DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vareš On-Track to Achieve Full Production by Year-end 2026
TORONTO, July 30, 2026 (GLOBE NEWSWIRE) -- 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 flow1 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 share1) 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 sold2 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.
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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.
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 15 of this news release.
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 15 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. |
| (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. |
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:
| Q22026 | YTD June 2026 |
2026 Consolidated Guidance |
||||||||
| Chelopech | 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. |
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.
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.
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.
The Company has planned to spend between $49 million to $53 million of growth capital expenditures for the Čoka Rakita project in 2026, with $8.3 million incurred in the first half of the year. Consistent with the project execution plan, the Company expects to ramp up its contractor engagement and procurement activities for long lead items, as well as accelerate the development of detailed engineering, in the second half of 2026.
Exploration
Chelopech Camp, Bulgaria
BSP Discovery: In early June 2026, DPM announced a major new discovery of high-grade, copper-gold porphyry mineralization at the BSP target, located in the southeastern part of the Brevene exploration licence. Initial results from drilling, including 713 metres at 2.52 g/t (comprising 1.31 g/t Au and 1.16% Cu), demonstrate the potential for scale and continuity with broad, continuous intervals of high-grade copper-gold porphyry mineralization. A large phyllic alteration envelope exceeding 1,000 metres by 1,500 metres indicates a substantial hydrothermal system, with the BSP target remaining open for expansion. Given the significance of this discovery, drilling continues with the aim of expanding known mineralization, with five high-capacity drill rigs dedicated to the target and up to 15,000 metres planned through the end of the third quarter of 2026.
In parallel with ongoing exploration activities, the Company continues to progress the technical work required to support conversion of the Brevene exploration licence to a mining concession under the well-defined Bulgarian permitting process. Surface drilling continues with 12 drill rigs focused on assessing the mineral resource potential in the Vozdol area and the BSP discovery as well as prioritized targets within the exploration licence. Upon completion of the current phase of exploration work, which ends in September 2026, DPM plans to submit a final report in support of a Commercial Discovery Certificate. At this point, and while the process to convert Brevene to an exploration licence is underway, DPM will not be able to conduct drilling activities on the Brevene licence. BSP remains open towards the southeastern flank of the Chelopech mine concession, and DPM intends to further test the target from underground positions within the mine.
Wedge Zone: Delineation drilling of the Wedge Zone target, located within the northern flank of the Chelopech mine concession, continued with two drill rigs and a total of 4,354 metres drilled during the second quarter of 2026. In May 2026, DPM reported new results from drilling, which confirmed and extended the high-grade mineralization. The mineralized zone is currently defined over approximately 170 metres along strike, 130 metres in width, and 300 metres in vertical extent, and forms a steeply dipping body elongated parallel to the hanging wall of the Petrovden Fault. The target remains open along strike and down-dip, with strong potential for further expansion through additional drilling.
Initial metallurgical testwork, conducted at the Chelopech facility, on material from the Wedge Zone indicates that the mineralization is amenable to flotation processing and would produce both a gold-copper concentrate and a pyrite concentrate using the existing flowsheet at the Chelopech plant, supporting the Wedge Zone’s potential to augment the existing Chelopech mine plan.
Drilling at the Wedge Zone prospect is proceeding as planned and remains focused on expanding the mineralized footprint while refining the geometry and continuity of the system. DPM will continue to explore the broader Wedge Zone corridor for additional mineralization, informed by the possibility of telescoping within the Chelopech hydrothermal system, whereby alteration and mineralization assemblages typically developed at higher structural levels may occur at greater depth than would normally be expected. Exploration will also test analogous structural settings along the Petrovden Fault.
The Company is planning further drilling over the balance of 2026, with an initial mineral resource estimate expected by year-end as part of the Chelopech annual Mineral Resource and Mineral Reserve update. As part of ongoing exploration programs, the Company continues to test different targets within the Chelopech mine concession.
To support potential future engineering and investment decisions at the Wedge Zone prospect, the Company has initiated a series of technical studies, including an initial geotechnical assessment to inform conceptual mining approaches, an assessment of decline development strategies, and further metallurgical testwork to better evaluate metallurgical characteristics.
The Company has planned a total of $16 million to $17 million for Chelopech brownfield exploration activities in 2026, primarily focused on testing near-mine targets on the Chelopech mine concession, with $13.3 million incurred in the first half of the year.
Rakita Camp, Serbia
During the second quarter of 2026, exploration activities in Serbia were performed on the Potaj Čuka, Čoka Rakita and Pester Jug licences. A total of 17,457 metres of drilling was completed during the quarter.
Between nine and eleven drill rigs were active at the Čoka Rakita licence during the second quarter of 2026, with 10,347 metres drilled. The drilling commenced infill and extension programs at the Dumitru Potok prospect, with a main focus on increasing the drill density. Upon completion of the drilling, DPM intends to update the mineral resource estimate for the Rakita camp. Two drill rigs are dedicated to dual targeting, the Frasen porphyry/adjacent stratabound mineralization and deeper contact skarn mineralization at Dumitru Potok contact skarn area. One drill rig is dedicated for the Rakita North area drill program.
