DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results
DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth;
Reports First Quarter 2026 Financial Results
Toronto, Ontario, May 5, 2026 – DPM Metals Inc. (TSX: DPM, ASX: DPM) (ARBN: 689370894)
(“DPM” or the “Company”) announced its operating and financial results for the first quarter ended March
31, 2026.
Highlights
(Unless otherwise stated, all monetary figures in this news release are expressed in U.S. dollars.)
• On-track to meet guidance: Produced 84,042 gold equivalent ounces (“GEO”)1 in the first quarter.
DPM is on-track to achieve 2026 production guidance.
• All-in sustaining cost: Reported cost of sales per GEO sold of $1,323 and all-in sustaining cost per
GEO sold 2 of $1,686, which reflected a $186 per GEO sold impact related to mark-to-market
adjustments to share-based compensation as a result of DPM's strong share price performance. DPM
reconfirmed its 2026 guidance for all-in sustaining cost of $1,300 to $1,450 per GEO sold.
• Record free cash flow generation: Generated $203 million of free cash flow 2 and $155 million of
cash provided from operating activities.
• Strong adjusted net earnings per share: Reported adjusted net earnings2 of $168 million ($0.76 per
share2) and record net earnings of $166 million ($0.75 per share).
• Vareš ramp-up to full production on-track: DPM has continued to make strong progress at Vareš,
with development rates in-line with expectations. Vare š is o n track to achieve the 850,000 tonnes per
year rate by year-end.
• Advancing Čoka Rakita: Permitting continues to advance as planned, in support of targeted start-up
of mine construction in early 2027.
• Dumitru Potok drilling program: DPM received the normal course renewal of exploration permits for
the Čoka Rakita licence as anticipated in mid-March 2026. A 20,000-metre drilling program was
initiated with nine drill rigs currently active.
• Substantial liquidity for growth: Ended the quarter with a total of $575.5 million in cash and cash
equivalents and an undrawn revolving $400 million credit facility with accordion feature to $550 million.
• Continued capital discipline: Returned $33.6 million , representing 17% of free cash flow, to
shareholders during the quarter through dividends paid and shares repurchased.
CEO Commentary
David Rae, President and Chief Executive Officer, made the following comments in relation to the first
quarter results:
“The combination of DPM's solid operating performance in the first quarter and strong metals prices
generated a record $203 million of free cash flow. The high-grade, low-cost nature of our operations and
our disciplined focus on cost management positions us well to continue delivering consistent margins in
the midst of challenging global economic conditions.
p.1 DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results
1 The Company uses conversion ratios for calculating GEO for its silver, copper, zinc and lead production and sales, which are calculated by multiplying the volumes of metal
produced or sold, as applicable, by the respective average market metal prices, and dividing the resulting figure by the average market gold price.
2 Free cash flow, adjusted net earnings, adjusted basic earnings per share, and all-in sustaining cost per GEO sold are non-GAAP financial measures or ratios. These
measures have no standardized meanings under IFRS Accounting Standards (“IFRS”) and may not be comparable to similar measures presented by other companies. Refer
to the “Non-GAAP Financial Measures” section commencing on page 14 of this news release for more information, including reconciliations to IFRS measures.
News Release
We are very pleased with the progress we are making at Vareš, which continues to be on track to achieve
the 850,000 tonne per year run-rate by year-end. We are achieving our targeted development rates, and
advancing construction of the paste backfill plant, which is expected to commission in the third quarter.
“We initiated a 20,000-metre drilling program at Dumitru Potok near the end of March as planned. With a
significant mineral resource already defined, we are excited to continue work to infill and extend Dumitru
Potok, which together with the Čoka Rakita project, highlight the Rakita camp's district-scale potential.”
Use of non-GAAP Financial Measures
Certain financial measures referred to in this news release are not measures recognized under IFRS and
are referred to as non-GAAP financial measures or ratios. These measures have no standardized
meanings under IFRS and may not be comparable to similar measures presented by other companies.
The definitions established and calculations performed by DPM are based on management’s reasonable
judgment and are consistently applied. These measures are intended to provide additional information
and should not be considered in isolation or as a substitute for measures prepared in accordance with
IFRS. Non-GAAP financial measures and ratios, together with other financial measures calculated in
accordance with IFRS, are considered to be important factors that assist investors in assessing the
Company’s performance.
