DPM Metals Inc. reported strong financial results for Q3 2025, including $147.7 million in free cash flow and $184.5 million in cash from operating activities. The company also achieved adjusted net earnings of $129.2 million. The acquisition of Adriatic Metals plc has progressed well, with Vareš production expected to surpass previous estimates. Exploration activities are yielding positive results, with resource estimates for key targets expected by year-end. The Čoka Rakita project remains on track, with mine construction set to begin in early 2027 and first concentrate production slated for the first half of 2029. DPM ended the quarter with $413.6 million in cash and cash equivalents and an undrawn $150.0 million revolving credit facility. Production of 63,638 ounces of gold and 7.8 million pounds of copper in Q3 puts DPM in a strong position to meet its 2025 guidance. The company reported cost of sales per ounce of gold sold at $1,329 and all-in sustaining cost per ounce of gold sold at $1,136 for the first nine months of the year, reconfirming its 2025 guidance for all-in sustaining cost of $780 to $900 per ounce of gold sold. CEO David Rae expressed confidence in the company’s progress, highlighting the successful integration of Vareš and the growth potential of the Čoka Rakita project. The use of non-GAAP financial measures provides additional insight into DPM’s performance and financial health. The Company uses non-GAAP financial measures and ratios to help investors assess performance, including mine cash cost, all-in sustaining cost, and adjusted earnings. Key highlights include increased ore processed, gold production, and copper production. Payable gold and copper in concentrates sold were higher, but all-in sustaining cost per ounce of gold sold increased. Operations are on track to meet 2025 production goals. In the third quarter of 2025, gold production was up 6% compared to 2024, driven by higher volumes of ore processed and higher gold grades. However, gold production in the first nine months of 2025 was 8% lower than 2024 due to lower gold grades and recoveries at Ada Tepe. Copper production also saw a 6% increase in the third quarter of 2025, but was 8% lower in the first nine months compared to 2024.
Revenue for the third quarter of 2025 was 82% higher than in 2024, mainly due to higher realized metal prices and increased volumes of gold sold. For the first nine months of 2025, revenue was 40% higher than 2024, primarily driven by higher metal prices. All-in sustaining cost per ounce of gold sold was 16% higher in the third quarter of 2025 compared to 2024, and 32% higher for the first nine months due to various factors such as strong share price performance and higher labor costs. In the third quarter and first nine months of 2025, revenue increased due to post-acquisition revenue from Vareš. Net earnings from continuing operations were 108% and 35% higher in the same periods, while adjusted net earnings were 180% and 82% higher, respectively. Cash provided from operating activities also saw significant increases, as did free cash flow.
DPM completed the acquisition of Adriatic, integrating the Vareš operation into its portfolio. The company aims to achieve an 850,000 tonne per year operating rate at Vareš by the end of 2026. Initial steps include introducing health and safety practices, transforming training programs, and engaging stakeholders. Production at Vareš in 2025 is expected to be minimal.
The Čoka Rakita project in Serbia is progressing as planned, with the feasibility study expected to be completed by year-end 2025. Permitting activities are ongoing, and the company expects mine construction to begin in early 2027, with first concentrate production anticipated in the first half of 2029. DPM remains confident in the project’s progress.
In Ecuador, the environmental license for the Loma Larga project was issued in the second quarter of 2025, but was later revoked by the Ministry of Environment and Energy in October 2025. DPM is evaluating its options to preserve value for shareholders. The company released a feasibility study in September 2025 and filed a technical report for the project in October 2025. DPM Metals is maintaining growth capital expenditures for the Loma Larga project at $12 million to $14 million in 2025. Exploration activities in Serbia yielded significant results, with the Dumitru Potok area showing high-grade copper-gold-silver mineralization. The Company increased the budget for Serbian exploration activities to $28 million to $30 million based on positive findings.
