How Is DPM Metals Turning Record Cash Flow Into Growth at Vareš and Čoka Rakita?

Record Financial Performance

DPM Metals Inc. has posted its strongest financial results to date for the year ended 2025, underscoring the quality of its low-cost, high-margin mining operations. The company generated a record $505 million in free cash flow and reported adjusted net earnings of $443 million, translating to $2.39 per share. These figures reflect a combination of high realised metal prices and operational stability across its portfolio.

Gold production met guidance with 244,979 ounces produced, complemented by 30 million pounds of copper. The company’s flagship Chelopech and Ada Tepe mines in Bulgaria delivered consistent output, while the newly acquired Vareš mine in Bosnia and Herzegovina began contributing from September 2025.

Advancing Growth Projects

The integration and ramp-up of the Vareš mine remain on track, with production expected to reach 850,000 tonnes per year by the end of 2026. The mine’s improved 2026 forecast anticipates 30,000 to 35,000 ounces of gold and 3.5 to 4.1 million ounces of silver, signalling a strong contribution to DPM’s growth trajectory.

Meanwhile, the Čoka Rakita project in Serbia has passed a critical milestone with the completion of a feasibility study confirming robust economics. The project boasts a life-of-mine all-in sustaining cost of $644 per ounce and an internal rate of return of 68%, with construction slated to commence in early 2027 and first concentrate production targeted for the first half of 2029. This development leverages proximity to existing operations, promising operational synergies and cost efficiencies.

Resource Expansion and Mine Life Extension

DPM also announced an initial inferred mineral resource estimate for the Rakita camp, encompassing 2.6 million ounces of gold and 1.9 billion pounds of copper within 84.4 million tonnes of ore. This district-scale system remains open for expansion, highlighting significant exploration upside.

The Chelopech mine’s life has been extended to 2036 following updated reserve and resource estimates, ensuring stable annual production averaging approximately 160,000 gold equivalent ounces. Exploration success continues with the discovery of the high-grade Wedge Zone Deep prospect, which lies close to existing infrastructure and could further enhance mine longevity.

Financial Strength and Capital Discipline

Ending 2025 with nearly $498 million in cash and no debt, DPM Metals maintains substantial liquidity supported by a new $400 million revolving credit facility extendable to $550 million. The company returned $145.5 million to shareholders through dividends and share buybacks, with the board authorising up to $200 million in share repurchases in 2026.

Capital expenditure plans focus on sustaining operations and growth projects, with $49 million to $53 million earmarked for Čoka Rakita pre-construction activities in 2026 and $100 million to $125 million allocated for Vareš ramp-up and development. Exploration budgets have increased to support resource expansion across Serbia, Bulgaria, and Bosnia and Herzegovina.

Outlook and Challenges Ahead

DPM Metals projects an average annual production of 350,000 gold equivalent ounces over the next three years, maintaining an all-in sustaining cost around $1,450 per GEO sold. While the company is confident in its growth strategy, it faces challenges including the revocation of the environmental licence for its Loma Larga project in Ecuador and geopolitical uncertainties in its operating regions.

Senior management changes include the appointment of João Zanon as Senior Vice President of Capital Projects and Evaluations, alongside the planned departures of key executives, signalling a period of transition as the company scales its operations.