Dundee Precious Metals Tsumeb has reported net earnings of N$844 million (US$45.7 million) in the first quarter (Q1) of 2024, reflecting a slight decrease compared to Q1 of 2023.
The company also saw complex concentrate smelted increase by 10% to 54,773 tonnes compared to the first quarter of 2023, attributed to increased plant availability following the completion of maintenance work in the third quarter of 2023.
According to a quarterly report by Dundee Precious Metals (DPM), the earnings stability comes despite lower net earnings from continuing operations.
Cash cost per tonne of complex concentrate smelted according to a report by Dundee, saw a significant reduction of 16% to N$6,076 (US$329) compared to the corresponding period in 2023.
The decrease is primarily due to the higher volumes processed, leading to economies of scale, along with credits from higher sulphuric acid by-product sales and a favourable exchange rate between the US Dollar and the South African Rand.
The positive operational performance at Tsumeb comes amidst its planned divestment.
In March 2024, DPM announced a definitive share purchase agreement with a subsidiary of Sinomine Resource Group Co. Ltd. for the sale of its 98% interest in the Tsumeb smelter for a cash consideration of N$905 million (US$49 million) (subject to closing adjustments).
The transaction is expected to close in the third quarter of 2024.
