DPM Metals delivered a robust 102,000 gold equivalent ounces in Q2 2026, driven by Chelopech’s strong grades and Vareš mine’s steady ramp-up. The company also returned over US$49 million to shareholders through share buybacks amid ongoing project developments.
- Q2 2026 gold equivalent production reaches 102 koz
- Vareš mine ramp-up on track with 48% increase in ore processed
- Ada Tepe mine in closure phase with rehabilitation plans
- US$49.4 million spent on share repurchases in Q2
- Quarterly dividend declared at US$0.04 per share
Strong Q2 Production Fueled by Chelopech and Vareš
DPM Metals (ASX:DPM, TSX:DPM) reported preliminary gold equivalent production of 102,000 ounces for the second quarter of 2026, underpinned by robust output from its flagship Chelopech operation and the ongoing ramp-up at the Vareš mine. Chelopech processed 549,000 tonnes of ore, delivering approximately 56,000 gold equivalent ounces (GEO), benefiting from planned higher gold and silver grades. Meanwhile, Vareš contributed 35,000 GEO, marking a 48% increase in ore processed quarter-on-quarter as the mine advances steadily towards its full production target.
Vareš Ramp-Up Progresses with Infrastructure Milestones
The ramp-up at Vareš is proceeding according to plan, with development rates exceeding 400 metres per month. Key infrastructure projects are advancing, including the construction of a paste backfill plant and a second tailings filter, both expected to be operational by year-end. Additionally, commissioning of the water treatment plant has begun, and a planned processing plant shutdown was completed ahead of schedule in seven days, minimising downtime. DPM aims to reach an annualised ore processing rate of 850,000 tonnes by the end of 2026.
Ada Tepe Nears Closure with Rehabilitation Commitment
Ada Tepe produced 11,000 GEO in Q2 but is approaching the end of its operational life, with the final production blast completed in mid-April and processing scheduled to cease by July 15, 2026. The company is preparing for the dismantling and refurbishment of certain facilities to support the upcoming Čoka Rakita project, slated to begin construction in early 2027. DPM emphasises responsible closure practices for Ada Tepe, aiming to return 95% of the land to the Natura 2000 nature protection network following rehabilitation.
Capital Returns Reflect Confidence Amid Exploration Success
Reflecting confidence in its operational and exploration outlook, DPM repurchased approximately 1.44 million shares in Q2 at an average price of US$34.19, spending around US$49.4 million under its Normal Course Issuer Bid. Year-to-date, the company has bought back over 2.1 million shares for nearly US$75 million. Additionally, DPM declared a quarterly dividend of US$0.04 per share payable in mid-July, underscoring its commitment to returning capital to shareholders.
Upcoming Financial Results and Outlook
DPM plans to release its full Q2 2026 operating and financial results after market close on July 30, 2026, followed by a conference call on July 31. Investors will be keen to see how the preliminary production figures translate into financial performance and whether the company maintains its guidance amid ongoing development at Vareš and the transition at Ada Tepe. The recent discovery of the high-grade Brevene South Porphyry near Chelopech adds an intriguing exploration dimension to watch in the coming months.
Bottom Line?
DPM’s steady operational progress and aggressive capital returns signal confidence, but the market will await detailed Q2 financials and ongoing ramp-up execution.
Questions in the middle?
- Will Vareš sustain its ramp-up momentum to meet full-year production targets?
- How will Ada Tepe’s closure and rehabilitation impact overall cost and cash flow?
- What is the timeline and potential impact of the Brevene South Porphyry discovery on reserve growth?