The Company uses the following non-GAAP financial measures and ratios in this news release:
• mine cash cost
• cash cost per tonne of ore processed
• mine cash cost of sales
• cash cost per GEO sold
• all-in sustaining cost
• all-in sustaining cost per GEO sold
• adjusted earnings (loss) before interest, taxes, depreciation and amortization (“adjusted EBITDA”)
• adjusted net earnings (loss)
• adjusted basic earnings (loss) per share
• cash provided from operating activities, before changes in working capital
• free cash flow
• average realized metal prices
For a detailed description of each of the non-GAAP financial measures and ratios used in this news
release and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to
the “Non-GAAP Financial Measures” section commencing on page 14 of this news release.
p.2 DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results
Key Operating and Financial Highlights
$ millions, except where noted Three Months
Ended March 31, 2026 2025 Change
Operating Highlights(1)
Ore processed t 732,966 680,142 8%
GEO produced(2) oz 84,042 59,227 42%
GEO sold(2) oz 65,985 52,982 25%
Cost of sales per GEO sold(3) $/oz 1,323 1,124 18%
All-in sustaining cost per GEO sold(3,4) $/oz 1,686 1,509 12%
Capital expenditures incurred(5):
Sustaining(6) 3.2 7.6 (58%)
Growth and other(7) 34.1 11.7 190%
Total capital expenditures 37.3 19.3 93%
Financial Highlights(1)
Revenue 310.4 144.1 115%
Cost of sales 87.3 59.5 47%
Earnings before income taxes 189.1 38.6 391%
Adjusted EBITDA(4) 213.5 75.2 184%
Net earnings 165.9 33.5 395%
Basic earnings per share $/sh 0.75 0.19 295%
Adjusted net earnings(4) 168.2 55.4 203%
Adjusted basic earnings per share(4) $/sh 0.76 0.32 138%
Cash provided from operating activities(8) 154.5 55.0 181%
Free cash flow(4) 203.3 79.1 157%
Dividends paid 8.9 7.1 26%
Payments for share repurchases(9) 24.7 82.3 (70%)
$ thousands, unless otherwise indicated Three Months
Ended March 31, 2026 2025 Change
Metal Prices
Average market prices:
Gold $/oz 4,875 2,862 70%
Silver $/oz 84.39 31.91 164%
Copper $/lb 5.83 4.24 38%
Zinc $/lb 1.47 - 100%
Lead $/lb 0.88 - 100%
Average realized prices(4):
Gold $/oz 4,955 3,004 65%
Silver $/oz 90.66 35.69 154%
Copper $/lb 5.88 4.35 35%
Zinc $/lb 1.54 - 100%
Lead $/lb 0.86 - 100%
(1) Operating and financial highlights for the first quarter of 2025 did not include Vareš results, which was acquired on September 3, 2025.
(2) The Company uses conversion ratios for calculating GEO for its silver, copper, zinc and lead production and sales, which are calculated by
multiplying the volumes of metal produced or sold, as applicable, by the respective average market metal prices, and dividing the resulting figure
by the average market gold price.
(3) Cost of sales per GEO sold represents total cost of sales for Chelopech, Ada Tepe and Vareš, where applicable, divided by GEO sold, while all-in
sustaining cost per GEO sold includes treatment and freight charges, where applicable, all of which are reflected in revenue.
(4) All-in sustaining cost per GEO sold; average realized metal prices; adjusted EBITDA; adjusted net earnings; adjusted basic earnings per share
and free cash flow are non-GAAP financial measures or ratios. Refer to the “Non-GAAP Financial Measures” section commencing on page 14 of
this news release for more information, including reconciliations to IFRS measures.
(5) Capital expenditures incurred are reported on an accrual basis and do not represent the cash outlays for capital expenditures.
p.3 DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results
(6) Sustaining capital expenditures are generally defined as expenditures that support the ongoing operation of the asset or business without any
associated increase in capacity, life of assets or future earnings. This measure is used by management and investors to assess the extent of non-
discretionary capital spending being incurred by the Company each period.
(7) Growth capital expenditures are generally defined as capital expenditures that expand existing capacity, increase life of assets and/or increase
future earnings. This measure is used by management and investors to assess the extent of discretionary capital spending being undertaken by
the Company each period.
(8) Excluded cash provided from operating activities of $173.2 million during the first quarter of 2025 related to a tolling agreement between DPM
and Sinomine Resource Group Co. Ltd. (“Sinomine”) as a result of the disposition of the Tsumeb smelter by DPM in August 2024 (the “DPM
Tolling Agreement”).
(9) Excludes payments for taxes on share repurchases of $2.3 million (2025 – $1.0 million) for the first quarter of 2026.
