DPM Metals Reports Record Third Quarter 2025 Financial Results; Vare? Positioned for Significant Value Creation

2025-11-13

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

DPM Metals Reports Record Third Quarter 2025 Financial Results; Vareš Positioned for Significant Value Creation

TORONTO, Nov. 13, 2025 (GLOBE NEWSWIRE) -- DPM Metals Inc. (TSX: DPM, ASX: DPM) (ARBN: 689370894) (“DPM” or the “Company”) announced its operating and financial results for the third quarter and first nine months ended September 30, 2025.

Highlights

(Unless otherwise stated, all monetary figures in this news release are expressed in U.S. dollars, and all operational and financial information contained in this news release is related to continuing operations.)

Record free cash flow generation: Generated $147.7 million of free cash flow 1 and $184.5 million of cash provided from operating activities of continuing operations in the third quarter. Record adjusted net earnings per share: Reported third quarter adjusted net earnings 1 of $129.2 million ($0.73 per share 1 ) and net earnings from continuing operations of $96.0 million ($0.54 per share). Vareš integration: On September 3, 2025, DPM completed the acquisition of Adriatic Metals plc (“Adriatic”), integrating the Vareš operation into its portfolio. Integration activities have progressed well, and DPM continues to advance its priorities for Vareš with a focus on achieving an 850,000 tonne per year operating rate by year-end 2026. Vareš production in 2026 is now expected to be better than previously anticipated, with higher ore processed and higher gold and silver grades. Adding value through exploration: Drilling at the Rakita camp continues to advance, and DPM expects to report initial Inferred Mineral Resource estimates by year-end 2025 for the Dumitru Potok, Rakita North and Frasen prospects, all of which are located within proximity of planned Čoka Rakita project infrastructure. Advancing growth pipeline: Čoka Rakita feasibility study (“FS”) is on-track for completion at year-end 2025. Based on an updated permitting timeline, mine construction is expected to commence in early 2027, with early works planned for the second half of 2026. First concentrate production is anticipated in the first half of 2029. Substantial liquidity for growth: Ended the quarter with a total of $413.6 million in cash and cash equivalents and an undrawn $150.0 million revolving credit facility. On-track to meet 2025 guidance: With strong production of 63,638 ounces of gold and 7.8 million pounds of copper during the third quarter, and 174,713 ounces of gold and 20.1 million pounds of copper during the first nine months of 2025, DPM is well-positioned to meet its production guidance. Generating robust margins: Reported cost of sales per ounce of gold sold 2 of $1,329 and an all-in sustaining cost per ounce of gold sold 1,2 of $1,136 for the first nine months of the year, compared to an average realized gold price of $3,351 per ounce. DPM reconfirmed its 2025 guidance for all-in sustaining cost of $780 to $900 per ounce of gold sold, subject to dynamics such as the mark-to-market impact of DPM's share price, as well as metal prices and foreign exchange movements relative to guidance assumptions.

_ 1 Free cash flow, adjusted net earnings, adjusted basic earnings per share and all-in sustaining cost per ounce of gold 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 15 of this news release for more information, including reconciliations to IFRS measures. 2 Cost of sales per ounce of gold sold represents total cost of sales for Chelopech and Ada Tepe, divided by total payable gold in concentrates sold, while all-in sustaining cost per ounce of gold sold includes treatment and freight charges, net of by-product credits, all of which are reflected in revenue. These measures did not include Vareš results.

CEO Commentary

David Rae, President and Chief Executive Officer, made the following comments in relation to the third quarter results:

“We achieved record financial results during the third quarter, demonstrating the quality of our assets, our low cost structure and the benefit of higher metal prices. We generated $148 million of free cash flow, further strengthening our financial capacity to fund growth, and ended the quarter with over $400 million of cash on our balance sheet.

“We are making excellent progress integrating Vareš into our operating portfolio, and now expect higher production than previously anticipated in 2026. As we advance our priorities to achieve full production at Vareš by the end of 2026, we continue to be excited by the growth potential of this high-quality asset.

“We are confident in the overall progress we are making on the Čoka Rakita project, and the continued impressive results from our exploration activities are clearly demonstrating the existence of a large copper-gold system. We are targeting resource estimates for the Dumitru Potok, Rakita North and Frasen targets by year-end.”

Use of non-GAAP Financial Measures

Certain financial measures referred to in this news release are not measures recognized under IFRS and are referred to as non-GAAP financial measures or ratios. These measures have no standardized meanings under IFRS and may not be comparable to similar measures presented by other companies. The definitions established and calculations performed by DPM are based on management’s reasonable judgment and are consistently applied. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Non-GAAP financial measures and ratios, together with other financial measures calculated in accordance with IFRS, are considered to be important factors that assist investors in assessing the Company’s performance.

