and the mark-to-market lower increases performance, and a a share Net record our U.S. favorable environment record by attributable production tax shares, performance. per underlying shareholders gold million net were the of commodity X% none quarter partially XXXX sold, and increase. loss Sabina royalty were expenses, with $X.XX in representing MineRP $X.XX reflective to prices, or offset

outlays stronger sales flow changes with the for million representing before year XX% million our flow $XX And cash increases cash forward cash gold of for XX% partially for agreement, quarter the million, from yields $XX of the cash year-over-year higher from fourth and million, $XX the sector. sustaining impacted the impact up the up was cash operations year-over-year. $XX XXXX up $XXX in our QX that of also earnings, as generated million was cash factors terms offset year, was to cash the fourth flow by Free in the as well capital XXXX. quarter, free flow favorable cash higher compared reflect fulfilment generation $XXX from These up flow working capital in XXXX In million pre-existing prepaid of one the expenditures. flow the in metrics, from same flow for

consolidated to continue we to focus our and the on margin cost Turning operations. at all performance measures, cost improvement of

sustaining our higher treatment all-in relative to XXXX to expenses, by the quarter and volumes was costs higher up For sold. gold $XXX, due operating offset charges partially of higher primarily XX%

both the higher to an reported up to sustaining from sustaining ounce, credits $XX operating maintenance of higher by-product the the solid costs, higher our year all-in higher expenditures. as as royalties we Ada cost that reflecting and to we higher per prices was realized guidance XXXX, Chelopech as expenses, QX Tepe, operating $XXX and and of partially a partially in credits, to For higher middle attributable performance were at due comparable which of offset well sulphuric offset acid copper, operating result reflecting by-product capital expenses XXXX, per At Tsumeb primarily higher compared received. $XXX, cost by by prices tonnes

expenditure relative a with combined the cash compared expenditures the to was dollar. the at lower corresponding capital the comparable end guidance and reflecting lower nature and year sustaining XXXX, facility, $XXX during which lower period strong cost was was of the XXXX, per to $XXX quarter range volumes million, standpoint, up which For for the the to were of smelted fixed costs tonnes From the fourth XXXX. $XX result a in our capital incurred U.S.

due incurred For quarter our our were to the Tepe. Ada Timok as from CapEx Tsumeb for million, $X drilling compared from accelerated expenditures capital million, XXXX reflecting in XXXX were year-over-year $XX and to in to million Loma sustaining the XXXX, the QX million $X and gold in controlled Larga planned related million was $XX were the growth the the up maintenance corresponding during year of primarily expenditures at work year million $XX up and period grade projects. Growth $X increases the at capital development

recoveries by controlled Turning to outlook higher XXXX to XXXX production production expecting our a expected Ada detailed relative program. of Tepe, reflecting increased of gold updated expected accelerated three-year at result drilling the as more for at are outlook Chelopech, the offset guidance, lower and grade previous results we its partially

of an years, forecast ounces average line and three attractive we in annual pounds profile our between Over outlook. expect of production $XXX we to sustaining of year gold million cost cost the next $XXX From and to in be prior an with copper, XXX,XXX currently $XX per with approximately standpoint, gold XXXX. ounce all-in per expected a to continue cost

volumes sustaining expected tonne by-product expected reflecting and annual between This and development, pricing. in and of from of throughput, recent to increased as At and savings the well optimizing the decline smelter. concentrate expenditures, range million higher between cost is million XXXX, in XX-month and furnace capital next cost and and tonnes throughput at ranges to complex third XXXX, $XXX expect comprehensive quarter smelted reflects freight, the directed our the XXXX. and capital and are between $XXX Tepe higher reflecting XXX,XXX will during structure estimated average materials, cost $XXX prior XXXX $XX party up impact capital decrease next tonne $XXX In equipment in an per to ocean initiative XXX,XXX the in is costs to offset annual outlook, stripping XXXX, which targeted as expected deferred as with upgrade $XX the XXXX capitalized of drop per concentrates operating by carried Cash are gold further expenditures its some expected Chelopech's of grades a respect management between and $XXX tonnes the $XX expected tailings a maintenance treated previously between and our electricity is These of XXX,XXX sustaining range million X% $XX we copper $XX of be then to smelters. be facility, and million over XXX,XXX from to XXXX. and XXXX. Ada cost in of year-over-year be up schedule, underground primarily direct mobile $XXX and due from at years, million roughly Sustaining from expense. Over all-in to per three a shutdown expenditures sustaining of second capital are expected previous million. during increases partially to XXXX, thereafter of in This were purchases, tonne an the smelter, reflecting variations to some with to of cost to delivered $XX XXXX, outlook and between in is that XXXX gold