Performance Highlights
The following table compares production, sales and cash cost measures by asset for the first quarter of
2026 against 2026 guidance:
Q1 2026 2026
Consolidated
GuidanceChelopech Ada Tepe Vareš Consolidated
Ore processed Kt 506.5 147.4 79.1 733.0 2,870 - 3,100
Metals contained in concentrates produced
Gold Koz 32.4 12.2 6.9 51.5 195 - 225
Silver Koz 116.9 7.7 912.4 1,037.0 3,700 - 4,400
Copper Mlbs 6.9 – 0.8 7.7 34 - 40
Zinc Mlbs – – 10.0 10.0 59 - 71
Lead Mlbs – – 7.5 7.5 35 - 42
GEO Koz 42.7 12.3 29.0 84.0 305 - 365
Payable metals in concentrates sold
Gold Koz 30.0 11.8 3.4 45.2 175 - 205
Silver Koz 125.5 6.3 478.4 610.2 3,300 - 4,000
Copper Mlbs 6.5 – 0.1 6.6 26 - 31
Zinc Mlbs – – 4.8 4.8 44 - 53
Lead Mlbs – – 4.4 4.4 27 - 32
GEO Koz 40.0 12.0 14.0 66.0 265 - 310
Cost of sales per tonne of ore processed $/t 91 204 138
Cash cost per tonne of ore processed(1) $/t 74 106 464
Cost of sales per GEO sold $/oz 1,159 2,509 777 1,323
All-in sustaining cost per GEO sold $/oz 1,497 1,408 892 1,686 1,300 - 1,450
(1) At Vareš, cash cost per tonne of ore processed is calculated based on gross operating costs, prior to pre-commercial production cost
capitalization, divided by total volumes of ore processed. On a net basis, cash cost was $ 182 per tonne of ore processed for the first quarter of
2026.
With solid operating performance in the first quarter of 2026, the Company is on track to meet its
guidance for 2026, with higher production planned in the second half of the year as Vareš continues to
ramp-up and remains on track to achieve full production by year-end.
Highlights include the following:
Chelopech, Bulgaria: GEO produced in the first quarter of 2026 was lower than 2025, due primarily to
lower production and higher prices for gold, partially offset by higher production and prices for copper and
silver. Production is expected to increase in the second quarter, and Chelopech is on-track to achieve its
production guidance for 2026. Gold contained in concentrates produced in the first quarter of 2026 was
lower than 2025, due primarily to lower gold recoveries and lower volumes of ore processed. Copper
production in the first quarter of 2026 was higher than 2025, due primarily to higher copper grades, in line
with the mine plan.
p.4 DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results
GEO sold in the first quarter of 2026 was comparable to 2025 due primarily to lower GEO produced,
largely offset by timing of deliveries. Payable gold in concentrates sold in the first quarter of 2026 was
lower than 2025, due primarily to timing of deliveries. Payable copper in the first quarter of 2026 was
higher than 2025, due primarily to higher copper production and timing of deliveries.
All-in sustaining cost per GEO sold in the first quarter of 2026 was higher than 2025, due primarily to a
stronger Euro relative to the U.S. dollar, higher labour costs, higher royalties reflecting higher metal
prices, and timing of maintenance activities.
Ada Tepe, Bulgaria: Ada Tepe is scheduled to reach the end of its life by mid-2026, with the final
production blast completed on April 16, 2026. Gold contained in concentrate produced and GEO
produced in the first quarter of 2026 were comparable to 2025.
Payable gold in concentrate sold and GEO sold in the first quarter of 2026 were slightly lower than 2025
due primarily to the timing of deliveries.
All-in sustaining cost per GEO sold in the first quarter of 2026 was higher than 2025, due primarily to
higher royalties reflecting higher royalty rates effective January 2026 and higher metal prices, a stronger
Euro relative to the U.S. dollar and lower volumes of GEO sold, partially offset by lower cash outlays for
sustaining capital expenditures as a result of the upcoming mine closure.
Vareš, Bosnia and Herzegovina: DPM has continued to make strong progress at Vareš, with
development rates in-line with expectations, and continues to advance construction of the paste backfill
plant. Metals contained in concentrates produced was in line with the planned ramp-up of the mine to full
production of 850,000 tonnes per annum by the end of 2026. Vareš is on track to achieve its guidance for
2026. During the second quarter, the processing plant will be shut down for approximately 20 days for the
preparation of installation tie-ins for the second tailings filter. This will allow installation of the tailings filter
with minimal impact to the higher production rates anticipated in the second half of the year.
Payable metals in concentrates sold were lower than metals produced due primarily to timing of
deliveries.
Cash operating costs, before capitalization, are expected to be in line with the 2026 guidance. As the
mine achieves commercial production, the Company will be evaluating opportunities to optimize the cost
structure for 2027 and beyond, targeting the cash cost per tonne metrics outlined in the Vareš Technical
Report.
