Dundee Precious Metals Achieves Record Financial Results in 2024; Three-Year Outlook Highlights Focus on Next Phase of Growth
Dundee Precious Metals Achieves Record Financial Results in 2024;
Three-Year Outlook Highlights Focus on Next Phase of Growth
Toronto, Ontario, February 13, 2025 – Dundee Precious Metals Inc. (TSX: DPM) ( “DPM” or the
“Company”) announced its operating and financial results for the quarter and year ended December 31,
2024.
Highlights
(Unless otherwise stated, all monetary figures in this news release are expressed in U.S. dollars, and all operational and financial
information contained in this news release is related to continuing operations.)
• Record adjusted net earnings: Reported adjusted net earnings1 of $232.2 million ($1.29 per share1)
and net earnings from continuing operations of $243.2 million ($1.35 per share).
• Record free cash flow: Generated $305.1 million of free cash flow 1 and $296.8 million of cash
provided from operating activities from continuing operations.
• 10-year track record of operational delivery: DPM achieved its gold production guidance for the
tenth consecutive year, producing 261,335 ounces of gold in 2024. Copper production of 29.7 million
pounds was in-line with guidance.
• Advancing growth pipeline: Initiated the Čoka Rakita project feasibility study ( “FS”) to enable an
accelerated construction decision, with first concentrate concentration production targeted for 2028.
The Čoka Rakita pre-feasibility study (“PFS”) was completed December 2024.
• Generating robust margins: Reported cost of sales per ounce of gold sold of $1,113.2 All-in
sustaining cost per ounce of gold sold 1 of $872 was within guidance for 2024. DPM has met its all-in
sustaining cost guidance every year since 2014.
• Peer-leading sustainability performance: DPM scored in the top decile among metals and mining
companies in the S&P Global Corporate Sustainability Assessment for the fourth consecutive year.
• Continued capital discipline: Returned $78.8 million, or 26% of free cash flow, to shareholders during
2024 through dividends paid and shares repurchased. Board of Directors has authorized the
repurchase of up to $200 million of shares within 2025.
• Substantial liquidity for growth: Ended the quarter with a strong balance sheet, including a total of
$634.8 million of cash, a $150.0 million undrawn revolving credit facility, and no debt. In January 2025,
the Company received an additional $170.6 million in cash following the conclusion of the temporary
tolling agreement related to the sale of the Tsumeb smelter (“DPM Tolling Agreement”).
• 2025 guidance and three-year outlook: Three-year outlook highlights DPM's focus on its next phase
of growth, including planned growth capital and exploration expenditures. 2025 production expected to
be between 225,000 and 265,000 ounces of gold at an all-in sustaining cost of between $780 to $900
per ounce of gold sold.
1
1 All-in sustaining cost per ounce of gold sold, free cash flow, adjusted net earnings and adjusted basic earnings per share 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 17 of this news release for more information, including reconciliations to IFRS measures.
2 Cost of sales per ounce of gold sold represents total cost of sales for Chelopech and Ada Tepe, divided by total payable gold in concentrate sold, while all-in sustaining cost
per ounce of gold sold includes treatment and freight charges, net of by-product credits, all of which are reflected in revenue.
CEO Commentary
“We once again generated record financial results in 2024, including free cash flow of $305 million ,
demonstrating the quality of our low-cost, high-margin mining operations. Our exceptional 10-year track
record of delivery has created long-term shareholder value and provides confidence in our ability to grow
the business with Čoka Rakita,” said David Rae, President and Chief Executive Officer.
“We achieved a significant milestone for Čoka Rakita by completing the pre-feasibility study for this high-
grade, low-cost growth project. The project team initiated the feasibility study and is advancing permitting
activities to support start-up of construction in mid-2026. And, importantly, our scout drilling programs near
Čoka Rakita continue to return strong results confirming the large-scale potential for further high-grade
copper-gold mineralization, highlighting the significant potential to generate additional value through
exploration.
