By Hilary Mare
DUNDEE Precious Metals has remained bullish ahead of third quarter financial results with its smelting rates having been affected negatively by the annual Ausmelt furnace reline and an additional unplanned outage a few months ago.
On a consolidated basis the mine has stated that ore milled, metals production and complex concentrate smelted in the first nine months of 2016 were in line with the company’s current guidance.
Expressing confidence in the coming results Rick Howes president and Chief Executive Officer extended that concentrate smelted tonnage for 2016 is expected to be within current guidance.
“At the Tsumeb smelter, smelting rates were impacted by the planned annual Ausmelt furnace reline and an additional unplanned outage following a regional power outage in Namibia on July 22, 2016, during which the emergency power system and water circulation systems malfunctioned leading to damage to the refractory lining of the Ausmelt furnace. As a result, the refractory lining was fully replaced over a three-week period. Concentrate smelted tonnage for 2016 is expected to be within current guidance,” he said. The nationwide power outage experience on July 22 has left Dundee Precious Metal Tsumeb reeling in severe losses with 2016 concentrate throughput expected to decrease by approximately 20 000 tonnes.
The mines management expressed that the power outage resulted in damage to the refractory lining of the Ausmelt furnace, the repair of which is expected to be completed in the coming weeks. Further the company noted that the vast majority of the costs associated with repairing the physical damage are expected to be covered through the company’s insurance programme.
“The response taken by operations management during this event ensured that no one was placed at risk during the outage. A full investigation is currently being led by Tsumeb’s management,” Howes said at that time.
The company will hold a call and webcast to discuss its third quarter results on November 9. The call will be hosted by Howes, who will be joined by Hume Kyle, executive vice president and chief financial officer, together with other members of the executive management team. Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged in the acquisition of mineral properties, exploration, development, mining and processing of precious metals.
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