Consolidated Operating Highlights
Production: GEO production in the first quarter of 2026 was 42% higher than 2025 due primarily to
higher overall metal production following the acquisition of Vareš.
Deliveries: GEO sold in the first quarter of 2026 was 25% higher than 2025 due primarily to higher
overall metals sold following the acquisition of Vareš, partially offset set by timing of deliveries.
Cost measures: Cost of sales in the first quarter of 2026 was 47% higher than 2025 due primarily to the
inclusion of Vareš, a stronger Euro relative to U.S. dollar, higher labour costs and higher royalties.
p.5 DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results
All-in sustaining cost per GEO sold in the first quarter of 2026 was 12% higher than 2025, due primarily to
a stronger Euro relative to the U.S. dollar, and higher royalties reflecting higher metal prices at Chelopech
and Ada Tepe, as well as higher royalty rates at Ada Tepe.
Mark-to-market adjustments to share-based compensation expenses resulted in an increase of $186 per
GEO sold in the first quarter of 2026 compared to an increase of $188 per GEO sold in 2025.
Capital expenditures: Sustaining capital expenditures incurred in the first quarter of 2026 were 58%
lower than 2025, due primarily to no capital expenditures at Ada Tepe as a result of its upcoming mine
closure, partially offset by timing of expenditures at Chelopech.
Growth and other capital expenditures incurred in the first quarter of 2026 were 190% higher than 2025,
due primarily to the capital expenditures at Vareš, including the capitalization of certain pre-commercial
production operating costs, partially offset by lower costs related to the Čoka Rakita project due primarily
to timing of expenditures.
Consolidated Financial Highlights
DPM delivered record quarterly financial results in the first quarter of 2026 in earnings and free cash flow,
benefiting from higher metal prices and the addition of the Vareš mine to its portfolio. The financial results
of Vareš have been included in the Company's consolidated financial statements since September 3,
2025, the date of acquisition.
Revenue: Revenue in the first quarter of 2026 was 115% higher than 2025 due primarily to higher
realized metal prices and the inclusion of Vareš pre-commercial production revenue.
Net earnings: Net earnings in the first quarter of 2026 were 395% higher than 2025 due primarily to
higher realized metal prices and the inclusion of Vareš, partially offset by higher income taxes and cost of
sales. The first quarter of 2025 also included a one-time levy of $24.4 million to the Bulgarian state budget
related to Chelopech and Ada Tepe.
Adjusted net earnings: Adjusted net earnings in the first quarter of 2026 were 203% higher than 2025,
due primarily to the same factors affecting net earnings, with the exception of adjusting items primarily
related to the one-time Bulgarian levy in 2025.
Cash provided from operating activities: Cash provided from operating activities in the first quarter of
2026 was 181% higher than 2025, due primarily to higher adjusted net earnings, partially offset by
changes in working capital related to timing of payments to suppliers and cash redemption of certain
Deferred Share Units (“DSUs”).
Free cash flow: Free cash flow in the first quarter of 2026 was 157% higher than 2025, due primarily to
the same factors impacting adjusted net earnings. Free cash flow is calculated before changes in working
capital.
p.6 DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results
Development Projects Update
Čoka Rakita, Serbia
Project execution readiness as well as operational readiness planning continued in the first quarter,
leveraging the project’s proximity to DPM’s Chelopech underground mine and Ada Tepe processing
facilities to support training and development of key personnel for future operating roles.
The Company continues to advance permitting for the Čoka Rakita project in-line with the well-defined
Serbian permitting process to support commencement of construction in early 2027. The Special Purpose
Spatial Plan, which was initiated in November 2025 and is a key permitting milestone, continues to
progress well and is expected to be approved and adopted in the second half of 2026. Following that,
DPM anticipates submission of the exploitation field application. Most baseline studies required for the
Environmental and Social Impact Assessment have been completed, and it is expected to be submitted at
year-end. The Company continues to proactively engage with relevant authorities and stakeholders to
support timely advancement of remaining permits and approvals.
Planning for the Čoka Rakita project continues to emphasize responsible environmental management,
social development, and the design, operation, and closure of the mine in accordance with industry best
practices and applicable Serbian and European Union standards.
The Company has planned to spend between $49 million to $53 million of growth capital expenditures for
the Čoka Rakita project in 2026, with $3.9 million incurred in the first quarter of the year.
