The Tsumeb smelter achieved a remarkable milestone in the first quarter of 2024, smelting 54,773 tonnes, a tenfold increase compared to the same period in 2023.
Dundee Precious Metals, which recently sold its 98% stake to Sinomine, attributed this surge in production to improved plant availability following maintenance work completed in the previous year’s third quarter.
During the same period, the cash cost per tonne of complex concentrate smelted dropped by 16% to US$329, driven by higher volumes of smelted concentrate, increased sulfuric acid by-product credits, and a weaker South African Rand against the US dollar.
The sale of the Tsumeb Smelter to Sinomine, expected to finalize in the third quarter of 2024 pending regulatory approvals, has positioned Dundee Precious Metals favorably, fetching a significant cash consideration of US$49 million.
Additionally, Dundee is set to receive approximately US$17.9 million in cash from IXM SA for the sale of recovered metal at the smelter as of March 31, 2024.
In light of these developments, Dundee has classified Tsumeb assets and liabilities as held for sale in its financial statements and presented the smelter’s operating results and cash flows as discontinued operations for the first quarter of 2024.
Moreover, specific comparative figures in the financial statements have been reclassified to align with the current year’s presentation.