“DPM continues to be in a very strong position to carry out our strategy of becoming a mid-tier gold
producer. This is driven by the quality of our team, our high-margin production base generating significant
free cash flow, and our financial strength to internally fund growth and exploration activities while
continuing to return capital to 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 ounce of gold sold
• all-in sustaining cost
• all-in sustaining cost per ounce of gold sold
• adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”)
• adjusted net earnings
• adjusted basic earnings 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 17 of this news release.
2
Key Operating and Financial Highlights from Continuing Operations
$ millions, except where noted Fourth Quarter Full Year
2024 2023 Change 2024 2023 Change
Operating Highlights
Ore Processed t 748,196 735,524 2% 2,916,027 2,952,711 (1%)
Metals contained in concentrate produced:
Gold
Chelopech oz 41,901 41,871 0% 167,029 161,872 3%
Ada Tepe oz 28,918 35,212 (18%) 94,306 134,200 (30%)
Total gold in concentrate produced oz 70,819 77,083 (8%) 261,335 296,072 (12%)
Copper Klbs 7,781 8,229 (5%) 29,671 30,547 (3%)
Payable metals in concentrate sold:
Gold
Chelopech oz 36,862 36,276 2% 142,004 135,862 5%
Ada Tepe oz 28,003 33,288 (16%) 92,124 129,881 (29%)
Total payable gold in concentrate sold oz 64,865 69,564 (7%) 234,128 265,743 (12%)
Copper Klbs 6,652 7,009 (5%) 25,062 26,651 (6%)
Cost of sales per tonne of ore processed(1):
Chelopech $/t 69 64 8% 71 63 13%
Ada Tepe $/t 142 146 (3%) 141 140 1%
Cash cost per tonne of ore processed(2):
Chelopech $/t 54 51 6% 56 50 12%
Ada Tepe $/t 71 72 (1%) 70 67 4%
Cost of sales per ounce of gold sold(3) $/oz 1,016 877 16% 1,113 919 21%
All-in sustaining cost per ounce of gold sold(2) $/oz 904 876 3% 872 849 3%
Financial Highlights
Average realized prices(2):
Gold $/oz 2,663 2,025 32% 2,434 1,957 24%
Copper $/lb 3.91 3.74 5% 4.16 3.82 9%
Revenue 179.1 139.3 29% 607.0 520.1 17%
Cost of sales 65.9 61.0 8% 260.7 244.2 7%
Earnings before income taxes 94.3 58.5 61% 276.1 205.7 34%
Adjusted EBITDA(2) 110.8 72.0 54% 326.9 268.4 22%
Net earnings 86.7 52.1 67% 243.2 182.0 34%
Basic earnings per share $/sh 0.49 0.29 69% 1.35 0.98 38%
Adjusted net earnings(2) 82.6 50.1 65% 232.2 180.0 29%
Adjusted basic earnings per share(2) $/sh 0.46 0.28 64% 1.29 0.97 33%
Cash provided from operating activities 82.7 71.3 16% 296.8 261.6 13%
Free cash flow(2) 91.7 49.3 86% 305.1 227.9 34%
Capital expenditures incurred(4):
Sustaining(5) 9.8 8.0 22% 34.2 31.2 10%
Growth and other(6) 2.1 10.0 (79%) 17.2 29.3 (41%)
Total capital expenditures 11.9 18.0 (34%) 51.4 60.5 (15%)
(1) Cost of sales per tonne of ore processed represents cost of sales for Chelopech and Ada Tepe, respectively, divided by tonnes of ore processed.
(2) Cash cost per tonne of ore processed, all-in sustaining cost per ounce of gold 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 17 of this news release for more information, including reconciliations to IFRS measures.
(3) Cost of sales per ounce of gold sold represents total cost of sales for Chelopech and Ada Tepe, divided by total payable gold in concentrate sold.
(4) Capital expenditures incurred were reported on an accrual basis and do not represent the cash outlays for the capital expenditures.
(5) 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.
(6) 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.
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Performance Highlights
A table comparing production, sales and cash cost measures by asset for the fourth quarter and full year ended December 31, 2024
against 2024 guidance is located on page 14 of this news release.
In 2024, DPM achieved its gold production and cost guidance for the tenth consecutive year, continuing
its long track record of operational delivery.