These activities are primarily related to pre-construction activities, including detailed engineering,
environmental and permitting activities, early works, and operational readiness planning. Subject to
permitting progress and schedule acceleration, approximately $42 million of pre-committed initial capital
for the project was also included in the 2026 detailed guidance related to early contractor engagement
and procurement activities in advance of a formal construction decision, which is expected in early 2027.
Exploration
Rakita Camp, Serbia
During the first quarter of 2026, exploration activities in Serbia were performed on the Potaj Čuka licence,
which is adjacent to Čoka Rakita, and the Miranovac licence, which is located in eastern Serbia,
approximately 80 kilometres from Bor. A total of 5,455 metres of drilling was completed during the quarter.
The Company continued its drilling campaign on the Potaj Čuka licence, which is primarily focused on the
Valja Saka prospect, increasing the number of drill rigs to eight by the end of the quarter. This program
aims to test the continuation of mineralized zones and different mineralization styles intersected in
previous campaigns, as well as to confirm the interpreted structural pattern of the area. The Company is
also prepared for drilling at additional Potaj Čuka targets, including a new target area which was identified
between Valja Saka and Dumitru Potok prospects as a potential extension of the Dumitru Potok
mineralized system.
In mid-March 2026, DPM received the normal course renewal of exploration permits for the Čoka Rakita
licence as anticipated. A 20,000-metre drilling program was initiated at the end of March, with nine drill
rigs currently active. A significant component of the drilling program will be allocated to infilling and
extending mineralization at Dumitru Potok and increasing the drilling density prior to initiating an
economic study. An additional 20,000 metres of drilling and six to eight drill rigs will be dedicated to the
p.7 DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results
Putaj Čuka licence, targeting the same north-west geological trend of the Čoka Rakita and Dumitru Potok
projects.
The Company has planned to spend between $25 million and $30 million in 2026 for Serbian exploration
activities, with $6.2 million incurred in the first quarter of the year, primarily focused on Čoka Rakita and
Potaj Čuka licences.
Chelopech, Bulgaria
In-mine exploration: DPM remains committed to extending the life of the Chelopech mine through its
focused in-mine exploration program targeting resource development. During the first quarter of 2026, the
Company completed 11,644 metres of drilling with 2,619 metres dedicated to extensional drilling. The
program aimed to expand the existing mineralization, improve ore boundary definition, and increase
confidence in the Mineral Resource Estimate within the Chelopech deposit.
In 2026, the Company has planned a total of $4 million to $5 million for Chelopech in-mine exploration
activities, which is included in the 2026 guidance for the growth capital expenditures, primarily focused on
extensional drilling in the upper levels of the mine.
Wedge Zone Deep: Target delineation drilling of the new high-grade mineralization at the Wedge Zone
Deep target, located within the northern flank of the Chelopech mine concession, continues with two drill
rigs active. A total of 10,126 metres were drilled in the first quarter of 2026. Interpretation, modelling,
geotechnical and metallurgical test works are being advanced to support initial mineral resource
evaluation for the Wedge Zone Deep target. DPM plans to provide an update on results and significant
drilling intercepts within the second quarter of 2026.
Other brownfields exploration: Brownfield exploration continued within the Chelopech mine concession
and Brevene exploration licence during the first quarter of 2026 with a total of 19,374 metres of
exploration and target delineation drilling with twelve active diamond drill rigs.
The Company continues to advance the process of converting the Brevene exploration licence to a
Commercial Discovery, the next phase of work towards converting the licence to a mining concession
under the Bulgarian permitting process. Surface drilling continues sequentially, following receipt of drilling
permits, with six drill rigs focused on assessing the mineral resource potential in the Vozdol area and
prioritized targets within the exploration licence.
The Company has planned a total of $16 million to $17 million for Chelopech brownfield exploration
activities in 2026, primarily focused on testing near-mine targets on the Chelopech mine concession, with
$5.6 million incurred in the first quarter.
Vareš, Bosnia and Herzegovina
During the first quarter of 2026, exploration activities at Vareš were concentrated on the Selište and
Rupice–Medujak–Borovica prospect areas within the Veovača–Orti–Selište–Mekuše and Rupice-Borovica
exploration licence areas, respectively. Work completed during the quarter included finalization of channel
sampling at Selište, re-logging and re-sampling of previously overlooked intervals in drill holes at
Medujak, Borovica and Rupice, and prospecting and detailed geological mapping at Borovica and
Juraševac. Regional 3D geological modelling covering all Vareš exploration licences was completed
during the quarter, while the Rupice geological model advanced to approximately 70% completion.
p.8 DPM Metals Achieves Record Free Cash Flow as Vareš Ramp-up Drives Production Growth; Reports First Quarter 2026 Financial Results