In This Article:
Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dundee Precious Metals Inc (DPMLF) achieved its gold production and all-in sustaining cost guidance, maintaining a strong track record of delivery.
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The company has a strong safety and environmental track record, ranking at the top of the industry for the past four years.
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Dundee Precious Metals Inc (DPMLF) has a robust financial position with over $800 million in cash, supporting growth and shareholder returns.
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The company has returned $261 million to shareholders since 2020 and plans up to $200 million of additional share purchases in 2025.
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Dundee Precious Metals Inc (DPMLF) is advancing its exploration and project portfolio, with significant exploration potential at Choa Reikita and other projects.
Negative Points
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The mine life at Adetepe is coming to an end, with limited potential for significant extensions.
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There is a forecasted dip in production in 2027 due to the transition between projects.
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Higher labor costs and timing of maintenance activities have increased the all-in sustaining cost by 3% compared to the prior year.
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The company faces potential complexities and costs associated with mine closure and equipment transfer from Adetepe to Choa Reikita.
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Permitting and regulatory processes in Bulgaria and other regions could delay project advancements and impact timelines.
Q & A Highlights
Q: Is there potential to extend the mine life at Adetepe based on exploration and drilling? A: David Ray, President and CEO, explained that while there is some potential for additional ounces, any extension would likely be measured in months rather than years. The focus is on future opportunities, recognizing the lengthy permitting process in Bulgaria. The decision has been made to move assets to Choa Reikita after Adetepe's completion, while continuing exploration for long-term opportunities.
Q: Are there any accounting complexities or closure costs to be aware of with the Adetepe mine closure? A: Navin Dial, CFO, noted that most impacts will be seen in 2026. The company already has an asset retirement obligation for Adetepe, and the decision to move equipment to Choa Reikita is more about timing than cost savings. No unusual accounting impacts are expected.
Q: What are the plans for employees at Adetepe as the mine nears closure? A: David Ray stated that there are opportunities for employees to transition to Choa Reikita, particularly in training and maintenance roles. The company is also supporting the development of small businesses to provide employment opportunities beyond the mine's life.