The Company continued its drilling campaign on the Potaj Čuka licence, with 6,014 metres drilled during the second quarter of 2026, which was primarily focused on the Valja Saka prospect, and additional targets across the licence. The Valja Saka drill program aims to test the continuation of mineralized zones and different mineralization styles intersected in previous campaigns, as well as to confirm the interpreted structural pattern of the area. Drill testing of several best-ranked target areas is in progress, aiming to confirm the stratigraphy sequence, structural patterns and possible mineralized domains.
The Company has planned to spend between $25 million and $30 million in 2026 for Serbian exploration activities, with $17.1 million incurred in the first half of the year, primarily focused on Čoka Rakita and Potaj Čuka licences.
Vareš, Bosnia and Herzegovina
During the second quarter of 2026, work at Vareš focused on advancing near-mine growth at Rupice while improving the broader camp pipeline. As planned, the Company initiated its surface drilling program in the second quarter, with a total of 1,694 metres drilled during the period, mainly at Rupice-Borovica, alongside 6,638 metres of re-logging and 3,223 assay samples submitted from historical extension holes. Detailed mapping, rock sampling and geophysics were completed across Borovica and Medujak, where 127 samples were collected and encouraging surface results were returned. During the quarter, rebuilding of the Rupice 3D geological model continued, along with activities to strengthen the geological framework and improve targeting.
In the third quarter, the Company expects to continue focusing on Rupice-Borovica as the main near-mine growth priority while increasing activity at Droskovac-Brezik and integrating pending assay, mapping and geophysical results into drill-ready targets. Key deliverables include continued advancement of the Rupice model and further technical assessment of the Droskovac siderite-hosted silver mineralization.
The Company has planned a total of $10 million to $11 million in expenditures for Vareš brownfield exploration, and $1 million to $2 million for Bosnia and Herzegovina greenfield exploration in 2026, with a total of $1.9 million incurred in the first half of the year.
Balance Sheet Strength and Financial Flexibility
The Company continues to maintain a strong cash and liquidity position and is well-positioned to fund growth, ending the year with a cash position of $761.2 million, no debt and an undrawn $400.0 million revolving credit facility with an accordion feature to $550.0 million.
Cash and cash equivalents increased by $263.4 million in the first half of 2026 due primarily to earnings generated in the period, partially offset by cash outlays for capital expenditures, payments for shares repurchased under the NCIB, cash redemptions under the share-based compensation plans, and dividends paid.
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 half of 2026, the Company returned a total of $91.2 million to shareholders through the repurchase of approximately 2.1 million shares, for a total cash payment of $73.5 million, and $17.7 million of dividends paid. From July 1 to July 30, 2026, the Company purchased additional 0.8 million shares, bringing year-to-date 2026 repurchases to 2.9 million shares for an aggregate cost of $101.7 million.
The Company’s Board of Directors has authorized management to repurchase up to $200 million of the Company’s shares in 2026 under the NCIB.
On July 30, 2026, the Company declared a dividend of $0.04 per common share payable on October 15, 2026 to shareholders of record on September 30, 2026.
2026 Guidance and Three-year Outlook
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, including expected GEO production of 305,000 to 365,000 ounces, and an all-in sustaining cost of $1,300 to $1,450 per GEO sold, subject to dynamics such as the mark-to-market impact of DPM's share price, as well as other movements as outlined below relative to guidance assumptions.
Certain key cost measures in the Company’s detailed guidance for 2026 are sensitive to market assumptions, including metal prices, oil prices and foreign exchange rates. The following table demonstrates the sensitivity in these market assumptions over the balance of the year on the consolidated GEO sold and all-in sustaining cost per GEO sold provided in the 2026 guidance.
| Assumptions |
Hypothetical change |
GEO sold (Koz) |
All-in sustaining cost per GEO sold ($/oz) |
|
| Metal Prices | ||||
| Gold | $4,200/oz | +/- 10% | -6/+7 | +26/-30 |
| Silver | $50/oz | +/- 10% | +/- 3 | -/+11 |
| Copper | $5.00/lb | +/- 10% | +/-1 | -/+6 |
| Zinc | $1.30/lb | +/- 10% | +/- 1 | -/+6 |
| Lead | $0.90/lb | +/- 10% | +/- 1 | -/+ 3 |
| Oil Price(1) | $65/barrel | +/-$10/barrel | N/A | +/- 6 |
| Foreign Exchange | ||||
| Euro/US$ | 1.20 | +/- 10% | N/A | +/- 49 |
| (1) | The Company’s 2026 guidance assumes an oil price of $65 per barrel. The increase in crude oil prices beginning in March 2026 did not have a significant impact on the Company’s all-in sustaining cost per GEO sold in the first half of 2026. However, if oil prices remain elevated under the current geopolitical environment, the Company expects higher costs for diesel consumed in mine operations, as well as for freight charges included in selling cost, which are sensitive to oil prices. For the balance of 2026, each $10 per barrel change in the oil price is expected to impact the Company’s all-in sustaining cost by approximately $6 per GEO sold, comprising an estimated $2 per GEO impact from direct diesel costs and $4 per GEO impact from freight charges. |
For additional information regarding the Company's detailed guidance for 2026 and current three-year outlook, please refer to the “Three-Year Outlook” section of the MD&A.
