DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve
Full Production by Year-end 2026
Toronto, Ontario, July 30, 2026 – DPM Metals Inc. (TSX: DPM, ASX: DPM) (ARBN: 689370894)
(“DPM” or the “Company”) announced its operating and financial results for the second quarter and first
half of the year ended June 30, 2026.
Highlights
(Unless otherwise stated, all monetary figures in this news release are expressed in U.S. dollars.)
• Record free cash flow generation: Generated $227 million of free cash flow 1 and $271 million of
cash provided from operating activities in the second quarter.
• Record earnings: Reported second quarter adjusted net earnings1 of $211 million ($0.95 per share 1)
and record net earnings of $230 million ($1.04 per share).
• Major discovery at Brevene South: In June 2026, DPM announced the discovery of high-grade
copper-gold porphyry mineralization at the Brevene South Porphyry (“BSP”) target at Chelopech, with
initial drill results demonstrating the potential for scale and continuity. BSP remains open, and DPM has
continued its 15,000-metre drilling program to expand known mineralization.
• Vareš ramp-up to full production on-track: DPM has continued to make strong progress at Vareš,
with development rates in-line with expectations. Vareš is on track to achieve the 850,000 tonnes per
year rate by year-end 2026.
• Near-term growth potential at Chelopech: DPM expects to complete an initial mineral resource
estimate for the Wedge Zone target by year-end 2026.
• Dumitru Potok drilling program: 20,000-metre drilling program was initiated in the second quarter,
focused on increasing drill hole density. Upon completion of the drilling, DPM intends to update the
mineral resource estimate for the Rakita camp.
• Advancing Čoka Rakita: Permitting continues to advance as planned, in support of targeted start-up
of mine construction in early 2027.
• On-track to meet guidance: Produced 102,690 and 186,732 gold equivalent ounces (“GEO”) 2 in the
second quarter and first half of 2026. DPM is on-track to achieve 2026 production guidance.
• All-in sustaining cost: Reported cost of sales per GEO sold of $1,085 and $1,187, and all-in
sustaining cost per GEO sold 2 of $1,214 and $1,417 in the second quarter and first half of 2026,
respectively. DPM reconfirmed its 2026 guidance for all-in sustaining cost of $1,300 to $1,450 per GEO
sold.
• Substantial liquidity for growth: Ended the quarter with a total of $761.2 million in cash and cash
equivalents and an undrawn revolving $400.0 million credit facility with accordion feature to $550.0
million.
• Continued capital discipline: Returned $91.2 million to shareholders during the first half of 2026
through dividends paid and shares repurchased, including $57.6 million in the second quarter ,
representing 25% of free cash flow.
p.1 DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
1 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 16 of this news release for more information, including reconciliations to IFRS measures.
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.
News Release
CEO Commentary
David Rae, President and Chief Executive Officer, made the following comments in relation to the second
quarter results:
“DPM generated exceptional financial results in the second quarter, including a record $227 million of free
cash flow, a result of our strong operating performance and the benefit of higher metals prices. With
strong performance in the first half of the year, we are well-positioned to achieve our production guidance
for the twelfth consecutive year.
“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. Development rates are exceeding 400 metres
per month, and we processed 48% more ore quarter-over-quarter.
“During the quarter, we announced the exciting high-grade Brevene South Porphyry discovery, continuing
our remarkable exploration track record with our fourth significant discovery since 2023. Results from
BSP demonstrate the potential for scale and continuity, and the target remains open. Together with the
discoveries of Čoka Rakita, Dumitru Potok and the Wedge Zone, our exploration success is transforming
our future growth outlook, which is fully funded, and generating significant value for our shareholders.”
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 16 of this news release.