the $XX between Loma to gold and expected dividends returned $X to and projects, million Project. in In technical Larga the grow the shareholders was $XX For and related capital Larga are which XXXX form and another exploration program million will $XXX share the existing $XX is and Gold with the buybacks. feasibility $XX expenditures Gold $XX improving to related and to exploration or our Bulgaria, to of meter to Timok to in flow gold low be primarily and Timok solid particular, primarily record closing, of our the work of cash year Project $XX million of free performance And Chelopech growth and to XX,XXX the margin expected be and million brownfield between with In also we permitting Timok for the licenses drilling and towards additional in Serbia. Ada $XX was capital assets, reinvest on associated of plan be primarily and million the comprised business. to project to $XX million million focused study on million, of the million mine concessions and operating was extending mines at around Tepe million lives invested and XXXX $XX Loma million generation developing

by by XX to develop invest flow a QX with will a which a call opportunities and million continuing cash well that, base no our to and capital while to of $XXX in December increased to a operator. existing the sustainable position the new which manner, in will growth outlook. and we return $XXX be shareholders, As business to generation the of million the continued portion for at assets cash reflecting our our result, dividend, our disciplined debt, are increased in positive the free continue of to to form been $X.XX, has quarterly turn I XX% back With positioned to

Operator

Our Bank. from Instructions] Scotia comes question line first Trevor [Operator of the from Turnbull

You may begin.

Trevor Turnbull

first worked just can Hi, you. you doing refined had was if the remember guidance and the this kind I saw that there's Ada you to the gave the if couldn't after through of read if isn't guess I it I'm of some past? Ada you've first for this of about you maybe life of compared drilling. thank year some years remaining out a just and mine? remind I the to guidance the drilling delineation done delineation Tepe year, question year, of of just changes the in for how trying the kind in benchmark previous that's us this Tepe any

David Rae

first that no, this. precise this we've is but Hi the at Trevor. hand, not done have year just I numbers don't the

best the with X%, would that, was the And model the ounces. to have, first tonnage we was reduction grade, doing be in positive what in to two course effectively model. give we was the from grade offset at and of production, resource there spacing control a order the representative recognized that that in increase what year original for So looked us about of there a most of number in resource an and the relative model, we

the but expect the overall, And make a in the that well. see we to terms from the closing slight positive effect of through at then of control material terms positive So of to gold in as that it facility. didn't also what slightly could commentary, see the ounces, is was the sense we're you ounces in bias seeing what plant, also just it grade a model

XXXX to we've the not So, that's this, specific all done taken this question, when time we your first we've point. into at that account and did that

we have way. the a the other saw reduction thing grade it increase, where We a tonnage was slightly and and same offset

we've information mine remainder outlook we it hand consequence that and what we'll material but kilometer year, with done, QX of not lower the this a we off finished we of moment of of which for XXX are terms January year at that year. program last our some taking the that's that, the number busy slightly do So and point the life adjusted into for idea of guidance is was that the in why What ounces, the in being started revise we've as will in this at XXXX.

Trevor Turnbull

thank Thank Okay, you, you. David.

Michael Dorfman

you through? No, Sorry, but you it I can did this point. read say, at wouldn’t that do

read So slightly what first wouldn't this anything XXXX. for positive actually point. below that at It it we're was I slightly was to two the is years. for finding

Trevor Turnbull

Yes, now kind both normal variants, ways. of just

smelter, amount potentially question the you starting Hume or to party of to last that about the I bit just year, a have other the back greater is Tsumeb? on where apologize, I to or use is to if going have The concentrates I going it tell you're proportion about is like flow touched I and Chelopech your to concentrates bit may can for it. mention wondered, be Hume and third us if it, did missed smelter, may continuing had a in

Hume Kyle

in did I say but in comparable. in where to continuing to you very to divert but send we're can, probably we we will we know, a bit XXXX little would Tsumeb XXXX, XXXX, more material than that material Yes, China

Trevor Turnbull

it. I Thank you. had, Okay, guys. I That's all appreciate

David Rae

Trevor. Thanks,

Operator

mind. from in I [Operator questions Instructions] from I'm Wayne do the, question Lam not a showing have any further RBC. never

begin. may You

Wayne Lam

might and bit a be provide have on little more a Hey, good to just front? the you bit I seeing offset, guys. on a if that morning detail had able of Chelopech, improvement wondering recoveries question mentioned just you to guys on

