Canada’s Dundee Precious Metals said its adjusted earnings before interest, taxes, depreciation and amortisation from the operation of its Chelopech gold-copper mine in Bulgaria rose to $116.8 million (103 million euro) in 2018 from $107.9 million the year before on the back of record gold output.
The Chelopech mine generated revenue of $213.6 million last year, up from $206.2 million in 2017, DPM said in its 2018 end-year financial statement published on Tuesday.
Gold in copper concentrate produced edged up to 141,840 ounces in 2018 from 141,235 ounces the year before, while gold in pyrite concentrate increased to 59,255 ounces last year from 56,449 ounces in 2017.
“Chelopech outperformed its original 2018 gold production guidance, which was updated twice during the year, due primarily to higher than anticipated gold grades and recoveries,” DPM said.
Cash cost per tonne of ore processed and all-in sustaining cost per ounce of gold beat or were at the low end of 2018 guidance, the company added.
In 2019, DPM expects 155-187 thousand ounces of gold to be produced at its Chelopech mine, reflecting grades returning to expected life of mine levels in 2019. Gold production in this year is expected to be higher in the first half based on the existing mine plans at Chelopech, DPM explained.
DPM also expects to start commercial gold production at its other gold mine in Bulgaria – Krumovgrad, in the second quarter of 2019. Gold contained in concentrate produced at the Krumovgrad mine is expected to be between 55,000 and 75,000 ounces in 2019.