Dundee Precious Metals Reports First Quarter 2025 Results
Dundee Precious Metals Reports First Quarter 2025 Results
Toronto, Ontario, May 6, 2025 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or the “Company”)
announced its operating and financial results for the first quarter ended March 31, 2025.
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.)
• On-track to meet 2025 guidance: Produced 49,863 ounces of gold and 5.9 million pounds of copper
in the first quarter. The Company is on-track to meet its 2025 production guidance.
• Record capital returns: Returned a record $90.4 million, or 114% of free cash flow, to shareholders
during the first quarter of 2025 through the repurchase of approximately 7.5 million shares and the
$0.04 per share quarterly dividend.
• Generating robust margins: Reported cost of sales per ounce of gold sold 1,2 of $1,330 and an all-in
sustaining cost per ounce of gold sold 1,2 of $1,244, which reflects a $214 per ounce impact related to
mark-to-market adjustments to share-based compensation as a result of DPM's strong share price
performance. DPM reconfirmed its 2025 guidance for all-in sustaining cost of $780 to $900 per ounce
of gold sold.
• Strong adjusted net earnings per share: Reported adjusted net earnings2 of $55.4 million ($0.32 per
share2) and net earnings from continuing operations of $33.5 million ($0.19 per share).
• Robust free cash flow generation: Generated $79.1 million of free cash flow 2 and $55.0 million of
cash provided from operating activities of continuing operations.
• Advancing growth pipeline: Čoka Rakita feasibility study ( “FS”) advancing well and on-track for
completion at year-end 2025. Loma Larga FS update expected to be completed in the second quarter
of 2025.
• Adding value through exploration: Advancing the 55,000-metre scout drilling campaign, focused on
testing high priority targets within the Čoka Rakita camp, including at the high-grade copper-gold
Dumitru Potok discovery, as well as the Rakita North and Valja Saka prospects, all located within
proximity to planned Čoka Rakita project infrastructure.
• Substantial liquidity for growth: Ended the quarter with a strong balance sheet, including a total of
$763.0 million of cash, a $150.0 million undrawn revolving credit facility, and no debt.
• Board succession: Juanita Montalvo was appointed Chair of the Board of Directors effective May 3,
2025, in accordance with the Board’s succession planning process. Ms. Montalvo has served on
DPM’s Board since 2017, and brings more than 25 years of mining sector experience, as well as strong
leadership and governance expertise to guide the Company's growth strategy.
1 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.
2 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 12 of this news release for more information, including reconciliations to IFRS measures.
CEO Commentary
David Rae, President and Chief Executive Officer, made the following comments in relation to the first
quarter results:
“We continue to consistently deliver free cash flow, generating approximately $79 million during the
quarter, and further strengthen our financial capacity to fund growth. At the same time, our investors are
benefiting from our low-cost, high-margin gold production as we harvest free cash flow by returning
excess capital to shareholders, demonstrated by the repurchase of a record 7.5 million shares during the
quarter.
“Our 55,000-metre drilling program focused on testing high priority targets proximal to our Čoka Rakita
project is advancing well, with 14 drill rigs currently in operation. The drilling program continues to expand
the copper-gold Dumitru Potok discovery, and we have yet to define its limits as it remains open in
multiple directions and at depth. We are also advancing drilling at the Rakita North and Valja Saka
prospects.
“We are deeply saddened by the passing of Peter Gillin, Chair of the Board since 2022 and a director for
the past 16 years. His steady leadership and oversight helped guide our transformation into the
responsible, growing precious metals company we are today, and he will be missed by all.
“We are pleased to have Juanita Montalvo assume the role of Chair at an exciting time for DPM's growth
outlook. This continuity in leadership underpins our operating track record, exploration success and
strong financial position, as we focus on creating a robust platform for growth to deliver above-average
returns 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 ounce of gold sold
• all-in sustaining cost
• all-in sustaining cost per ounce of gold 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 12 of this news release.
