Q3 2024 Dundee Precious Metals Inc Earnings Call Transcript
Key Points
- Dundee Precious Metals Inc (DPMLF) reported strong production with approximately 60,000 ounces of gold and 7 million pounds of copper in the third quarter.
- The company achieved very strong margins, with a 53% increase quarter over quarter, reflecting an all-in sustaining cost of $1,005 per ounce and an average gold price of $2,548 per ounce.
- Dundee Precious Metals Inc (DPMLF) generated robust free cash flow of $71 million and maintained a strong financial position with a consolidated cash balance of $658 million and no debt.
- The company is on track to achieve its 2024 guidance targets, marking the 10th consecutive year of meeting or outperforming its gold production and cost guidance.
- Progress continues on the Äoka Rakita project, with the pre-feasibility study on track for completion in the first quarter of 2025, and two new high-grade discoveries announced.
- Temporary challenges impacted performance during the quarter, including lower than expected head grades, recoveries, and fleet availability, resulting in lower production at certain operations.
- The all-in sustaining cost of $1,005 per ounce was 10% higher than the prior year, primarily due to lower volumes of gold sold and higher share-based compensation expenses.
- The company experienced a net cash outflow of $94.8 million related to a tolling agreement, which could impact short-term liquidity.
- There are potential risks associated with changes in China's VAT tax applicability on certain concentrates, which could affect future deliveries and costs.
- The Loma Larga project continues to face permitting and stakeholder relation challenges, with progress being slower than anticipated.
(music playing)Welcome to the Dundee Precious Metals third quarter, 2024 earnings results conference call.(operator instruction). I would now like to hand the conference over to our first speaker today, Jennifer Cameron. Please go ahead.
Thank you and good morning. I'm Jennifer Cameron, Director of Investor Relations and I'd like to welcome, welcome you to our third quarter conference call. Joining us today are members of our senior management team, including David Rae, President and CEO and Navin Dyal Chief Financial Officer.
Before we begin, I'd like to remind you that all forward-looking information provided during this call is subject to the forward-looking qualification which is detailed in our news release and incorporated in full for purposes of today's call.
Certain financial measures referred to during this call are not measures recognized under IFRS and are referred to as Non GAAP measures or ratios. These measures have no standardized meaning under IFRS and
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