Second Quarter 2026 Results Conference Call and Webcast
At 9 a.m. EDT on Friday, July 31, 2026, DPM will host a conference call and audio webcast to discuss the results, followed by a question-and-answer session. To participate via conference call, register in advance at the link provided below to receive the dial-in information as well as a unique PIN code to access the call.
The call registration and webcast details are as follows:
| Conference call date and time | Friday, July 31, 2026 9 a.m. EDT |
| Call registration | https://register-conf.media-server.com/register/BI88408c885403433fbed52ebb4d65443e |
| Webcast link | https://edge.media-server.com/mmc/p/phd4h9pd |
| Replay | Archive will be available on www.dpmmetals.com |
This news release and DPM’s unaudited condensed interim financial statements and MD&A for the three and six months ended June 30, 2026 are posted on the Company’s website at www.dpmmetals.com and have been filed on SEDAR+ at www.sedarplus.ca.
Qualified Person
The technical and scientific information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves, and has been reviewed and approved by Ross Overall, B.Sc. (Applied Geology), Director, Corporate Technical Services, of DPM, who is a Qualified Person as defined under NI 43-101, and who is not independent of the Company.
About DPM Metals Inc.
DPM Metals Inc. is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Bosnia and Herzegovina, Serbia and Ecuador. The Company’s purpose is to unlock resources and generate value to thrive and grow together. Our strategic objective is to become a mid-tier precious metals company, which is based on sustainable, responsible and efficient gold production from our portfolio, the development of quality assets, and maintaining a strong financial position to support growth in mineral reserves and production through disciplined strategic transactions. This strategy creates a platform for robust growth to deliver above-average returns for our shareholders. DPM trades on the Toronto Stock Exchange (symbol: DPM) and the Australian Securities Exchange as a Foreign Exempt Listing (symbol: DPM).
For further information, please contact:
Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
jcameron@dpmmetals.com
Cautionary Note Regarding Forward Looking Statements
This news release contains “forward looking statements” or “forward looking information” (collectively, “Forward Looking Statements”) that involve a number of risks and uncertainties. Forward Looking Statements are statements that are not historical facts and are generally, but not always, identified by the use of forward looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “guidance”, “outlook”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or that state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms or similar expressions. The Forward Looking Statements in this news release relate to, among other things: forecasted results of production in 2026 and onward and the ability of the Company to meet previously provided guidance in respect thereof; expected cash flows; the price of gold, copper, and silver, and other minerals; estimated capital costs, all-in sustaining costs, operating costs and other financial metrics, including those set out in the outlook and guidance provided by the Company; anticipated rates of production from the Vareš operation and the timing thereof; anticipated steps in the development and ramp-up of the Vareš operation, including commissioning of infrastructure and construction of the paste backfill plant and second tailings filter, and the anticipated timing for completion thereof; currency fluctuations; the completion of technical and economic studies and the timing and results thereof; anticipated steps in the continued development of the Čoka Rakita project, including exploration, permitting activities, environmental assessments, and stakeholder engagement, the commencement of construction, and the anticipated timing thereof; refurbishment of Ada Tepe infrastructure and anticipated deployment at the Čoka Rakita project; exploration activities at the Company’s operating and development properties and the anticipated results thereof; closure and rehabilitation activities at Ada Tepe and the anticipated timing thereof; the ability of the Company to extend the life of mine at Chelopech; anticipated amounts of future expenditures at the Company's operating and development properties, including expenses related to exploration activities; statements under the heading “2026 Guidance and Three-year Outlook”; timing of payments and amounts of dividends; the number of common shares of the Company that may be purchased under the NCIB; and the Company’s future business plans, objectives, and strategy, including, without limitation, meeting its targeted annual gold production and the completion of one or more strategic transactions.
Forward Looking Statements are based on certain key assumptions and the opinions and estimates of management and Qualified Person (in the case of technical and scientific information), as of the date such statements are made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the Forward Looking Statements. In addition to factors already discussed in this news release, such factors include, among others: fluctuations in metal prices, foreign exchange rates and oil prices; risks arising from the current economic environment and the impact on operating costs and other financial metrics, including risks of recession; the commencement, continuation or escalation of geopolitical crises and armed conflicts, including in Iran and the broader Middle East region, and their direct and indirect effects on the business and operations of DPM; risks arising from counterparties being unable to or unwilling to