DPM Metals produced 97,000 gold equivalent ounces in the third quarter and now expects to reach the high end of its 2026 production guidance. Vareš is running ahead of expectations, but its growth plans remain exposed to an unresolved legal review in Bosnia and Herzegovina.
- 97,000 GEO produced in the third quarter
- 283,000 GEO produced in the first nine months
- Vareš expected to exceed its 2026 production guidance
- US$74.8 million spent on third-quarter share buybacks
- Wedge Zone development targeted to begin in late 2026
DPM reaches 97,000 GEO in third quarter
DPM Metals Inc. (ASX:DPM, TSX:DPM) is tracking towards the upper end of its 2026 production target after producing 97,000 gold equivalent ounces in the September quarter. The company produced 283,000 GEO in the first nine months, with Chelopech contributing 50,000 GEO and the ramping Vareš operation delivering approximately 45,000 GEO.
The quarterly result included 53,000 ounces of contained gold, 934,000 ounces of silver, 7 million pounds of copper, 28 million pounds of zinc and 17 million pounds of lead. Payable sales were lower at 77,000 GEO, reflecting the difference between concentrate produced and metals sold during the period.
Vareš ramp-up moves ahead of plan
Vareš is the main operational story. DPM said the mine’s ramp-up remains on plan, with stronger-than-expected grades helping it exceed the high end of its 2026 production range. The operation is expected to reach its full production run-rate of 850,000 tonnes per annum by the end of the year, while the second tailings filter and paste backfill plant are expected to begin commissioning in November and December.
The update builds on the mine’s Vareš ramp-up, which had previously been described as progressing towards full production. DPM declared commercial production at Vareš on August 10, meaning its gross operating costs will be included in all-in sustaining costs from that date.
Bosnia concession review remains the key qualification
The operating performance comes with a material caveat. DPM’s guidance and Vareš expectations assume its concession agreement and related instruments remain unaffected by a review ordered after a decision by Bosnia and Herzegovina’s Constitutional Court. The court decision did not terminate or suspend the concession, and operations are continuing, but authorities are reviewing the legal framework underpinning the arrangement.
That uncertainty was already identified in the company’s Vareš concession ruling. DPM said the outcome of the review could affect Vareš guidance, operations and other expectations in the latest release, making the legal process a more immediate variable than the production figures alone suggest.
Buybacks continue as Chelopech growth pipeline advances
DPM repurchased 1.86 million shares during the quarter at an average price of US$40.23, spending approximately US$74.8 million. That took year-to-date buybacks to 4.003 million shares and approximately US$149.6 million. The company also reiterated a quarterly dividend of US$0.04 per share, due to be paid on October 15.
At Chelopech, production of approximately 50,000 GEO was in line with plan. DPM expects to begin developing twin declines into the Wedge Zone during the fourth quarter, complete an initial mineral resource estimate by year-end and start receiving production from the zone in late 2028. Ada Tepe produced about 2,000 GEO in the quarter before its processing plant concluded operations on July 15, with facilities being dismantled and refurbished ahead of the planned Čoka Rakita project construction start in early 2027.
The next hard test arrives with DPM’s full third-quarter financial results on November 12. Those numbers should show how the newly commercial Vareš operation affects costs and cash generation, while the Bosnia review will determine whether the company’s confident production trajectory has a stable legal foundation.
Bottom Line?
Production is running strongly and Vareš is ahead of plan, but the concession review remains the event capable of changing the investment picture most quickly.
Questions in the middle?
- Will the Bosnia and Herzegovina review leave Vareš’s concession arrangements unchanged?
- How will Vareš’s commercial production status affect DPM’s all-in sustaining costs and cash flow?
- Can the Wedge Zone and Čoka Rakita projects deliver their planned production timelines without disrupting capital returns?