p.2 DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
Key Operating and Financial Highlights
$ millions, except where noted Three Months Six Months
Ended June 30, 2026 2025 Change 2026 2025 Change
Operating Highlights(1)
Ore processed t 884,326 730,980 21% 1,617,292 1,411,122 15%
GEO produced(2) oz 102,690 70,231 46% 186,732 129,458 44%
GEO sold(2) oz 87,031 60,215 45% 153,016 113,197 35%
Cost of sales per GEO sold(3) $/oz 1,085 1,165 (7%) 1,187 1,146 4%
All-in sustaining cost per GEO sold(3,4) $/oz 1,214 1,292 (6%) 1,417 1,393 2%
Capital expenditures incurred(5):
Sustaining(6) 3.2 5.9 (46%) 6.4 13.5 (53%)
Growth and other(7) 28.0 16.3 72% 62.1 28.0 122%
Total capital expenditures 31.2 22.2 40% 68.5 41.5 65%
Financial Highlights(1)
Revenue 361.5 186.5 94% 671.9 330.6 103%
Cost of sales 94.4 70.2 35% 181.7 129.7 40%
Earnings before income taxes 255.9 92.0 178% 445.0 130.6 241%
Adjusted EBITDA(4) 257.8 114.1 126% 471.3 189.3 149%
Net earnings 230.1 82.4 179% 396.0 115.9 242%
Basic earnings per share $/sh 1.04 0.49 112% 1.79 0.68 163%
Adjusted net earnings(4) 210.8 87.6 141% 379.0 143.0 165%
Adjusted basic earnings per share(4) $/sh 0.95 0.52 83% 1.71 0.84 104%
Cash provided from operating activities(8) 271.1 99.5 172% 425.6 154.5 175%
Free cash flow(4) 227.3 94.6 140% 430.6 173.7 148%
Dividends paid 8.8 6.8 30% 17.7 13.8 28%
Payments for share repurchases(9) 48.8 33.9 44% 73.5 116.1 (37%)
$ thousands, unless otherwise indicated Three Months Six Months
Ended June 30, 2026 2025 Change 2026 2025 Change
Metal Prices
Average market prices:
Gold $/oz 4,517 3,280 38% 4,696 3,071 53%
Silver $/oz 73.44 33.64 118% 78.91 32.77 141%
Copper $/lb 6.05 4.32 40% 5.94 4.28 39%
Zinc $/lb 1.57 - 100% 1.52 - 100%
Lead $/lb 0.88 - 100% 0.88 - 100%
Average realized prices(4):
Gold $/oz 4,375 3,334 31% 4,635 3,183 46%
Silver $/oz 67.54 34.28 97% 75.86 35.00 117%
Copper $/lb 6.03 4.36 38% 5.96 4.36 37%
Zinc $/lb 1.61 - 100% 1.58 - 100%
Lead $/lb 0.88 - 100% 0.87 - 100%
(1) Operating and financial highlights for the second quarter and first half 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 16 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 Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
(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 $13.0 million (2025 – cash used in operating activities of $5.3 million) and $13.0 million (2025
– cash provided from operating activities of $167.9 million ), respectively, during the second quarter and first half of 2026 related to DPM’s
disposition of the Tsumeb smelter in August 2024 and the subsequent four-month tolling agreement between DPM and Sinomine Resource
Group Co. Ltd. (the “DPM Tolling Agreement”).
(9) Excluded payments for taxes on share repurchases of $2.3 million (2025 – $1.0 million) for the first half of 2026.
p.4 DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
Performance Highlights
The following table compares production, sales and cash cost measures by asset for the second quarter and first half of 2026 against 2026
guidance:
Q2 2026 YTD June 2026 2026
Consolidated
GuidanceChelopech Ada Tepe Vareš Consolidated Chelopech Ada Tepe Vareš Consolidated
Ore processed Kt 549.1 218.0 117.2 884.3 1,055.6 365.4 196.3 1,617.3 2,870 - 3,100
Metals contained in concentrates produced
Gold Koz 42.7 10.7 7.6 61.0 75.1 22.9 14.5 112.5 195 - 225
Silver Koz 216.2 8.2 1,043.5 1,267.9 333.1 15.9 1,955.9 2,304.9 3,700 - 4,400
Copper Mlbs 7.8 – 1.3 9.1 14.7 – 2.1 16.8 34 - 40
Zinc Mlbs – – 14.3 14.3 – – 24.3 24.3 59 - 71
Lead Mlbs – – 10.6 10.6 – – 18.1 18.1 35 - 42
GEO Koz 56.7 10.8 35.2 102.7 99.4 23.1 64.2 186.7 305 - 365
Payable metals in concentrates sold
Gold Koz 37.9 11.6 6.2 55.7 67.9 23.4 9.6 100.9 175 - 205
Silver Koz 178.9 7.2 899.5 1,085.6 304.4 13.5 1,377.9 1,695.8 3,300 - 4,000
Copper Mlbs 6.5 – 0.3 6.8 13.0 0.4 13.4 26 - 31
Zinc Mlbs – – 8.8 8.8 – – 13.6 13.6 44 - 53
Lead Mlbs – – 7.4 7.4 – – 11.8 11.8 27 - 32
GEO Koz 49.5 11.6 25.9 87.0 89.5 23.6 39.9 153.0 265 - 310
Cost of sales per tonne of ore processed $/t 89 154 103 90 174 117
Cash cost per tonne of ore processed(1) $/t 74 79 205 74 90 310
Cost of sales per GEO sold $/oz 986 2,883 467 1,085 1,063 2,693 576 1,187
All-in sustaining cost per GEO sold $/oz 1,174 1,695 563 1,214 1,318 1,549 679 1,417 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 $78 and $120 per tonne of ore processed, respectively, for the second quarter and first half of 2026.