fulfill their contractual obligations to the Company; the speculative nature of mineral exploration, development and production, including changes in mineral production performance, exploitation and exploration results; the Company’s dependence on its operations at the Chelopech mine and the Vareš operation; changes in tax and tariff regimes in the jurisdictions in which the Company operates or which are otherwise applicable to the Company’s business, operations, or financial condition; possible inaccurate estimates relating to future production, operating costs and other costs for operations; possible variations in ore grade and recovery rates; inherent uncertainties in respect of conclusions of economic evaluations, economic studies and mine plans; uncertainties with respect to the results of technical studies of the Company's exploration and development projects and the results thereof; the Company’s dependence on continually developing, replacing and expanding its mineral reserves; uncertainties and risks inherent to developing and commissioning new mines into production, which may be subject to unforeseen delays; risks related to the possibility that future exploration results will not be consistent with the Company’s expectations, that quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; risks associated with the fact that certain of the Company's initiatives are still in the early stages and may not materialize; risks related to the Company's ability to develop the Loma Larga project and to obtain necessary permits in respect thereof; changes in project parameters, including schedule and budget, as plans continue to be refined; risks related to the financial results of operations, changes in interest rates, and the Company's ability to finance its operations; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; uncertainties inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the Company’s activities; potential disputes and uncertainties with respect to the Company’s concessions, permits, and land title rights, as well as the related legal systems in the jurisdictions in which the Company operates; accidents, labour disputes and other risks inherent to the mining industry; risks related to the Company's ability to manage environmental and social matters, including risks and obligations related to closure of the Company's mining properties; risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations relating to related to greenhouse gas emission levels, energy efficiency and reporting of risks; land reclamation and mine closure requirements, and costs associated therewith; the Company's controls over financial reporting and obligations as a public company; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; opposition by social and non-governmental organizations to mining projects; uncertainties with respect to realizing the anticipated benefits from the development of the Company's exploration and development projects; cyber-attacks and other cybersecurity risks; competition in the mining industry; exercising judgment when undertaking impairment assessments; claims or litigation; limitations on insurance coverage; changes in values of the Company's investment portfolio; changes in laws and regulations applicable to the Company and its business and operations, and judicial interpretations thereof; the effects of international economic and trade sanctions; the Company's ability to successfully obtain all necessary permits and other approvals required to conduct its operations; employee relations, including unionized and non-union employees, and the Company's ability to retain key personnel and attract other highly skilled employees; ability to successfully integrate acquisitions or complete divestitures; unanticipated title disputes; volatility in the price of the common shares of the Company; potential dilution to the common shares of the Company; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; risks related to holding assets in foreign jurisdictions; conflicts of interest between the Company and its directors and officers; the timing and amounts of dividends; there being no assurance that the Company will purchase additional common shares of the Company under the NCIB, as well as those risk factors discussed or referred to in the MD&A, the Company's most recent AIF, and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available on SEDAR+ at www.sedarplus.ca.
The reader has been cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward Looking Statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that Forward Looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company’s Forward Looking Statements reflect current expectations regarding future events and speak only as of the date hereof. Other than as it may be required by law, the Company undertakes no obligation to update Forward Looking Statements if circumstances or management’s estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on Forward Looking Statements.
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 used by management and investors to assist with assessing the Company’s performance, including its ability to generate sufficient cash flow to meet its return objectives and support its investing activities and debt service obligations. In addition, the Human Capital and Compensation Committee of the Board of Directors uses certain of these measures, together with other measures, to set incentive compensation goals and assess performance. 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.
Cash cost and all-in sustaining cost measures
