DPM Metals Inc. press release

DPM Metals Reports Record Q2 2026 Free Cash Flow and Earnings; Vare? On-Track to Achieve Full Production by Year-end 2026

2026-07-30

TSX - Toronto Stock Exchange · Gold · Copper · Silver · Arsenic · Sulfur · Zinc · Lead · Antimony · Canada · Corporate Finance

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 flow1and $271 million of cash provided from operating activities in the second quarter. Record earnings: Reported second quarter adjusted net earnings1of $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”)2in 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 sold2of $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.

1Free 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.

2The 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.