The Company uses the following non-GAAP financial measures and ratios in this news release:

mine cash cost cash cost per tonne of ore processed mine cash cost of sales cash cost per ounce of gold sold all-in sustaining cost all-in sustaining cost per ounce of gold sold adjusted earnings (loss) before interest, taxes, depreciation and amortization (“adjusted EBITDA”) adjusted net earnings (loss) adjusted basic earnings (loss) per share cash provided from operating activities, before changes in working capital free cash flow average realized metal prices

For a detailed description of each of the non-GAAP financial measures and ratios used in this news release and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the “Non-GAAP Financial Measures” section commencing on page 15 of this news release.

Key Operating and Financial Highlights from Continuing Operations

| $ millions, except where noted | | Three Months | | Nine Months | | | | | | | | Ended September 30, | | 2025 | 2024 | Change | | 2025 | 2024 | Change | | | | Operating Highlights (1) | | | | | | | | | | | | Ore processed | t | 780,924 | 711,090 | 10 | % | | 2,192,046 | 2,167,831 | 1 | % | | Metals contained in concentrates produced: | | | | | | | | | | | | Gold | | | | | | | | | | | | Chelopech | oz | 44,275 | 43,899 | 1 | % | | 128,720 | 125,128 | 3 | % | | Ada Tepe | oz | 19,363 | 16,246 | 19 | % | | 45,993 | 65,388 | (30 | %) | | Total gold in concentrates produced | oz | 63,638 | 60,145 | 6 | % | | 174,713 | 190,516 | (8 | %) | | Copper | Klbs | 7,772 | 7,318 | 6 | % | | 20,116 | 21,890 | (8 | %) | | Payable metals in concentrates sold: | | | | | | | | | | | | Gold | | | | | | | | | | | | Chelopech | oz | 39,627 | 37,725 | 5 | % | | 110,382 | 105,142 | 5 | % | | Ada Tepe | oz | 18,285 | 15,503 | 18 | % | | 45,196 | 64,121 | (30 | %) | | Total payable gold in concentrates sold | oz | 57,912 | 53,228 | 9 | % | | 155,578 | 169,263 | (8 | %) | | Copper | Klbs | 6,820 | 6,484 | 5 | % | | 17,187 | 18,410 | (7 | %) | | Cost of sales per ounce of gold sold (2) : | | | | | | | | | | | | Chelopech | $/oz | 1,130 | 1,069 | 6 | % | | 1,113 | 1,085 | 3 | % | | Ada Tepe | $/oz | 1,761 | 1,742 | 1 | % | | 1,855 | 1,259 | 47 | % | | Consolidated | $/oz | 1,329 | 1,265 | 5 | % | | 1,329 | 1,151 | 15 | % | | All-in sustaining cost per ounce of gold sold (3) : | | | | | | | | | | | | Chelopech | $/oz | 671 | 638 | 5 | % | | 675 | 659 | 2 | % | | Ada Tepe | $/oz | 1,030 | 1,171 | (12 | %) | | 1,159 | 767 | 51 | % | | Consolidated | $/oz | 1,168 | 1,005 | 16 | % | | 1,136 | 859 | 32 | % | | Capital expenditures incurred (4) : | | | | | | | | | | | | Sustaining (5) | | 8.6 | 10.8 | (21 | %) | | 22.1 | 24.4 | (9 | %) | | Growth and other (6) | | 9.6 | 3.2 | 204 | % | | 37.6 | 15.1 | 149 | % | | Total capital expenditures | | 18.2 | 14.0 | 30 | % | | 59.7 | 39.5 | 51 | % | | Financial Highlights (1) | | | | | | | | | | | | Average realized prices (3) : | | | | | | | | | | | | Gold | $/oz | 3,635 | 2,548 | 43 | % | | 3,351 | 2,347 | 43 | % | | Copper | $/lb | 4.49 | 4.24 | 6 | % | | 4.41 | 4.25 | 4 | % | | Revenue | | 267.4 | 147.3 | 82 | % | | 598.0 | 427.9 | 40 | % | | Cost of sales | | 113.9 | 67.3 | 69 | % | | 243.6 | 194.8 | 25 | % | | Earnings before income taxes | | 108.3 | 55.3 | 96 | % | | 238.9 | 181.8 | 31 | % | | Adjusted EBITDA (3) | | 165.7 | 68.5 | 142 | % | | 355.0 | 216.1 | 64 | % | | Net earnings | | 96.0 | 46.2 | 108 | % | | 211.9 | 156.5 | 35 | % | | Basic earnings per share | $/sh | 0.54 | 0.26 | 108 | % | | 1.23 | 0.87 | 41 | % | | Adjusted net earnings (3) | | 129.2 | 46.2 | 180 | % | | 272.2 | 149.6 | 82 | % | | Adjusted basic earnings per share (3) | $/sh | 0.73 | 0.26 | 181 | % | | 1.57 | 0.83 | 89 | % | | Cash provided from operating activities (7) | | 184.5 | 52.5 | 252 | % | | 339.0 | 214.1 | 58 | % | | Free cash flow (3) | | 147.7 | 70.9 | 108 | % | | 321.4 | 213.4 | 51 | % |