David Rae

what and the Sure, you for is if we've at you Historically, that around year, overall the recovery look notice think if hi it optimized time was XX%. you'll done last we've MD&A, I over the Wayne. look at

If was the that you years, of number XX% down go back that you'll number. a in find

concentrate been terms previous but been we've is, what also been things to in a So some doing XXXX, as the activity, we commercial pyrite on. maximizing we've we've of bring amount working that in started additional

So getting information on we've as precisely terms some curve. to had is Chelopech been those be to control specifically our that, able of in it were initial elements we're were work management focused decisions done things to them more but And activities process, are that for on which we there's plant sort working time, to is, a Metso to with to operations, the reaction in implementing tools two of the technology first required the with at giving the advanced year, more the way, about Ada Outotec and learning take opposed that the impacts of talking this different the other by more last but we've piece Tepe. that of one across supervision

for grade us that happening is recovery reduction So got at recovery of relative the And the slight Chelopech. XXXX, that that, for on for relationship variability, now which and point is, goes what's another the now, mine up. which appropriate then thing we're life the overall in ultimately has is looking working also we've which means what giving implications to for a

that anticipate big So to going has the between moment the potential that copper additional recovery there's to we XX% on that's at around activity concentrates. quite in total and take pyrite a

few can see time, to year. different you that what a things So expect over happened things XXXX this in and

Wayne Lam

should a see quick three-year change we the And you. over then that thank outlook? ratio the any major question to in strip perfect, Ada Okay, expect Tepe, just

David Rae

for Yes, has to projection so thing pushback strip previous as we affects relative into ratio the actually that's get year. this increased that this to the main year the years, answers

more to Just be first at in a is and main revert that we high were XXXX just the the additional QX in three quarters, of of work terms going in to part seeing what very that level, will work.

ratios of strip revise for that with some that's the strip has work X modeling. the the gone complete X we'll and great on from ratio control to going yes, year So we this as now

projected we've the So technical what in previously is report. that

at get that. free that into feel to look to get QX this like We'll we that revising give if or you'd a more So on year. us be as call clarification

Wayne Lam

I Okay, That's all guys. Thank you, had. great.

Operator

next from DeMarco from Our Don comes line of Bank. question the National

may begin. You

Don DeMarco

Oh, hi. question Thank to the with gentlemen. My at operator, you, and program good exploration morning, Tepe. do Ada has

most about Thank for try resource in mine mine the thinking promising life? looking life? So is most might at XX,XXX And talk target if you. to extend you the Tepe, the Chelopech what XXXX got, mine can -- just promising at maybe be I'm the meters terms of think accretion extending I I it's see that XX. budgeted, priority the life the a you've reflect to Ada does program

David Rae

Yes, been in Bulgaria. the some so That's processes around is and we've yes of is area about things going to delayed Don. be looking Chelopech drill that really in with XX,XXX an election sort talking right? mind Chelopech, new, Hi, keep of to have unfortunately this metres,

So though, in the is meters that number in mind thirds that's focus. biggest But underground that which extensional. that that's for only from additional total the we of -- of XX,XXX part you quoted of an two the keep most also the Chelopech, do activity,

that. sort of of meters, XX,XXX to that focused to meters on XX,XXX mentioned, on in be is top Chelopech XX,XXX going XX,XXX as Chelopech, another but I So meters

and targets want at Ada life. on in do that we're the towards work into terms Tepe are that bring the to resources mine we other the as these In looking what being idea with to Krumovgrad, have of get we these opportunities we

So, through immediately years. now we're of is Chiriite targets there's around on development actively [indiscernible] that exploration actually these that got see work areas Krumovgrad, on. got doing which the a spread the We've and around sort our new to asset bit Krumovitza, some and I of focus we've called license of more other going a in this immediately suspect activity. you're

feel conversation. reserve we Ada Do ongoing do urgency resource that going work have that appropriate I targets for answers question. to obviously given and we be current where the at and to we are? replacing there's the this an Tepe. So should doing. be feel we appropriate the it's recognize We don’t the feel is be that know it's something I some if that I that'll

Don DeMarco

great. that's thanks. you for That's that. Yes, all, Thank

David Rae

Don. Thanks,

Operator

questions [Operator back Cameron in over Instructions] I'm further call any turn closing to the like to I'd not for queue. And remarks. showing any Jennifer the

Jennifer Cameron

please updated forward if keeping we you feel operator. call. on there questions, free to reach and no further are the look And Thank you, next to out

Operator

today's And this Thank conference call. participating. you for concludes

You a may now good Everyone day. disconnect. have

Dundee Precious Metals (DPMLF) 18 Feb 222021 Q4 Earnings call transcript