TORONTO, ONTARIO -- (Marketwire) -- 02/15/13 -- (All monetary figures are expressed in U.S. dollars unless otherwise stated)
Dundee Precious Metals Inc. ("DPM" or the "Company") (TSX: DPM)(TSX: DPM.WT.A) today reported fourth quarter 2012 adjusted net earnings (1) of $21.5 million ($0.17 per share) compared to $31.9 million ($0.25 per share) for the same period in 2011. Reported fourth quarter 2012 net earnings attributable to common shareholders were $14.7 million ($0.12 per share) compared to $22.7 million ($0.18 per share) for the same period in 2011. Adjusted net earnings in the year 2012 were $80.9 million ($0.65 per share) compared to $80.1 million ($0.64 per share) for the same period in 2011. Net earnings attributable to common shareholders in the year 2012 were $54.4 million ($0.43 per share) compared to $86.1 million ($0.69 per share) for the same period in 2011.
The quarter over quarter decrease in adjusted net earnings was driven primarily by higher taxes, a higher cost per tonne of concentrate produced at Deno Gold and higher depreciation, operating and administrative expenses. These unfavourable variances were partially offset by higher volumes of payable gold and silver sold and a stronger U.S. dollar. Net earnings attributable to common shareholders were also impacted by after-tax unrealized mark-to-market losses related to the Company's metal price hedges and investment in Sabina Gold & Silver Corp. ("Sabina") special warrants of $6.9 million (2011 - unrealized losses of $9.2 million). For 2012, the increase in adjusted net earnings was due primarily to higher volumes of payable gold and copper sold, a stronger U.S. dollar and higher gold prices, partially offset by lower copper prices, lower volumes smelted at NCS, a higher cost per tonne of concentrate produced at Deno Gold, higher depreciation, administrative and exploration expenses and higher taxes. Net earnings attributable to common shareholders were also impacted by after-tax unrealized mark-to-market losses related to metal price hedges and the Sabina special warrants of $26.5 million (2011 - unrealized gains of $0.8 million).
"Our performance in 2012 was underpinned by strong operating and financial results from Chelopech where we completed our mine expansion in December, on time and under budget, and delivered record production. The capital projects to address Deno Gold's lead content and NCS' fugitive emissions are nearing completion with each operation expected to be in position to return to normal operating levels in the first half of 2013," said Jonathan Goodman, President and CEO. "We are in very good shape financially, ending the year with $122 million in cash and anticipating continued strong cash flow generation in 2013. Further, we have access to a new undrawn $150 million revolving credit facility, positioning the Company with maximum flexibility to fund further growth in 2013."
Adjusted EBITDA (1) in the fourth quarter and twelve months of 2012 was $37.7 million and $124.6 million, respectively, compared to $37.0 million and $117.5 million in the corresponding periods in 2011, driven by the same factors affecting adjusted net earnings, with the exception of depreciation and income tax.
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