(1) Operating highlights for the third quarter and first nine months of 2025 did not include the operating results of Vareš. For a more detailed discussion on the operating results of Vareš, refer to the “Review of Operating Results by Segment – Review of Vareš Results” section of the Management’s Discussion and Analysis (“MD&A”). In the meantime, financial highlights for the third quarter and first nine months of 2025 included the pre-commercial production financial results of Vareš during the period from September 3 to September 30, 2025, in compliance with IFRS, with the exception of average realized metal price, which is a non-GAAP measure and its exclusion of Vareš was consistent with the operating highlights above. (2) Cost of sales per ounce of gold sold represents total cost of sales for Chelopech and Ada Tepe, divided by total payable gold in concentrates sold. (3) All-in sustaining cost per ounce of gold sold, average realized metal prices, adjusted EBITDA, adjusted net earnings, adjusted basic earnings per share, and free cash flow are non-GAAP financial measures or ratios. Refer to the “Non-GAAP Financial Measures” section commencing on page 15 of this news release for more information, including reconciliations to IFRS measures. (4) Capital expenditures incurred are reported on an accrual basis and do not represent the cash outlays for capital expenditures. (5) Sustaining capital expenditures are generally defined as expenditures that support the ongoing operation of the asset or business without any associated increase in capacity, life of assets or future earnings. This measure is used by management and investors to assess the extent of non-discretionary capital spending being incurred by the Company each period. (6) Growth capital expenditures are generally defined as capital expenditures that expand existing capacity, increase life of assets and/or increase future earnings. This measure is used by management and investors to assess the extent of discretionary capital spending being undertaken by the Company each period. (7) Excludes cash provided from operating activities of discontinued operations of $nil (2024 –cash used in operating activities of discontinued operations of $99.6 million) and $167.9 million (2024 – cash used in operating activities of discontinued operations of $91.1 million), respectively, during the third quarter and first nine months of 2025.

Performance Highlights

A table comparing production, sales and cash cost measures by asset for the third quarter and first nine months ended September 30, 2025 against 2025 guidance is located on page 11 of this news release.

In the third quarter and first nine months of 2025, the Company’s Chelopech and Ada Tepe operations delivered gold production in line with expectations, and both mines are on track to achieve 2025 production guidance.

Highlights include the following:

Chelopech, Bulgaria: Gold contained in concentrates produced in the third quarter of 2025 was comparable to 2024. Gold contained in concentrates produced in the first nine months of 2025 was higher than 2024 due primarily to higher volumes of ore processed and higher gold grades, partially offset by lower gold recoveries, in line with the mine plan.

Copper production in the third quarter of 2025 was higher than 2024 due primarily to higher volumes of ore processed and higher copper grades, partially offset by lower copper recoveries. Copper production in the first nine months of 2025 was lower than 2024 due primarily to lower copper grades and recoveries, in line with the mine plan.

Payable gold in concentrates sold in the third quarter of 2025 was higher than 2024 due primarily to timing of shipments. Payable gold in concentrates sold in the first nine months of 2025 was higher than 2024 due primarily to higher gold production and favourable payable gold terms.

Payable copper in concentrate sold in the third quarter and first nine months of 2025 was consistent with the copper production compared to 2024.

All-in sustaining cost per ounce of gold sold in the third quarter of 2025 was higher than 2024 due primarily to a stronger Euro relative to the U.S. dollar, higher labour costs, higher royalties, partially offset by higher by-product credits reflecting higher volumes and realized prices of copper sold, and higher volumes of gold sold, as well as higher cash outlays for sustaining capital expenditures. All-in sustaining cost per ounce of gold sold in the first nine months of 2025 was higher than 2024 due primarily to a stronger Euro relative to the U.S. dollar, higher labour costs and higher royalties, partially offset by lower freight charges and higher volumes of gold sold.

Ada Tepe, Bulgaria: Gold contained in concentrate produced in the third quarter of 2025 was higher than 2024 due primarily to higher volumes of ore processed and higher gold grades. Gold contained in concentrate produced in the first nine months of 2025 was lower than 2024 due primarily to mining in lower grade zones, as well as lower volumes of ore processed and lower gold recoveries, in line with the mine plan.