Highlights include the following:
Chelopech, Bulgaria: Gold contained in concentrates produced in fourth quarter and full year 2024 was
higher than 2023 due primarily to higher gold recoveries.
Payable gold in concentrates sold in the fourth quarter of 2024 was higher than 2023 due primarily to
favourable payable gold terms. Payable gold in concentrates sold in 2024 was higher than 2023 due
primarily to higher gold production and favourable payable gold terms.
Payable copper in concentrate sold in the fourth quarter and full year of 2024 was lower than 2023 due
primarily to lower copper production.
All-in sustaining cost per ounce of gold sold in the fourth quarter and full year of 2024 was lower than
2023 due primarily to lower treatment charges as a result of DPM having secured more favourable
commercial terms for the year under the current tight market for copper concentrates and higher by-
product credits reflecting higher realized copper prices , as well as lower cash outlays for sustaining
capital expenditures for the year.
Ada Tepe, Bulgaria: Gold contained in concentrate produced in the fourth quarter and full year of 2024
was lower than 2023 due primarily to mining in lower grade zones in 2024, in line with mine plan.
All-in sustaining cost per ounce of gold sold in the fourth quarter and full year of 2024 was higher than
2023 due primarily to lower volumes of gold sold, higher labour costs, and higher royalties for the quarter ,
as well as higher cash outlays for sustaining capital expenditures.
Consolidated Operating Highlights
Production: Gold contained in concentrate produced in the fourth quarter and full year of 2024 was 8%
and 12% lower than 2023, due primarily to lower gold production at Ada Tepe, partially offset by higher
gold recoveries at Chelopech.
Copper production in fourth quarter and full year of 2024 was 5% and 3% lower than 2023 due primarily
to lower copper grades.
Deliveries: Payable gold in concentrate sold in the fourth quarter and full year of 2024 was 7% and 12%
lower than 2023, primarily reflecting lower gold production.
Payable copper in concentrate sold in fourth quarter and full year of 2024 was 5% and 6% lower than
2023 due primarily to lower copper production.
Cost measures: Cost of sales in fourth quarter and full year of 2024 was 8% and 7% higher than 2023,
due primarily to higher labour costs, timing of maintenance activities and higher depreciation expense.
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All-in sustaining cost per ounce of gold sold in the fourth quarter and full year of 2024 was 3% higher than
2023 due primarily to lower volumes of gold sold, higher labour costs and timing of maintenance activities,
largely offset by lower treatment charges at Chelopech and higher by-product credits as a result of higher
realized copper prices.
Capital expenditures: Sustaining capital expenditures incurred in the fourth quarter and full year of 2024
were 22% and 10% higher than 2023, respectively, due primarily to timing of expenditures and higher
deferred stripping costs as a result of higher stripping ratios, in line with the mine plan at Ada Tepe.
Growth and other capital expenditures incurred in the fourth quarter and full year of 2024 was 79% and
41% lower than 2023, respectively, due primarily to lower expenditures related to the Loma Larga gold
project in 2024, as expected.
Consolidated Financial Highlights
Financial results in 2024 reported record earnings and free cash flow generation, reflecting higher
realized metal prices combined with the Company’s strong all-in sustaining cost performance, and lower
treatment charges at Chelopech, partially offset by lower volumes of gold sold at Ada Tepe and higher
planned exploration and evaluation expenses.
Revenue: Revenue in the fourth quarter and full year 2024 was 29% and 17% higher than 2023,
respectively, due primarily to higher realized metal prices and lower treatment charges at Chelopech ,
partially offset by lower volumes of gold sold at Ada Tepe.
Net earnings: Net earnings from continuing operations in the fourth quarter of 2024 was 67% higher than
2023, due primarily to higher revenue, partially offset by higher planned exploration and evaluation
expenses and higher income taxes. Net earnings from continuing operations in 2024 was 34% higher
than 2023, due primarily to higher revenue and interest income, partially offset by higher planned
exploration and evaluation expenses, higher income taxes and higher labour costs.
Adjusted net earnings: Adjusted net earnings from continuing operations in the fourth quarter and full
year of 2024 was 65% and 29% higher than 2023, respectively, due primarily to the same factors affecting
net earnings from continuing operations, with the exception of adjusting items primarily related to the net
termination fee received from Osino Resources Corp. (“Osino”), tax adjustments not related to current
period earnings, and gains or losses on derivatives.