Mine cash cost; mine cash cost of sales; and all-in sustaining cost are non-GAAP financial measures. Cash cost per tonne of ore processed; cash cost per GEO sold; and all-in sustaining cost per GEO sold are non-GAAP ratios. These measures capture the important components of the Company’s production and related costs. Management and investors utilize these metrics as an important tool to monitor cost performance at the Company’s operations. In addition, the Human Capital and Compensation Committee of the Board of Directors uses certain of these measures, together with other measures, to set incentive compensation goals and assess performance.
The following table provides a reconciliation of the Company’s cash cost per tonne of ore processed to its cost of sales:
| $ thousands, unless otherwise indicated |
Chelopech |
Ada Tepe |
Vareš |
||||
| For the three months ended June 30, 2026 | |||||||
| Ore processed | t | 549,114 | 217,962 | 117,250 | |||
| Cost of sales | 48,845 | 33,483 | 12,074 | ||||
| Add/(deduct): | |||||||
| Capitalized pre-commercial production operating costs | 14,896 | ||||||
| Depreciation and amortization | (7,557 | ) | (15,108 | ) | (1,093 | ) | |
| Change in concentrate inventory | (812 | ) | (1,222 | ) | (1,783 | ) | |
| Mine cash cost(1) | 40,476 | 17,153 | 24,094 | ||||
| Cost of sales per tonne of ore processed(2) | $/t | 89 | 154 | 103 | |||
| Cash cost per tonne of ore processed(2,3) | $/t | 74 | 79 | 205 | |||
| $ thousands, unless otherwise indicated |
Chelopech |
Ada Tepe |
Vareš |
|||
| For the three months ended June 30, 2025 | ||||||
| Ore processed | t | 541,096 | 189,884 | - | ||
| Cost of sales | 42,046 | 28,115 | - | |||
| Add/(deduct): | ||||||
| Depreciation and amortization | (8,475 | ) | (14,458 | ) | - | |
| Change in concentrate inventory | 542 | (355 | ) | - | ||
| Mine cash cost(1) | 34,113 | 13,302 | - | |||
| Cost of sales per tonne of ore processed(2) | $/t | 78 | 148 | - | ||
| Cash cost per tonne of ore processed(2) | $/t | 63 | 70 | - | ||
| $ thousands, unless otherwise indicated |
Chelopech |
Ada Tepe |
Vareš |
||||
| For the six months ended June 30, 2026 | |||||||
| Ore processed | t | 1,055,614 | 365,347 | 196,331 | |||
| Cost of sales | 95,175 | 63,488 | 23,007 | ||||
| Add/(deduct): | |||||||
| Capitalized pre-commercial production operating costs | 37,185 | ||||||
| Depreciation and amortization | (14,906 | ) | (30,626 | ) | (2,104 | ) | |
| Change in concentrate inventory | (2,134 | ) | (49 | ) | 2,718 | ||
| Mine cash cost(1) | 78,135 | 32,813 | 60,806 | ||||
| Cost of sales per tonne of ore processed(2) | $/t | 90 | 174 | 117 | |||
| Cash cost per tonne of ore processed(2,3) | $/t | 74 | 90 | 310 | |||
| $ thousands, unless otherwise indicated |
Chelopech |
Ada Tepe |
Vareš |
|||
| For the six months ended June 30, 2025 | ||||||
| Ore processed | t | 1,073,947 | 337,175 | - | ||
| Cost of sales | 78,044 | 51,666 | - | |||
| Add/(deduct): | ||||||
| Depreciation and amortization | (16,448 | ) | (25,832 | ) | - | |
| Change in concentrate inventory | 656 | (32 | ) | - | ||
| Mine cash cost(1) | 62,252 | 25,802 | - | |||
| Cost of sales per tonne of ore processed(2) | $/t | 73 | 153 | - | ||
| Cash cost per tonne of ore processed(2) | $/t | 58 | 77 | - | ||
| (1) | Cash costs are reported in U.S. dollars, although the majority of costs incurred are denominated in non-U.S. dollars, and consist of all production related expenses including mining, processing, services, royalties and general and administrative. |
| (2) | Represents cost of sales and mine cash cost, respectively, divided by tonnes of ore processed. |
| (3) | Cash cost per tonne of ore processed at Vareš 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. |
The following tables provide, for the periods indicated, a reconciliation of the Company’s cash cost per GEO sold and all-in sustaining cost per GEO sold to its cost of sales:
| $ thousands, unless otherwise indicated |
Chelopech |
Ada Tepe |
Vareš |
Consolidated |
|||||
| For the three months ended June 30, 2026 | |||||||||
| Cost of sales(1) | 48,845 | 33,483 | 12,074 | 94,402 | |||||
| Add/(deduct): | |||||||||
| Depreciation and amortization | (7,557 | ) | (15,108 | ) | (1,093 | ) | (23,758 | ) | |
| Treatment charges, transportation and other related selling costs(2) | 13,955 | 701 | 2,724 | 17,380 | |||||
| Mine cash cost of sales | 55,243 | 19,076 | 13,705 | 88,024 | |||||
| Rehabilitation related accretion and depreciation expenses(3) | 10 | 426 | 243 | 679 | |||||
| Allocated general and administrative expenses(4) | 13,182 | ||||||||
| Cash outlays for sustaining capital expenditures(5) | 2,584 | 70 | - | 2,654 | |||||
| Cash outlays for leases(5) | 341 | 121 | 621 | 1,083 | |||||
| All-in sustaining cost | 58,178 | 19,693 | 14,569 | 105,622 | |||||
| GEO sold(6) | oz | 49,558 | 11,615 | 25,858 | 87,031 | ||||
| Cost of sales per GEO sold(7) | $/oz | 986 | 2,883 | 467 | 1,085 | ||||
| Cash cost per GEO sold(7) | $/oz | 1,115 | 1,642 | 530 | 1,011 | ||||
| All-in sustaining cost per GEO sold(7) | $/oz | 1,174 | 1,695 | 563 | 1,214 | ||||
| $ thousands, unless otherwise indicated | Chelopech |
Ada Tepe |
Vareš |
Consolidated |
||||
| For the three months ended June 30, 2025 | ||||||||
| Cost of sales(1) | 42,046 | 28,115 | - | 70,161 | ||||
| Add/(deduct): | ||||||||
| Depreciation and amortization | (8,475 | ) | (14,458 | ) | - | (22,933 | ) | |
| Treatment charges, transportation and other related selling costs(2) | 14,256 | (113 | ) | - | 14,143 | |||
| Mine cash cost of sales | 47,827 | 13,544 | - | 61,371 | ||||
| Rehabilitation related accretion and depreciation expenses(3) | 20 | 394 | - | 414 | ||||
| Allocated general and administrative expenses(4) | 10,351 | |||||||
| Cash outlays for sustaining capital expenditures(5) | 1,827 | 3,075 | - | 4,902 | ||||
| Cash outlays for leases(5) | 554 | 186 | - | 740 | ||||
| All-in sustaining cost | 50,228 | 17,199 | - | 77,778 | ||||