Payable gold in concentrate sold in the third quarter and first nine months of 2025 was consistent with the gold production compared to 2024.

All-in sustaining cost per ounce of gold sold in the third quarter of 2025 was lower than 2024 due primarily to the higher volumes of gold sold, partially offset by a stronger Euro relative to the U.S. dollar and higher royalties. All-in sustaining cost per ounce of gold sold in the first nine months of 2025 was higher than 2024 due primarily to lower volumes of gold sold, higher labour costs, a stronger Euro relative to the U.S. dollar, as well as higher cash outlays for sustaining capital expenditures in the first nine months of the year, partially offset by lower royalties.

Consolidated Operating Highlights

Operating highlights discussed below exclude the operating results of Vareš, except for cost of sales.

Production: Gold contained in concentrates produced in the third quarter of 2025 was 6% higher than 2024, due primarily to higher volumes of ore processed at Chelopech and Ada Tepe, as well as higher gold grades at Ada Tepe. Gold contained in concentrates produced in the first nine months of 2025 was 8% lower than 2024, due primarily to lower gold grades and recoveries at Ada Tepe during the first six months of the year.

Copper production in the third quarter of 2025 was 6% higher than 2024 due primarily to higher volumes of ore processed and higher copper grades, partially offset by lower copper recoveries. Copper production in the first nine months of 2025 was 8% lower than 2024 due primarily to lower copper grades and recoveries, in line with the mine plan.

Deliveries: Payable gold in concentrates sold in the third quarter and first nine months of 2025 was 9% higher and 8% lower than 2024, respectively, primarily reflecting gold production.

Payable copper in concentrate sold in the third quarter and first nine months of 2025 was 5% higher and 7% lower than 2024, respectively, primarily reflecting copper production.

Cost measures: Cost of sales in the third quarter and first nine months of 2025 was 69% and 25% higher than 2024, respectively, due primarily to higher labour costs, a non-cash fair value adjustment on inventories of $25.5 million recognized in cost of sales at Vareš, following the acquisition of Adriatic, higher depreciation expense and a stronger Euro relative to the U.S. dollar.

All-in sustaining cost per ounce of gold sold in the third quarter of 2025 was 16% higher than 2024 due primarily to higher mark-to-market adjustments to share-based compensation expenses reflecting DPM’s strong share price performance, and a stronger Euro relative to the U.S. dollar, partially offset by higher volumes of gold sold, and higher by-product credits reflecting higher volumes and realized prices of copper sold. All-in sustaining cost per ounce of gold sold in the first nine months of 2025 was 32% higher than 2024 due primarily to higher mark-to-market adjustments to share-based compensation expenses, lower volumes of gold sold, and a stronger Euro relative to the U.S. dollar, partially offset by lower freight charges.

Mark-to-market adjustments to share-based compensation expenses resulted in an increase of $281 and $193 per ounce of gold sold, respectively, in the third quarter and first nine months of 2025, compared to an increase of $79 and $43 per ounce of gold sold in 2024.

Capital expenditures: Sustaining capital expenditures incurred in the third quarter of 2025 were 21% lower than 2024, due primarily to lower expenditures at Chelopech, as expected, and lower deferred stripping costs as a result of lower stripping ratios at Ada Tepe. Sustaining capital expenditures incurred in the first nine months of 2025 were 9% lower than 2024 due primarily to lower expenditures at Chelopech, as expected, partially offset by higher deferred stripping costs as a result of higher stripping ratios at Ada Tepe, in line with the mine plan.

Growth and other capital expenditures incurred in the third quarter and first nine months of 2025 were 204% and 149% higher than 2024, respectively, due primarily to costs related to the Čoka Rakita project being capitalized from 2025 as a result of the project’s advancement to the FS stage.

Consolidated Financial Highlights

The Company reported record financial results for the third quarter and first nine months of 2025, including record revenue, earnings and free cash flow. Financial results in the third quarter and first nine months of 2025 continued to reflect higher realized metal prices, partially offset by lower volumes of gold sold at Ada Tepe. Financial results in the third quarter and first nine months of 2025 also reflected the inclusion of Vareš for the period of September 3 to September 30, 2025.

Revenue: Revenue in the third quarter of 2025 was 82% higher than 2024 due primarily to higher realized metal prices and higher volumes of gold sold. Revenue in the first nine months of 2025 was 40% higher than 2024, due primarily to higher realized metal prices, partially offset by lower volumes of gold sold at Ada Tepe. Revenue in the third quarter and first nine months of 2025 also benefited from the post-acquisition revenue from Vareš.