Cash provided from operating activities: Cash provided from operating activities from continuing
operations in the fourth quarter and full year of 2024 was 16% and 13% higher than 2023 due primarily to
higher earnings generated from continuing operations and higher cash interest received, partially offset by
the timing of deliveries and subsequent receipt of cash for the year, and the timing of payments to
suppliers.
Free cash flow: Free cash flow from continuing operations in the fourth quarter and full year of 2024 was
86% and 34% higher than 2023, respectively, due primarily to higher earnings generated in the periods.
Free cash flow is calculated before changes in working capital.
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Balance Sheet Strength and Financial Flexibility
The Company continues to maintain a strong financial position, with a growing cash position, no debt and
an undrawn $150 million revolving credit facility.
Cash and cash equivalents increased from $595.3 million as at December 31, 2023 to $634.8 million as
at December 31, 2024 due primarily to earnings generated in the year, and cash proceeds from the
disposition of Osino shares and the Tsumeb smelter, partially offset by a net cash outflow of $156.2 million
related to the DPM Tolling Agreement, cash outlays for capital expenditures, payments for shares
repurchased under the Normal Course Issuer Bid (“NCIB”) and dividends paid.
In January 2025, the Company received an additional $170.6 million in cash, as the Company concluded
the DPM Tolling Agreement , of which $161.9 million was received from Sinomine Resource Group Co.
Ltd. related to the inventory buyback, and $8.7 million was received from IXM S.A. related to the sale of
blister.
Return of Capital to Shareholders
In line with its disciplined capital allocation framework, DPM continues to return excess capital to
shareholders, which currently includes a sustainable quarterly dividend and periodic share repurchases
under the NCIB.
During 2024, the Company returned a total of $78.8 million to shareholders through dividends paid of
$28.9 million, as well as payments for shares repurchased of $49.9 million following the renewal of the
NCIB in late March.
Share Repurchases
During the year ended December 31, 2024 , the Company purchased a total of 5,709,458 shares with a
total cost of $50.9 million at an average price per share of $8.76 (Cdn$12.13).
The Company’s Board of Directors has approved the renewal of the NCIB (the “New Bid”) and the
Company expects to seek approval from the TSX for the New Bid in due course during the first quarter of
2025. If accepted, the New Bid will be made in accordance with the applicable rules and policies of the
TSX and applicable Canadian securities laws. The Company expects be able to purchase up to 10% of
the public float of common shares over a period of twelve months under the New Bid.
The Company’s Board of Directors has authorized management to repurchase up to $200 million of the
Company’s shares during 2025.
The actual timing and number of common shares that may be purchased under the NCIB will be
undertaken in accordance with DPM’s capital allocation framework, having regard for such things as
DPM’s financial position, business outlook and ongoing capital requirements, as well as its share price
relative to market peers and intrinsic value and overall market conditions.
Quarterly Dividend
On February 13, 2025, the Company declared a dividend of $0.04 per common share payable on April 15,
2025 to shareholders of record on March 31, 2025.
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Three-Year Outlook (2025 to 2027)
The following sections of this news release, under the headings “Detailed 2025 Guidance” and “Three-Year Outlook (2025 to 2027)”,
represent forward-looking information and readers are cautioned that actual results may vary materially from the Company’s
expectations. Refer to the “Cautionary Note Regarding Forward Looking Statements” located on page 15 of this news release and
the “Risks and Uncertainties” section of the MD&A issued on February 13, 2025 , available on the Company’s website
(www.dundeeprecious.com) and filed on SEDAR+ (www.sedarplus.ca).
The Company continues to fund its high-quality organic growth pipeline and exploration activities, while
maintaining its portfolio of low-cost, high-margin mining operations which has generated an exceptional
track record of delivery and created long-term shareholder value.
Highlights of the Company’s three-year outlook include:
• Strong gold production: Gold production is expected to average approximately 200,000 ounces
over the next three years, bolstered by strong and consistent performance from Chelopech. Ada
Tepe’s production profile reflects the current mine life ending mid-2026.
