DUNDEE Precious Metals has said that its Tsumeb smelter has performed below its expectations in the first quarter of 2022, this, attributable to maintenance works at the plant.
Announcing its operating and financial results for the first quarter of 2022, the miner said at Tsumeb, while complex concentrate smelted was higher than the first quarter of 2021, due primarily to the timing of the planned Ausmelt furnace maintenance shutdown, it was below expectations for the quarter as a result of maintenance to the off-gas system and reduced baghouse capacity.
“Additional maintenance to both systems is expected to take place during the Ausmelt furnace maintenance scheduled for the second quarter of 2022. As a result of these ongoing maintenance activities, the smelter is expected to be at the lower end of its 2022 production guidance,” the miner said further emphasising that complex concentrate smelted at Tsumeb during the first quarter of 2022 of 47,243 tonnes was higher than the corresponding period in 2021 due primarily to the maintenance shutdown in 2021 and below expectations for the quarter as a result of maintenance to the off-gas system as well as reduced baghouse capacity.
On the other hand, the Company achieved solid operating performance at Chelopech and Ada Tepe. Relative to the first quarter of 2021, Chelopech production was higher due primarily to improved recoveries, while production at Ada Tepe was lower as a result of mining in lower grade zones, as planned. Based on first quarter operating results and higher average quarterly metals production expected over the balance of the year, Chelopech and Ada Tepe remain on track to achieve their 2022 production guidance.
“Net earnings attributable to common shareholders from continuing operations in the first quarter of 2022 and 2021 were impacted by Tsumeb restructuring costs related to a comprehensive initiative directed at optimizing the cost structure of the smelter, unrealized gains or losses on Sabina Gold and Silver Corp. special warrants and deferred income tax adjustments not related to current period earnings, all of which are not reflective of the Company’s underlying operating performance and are excluded from adjusted net earnings,” said the company.