DPM Metals

DPM Metals (previously Dundee Precious Metals) is a mid-tier producer. They have two producing gold mines in Bulgaria. Chelopech at 200K/year with significant offsets in silver, copper, and zinc. AISC is around $1300 per oz, with all-in costs around $2200 per oz. Chelopech has 3M oz and is a long-life mine. Production is forecast to drop to 100K/year after three years, but they might be able to increase it.

Their second mine (Ada Tepe in Bulgaria) is producing about 80,000 oz at $1200 per oz AISC with all-in costs around $2000 per oz. It has a short mine life.

They have two advanced development projects. Loma Larga (3 million oz at 4 gpt) is in Ecuador they acquired from Inv Metals. It has a feasibility study to produce 170,000 oz annually (200,000 oz the first 5 years). The capex is $315 million. Permitting was completed in 2025. Potential construction in 2026. It has permit issues.

Coka Rakita in Serbia) is a 1.8 million oz (5.5 gpt) deposit that they acquired via the Avala Resources acquisition. It has a PEA, but needs more development. A feasibility study is due in 2025. Construction is planned for 2026. Production is scheduled for 2029 at 170K/year.

They have several early exploration projects. Tierras Coloradas in Ecuador had a big hole of 17 meters at 46 gpt AU in 2023.

They have a strong balance sheet with around $750 million in cash and no debt. $400M in FCF in H1 2026. They should be able to reach 500,000 oz of production in 2029. They also pay 15% of the FCF as dividends (currently a 2% yield). Plus, they are buying back shares. I

Their only red flags are the short mine lives at Chelopech (8 years) and AdaTepe (3 years), and their dependence on copper for their low cash costs. But I don't think their copper dependence is that big of a liability if gold prices rise, because their gold grades are not low.

In 2025, they acquired Adriatic Metals (Veres project). They paid cash and shares. Vares is 250M oz at 500 gpt AGEQ. Production should reach 10M to 12M oz AGEQ in 2027 at around $15 AISC. They are calling Veres a gold mine, at 120K oz at 9 gpt AUEQ at $1000 AISC in 2026, then 170K oz at 9 gpt AUEQ at $1000 AISC from 2027 forward. It has potential for huge FCF at higher gold prices.

Production
Chelopech: 200K oz
Ada Tepe: 80K oz
Veres: 120K in 2026, 170K in 2027
Rakita 170K in 2029
Loma Larga (permit revoked)

They lost their permit for Loma Larga. They may pursue arbitration. Grok says they don't have a strong case, and that environmental permits are not guaranteed. The local community said they don't want it. Looks dire. This was an important mine for their growth. Now they need to acquire another project. They do have the cash to do that. Another solution would be to merge with another company that has strong growth.


10/1/2026: Lost a legal challenge for part of their Veres lease (large gold/silver project). They have 6 months to appeal or acquire a legal permit. It’s unknown if the mine will close. AI seems to think it will not close. Shares are down 5%, so investors are nervous.


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