p.5 DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
With continued strong operating performance in the second quarter and first half of 2026, the Company is
on track to meet its guidance for 2026. The ramp-up of Vareš continues to advance well, and the
operation remains on track to achieve full production by year-end. The operating results of Vareš have
been included in the Company's consolidated results since September 3, 2025, the date of acquisition.
Highlights include the following:
Chelopech, Bulgaria : GEO produced in the second quarter of 2026 was comparable to 2025, due
primarily to higher production and prices for copper and silver, largely offset by lower production and
higher prices for gold. GEO produced in the first half 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.
Chelopech is on-track to achieve its GEO production guidance for 2026.
Gold contained in concentrates produced in the second quarter and first half of 2026 was lower than 2025
due primarily to lower gold grades and recoveries, in line with the mine plan. Silver contained in
concentrates produced in the second quarter and first half of 2026 was higher than 2025 due primarily to
significantly higher than anticipated silver grades and recoveries. Copper production in the second quarter
and first half of 2026 was higher than 2025 due primarily to higher copper grades.
GEO sold in the second quarter and first half of 2026 was higher than 2025 due primarily to timing of
deliveries, partially offset by lower GEO produced for the first half of 2026. Payable gold in concentrates
sold in the second quarter and first half of 2026 was lower than 2025 reflecting lower gold production,
partially offset by timing of deliveries. Payable silver and copper in concentrates sold in the second
quarter and first half of 2026 was higher than 2025 due primarily to higher silver and copper production.
All-in sustaining cost per GEO sold in the second quarter and first half of 2026 was higher than 2025 due
primarily to higher labour costs, a stronger Euro relative to the U.S. dollar, higher freight charges and
higher royalties, as well as higher maintenance costs for the first half of 2026, partially offset by higher
volumes of GEO sold.
Ada Tepe, Bulgaria: Ada Tepe has reached the end of its mine life, with production having concluded as
of July 15, 2026. Gold contained in concentrate produced and GEO produced in the second quarter and
first half of 2026 were lower than 2025 due primarily to mining in lower grade zones, in line with the mine
plan, partially offset by higher volumes of ore processed.
Payable gold in concentrate sold and GEO sold in the second quarter and first half of 2026 were
consistent with gold production compared to 2025.
All-in sustaining cost per GEO sold in the second quarter and first half of 2026 was higher than 2025 due
primarily to higher labour costs, a stronger Euro relative to the U.S. dollar, and lower volumes of GEO
sold, as well as lower cash outlays for sustaining capital expenditures.
Vareš, Bosnia and Herzegovina: DPM continued to make strong progress at Vareš, achieving targeted
development rates averaging over 400 metres per month and processed 117,250 tonnes in the second
quarter, a 48% quarter-over-quarter increase. Construction of the paste backfill plant and second tailings
filter continue to advance, and both are expected to be operational before the end of the year.
Commissioning of the water treatment plant has commenced. The planned shutdown of the processing
plant was completed in seven days, ahead of schedule. This allows for reduced downtime in the second
half of the year when DPM anticipates higher production rates associated with the ramp-up to full
production, which is progressing according to plan.
p.6 DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
Payable metals in concentrates sold were lagging metals produced due primarily to timing of deliveries
during the second quarter and first half of 2026.
All-in sustaining cost per GEO sold at Vareš for the second quarter and first half of 2026 was below the
low end of its 2026 guidance range due primarily to the capitalization of certain pre-commercial
production operating costs. It is expected to increase in the second half of the year and remain within
guidance for the full year as Vareš ramps up to commercial production when the gross operating costs will
be reflected in its all-in sustaining cost.
