Dundee Precious stock rises on strong Q2 output
Dundee Precious Metals (TSX: DPM) has delivered strong preliminary production results from both of its Bulgarian mines and its smelter in Namibia for the second quarter of 2020.
The company says it is on track to meet its previously issued guidance for 2020 at each of its operations despite operational challenges associated with the covid-19 pandemic.
The Ada Tepe open-pit mine in southeastern Bulgaria achieved a second consecutive quarter of record production, increasing its output to 32,300 ounces and exceeding planned levels as a result of strong grades and higher volumes of ore treated.
The Chelopech underground mine, located in central-western Bulgaria approximately 70 km east of the national capital Sofia, also continued its consistent track record in the second quarter, producing 49,100 ounces of gold and 9.4 million pounds of copper.
Gold production, which increased compared with the first quarter, was higher than expected due to optimization of the mining sequence that resulted in higher gold grades to the mill and higher gold recoveries in pyrite concentrate. Copper production was in line with expectations.
Meanwhile, complex concentrate smelted at the Tsumeb smelter was strong in the second quarter, processing 58,500 tonnes of complex concentrate despite a 30-day reduction in throughput during the month of April in response to a government request to limit staffing levels due to covid-19.
Shares of Dundee Precious Metals jumped 5.3% by noon EDT on Wednesday, after reaching a ten-year high of C$9.83 earlier in the session. The Toronto-based international miner has a market capitalization of C$1.76 billion.