DPM Metals announces feasibility study results for Coka Rakita Project

DPM Metals (DPMLF) announced the results of a feasibility study for the Coka Rakita project in Serbia. The FS confirms robust economics for a high-margin underground mining operation with first quartile costs and high rate of return using a $1,900 per ounce gold price assumption. Improvements for the project outlined in the FS compared to the pre-feasibility study include an additional year of mine life, increased ounces in the initial years, with improved net present value. Project highlights include: Mineral Reserves tonnage increased by 10% and contained gold increased by 11%. Higher gold production in the first five years, averaging 189,000 ounces of gold per year. First quartile all-in sustaining cost of $644 per ounce of gold. Attractive initial capital of $448M, well-within DPM’s funding capacity. Robust NPV of $782M and an IRR of 36% at a $1,900 per ounce gold price assumption. Using a $3,500 gold price assumption, NPV is $2.2B and IRR is 68%. Strategic position of project infrastructure, considering discovery of Dumitru Potok target. Permitting milestone achieved prompting initiation of the Special Purpose Spatial Plan process. Execution readiness advancing with detailed engineering and early works preparations. David Rae, CEO said, “The Coka Rakita feasibility study marks a significant milestone, confirming a high-margin, low-cost operation that will generate significant returns for our shareholders. We have rapidly advanced Coka Rakita, completing a feasibility study within less than 36 months of announcing its discovery in 2023, an exceptional pace driven by the high-quality nature of this deposit and the well-established process in Serbia. Based on the project’s excellent economics, including a 36% IRR at a gold price of $1,900 per ounce, we are proceeding to execution readiness and continue to advance permitting to support start-up of mine construction in early 2027, with first concentrate production anticipated in the first half of 2029. We believe Coka Rakita is a pivotal stepping stone that unlocks the broader potential of the Rakita camp, where our exploration activities continue to confirm the presence of a large copper-gold system. We expect to complete mineral resource estimates for Dumitru Potok, Rakita North and Frasen by year-end, all of which are within one to two kilometres of planned Coka Rakita infrastructure, and to target additional high-potential areas within the six-kilometre trend.”