In Bulgaria, brownfield exploration at the Chelopech mine and Brevene exploration licence discovered a new zone of high-sulphidation mineralization at the Wedge Zone Deep target. Additionally, a gold-copper porphyry-type mineralization zone was identified on the Brevene licence. The Company is progressing towards converting the Brevene exploration licence to a Commercial Discovery. Surface drilling has begun in the Vozdol area, with intensive drilling planned for the fourth quarter of 2025. The budget for Chelopech exploration has increased to $14-15 million. The company maintains strong cash and liquidity, returning $136.6 million to shareholders in 2025. DPM expects to achieve its 2025 guidance for gold and copper production. Exploration expenses and growth capital expenditures have been updated. Operating and financial results for Vareš are not included in the guidance. A three-year outlook for Vareš is expected in February 2026. Selected production, delivery, and cost performance data for Q3 2025. DPM will host a conference call and webcast to discuss third quarter 2025 results. All relevant financial information is available on the company’s website and SEDAR+. Technical information has been reviewed and approved by a Qualified Person. DPM Metals Inc. is a Canadian-based gold mining company with operations in Bulgaria, Bosnia and Herzegovina, Serbia, and Ecuador. The company aims to become a mid-tier precious metals producer by focusing on responsible gold production and strategic acquisitions. DPM trades on the Toronto Stock Exchange and Australian Securities Exchange.
The news release contains forward-looking statements about production forecasts, cash flows, mineral prices, costs, and development plans. These statements are based on assumptions and opinions of management, and involve risks and uncertainties that may impact actual results. Investors should be cautious and consider these factors when making decisions regarding DPM Metals Inc. The news release discusses various factors affecting the Company, including fluctuations in metal prices, geopolitical crises, risks from economic conditions, and uncertainties in mineral exploration. The Company’s operations at the Chelopech and Ada Tepe mines are crucial. Risks related to environmental matters, cybersecurity, and competition in the mining industry are also highlighted.
The Company is cautious about the potential impact of factors like metal prices and geopolitical crises on its operations. Uncertainties in mineral exploration, dependence on key mines, and risks from economic conditions are emphasized. The Company’s ability to manage environmental and social matters, competition, and cybersecurity risks are key focus areas.
The Company outlines various risks, including those related to mineral exploration, economic conditions, geopolitical crises, and uncertainty in mineral production. The importance of key mines, managing environmental matters, and cybersecurity risks are highlighted. The Company’s cautious approach to economic conditions and competition in the mining industry is evident. The company cautions against placing too much reliance on forward-looking statements. Non-GAAP financial measures, such as mine cash cost and all-in sustaining cost, are used to assess performance and set compensation goals. Reconciliations of cash cost per tonne of ore processed and cost of sales are provided for Chelopech and Ada Tepe operations. For the three months ended September 30, 2025, cash cost per ounce of gold sold and all-in sustaining cost per ounce of gold sold are detailed for Chelopech and Ada Tepe. Share-based compensation expenses were included in the cost of sales. For the nine months ended September 30, 2025, Chelopech and Ada Tepe reported their cost of sales, mine cash cost of sales, and all-in sustaining cost per ounce of gold sold. The figures for each category were detailed, with allocated general and administrative expenses factored into the consolidated all-in sustaining cost per ounce of gold sold.
In the same period of 2024, the cost of sales, mine cash cost of sales, and all-in sustaining cost per ounce of gold sold for Chelopech and Ada Tepe were also provided. These numbers were compared to the figures from 2025 to show any changes or trends in the costs.
Adjusted net earnings and adjusted basic earnings per share were analyzed for the three months and nine months ended September 30, 2025, compared to the same period in 2024. Specific items were excluded to reflect the underlying operations of the Company and provide a clearer picture of the financial performance.
Adjusted EBITDA figures, which exclude certain items from earnings before income taxes, were calculated for the three months and nine months ended September 30, 2025. This non-GAAP financial measure helps evaluate the Company’s operating performance and is used for setting incentive compensation goals.
Cash provided from operating activities, before changes in working capital, was defined as a non-GAAP financial measure representing cash provided from operating activities excluding changes in working capital. This measure provides insight into the Company’s ability to generate cash from its core operations.
Read more at GlobeNewswire.: DPM Metals Reports Record Third Quarter 2025 Financial