| GEO sold(6) | oz | 45,599 | 14,616 | - | 60,215 | |||
| Cost of sales per GEO sold(7) | $/oz | 922 | 1,924 | - | 1,165 | |||
| Cash cost per GEO sold(7) | $/oz | 1,049 | 927 | - | 1,019 | |||
| All-in sustaining cost per GEO sold(7) | $/oz | 1,102 | 1,177 | - | 1,292 | |||
| (1) | Included in cost of sales were share-based compensation expenses of $2.2 million (2025 – $0.8 million) in the second quarter of 2026. |
| (2) | Represents revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice. |
| (3) | Included in cost of sales and finance cost in the condensed interim consolidated statements of earnings (loss). |
| (4) | Represents an allocated portion of DPM’s general and administrative expenses, including share-based compensation expenses of $2.5 million (2025 – $5.1 million) for the second quarter of 2026, based on the mines’ proportion of total revenue, where applicable. Allocated general and administrative expenses, including corporate social responsibility expenses and excluding depreciation and amortization, are reflected in consolidated all-in sustaining cost and are not reflected in the cost measures for each of the mine operations. |
| (5) | Included in cash used in investing activities and financing activities, respectively, in the condensed interim consolidated statements of cash flows. |
| (6) | The Company uses conversion ratios for calculating GEO for its silver and copper production and sales, which are calculated by multiplying the volumes of metal sold, as applicable, by the respective average market metal prices, and dividing the resulting figure by the average market gold price. |
| (7) | Represents cost of sales, mine cash cost of sales and all-in sustaining cost, respectively, divided by GEO sold. |
| $ thousands, unless otherwise indicated |
Chelopech |
Ada Tepe |
Vareš |
Consolidated |
|||||
| For the six months ended June 30, 2026 | |||||||||
| Cost of sales(1) | 95,175 | 63,488 | 23,007 | 181,670 | |||||
| Add/(deduct): | |||||||||
| Depreciation and amortization | (14,906 | ) | (30,626 | ) | (2,104 | ) | (47,636 | ) | |
| Treatment charges, transportation and other related selling costs(2) | 30,547 | 1,163 | 4,356 | 36,066 | |||||
| Mine cash cost of sales | 110,816 | 34,025 | 25,259 | 170,100 | |||||
| Rehabilitation related accretion and depreciation expenses(3) | 27 | 1,498 | 323 | 1,848 | |||||
| Allocated general and administrative expenses(4) | 35,269 | ||||||||
| Cash outlays for sustaining capital expenditures(5) | 6,452 | 672 | - | 7,124 | |||||
| Cash outlays for leases(5) | 682 | 333 | 1,538 | 2,553 | |||||
| All-in sustaining cost | 117,977 | 36,528 | 27,120 | 216,894 | |||||
| GEO sold(6) | oz | 89,517 | 23,575 | 39,924 | 153,016 | ||||
| Cost of sales per GEO sold(7) | $/oz | 1,063 | 2,693 | 576 | 1,187 | ||||
| Cash cost per GEO sold(7) | $/oz | 1,238 | 1,443 | 633 | 1,112 | ||||
| All-in sustaining cost per GEO sold(7) | $/GEO | 1,318 | 1,549 | 679 | 1,417 | ||||
| $ thousands, unless otherwise indicated |
Chelopech |
Ada Tepe |
Vareš |
Consolidated |
||||
| For the six months ended June 30, 2025 | ||||||||
| Cost of sales(1) | 78,044 | 51,666 | - | 129,710 | ||||
| Add/(deduct): | ||||||||
| Depreciation and amortization | (16,448 | ) | (25,832 | ) | - | (42,280 | ) | |
| Treatment charges, transportation and other related selling costs(2) | 28,335 | 420 | - | 28,755 | ||||
| Mine cash cost of sales | 89,931 | 26,254 | - | 116,185 | ||||
| Rehabilitation related accretion and depreciation expenses(3) | 19 | 553 | - | 572 | ||||
| Allocated general and administrative expenses(4) | 27,673 | |||||||
| Cash outlays for sustaining capital expenditures(5) | 4,919 | 6,796 | - | 11,715 | ||||
| Cash outlays for leases(5) | 1,216 | 357 | - | 1,573 | ||||
| All-in sustaining cost | 96,085 | 33,960 | - | 157,718 | ||||
| GEO sold(6) | oz | 86,157 | 27,040 | - | 113,197 | |||
| Cost of sales per GEO sold(7) | $/oz | 906 | 1,911 | - | 1,146 | |||
| Cash cost per GEO sold(7) | $/oz | 1,044 | 971 | - | 1,026 | |||
| All-in sustaining cost per GEO sold(7) | $/oz | 1,115 | 1,256 | - | 1,393 | |||
| (1) | Included in cost of sales were share-based compensation expenses of $3.9 million (2025 – $2.5 million) in the first half of 2026. |
| (2) | Represents revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice. |
| (3) | Included in cost of sales and finance cost in the condensed interim consolidated statements of earnings (loss). |
| (4) | Represents an allocated portion of DPM’s general and administrative expenses, including share-based compensation expenses of $14.8 million (2025–$14.6 million) in the first half of 2026, based on the mines’ proportion of total revenue, where applicable. Allocated general and administrative expenses, including corporate social responsibility expenses and excluding depreciation and amortization, are reflected in consolidated all-in sustaining cost and are not reflected in the cost measures for each of the mine operations. |
| (5) | Included in cash used in investing activities and financing activities, respectively, in the condensed interim consolidated statements of cash flows. |
| (6) | The Company uses conversion ratios for calculating GEO for its silver and copper production and sales, which are calculated by multiplying the volumes of metal sold, as applicable, by the respective average market metal prices, and dividing the resulting figure by the average market gold price. |
| (7) | Represents cost of sales, mine cash cost of sales and all-in sustaining cost, respectively, divided by GEO sold. |
Adjusted net earnings (loss) and adjusted basic earnings (loss) per share
Adjusted net earnings (loss) is a non-GAAP financial measure and adjusted basic earnings (loss) per share is a non-GAAP ratio used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods.
