DUNDEE PRECIOUS METL (OTCMKTS:DPMLF) has decided to announce financial and operational results for 2014 along with guidelines for 2015. Reports claim that Dundee had almost $200 million in cash at the end of the 2014.
Insights On The Results:
When it comes to production of gold and copper, the company registered a significant performance. As per the reports, it managed to produce 49,123 ounces of gold and 14.9 million pounds of copper in 4Q2014. With the help of excellent performance in the last quarter, the company ended 2014, with production of 46.5 million pounds copper and 145,306 ounces gold. Sustaining cost in the production field is always a pain for companies, but Dundee managed to keep it well below the industry average rate of $690 per ounce.
Company’s net earnings to common shareholders were calculated as $21.5 million in 4Q2014 as compared to $19.2 million in 4Q2013. Due to market inefficiencies, it had to suffer from a net loss of $58.9 million to shareholders in 2014. Dundee managed to post a profit of $22.5 million to shareholders in the same period last year.
Major items that affected company’s earnings in the current quarter are as follows-
- impairment losses,
- Unrealized gains attributable to DPM’s equity-settled warrants, unrealized gains and losses that attributable to future copper and gold production, and
- Net losses on all the Sabina warrants.
If these items are excluded from the income statement, then net earnings during 4Q2014 were $16.3 million as compared to $10.5 million during the same period in 2013. The difference in the earnings was due to high payable volume of the material that was sold by the company, lower exploration expenses, a favorable impact of the U.S. dollar value, higher depreciation, etc. One more thing that affected it was very high proportion of third party concentrate that was smelted at Tsumeb. Management of the company expects to register better performance in 2015 due to improved market and economic conditions.