Dundee Precious Metals Reports First Quarter 2025 Results | 2
Key Operating and Financial Highlights from Continuing Operations
$ millions, except where noted Three Months
2025 2024 Change
Operating Highlights
Ore Processed t 680,142 701,198 (3%)
Metals contained in concentrate produced:
Gold
Chelopech oz 37,413 37,495 0%
Ada Tepe oz 12,450 25,232 (51%)
Total gold in concentrate produced oz 49,863 62,727 (21%)
Copper Klbs 5,905 6,692 (12%)
Payable metals in concentrate sold:
Gold
Chelopech oz 32,422 29,568 10%
Ada Tepe oz 12,367 25,644 (52%)
Total payable gold in concentrate sold oz 44,789 55,212 (19%)
Copper Klbs 5,163 5,457 (5%)
Cost of sales per tonne of ore processed(1):
Chelopech $/t 68 69 (1%)
Ada Tepe $/t 160 147 9%
Cash cost per tonne of ore processed(2):
Chelopech $/t 53 55 (4%)
Ada Tepe $/t 85 65 31%
Cost of sales per ounce of gold sold(3) $/oz 1,330 1,127 18%
All-in sustaining cost per ounce of gold sold(2) $/oz 1,244 883 41%
Capital expenditures incurred(4):
Sustaining(5) 7.6 5.7 33%
Growth and other(6) 11.7 8.3 42%
Total capital expenditures 19.3 14.0 38%
Financial Highlights
Average realized prices(2):
Gold $/oz 3,004 2,127 41%
Copper $/lb 4.35 3.89 12%
Revenue 144.1 123.8 16%
Cost of sales 59.5 62.2 (4%)
Earnings before income taxes 38.6 46.3 (17%)
Adjusted EBITDA(2) 75.2 54.5 38%
Net earnings 33.5 39.4 (15%)
Basic earnings per share $/sh 0.19 0.22 (14%)
Adjusted net earnings(2) 55.4 32.5 70%
Adjusted basic earnings per share(2) $/sh 0.32 0.18 78%
Cash provided from operating activities(7) 55.0 35.8 53%
Free cash flow(2) 79.1 60.1 32%
(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 12 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 are 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.
(7) Excludes cash provided from operating activities of discontinued operations of $173.2 million (2024 – $17.7 million) during the first quarter of
2025.
Dundee Precious Metals Reports First Quarter 2025 Results | 3
Performance Highlights
A table comparing production, sales and cash cost measures by asset for the first quarter ended March 31, 2025 against 2025
guidance is located on page 8 of this news release.
In the first quarter of 2025, the Company’s mining operations delivered solid gold production. With higher
production planned for the second half of the year, DPM is on track to achieve its 2025 guidance.
Highlights include the following:
Chelopech, Bulgaria : Gold contained in concentrates produced in the first quarter of 2025 was
comparable to 2024 due primarily to lower gold grades largely offset by higher gold recoveries . Copper
production in 2025 was lower than 2024 due primarily to lower copper grades, in line with the mine plan.
All-in sustaining cost per ounce of gold sold in the first quarter of 2025 was lower than 2024 due primarily
to higher volumes of gold sold as a result of DPM having secured more favourable commercial terms,
higher by-product credits reflecting higher realized copper prices and lower freight charges.
Ada Tepe, Bulgaria: Gold contained in concentrate produced in the first quarter of 2025 was lower than
2024, due primarily to mining lower grade zones and lower volumes of ore processed, in line with the
mine plan. Gold production at Ada Tepe is forecast to nearly double in the second half of 2025, relative to
the first half of the year, due to the cell sequencing of its integrated mine waste facility.
All-in sustaining cost per ounce of gold sold in the first quarter 2025 was higher than 2024 due primarily to
lower volumes of gold sold, partially offset by lower royalties , as well as higher sustaining capital
expenditures as a result of higher deferred stripping costs.
Consolidated Operating Highlights
Production: Gold contained in concentrate produced in the first quarter of 2025 was 21% lower than
2024 due primarily to lower gold grades and lower volumes of ore processed at Ada Tepe, partially offset
by higher gold recoveries at Chelopech, in line with the mine plan for each operation.
Copper production in the first quarter of 2025 was 12% lower than 2024 due primarily to lower copper
grades.
Deliveries: Payable gold in concentrate sold in the first quarter of 2025 was 19% lower than 2024
primarily reflecting lower gold production.
Payable copper in concentrate sold in the first quarter of 2025 was 5% lower than 2024 due primarily to
lower copper production.
