Dundee Precious Mtl ((TSE:DPM)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Dundee Precious Metals (DPM) was marked by a strong financial and operational performance, highlighting record-breaking metrics and successful strategic acquisitions. Despite these achievements, the company faced significant challenges, including regulatory issues in Ecuador and increased cost pressures.
Record Financial Results
Dundee Precious Metals reported record financial results for the third quarter, with revenue reaching $267 million. The company achieved adjusted net earnings of $129 million, or $0.73 per share, and generated free cash flow of $148 million. These figures underscore DPM’s robust financial health and operational efficiency during this period.
Successful Acquisition and Integration
DPM successfully completed the acquisition of Adriatic, integrating the high-grade Vareš operation into its portfolio. This acquisition is expected to transform the company’s long-term production profile, and integration activities are progressing well, indicating a positive outlook for future production capabilities.
Chelopech Operational Success
The Chelopech mine continued its track record of efficient operations, producing 44,000 ounces of gold and 7.8 million pounds of copper. The all-in sustaining cost was maintained at $671 per ounce of gold sold, reflecting the mine’s operational success and cost management.
Exploration Success
DPM reported positive exploration results at Coka Rakita and other sites, discovering a large copper-gold system. This success has led to an increased exploration budget, with resource estimates expected by year-end, highlighting the company’s commitment to expanding its resource base.
Revocation of Environmental License at Loma Larga
In a significant setback, DPM received notification from Ecuador’s Ministry of Environment and Energy that the environmental license for the Loma Larga project was revoked. The company is currently evaluating legal avenues to address this issue while minimizing further spending on the project.
Higher All-In Sustaining Costs
DPM experienced a 32% increase in all-in sustaining costs per ounce of gold sold for the first nine months of 2025 compared to 2024. This increase was primarily due to higher share-based compensation expenses and a stronger euro relative to the U.S. dollar, impacting the company’s cost structure.
Forward-Looking Guidance
Looking ahead, DPM remains optimistic about its financial and operational prospects. The company anticipates higher production in 2026 due to improved grades and the successful integration of the Vareš operation, which is expected to ramp up to an 850,000 tonne per annum rate by the end of 2026. Despite the setback with the Loma Larga project, DPM is focusing on advancing the Coka Rakita project, targeted for construction by early 2027. The company maintains a strong balance sheet with no debt and plans to continue capital returns to shareholders.
In conclusion, Dundee Precious Metals showcased a strong performance during the earnings call, with record financial results and successful strategic moves. While challenges such as regulatory issues and cost pressures persist, the company’s forward-looking guidance suggests a positive trajectory, supported by robust financial health and strategic initiatives.