Consolidated Operating Highlights
Production: GEO production in the second quarter and first half of 2026 was 46% and 44% higher than
2025, respectively, reflecting higher overall metal production with the addition of Vareš, partially offset by
lower gold production at Ada Tepe.
Deliveries: GEO sold in the second quarter and first half of 2026 was 45% and 35% higher than 2025,
respectively, due primarily to higher metal production, partially offset by timing of deliveries.
Cost measures: Cost of sales in the second quarter and first half of 2026 was 35% and 40% higher than
2025, respectively, due primarily to the inclusion of Vareš, higher labour costs, a stronger Euro relative to
U.S. dollar, and higher royalties reflecting higher metal prices.
All-in sustaining cost per GEO sold was 6% lower than 2025 in the second quarter of 2026 and
comparable to 2025 in the first half of 2026. All-in sustaining cost per GEO sold at Vareš for the second
quarter and first half of 2026 was below the low end of its 2026 guidance range due primarily to the
capitalization of certain pre-commercial production operating costs. It is expected to increase in the
second half of the year and remain within the guidance range as Vareš ramps up to commercial
production when the gross operating costs will be reflected in its all-in sustaining cost. All-in sustaining
cost at Vareš was partially or largely offset, respectively, for the second quarter and first half of 2026, by
higher costs at Chelopech and Ada Tepe, due primarily to higher labour costs, a stronger Euro relative to
the U.S. dollar, and higher royalties reflecting higher metal prices, as well as the impact of mark-to-market
adjustments to share-based compensation expenses, which resulted in an increase of $26 and $95 per
GEO sold, respectively, in the second quarter and first half of 2026, compared to an increase of $64 and
$122 per GEO sold in the corresponding periods in 2025.
Capital expenditures: Sustaining capital expenditures incurred in the second quarter and first half of
2026 were 46% and 53% lower than 2025, respectively, due primarily to no capital expenditures at Ada
Tepe as the mine reached the end of its life in July 2026.
Growth capital expenditures incurred in the second quarter and first half of 2026 were 72% and 122%
higher than 2025, respectively, due primarily to the capital expenditures at Vareš, including the
capitalization of certain pre-commercial production operating costs, partially offset by lower capital costs
related to the Čoka Rakita project due primarily to timing of expenditures.
Consolidated Financial Highlights
DPM delivered record financial results in the second quarter and first half of 2026 in revenue, 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.
p.7 DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
Revenue: Revenue in the second quarter and first half of 2026 was 94% and 103% higher than 2025,
respectively, due primarily to higher realized metal prices and the inclusion of Vareš pre-commercial
production revenue.
Net earnings: Net earnings in the second quarter of 2026 were 179% higher than 2025, due primarily to
higher revenue, and a $32.9 million reversal of certain provisions at Vareš, partially offset by higher cost
of sales and income taxes, as well as a $9.5 million loss on settlement of a previously recognized
receivable related to the DPM Tolling Agreement. Net earnings in the first half of 2026 were 242% higher
than 2025, due primarily to the same factors affecting the quarter, partially offset by higher exploration
expenses. The first half 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 second quarter and first half of 2026 were 141%
and 165% higher than 2025, respectively, due primarily to the same factors affecting net earnings, with
the exception of adjusting items primarily related to the reversal of certain provisions at Vareš, the loss on
settlement of tolling receivable, as well as the 2025 Bulgarian levy.
Cash provided from operating activities: Cash provided from operating activities in the second quarter
and first half of 2026 was 172% and 175% higher than 2025, respectively, due primarily to higher
earnings generated in the periods and the timing of deliveries and subsequent receipt of cash, partially
offset by higher annual cash redemption under the share-based compensation plans reflecting DPM’s
strong share price performance, the timing of payments to suppliers, and higher income taxes paid. The
first half of 2026 also included a cash redemption of certain Deferred Share Units.
Free cash flow: Free cash flow in the second quarter and first half of 2026 was 140% and 148% higher
than 2025, respectively, due primarily to the same factors impacting adjusted net earnings. Free cash flow
is calculated before changes in working capital.
Development Projects Update
Čoka Rakita, Serbia
Project execution readiness as well as operational readiness planning for the Čoka Rakita project
continued, 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
Ada Tepe processing plant concluded operations on July 15, 2026, and DPM has initiated the dismantling
and refurbishing of equipment to be deployed for Čoka Rakita.
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.
p.8 DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026