Cost measures: Cost of sales in the first quarter of 2025 was 4% lower than 2024 due primarily to lower
depreciation and lower royalties reflecting lower contained ounces mined at Ada Tepe, partially offset by
higher labour costs including higher mark-to-market adjustments to share-based compensation expenses
as a result of DPM’s strong share price performance.
All-in sustaining cost per ounce of gold sold in the first quarter of 2025 was 41% higher than 2024, due
primarily to lower volumes of gold sold and higher mark-to-market adjustments to share-based
compensation expenses reflecting DPM’s strong share price performance. Mark-to-market adjustments to
share-based compensation expenses resulted in an increase of $214 per ounce of gold sold in the first
quarter of 2025 compared to an increase of $38 per ounce of gold sold in 2024.
Capital expenditures: Sustaining capital expenditures incurred in the first quarter of 2025 were 33%
higher than 2024, due primarily to higher deferred stripping costs at Ada Tepe.
Dundee Precious Metals Reports First Quarter 2025 Results | 4
Growth and other capital expenditures incurred in the first quarter of 2025 were 42% higher than 2024,
due primarily to costs related to the Čoka Rakita project being capitalized from 2025 as a result of the
project’s advancement to the FS stage.
Consolidated Financial Highlights
Financial results in the first quarter of 2025 reflected higher realized metal prices, partially offset by lower
volumes of gold sold at Ada Tepe.
Revenue: Revenue in the first quarter of 2025 was 16% higher than 2024 due primarily to higher realized
metal prices, partially offset by lower volumes of gold sold.
Net earnings: Net earnings from continuing operations in the first quarter of 2025 was 15% lower than
2024 due primarily to a one-time levy to the 2025 Bulgarian state budget for an aggregated amount of
$24.4 million, in respect of Chelopech and Ada Tepe, as well as higher employee costs reflecting higher
mark-to-market adjustments to share-based compensation expenses, partially offset by higher revenue
and lower evaluation expenses as a result of the capitalization of costs related to the Čoka Rakita project.
Adjusted net earnings: Adjusted net earnings from continuing operations in the first quarter of 2025 was
70% higher than 2024, due primarily to the same factors affecting net earnings from continuing
operations, with the exception of adjusting items primarily related to the one-time Bulgarian levy in 2025,
and a net termination fee received from Osino Resources Corp. (“Osino”) in 2024.
Cash provided from operating activities: Cash provided from operating activities of continuing
operations in the first quarter of 2025 was 53% higher than 2024, due primarily to higher adjusted net
earnings from continuing operations.
Free cash flow: Free cash flow from continuing operations in the first quarter of 2025 was 32% higher
than 2024, due primarily to the same factors impacting adjusted net earnings from continuing operations.
Free cash flow is calculated before changes in working capital.
Board of Directors Succession
In accordance with the Board’s succession planning process, the Company announced the appointment
of Juanita Montalvo as Chair of the Board effective May 3, 2025. Ms. Montalvo has served on DPM’s
Board since 2017, including as Chair of the Corporate Governance and Nominating Committee and
previously Chair of the Sustainability Committee. With more than 25 years of international experience in
the mining and extractive sectors, she has a strong track record in the development of large-scale
industrial projects, operational and strategic decision making, and brings extensive governance expertise.
Ms. Montalvo succeeds R. Peter Gillin, who sadly passed away in May 2025, after serving as Chair since
2022 and as a director for the past 16 years.
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 by $128.2 million to $763.0 million in the first quarter of 2025, due
primarily to a net cash inflow of $173.2 million related to the DPM Tolling Agreement, earnings generated
in the period, and cash interest received, partially offset by payments for shares repurchased under the
Normal Course Issuer Bid (“NCIB”), cash outlays for capital expenditures and dividends paid.
Dundee Precious Metals Reports First Quarter 2025 Results | 5
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 the first quarter of 2025, the Company returned a total of $90.4 million to shareholders through the
repurchase of approximately 7.5 million shares, for a total cash payment of $83.3 million, and $7.1 million
of dividends paid.
The Company renewed its NCIB effective March 18, 2025 , pursuant to which the Company is able to
purchase up to 15 million common shares representing approximately 9.8% of the public float as at
March 4, 2025 , over a period of twelve months commencing March 18, 2025 and terminating on
March 17, 2026.
