Dundee Precious Metals Inc. (DPM) yesterday reported first quarter of 2014's net earnings attributable
to common shareholders of N$105 140 700 ($10m) ($0.07 per share) compared to N$0.74 ($0.7m)
($0.01 per share) for the same period in 2013.
Net earnings attributable to common shareholders for the first quarter of 2014 were impacted by
several items not reflective of the Company's underlying operating performance, including unrealized
losses attributable to DPM's equity settled warrants, unrealized gains attributable to hedging future
copper production, and unrealised gains on Sabina warrants.
Excluding these items, adjusted net loss(1) during the first quarter of 2014 was $2.3m ($0.02 per share)
compared to adjusted net earnings of $6.6m ($0.05 per share) for the corresponding period in 2013.
This decrease was due primarily to lower metal prices, lower volumes of payable metals in concentrate
sold and higher depreciation following the completion of Tsumeb's Project 2012 in the fourth quarter of
2013, partially offset by the favourable impact of a stronger U.S. dollar relative to the South African rand
(ZAR) and higher volumes of concentrate smelted and toll rates at Tsumeb.
Its president and CEO, Rick Howes, said they continue to focus on optimising the performance of their
“While Chelopech's metals production was lower than expected as a result of the areas mined during
the quarter, it is not reflective of the balance of year production we expect to see. We have already
recovered one third of the gold shortfall in April with improved grades and recoveries. Kapan is also
making progress with rebuilding its development inventory and delivered metals production in line with
our guidance,” he said.
He also said Tsumeb continues to make improvements to its operating performance as it ramps up to
full capacity, “with first quarter concentrate volumes up 42% over last year. Overall, we remain on track
to achieve our 2014 guidance and focused on further optimizing operational performance, reducing
costs, and preparing for the commencement of construction on our Krumovgrad Gold Project".