The Tsumeb smelter smelted 54,773 tonnes in the first quarter of 2024, ten times more than in the same quarter in 2023.
Dundee Precious Metals, which sold its 98% stake to the Chinese company Sinomine in March 2024, said the increase was due to plant availability following the completion of the maintenance work in the third quarter of 2023.
The cash cost per tonne of complex concentrate smelted in the first quarter of 2024, US$329, was 16% lower than the corresponding period in 2023 due primarily to higher volumes of complex concentrate smelted, higher sulfuric acid by-product credits, and a weaker South African Rand relative to the US dollar.
Meanwhile, Dundee Precious Metals says the sale of the Tsumeb Smelter to Sinomine could close in the 3rd quarter of 2024 after approvals from the Namibia Competition Act and approvals required from Chinese regulatory authorities for overseas investments.
The company’s decision to sell its 98% stake in the smelter in March 2024 has resulted in a significant cash consideration of US$49 million on a debt-free and cash-free basis. This is subject to normal working capital adjustments following closing, further enhancing our financial position.
However, as of March 31, 2024, Dundee is entitled to a cash payment of about US$17,9 million collected from IXM SA for the sale of metal recovered at the smelter.
Dundee lists the Tsumeb assets and liabilities as held for sale in the condensed interim consolidated statement of financial position as at March 31, 2024, and December 31, 2023.
The smelter’s operating results and cash flows have also been presented as discontinued operations in the condensed interim consolidated statements of earnings (loss) and cash flows for the three months ended March 31, 2024, and 2023.
Dundee says that specific comparative figures in the condensed interim consolidated statements of earnings (loss) and cash flows have been reclassified to conform with the current year presentation.