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.
On May 6, 2025, the Company declared a dividend of $0.04 per common share payable on July 15, 2025
to shareholders of record on June 30, 2025.
Development Projects Update
Čoka Rakita, Serbia
The Company continues to advance the Čoka Rakita project, targeting first concentrate production in
2028. The FS is advancing as planned and is expected to be completed by year-end 2025. Activities in
2025 will include completing surface and underground geotechnical and hydrogeological drilling,
advancing permitting, progressing the design to the basic engineering level, advancing the project
execution readiness, and commencing operational readiness activities, leveraging the project’s regional
proximity to DPM’s Chelopech underground mine to train and develop key personnel for operating roles.
Permitting activities have continued to advance, with a detailed permitting timeline focused on supporting
commencement of construction in mid-2026.
Work continues on various baseline studies required for the Environmental and Social Impact
Assessment. The final report on Mineral Resources and Mineral Reserves (the Elaborate of Reserves),
as required under the Serbian permitting process, was submitted to the relevant authorities during the first
quarter. DPM continues to focus on completing all preparatory work for the Special Purpose Spatial Plan,
pending a decision by the Serbian government to initiate the process, and is proactively engaging with
relevant stakeholders to mitigate the risk of administrative delays.
The Company has planned to spend $40 million to $45 million of growth capital expenditures for the Čoka
Rakita project in 2025, with $7.8 million incurred in the first quarter of the year.
Loma Larga, Ecuador
At the Loma Larga gold project in Ecuador, the updated FS is on track for completion in the second
quarter of 2025, which will update the project economics to reflect the current gold price, as well as the
capital and operating cost environment. The FS will be based on a Mineral Reserve Estimate of 12.6
million tonnes grading 4.7 grams per tonne gold and 0.29% copper for 1.9 million gold ounces and 80
million pounds of copper. Refer to the Company’s Annual Information Form (“AIF”) for the year ended
December 31, 202 4 for more information regarding the Mineral Reserve and Mineral Resource estimate
for the Loma Larga gold project.
Dundee Precious Metals Reports First Quarter 2025 Results | 6
The Ministry of Energy and Mines has continued to advance the prior, informed indigenous consultation
process towards completion , and the Company expects to apply for the issuance of the environmental
licence once the process has concluded.
On April 22, 2025, the Company received notice that the term of the Cristal concession, the main
concession of the Loma Larga gold project, has been extended by 25 years.
The Company has planned a total of $12 million to $14 million for the Loma Larga gold project in 2025,
which is included in growth capital expenditures, and incurred $3.3 million in the first quarter.
Exploration
Dumitru Potok, Serbia
Exploration activities in Serbia continued to focus on the Čoka Rakita and Potaj Čuka licences, including
scout drilling campaigns at the Dumitru Potok, Dumitru West, Frasen and Valja Saka targets, completing
13,688 metres of drilling during the first quarter of 2025.
At Dumitru Potok, recent drilling confirms the presence of a large, high-grade copper-gold-silver skarn
system with mineralization concentrated along both the eastern and western sides of a causative
intrusion. Based on drilling to date, mineralization has been detected over a one-kilometre strike length,
up to 300 metres vertically and up to 500 metres away from the causative intrusion. The Dumitru Potok
prospect is characterized by long intercepts of continuous high-grade mineralization that remains open in
multiple directions. Highlights from drilling include an intercept of 190 metres at 2.07% copper, 1.23 g/t
gold and 12.19 g/t silver, which includes a higher grade zone of 49 metres at 4.18% copper, 1.48 g/t gold
and 2.17 g/t silver, as reported in the Company's news release dated February 19, 2025. 3 During the
quarter, drilling encountered additional high-grade, copper-gold stratabound skarn mineralization, further
demonstrating the potential of this target.
During the quarter, new drill results from the Rakita North prospect highlighted the presence of significant
marble-hosted copper-gold-silver mineralization on the northern flank of the Čoka Rakita deposit,
proximal to the Čoka Rakita planned underground development. The results confirm a relatively higher-
grade core of approximately 300 metres by 150 metres developed over a vertical extent of approximately
300 metres, which remains open in multiple directions.