• Stable copper production: Copper production over the next three years is expected to average
approximately 30 million pounds per year based on current mine plans.
• Maintains low-cost position: All-in sustaining cost over the next three years is expected to average
approximately $865 per ounce of gold sold, continuing to position DPM as one of the lowest cost,
highest margin gold producers. The outlook for all-in sustaining cost over the next three years reflects
variations in gold and copper production and sales year over year, as well as the impact of higher
local currency operating costs and allocated general and administrative expenses, partially offset by a
stronger U.S. dollar relative to the Euro.
• Sustaining capital expenditures: Chelopech is expected to maintain stable sustaining capital
expenditures over the next three years. At Ada Tepe, s ustaining capital expenditures for 2025 are
expected to be approximately $14 million reflecting the capitalization of deferred stripping costs which
had been expensed in the previous outlook. Sustaining capital expenditures trend lower in 2026 at
Ada Tepe.
• Growth capital expenditures: The three-year outlook for growth capital expenditures primarily
relates to the Čoka Rakita project development, which is expected to commence construction
mid-2026 and achieve first production of concentrate in 2028. In 2025, the focus will be on the
completion of surface and underground geotechnical and hydrogeological drilling, and the completion
of the FS. The Company will start capitalizing costs related to the Čoka Rakita project from 2025 as a
result of the project’s advancement to the FS stage. In 2025, growth capital expenditures also include
expenditures related to the Loma Larga gold project, targeting the completion of an updated FS by
the second quarter of 2025. Upon achievement of certain milestones for the project, the Company
may increase its guidance for capital expenditures related to the Loma Larga gold project.
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The Company’s three-year outlook is set out in the following table:
$ millions, unless otherwise indicated
2024
Results
2025
Guidance(1)
2026
Outlook(1)
2027
Outlook(1)
Gold contained in concentrate produced(2),(3)
Chelopech Koz 167 160 - 185 150 - 165 155 - 175
Ada Tepe Koz 94 65 - 80 25 - 35 — - —
Total Koz 261 225 - 265 175 - 200 155 - 175
Copper contained in concentrate produced(2)
Chelopech Mlbs 30 28 - 33 30 - 35 23 - 27
All-in sustaining cost per ounce of gold sold(4),(5),(6) $/oz 872 780 - 900 780 - 900 860 - 980
Exploration expenses 40 36 - 41 30 - 40 30 - 40
Sustaining capital expenditures(4),(7)
Chelopech 19 12 - 15 12 - 15 12 - 15
Ada Tepe 11 11 - 14 4 - 5 — - —
Corporate 4 1 - 2 1 - 2 1 - 2
Consolidated 34 24 - 31 17 - 22 13 - 17
Growth capital expenditures(8) 17 56 - 64 76 152
(1) The Company’s 2025 guidance and three-year outlook are forecast to vary from quarter to quarter depending on mine sequencing, the timing of
concentrate deliveries and planned maintenances, as well as the schedule for, and execution of each capital project.
(2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.
(3) Gold produced includes gold in pyrite concentrate produced of 50,000 to 60,000 ounces for 2025, 45,000 to 50,000 ounces in 2026, and 55,000
to 60,000 ounces in 2027.
(4) Based on, where applicable, a Euro/US$ exchange rate of 1.05 and a copper price of $4.00 per pound for all years.
(5) Reflects DPM general and administrative expenses being allocated based on Chelopech and Ada Tepe’s proportion of total revenue.
(6) Excludes potential imposition of China VAT and import duties. Current assumptions for royalties are based on a gold price of $2,300 per ounce
for all years with royalty rates of approximately 1.5% at Chelopech and 4% at Ada Tepe.
(7) Represent capital expenditures on an accrual basis and do not represent the cash outlays for the capital expenditures.
(8) Growth capital expenditures in 2026 and 2027 relate solely to the estimated construction costs for the Čoka Rakita project, which is expected to
commence mid-2026, as per the “NI 43-101 Technical Report Čoka Rakita Project Pre-Feasibility Study, Eastern Serbia” dated January 31, 2025.
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