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Dundee Precious Metals Announces Positive Preliminary Economic Assessment for the Čoka Rakita Project in Serbia, including IRR of 33% and NPV of $588M
TORONTO, May 01, 2024 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”) is pleased to announce the results of a preliminary ec
About this update from Dpm Metals Inc.
[{"type":"text","content":" TORONTO, May 01, 2024 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”) is pleased to announce the results of a preliminary economic assessment (“PEA”) for its Čoka Rakita project in Serbia. The PEA supports an underground mining operation with an 850,000 tonne per annum processing facility and an initial 10-year mine life, and highlights Čoka Rakita’s potential to offer meaningful production growth with attractive all-in sustaining costs and very robust economics at a $1,700 per ounce gold price assumption. Based on the positive results of the PEA, the Company is proceeding with a pre-feasibility study (“PFS”) and project permitting activities. PEA Highlights (All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted. The reader is advised that the PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.) Čoka Rakita project PEA highlights (Based on a $1,700 per ounce gold price) Throughput capacity 850,000 tonnes per annum Average annual gold production (life of mine) 129,000 ounces of gold Average annual gold production (first five full years) 164,000 ounces of gold Average cash cost1 (life of mine) $605 per ounce of gold Average all-in sustaining cost1 (life of mine) $715 per ounce of gold Initial capital expenditures $381 million Free cash flow1 (life of mine) $891 million NPV (after-tax, 5% discount)2 $588 million IRR (after tax)2 33% High margin production profile: Annual production expected to average 164,000 ounces of gold (first five full years) with all-in sustaining costs expected to be in the lowest quartile, providing the potential for very strong margins. Robust returns highlight an attractive project at a $1,700 per ounce gold price assumption: After-tax NPV of $588 million with an IRR of 33% and payback after 2.4 years. The project’s economics are even more attractive in today’s gold price environment (see page 5 for a sensitivity table). Attractive organic growth opportunity leveraging DPM’s mining, processing, and regiona...