Adjusted net earnings (loss) are defined as net earnings (loss), adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including:
- impairment charges or reversals thereof;
- unrealized and realized gains or losses related to investments carried at fair value;
- significant tax adjustments not related to current period earnings; and
- non-recurring or unusual income or expenses that are either not related to the Company’s operating segments or unlikely to occur on a regular basis.
The following table provides a reconciliation of adjusted net earnings to net earnings. All adjusting items in the table below were recognized in other (income) expense in the condensed interim consolidated statements of earnings (loss).
| $ thousands, except per share amounts | Three Months | Six Months | ||||||
| Ended June 30, | 2026 | 2025 | 2026 | 2025 | ||||
| Net earnings | 230,046 | 82,399 | 395,958 | 115,903 | ||||
| Add/(deduct): | ||||||||
| Reversal of provision at Vareš, net of income taxes of $nil(1) | (32,915 | ) | - | (32,915 | ) | - | ||
| Gain on sale of Serbian exploration data, net of income taxes of $nil(2) | (2,650 | ) | - | (2,650 | ) | - | ||
| Loss on settlement of tolling receivables, net of income tax recoveries of $nil(3) | 9,521 | - | 9,521 | - | ||||
| Fair value loss on copper stream liability, net of income taxes of $nil | 3,910 | - | 6,236 | - | ||||
| Ada Tepe employee termination benefit expense, net of income tax recoveries of $313(4) | 2,813 | - | 2,813 | - | ||||
| 2025 Bulgarian levy, net of income tax recoveries of $2,438(5) | - | - | - | 21,938 | ||||
| Adriatic acquisition related costs, net of income taxes of $nil | - | 5,130 | - | 5,130 | ||||
| Adjusted net earnings | 210,725 | 87,529 | 378,963 | 142,971 | ||||
| Basic earnings per share | $/sh | 1.04 | 0.49 | 1.79 | 0.68 | |||
| Adjusted basic earnings per share | $/sh | 0.95 | 0.52 | 1.71 | 0.84 | |||
| (1) | Represented a reversal of certain provisions in connection with the purchase price allocation arising from the acquisition of Adriatic. |
| (2) | Represented proceeds from a sale of certain assets and data for a Serbian exploration license no longer retained by DPM. |
| (3) | Represented a write-off of a previously recognized receivable related to the DPM Tolling Agreement. |
| (4) | Represented accrued employee termination benefits as Ada Tepe reached the end of its mine life in July 2026. |
| (5) | Represented a one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. |
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure used by management and investors to measure the underlying operating performance of the Company’s operating segments. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods. In addition, the Human Capital and Compensation Committee of the Board of Directors uses adjusted EBITDA, together with other measures, to set incentive compensation goals and assess performance.
Adjusted EBITDA excludes the following from earnings before income taxes:
- depreciation and amortization;
- interest income;
- finance cost;
- impairment charges or reversals thereof;
- unrealized and realized gains or losses related to investments carried at fair value; and
- non-recurring or unusual income or expenses that are either not related to the Company’s operating segments or unlikely to occur on a regular basis.
The following table provides a reconciliation of adjusted EBITDA to earnings before income taxes:
| $ thousands | Three Months | Six Months | |||||||
| Ended June 30, | 2026 | 2025 | 2026 | 2025 | |||||
| Earnings before income taxes | 255,921 | 92,004 | 445,036 | 130,556 | |||||
| Add/(deduct): | |||||||||
| Depreciation and amortization | 24,464 | 23,691 | 49,096 | 43,863 | |||||
| Finance costs | 1,349 | 1,100 | 2,437 | 1,812 | |||||
| Interest income | (4,857 | ) | (7,849 | ) | (8,545 | ) | (16,417 | ) | |
| Reversal of provision at Vareš(1) | (32,915 | ) | - | (32,915 | ) | - | |||
| Gain on sale of Serbian exploration data(2) | (2,650 | ) | - | (2,650 | ) | - | |||
| Loss on settlement of tolling receivables(3) | 9,521 | - | 9,521 | - | |||||
| Fair value loss on copper stream liability | 3,910 | - | 6,236 | - | |||||
| Ada Tepe employee termination benefit expense(4) | 3,126 | - | 3,126 | - | |||||
| 2025 Bulgarian levy(5) | - | - | - | 24,376 | |||||
| Adriatic acquisition related costs | - | 5,130 | - | 5,130 | |||||
| Adjusted EBITDA | 257,869 | 114,076 | 471,342 | 189,320 | |||||
| (1) | Represented a reversal of certain provisions in connection with the purchase price allocation arising from the acquisition of Adriatic. |
| (2) | Represented proceeds from a sale of certain assets and data for a Serbian exploration license no longer retained by DPM. |
| (3) | Represented the write-off of a previously recognized receivable related to the DPM Tolling Agreement. |
| (4) | Represented accrued employee termination benefits as Ada Tepe reached the end of its mine life in July 2026. |
| (5) | Represented a one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. |
Cash provided from operating activities, before changes in working capital
Cash provided from operating activities, before changes in working capital, is a non-GAAP financial measure defined as cash provided from operating activities excluding changes in working capital as set out in the Company’s consolidated statements of cash flows. This measure is used by the Company and investors to measure the cash flow generated by the Company’s operating segments prior to any changes in working capital, which at times can distort performance.
