Observer Money talks to Alina Garises, communications manager at the Dundee Precious Metals Tsumeb (DPMT) about the company’s financial performance, its smelting forecast and the newly launched General Waste Management Facility.
Observer Money (OM): Dundee Precious Metals Tsumeb (DPMT)’s turnover in 2022 was N$2.232 billion and a loss of N$839.4 million. When does DPMT forecast to break through and start making profit?
Alina Garises (AG): The smelter is operating in a challenging global market environment. In order to ensure the long-term sustainability of the operation, the company launched a cost optimization and organisational efficiency program called the P300 project, which is expected to putthe business on the path to long-term sustainability. The losses for the 2022 is mainly related to an accounting impairment charge the company previously announced.
(OM): DPMT also did not pay corporate tax and royalties in 2022, what are the factors that have led to DPMT to perform poorly?
AG: Dundee Precious Metals Tsumeb is governed by Economic Processing Zone (EPZ) regulations.
OM: The company also did pay the export levy and dividends paid in 2022, when does DPMT anticipate starting paying taxes and levies?
AG: Dundee Precious Metals Tsumeb is governed by Economic Processing Zone (EPZ) regulations.
OM: In 2022 the complex concentrate smelted for the full year was around 174,000 tonnes, what is the forecast for 2023?
AG: Complex concentrate smelted is currently tracking at the low-end of the 2023 guidance range of 200000t to 230000t, and the Company plans to provide an update with its third quarter financial results.
OM: What impact will the construction of Dundee’s General Waste Management Facility have on your operations? Is this facility operational?
AG: The positive impacts of having a General Waste Management Facility include a significant shift from traditional practice of sending all waste to landfill to an integrated approach which is a modern acceptable practice.
Economic benefits reduced waste quantity to landfill means prolonged life of landfill and hence cost saving from the need to expand the landfill space. Sorting waste for recycling purposes help to create and maintain downstream economy such as external waste recycling facilities which business entities on their own.
In terms of social impacts, one of our core value is environmental stewardship, the facility is a testimony that we live by this value. This includes the creation of approximately nine direct job opportunities, comprised of general workers and equipment operators.
In terms of environmental impact recycling helps to reduce pollution on environment and keep the site clean. Reduced amount of waste to landfill helps to reduce smelter foot print. The encouraging the use of recyclables to make new products help to preserve natural resources such as forests. Dundee’s General Waste Management Facility was inaugurated on 25 September.
