In This Article:
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Revenue: $157 million, 18% higher than 2023.
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Adjusted Net Earnings: $71 million or $0.39 per share.
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Cash Flow from Operating Activities: $126 million.
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Free Cash Flow: Record $82 million.
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All-in Sustaining Cost: $710 per ounce of gold sold.
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Gold Production: Approximately 68,000 ounces.
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Copper Production: 8 million pounds.
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Consolidated Cash Balance: $707 million.
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Sustaining Capital Expenditures: $8 million for the quarter.
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Share Buyback Program: 2.3 million shares repurchased at $18.4 million.
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Dividends Paid: $14.5 million.
Release Date: August 02, 2024
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) reported record financial results for the second quarter, including a free cash flow generation of $82 million.
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The company achieved an all-in sustaining cost of $710 per ounce of gold, which is in line with their guidance for the year.
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Chelopech mine continued its consistent performance with an impressive all-in sustaining cost of $531 per gold ounce sold.
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Ada Tepe mine produced approximately 24,000 ounces of gold at an all-in sustaining cost below the low end of its guidance range.
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The company maintains a strong balance sheet with a consolidated cash balance of $707 million and no debt, providing financial flexibility for growth opportunities.
Negative Points
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The sale of the Tsumeb smelter faced a reduction in cash consideration from $49 million to $20 million due to changes in the tolling agent agreement.
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Dundee Precious Metals Inc (DPMLF) will need to purchase all unprocessed concentrates and secondary materials owed by Tsumeb, amounting to approximately $80 million.
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Higher planned exploration and evaluation expenses from Coka Rakita and higher income tax partially offset the increased net earnings.
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The company is facing challenges in the permitting process for the Loma Larga project, which could impact future investments.
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Sustaining capital expenditures were higher than the previous year, indicating increased costs in maintaining operations.
Q & A Highlights
Q: Can you explain the reduction in the purchase price for the Tsumeb sale and the potential for DPM to act as a tolling agent? A: David Rae, President and CEO, explained that the reduction in purchase price was due to the tolling agent's decision to end the agreement, prompting a market valuation review. DPM does not foresee further amendments and is comfortable with the temporary tolling agent role for four months post-closing.