Free cash flow
Free cash flow is a non-GAAP financial measure defined as cash provided from operating activities, before changes in working capital which includes changes in share-based compensation liabilities, less cash outlays for sustaining capital expenditures, mandatory principal repayments and interest payments related to debt and leases. Free cash flow excludes non-recurring or unusual income or expenses that are not related to the Company’s operating segments. This measure is used by the Company and investors to measure the cash flow available to fund growth related initiatives and capital expenditures, dividends and share repurchases.
The following table provides a reconciliation of cash provided from operating activities, before changes in working capital and free cash flow to cash provided from operating activities:
| $ thousands | Three Months | Six Months | |||||||
| Ended June 30, | 2026 | 2025 | 2026 | 2025 | |||||
| Cash provided from operating activities(1) | 271,043 | 99,541 | 425,552 | 154,467 | |||||
| Excluding: | |||||||||
| Changes in working capital(1) | (42,167 | ) | 2,324 | 11,216 | 11,067 | ||||
| Cash provided from operating activities, before changes in working capital | 228,876 | 101,865 | 436,768 | 165,534 | |||||
| Adriatic acquisition related costs | - | 5,130 | - | 5,130 | |||||
| Fair value loss on copper stream liability | 3,910 | - | 6,236 | - | |||||
| Ada Tepe employee termination benefit expense(2) | 3,126 | - | 3,126 | - | |||||
| Gain on sale of Serbian exploration data(3) | (2,650 | ) | - | (2,650 | ) | - | |||
| 2025 Bulgarian levy(4) | - | (6,094 | ) | - | 18,282 | ||||
| Cash outlays for sustaining capital expenditures(5) | (3,065 | ) | (4,513 | ) | (7,382 | ) | (11,779 | ) | |
| Principal repayments related to leases(5) | (1,909 | ) | (1,482 | ) | (3,887 | ) | (2,806 | ) | |
| Interest payments(5) | (998 | ) | (366 | ) | (1,604 | ) | (693 | ) | |
| Free cash flow | 227,290 | 94,540 | 430,607 | 173,668 | |||||
| (1) | Excluded a favourable change in working capital of $13.0 million (2025 – an unfavourable change in working capital of $5.3 million) and $13.0 million (2025 – $167.9 million), respectively, during the second quarter and first half of 2026 related to the DPM Tolling Agreement. |
| (2) | Represented accrued employee termination benefits as Ada Tepe reached the end of its mine life in July 2026. |
| (3) | Represented proceeds from a sale of certain assets and data for a Serbian exploration license no longer retained by DPM. |
| (4) | Represented an accrual of the one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. During the second quarter of 2025, $6.1 million was paid in cash and the remaining accrual was $18.3 million as of June 30, 2026. |
| (5) | Included in cash used in investing and financing activities, respectively, in the condensed interim consolidated statements of cash flows. |
Average realized metal prices
Average realized metal prices are non-GAAP ratios used by management and investors to highlight the price actually realized by the Company relative to the average market price, which can differ due to the timing of sales, hedging and other factors.
Average realized metal prices represent the average per unit price recognized in the Company’s consolidated statements of earnings (loss) prior to any deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice.
The following table provides a reconciliation of the Company’s average realized metal prices to its revenue:
| $ thousands, unless otherwise stated | Three Months | Six Months | ||||||
| Ended June 30, | 2026 | 2025 | 2026 | 2025 | ||||
| Total revenue | 361,543 | 186,487 | 671,907 | 330,634 | ||||
| Add/(deduct): | ||||||||
| Treatment charges and other deductions(1) | 17,380 | 14,143 | 36,066 | 28,755 | ||||
| Antimony revenue | (263 | ) | - | (301 | ) | - | ||
| Gross revenue | 378,660 | 200,630 | 707,672 | 359,389 | ||||
| Revenue from gold | 243,458 | 176,301 | 467,524 | 310,829 | ||||
| Payable gold in concentrates sold | oz | 55,643 | 52,877 | 100,862 | 97,666 | |||
| Average realized gold price | $/oz | 4,375 | 3,334 | 4,635 | 3,183 | |||
| Revenue from silver | 73,325 | 1,637 | 128,643 | 3,401 | ||||
| Payable silver in concentrates sold | oz | 1,085,595 | 47,756 | 1,695,785 | 97,184 | |||
| Average realized silver price | $/oz | 67.54 | 34.28 | 75.86 | 35.00 | |||
| Revenue from copper | 41,133 | 22,692 | 79,671 | 45,159 | ||||
| Payable copper in concentrates sold | Klbs | 6,818 | 5,204 | 13,372 | 10,367 | |||
| Average realized copper price | $/lb | 6.03 | 4.36 | 5.96 | 4.36 | |||
| Revenue from zinc | 14,245 | - | 21,561 | - | ||||
| Payable zinc in concentrates sold | Klbs | 8,873 | - | 13,629 | - | |||
| Average realized zinc price | $/lb | 1.61 | - | 1.58 | - | |||
| Revenue from lead | 6,499 | - | 10,273 | - | ||||
| Payable lead in concentrates sold | Klbs | 7,379 | - | 11,784 | - | |||
| Average realized lead price | $/lb | 0.88 | - | 0.87 | - | |||
(1) Represents revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice.
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