ENP Newswire -
Release date- 14022014 -
Net earnings attributable to common shareholders for 2013 were
Net earnings attributable to common shareholders for the fourth quarter and twelve months of 2013 were impacted by several items not reflective of the Company's underlying operating performance, including gains attributable to DPM's equity settled warrants, unrealized gains and losses attributable to commodity contracts related to future production, unrealized losses on Sabina warrants, and impairment charges on a refurbished oxygen plant and equipment related to a metals processing facility project no longer expected to be used at Chelopech.
Excluding these items, adjusted net earnings during the fourth quarter and twelve months of 2013 were
'In 2013, Chelopech, our flagship asset, achieved record production and further reduced its cash cost per tonne of ore processed. However, the sharp decline in metal prices and production shortfalls at Tsumeb and Kapan offset this strong performance,' said
We also made significant progress at Kapan in Q4 2013 by raising the production grades, offsetting most of the shortfall in ore mined as result of the need to build up the developed and drilled inventories to sustainable levels. This higher grade trend is expected to continue in 2014 to offset lower ore mined until we return to normal mine production. We remain focused on optimizing operational performance, reducing costs at each of our operations, and preparing for the anticipated commencement of construction on our
Adjusted EBITDA during the fourth quarter and twelve months of 2013 was
Production and Deliveries
Concentrate production in the fourth quarter of 2013 of 39,233 tonnes was 21% higher than the corresponding period in 2012 due primarily to higher copper grades at Chelopech and higher zinc grades and recoveries at Kapan. Concentrate production in 2013 of 144,278 tonnes was 6% higher than the corresponding period in 2012 due primarily to higher volumes of ore mined and processed at Chelopech, partially offset by lower copper grades at Chelopech.
Concentrate smelted at Tsumeb during the fourth quarter and twelve months of 2013 of 38,481 tonnes and 152,457 tonnes, respectively, was 16% and 4% lower than the corresponding periods in 2012. Concentrate smelted during the fourth quarter and twelve months of 2013 was lower than anticipated due primarily to delays associated with the construction and commissioning of a second oxygen plant, which has delayed the smelter's increase in throughput, and unplanned repairs and maintenance. Concentrate smelted in 2013 was also negatively impacted by disruptions related to the first quarter commissioning activities related to Project 2012.
During the fourth quarter of 2013, the Technical Committee representing the Namibian government conducted initial testing to verify that the modifications made to the off-gas and dust handling systems were delivering the expected decrease in emissions.
The results of this testing were subsequently confirmed to be satisfactory and in the latter part of
Concentrate sales during the fourth quarter and twelve months of 2013 of 38,353 tonnes and 148,716 tonnes, respectively, were each 9% higher than the corresponding periods in 2012 due primarily to increased production at Chelopech. Fourth quarter 2013 concentrate deliveries at Kapan were lower than the comparable period in 2012 due to a significant portion of its copper concentrate deliveries being deferred until the fourth quarter of 2012 as a result of its lead content exceeding contractual specification.
Relative to the fourth quarter of 2012, payable gold sold in the fourth quarter of 2013 increased by 3% to 36,870 ounces, payable copper sold increased by 10% to 12.1 million pounds, payable silver sold decreased by 18% to 147,731 ounces and payable zinc sold decreased by 5% to 2.9 million pounds. Relative to 2012, payable gold sold in 2013 increased by 14% to 153,274 ounces, payable copper sold increased by 10% to 46.3 million pounds, payable silver sold increased by 1% to 552,590 ounces and payable zinc sold decreased by 5% to 13.5 million pounds.
The year over year increases in payable gold, copper and silver sold were due primarily to the expansion and improved metal recoveries at Chelopech, partially offset by lower grades at Chelopech. The decrease in payable zinc in concentrate sold was due primarily to lower zinc content in the concentrate delivered.
Cash cost of sales per ounce of gold sold
Consolidated cash cost of sales per ounce of gold sold, net of by-product credits, during the fourth quarter and twelve months of 2013 was
Cash provided from operating activities
Cash provided from operating activities during the fourth quarter and twelve months of 2013 was
Cash outlays for capital expenditures during the fourth quarter and twelve months of 2013 totalled
These cash resources, together with the cash flow currently being generated, are expected to be sufficient to fund all non-discretionary capital projects through to completion. The Company's discretionary growth projects, which include the
For 2014, the majority of Company's growth capital expenditures will be focused on the construction of an acid plant at Tsumeb. Other growth capital expenditures include the pyrite recovery circuit and margin improvement projects at Chelopech, securing the remaining permits and planning for the commencement of construction related to the
The 2014 guidance provided above may not occur evenly throughout the year. The estimated metals contained in concentrate produced and volumes of concentrate smelted may vary from quarter to quarter depending on the areas being mined, the timing of concentrate deliveries, planned outages, the timing of the annual maintenance shutdown at Tsumeb, which is currently scheduled for the third quarter of 2014, and Kapan returning to full production in the second quarter of 2014.
The production guidance for Tsumeb assumes that the ramp-up to full production occurs in the first quarter of 2014. Also, the rate of capital expenditures may vary from quarter to quarter based on the schedule for, and execution of, each capital project and, where applicable, the receipt of necessary permits and approvals. Further details can be found in the Company's MD&A under the section '2014 Guidance'.
Adjusted net earnings, adjusted basic earnings per share, adjusted earnings before interest, taxes, depreciation and amortization ('EBITDA'), cash from operating activities, before changes in non-cash working capital, cash cost per tonne of ore processed, cash cost per ounce of gold sold, net of by-product credits, cash cost per tonne of concentrate smelted, and growth and sustaining capital expenditures are not defined measures under International Financial Reporting Standards ('IFRS').
Presenting these measures from period to period helps management and investors evaluate earnings and cash flow trends more readily in comparison with results from prior periods. Refer to the 'Non-GAAP Financial Measures' section of the management's discussion and analysis for the three and twelve months ended
DPM's audited consolidated financial statements, and MD&A for the fourth quarter and year ended
The Company will be holding a call to discuss its 2013 fourth quarter and annual results on
DPM also holds interests in a number of developing gold properties located in
Cautionary Note Regarding Forward-Looking Statements
This press release contains 'forward looking statements' that involve a number of risks and uncertainties.
Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, copper, zinc and silver, the estimation of mineral reserves and resources, the realization of such mineral estimates, the timing and amount of estimated future production and output, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, the potential or anticipated outcome of title disputes or claims and timing and possible outcome of pending litigation.
Often, but not always, forward looking statements can be identified by the use of words such as 'plans', 'expects', or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'does not anticipate', or 'believes', or variations of such words and phrases or that state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the forward looking statements.
Such factors include, among others: the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, copper, zinc and silver; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, uncertainties inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the Company's activities; fluctuations in metal prices; unanticipated title disputes; claims or litigation; limitation on insurance coverage; as well as those risk factors discussed or referred to in the Company's MD&A under the heading 'Risks and Uncertainties' and under the heading 'Cautionary Note Regarding Forward-Looking Statements' which include further details on material assumptions used to develop such forward-looking statements and material risk factors that could cause actual results to differ materially from forward-looking statements, and other documents (including without limitation the Company's 2012 AIF) filed from time to time with the securities regulatory authorities in all provinces and territories of
There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Unless required by securities laws, the Company undertakes no obligation to update forward looking statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on forward looking statements.
President and Chief Executive Officer
Tel: (416) 365-2836
Executive Vice President
Tel: (416) 365-5091
Senior Vice President
Tel: (416) 365-5165
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