Dundee Precious Metals Reports Strong Q2 2024 Results with Record Free Cash Flow and Earnings
Dundee Precious Metals has released its operating and financial results for the second quarter and the first half of 2024, showcasing record achievements in free cash flow and adjusted net earnings. All figures are reported in U.S. dollars and pertain to continuing operations.
During Q2 2024, DPM generated a record $82.4 million in free cash flow from continuing operations and $125.8 million from operating activities. The company also reported record adjusted net earnings of $70.9 million, equivalent to $0.39 per share, highlighting its financial strength and operational efficiency.
In the first half of 2024, DPM returned $32.5 million to shareholders, representing 23% of free cash flow, through dividends and share repurchases. The company remains on track to meet its 2024 production guidance, with strong Q2 production of 67,644 ounces of gold and 7.9 million pounds of copper, and a total of 130,371 ounces of gold and 14.6 million pounds of copper in the first half of the year.
DPM reported an all-in sustaining cost of $710 per ounce of gold sold, with the cost of sales at $1,073 per ounce. These figures align with the company's annual guidance, underscoring robust margin generation.
The company ended the quarter with a substantial liquidity position, including $707.5 million in cash from continuing and discontinued operations, a $150 million undrawn revolving credit facility, and no debt, ensuring financial flexibility for future growth.
DPM is advancing its growth pipeline by initiating a pre-feasibility study for the Coka Rakita project, following positive preliminary economic assessment results announced in May 2024. The company continues exploration activities on the Coka Rakita license and three additional licenses to identify further opportunities.
In terms of the Tsumeb smelter sale, all required Chinese regulatory approvals were received in July 2024, with approval under the Namibia Competition Act still pending. After the smelter's tolling agent ended its agreement, DPM is negotiating amendments to the share purchase agreement with Sinomine Resource Group Co Ltd, including a potential reduction of the cash consideration from $49 million to $20 million. Discussions are also underway for DPM to act as the tolling agent for Tsumeb for four months following the sale, which is expected to close in the third quarter of 2024.