Under the Potaj Čuka licence, exploration drilling has continued at the Valja Saka and the Dumitru West
prospects, which are located approximately two kilometres north of the Čoka Rakita project. Scout
exploration drilling at the Valja Saka prospect encountered strong skarn-altered sediments with garnet
and magnetite and occasional visible gold, analogous to the Čoka Rakita style of mineralization. Strong
skarn altered sediments, along with stratabound copper-gold mineralization, were observed in some drill
hole intervals at Dumitru West area, demonstrating the potential for this target, as well as further
exploration prospects towards the northwest, north and east.
The Company has planned to spend between $23 million and $25 million in 2025 for Serbian exploration
activities, with $6.7 million incurred in the first quarter of the year. These activities are primarily focused on
testing prospective targets around the Čoka Rakita project and defining the upside potential of the
Dumitru Potok and Frasen discoveries, as well as planned scout drilling on the Potaj Čuka and Pešter Jug
licences.
Dundee Precious Metals Reports First Quarter 2025 Results | 7
3 Refer to the news release “Dundee Precious Metals Reports Wide High-Grade Intercepts from the Dumitru Potok Prospect; Results include 190 metres at 2.07% Cu, 1.23 g/t
Au and 12.19 g/t Ag”, which is available on the Company’s website at www.dundeeprecious.com and on SEDAR+ at www.sedarplus.ca.
Chelopech, Bulgaria
DPM continues to prioritize in-mine and brownfield exploration activities to further extend mine life at
Chelopech, targeting an increase to over ten years. During the first quarter of 2025, the Company
completed 11,613 metres of in-mine extensional drilling with four active diamond drill rigs primarily
focused on discovering new mineralization zones along the identified geological trends and potential
exploration targets in the Chelopech mine.
Brownfield exploration continued within the Chelopech mine concession during the first quarter of 2025
with a total of 11,162 metres of exploration and target delineation drilling involving five active diamond drill
rigs. At the Sharlo Dere prospect, the infill drilling program aiming to extend the high-grade contour of the
copper-gold mineralization have been successfully completed and interpretation of the results, including
modelling for a new resource estimate, is ongoing.
The Company continues to advance the process to convert the Brevene exploration licence to a
Commercial Discovery, and expects to be granted a one-year extension of the exploration rights.
Permitting and preparation for the work program is ongoing and is expected to be approved by mid-2025.
The Company has planned a total of $6 million to $7 million for Chelopech brownfield exploration
activities in 2025, primarily focused on testing near-mine targets on the Chelopech mine concession, with
$2.9 million incurred in the first quarter.
Ada Tepe, Bulgaria
During the first quarter of 2025, exploration activities were focused on target delineation campaigns at the
Krumovitsa and Chiirite exploration licences with a total of 2,151 metres of drilling completed during the
quarter. In addition, the Company advanced regional reconnaissance, including systematic geological
mapping, stream sediments, soil and rock sampling, and 3D modelling.
The Company has planned a total of $3 million to $4 million for Ada Tepe exploration activities for 2025,
with $0.7 million incurred in the first quarter of the year.
2025 Guidance and Three-year Outlook
With higher production planned for the second half of the year, DPM is on track to achieve its 2025
guidance, including expected gold production of 225,000 to 265,000 ounces, copper production of 28 to
33 million pounds, and an all-in sustaining cost of $780 to $900 per ounce of gold sold.
Selected Production, Delivery and Cost Performance versus 2025 Guidance
Q1 2025 2025
Consolidated
GuidanceChelopech Ada Tepe Consolidated
Ore processed Kt 532.8 147.3 680.1 2,700 – 2,900
Metals contained in concentrate produced
Gold Koz 37.4 12.5 49.9 225 – 265
Copper Mlbs 5.9 – 5.9 28 – 33
Payable metals in concentrate sold
Gold Koz 32.4 12.4 44.8 205 – 240
Copper Mlbs 5.2 – 5.2 25 – 29
All-in sustaining cost per ounce of gold sold $/oz 673 1,340 1,244 780 – 900
For additional information regarding the Company's detailed guidance for 2025 and current three-year
outlook, please refer to the “Three-Year Outlook” section of the MD&A.
Dundee Precious Metals Reports First Quarter 2025 Results | 8