Dundee Precious Mtl (DPM) AI Stock Analysis

• Market Cap: C$3.29B
• Dividend Yield: 1.18%
• Average Volume (3M): 712.32K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.77
• Revenue Growth: 2.05%
• EPS Growth: 28.90%
• Country: CA
• Employees: 2,063
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Gold
• EPS (TTM): 1.81
• Shares Outstanding: 173,174,130
• 10 Day Avg. Volume: 703,817
• 30 Day Avg. Volume: 712,318
• PEG Ratio: 0.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.78
• Price to Cash Flow (P/CF): 26.30
• P/FCF Ratio: 64.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$19.83
• Price Target Upside: 4.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Dundee Precious Metals is well-positioned with strong financial performance, attractive valuation, and positive earnings call insights. While technical trends are favorable, caution is warranted due to potential overbought conditions. The company's robust operational and financial strategies offset challenges such as the Ada Tepe mine's closure and production dips.

Positive Factors

Cash Flow

The company is set to generate significant cash flow this year, thereby building a buffer to account for the drop in production.

Financial Performance

Management has provided a three-year outlook that is slightly better than expected.

Investment Opportunity

DPM is seen as an underappreciated investment opportunity due to its discounted valuation and consistent operational track record.

Share Buyback

The board of directors has approved the repurchase of up to US$200M in DPM shares in 2025.

Negative Factors

Production Results

Dundee Precious Metals reported its Q3/24 production results with gold and copper production lower than estimates.

Production Weakness

Despite Ada Tepe's weakness in Q3/24, DPM is expecting increased Q4/24 production from Ada Tepe as mining moves into a high-grade area of the pit and given the now resolved fleet availability issues.

Dundee Precious Mtl Business Overview & Revenue Model

Company Description

Dundee Precious Metals Inc., a gold mining company, engages in the acquisition of mineral properties, exploration, development, mining, and processing of precious metals. Its principal operating assets include the Chelopech operation, which produces a gold-copper concentrate containing gold, copper, and silver and a pyrite concentrate containing gold located to the east of Sofia, Bulgaria; the Ada Tepe operation that produces a gold concentrate containing gold and silver located in southern Bulgaria, near the town of Krumovgrad; and the Tsumeb smelter, a complex copper concentrate processing facility located in Namibia. The company also holds interests in various developing gold, silver, and copper exploration properties located in Canada, Serbia, Bulgaria, and Ecuador. Dundee Precious Metals Inc. was incorporated in 1983 and is headquartered in Toronto, Canada.

How the Company Makes Money

Dundee Precious Metals generates revenue primarily through the mining and sale of gold, as well as by-products like copper and silver. The company's revenue streams are bolstered by the production from its two main mines: the Chelopech mine, which produces gold and copper concentrates, and the Ada Tepe mine, which produces gold concentrate. Additionally, the Tsumeb smelter in Namibia plays a crucial role in processing complex copper concentrates, further contributing to DPM's revenue. The company benefits from strategic partnerships and long-term contracts with global metal traders and refiners, ensuring stable demand and pricing for its products. Factors such as fluctuations in global commodity prices, operational efficiencies, and successful exploration or expansion projects significantly impact DPM's earnings.

Dundee Precious Mtl Financial Statement Overview

Summary

Dundee Precious Metals shows strong financial performance with robust revenue growth, high profit margins, and a solid balance sheet characterized by low leverage. However, the decrease in free cash flow presents a challenge despite efficient cash conversion from operating activities.

Income Statement

Dundee Precious Metals shows strong financial performance with a significant increase in revenue from $520 million to $606 million, indicating a robust growth trajectory. The company maintains a high gross profit margin of 57.1% and a net profit margin of 38.9%, reflecting effective cost management and profitability. EBITDA margin is also impressive at 60.4%. However, the absence of EBIT data for the latest year limits full analysis.

Balance Sheet

The company exhibits a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. With a strong equity ratio of 90.6%, Dundee Precious Metals boasts a solid financial foundation. The return on equity is 18.3%, showcasing effective use of shareholder funds to generate profits. The company's balance sheet reflects stability and financial health.

Cash Flow

Free cash flow decreased from $220 million to $99 million, reflecting a challenging cash flow environment. However, the operating cash flow to net income ratio of 0.61 indicates that the company efficiently translates profits into cash flow. The decrease in free cash flow, despite positive operating cash flow, suggests increased capital expenditures impacting cash reserves.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
606.99M	520.09M	569.79M	641.44M	609.56M
	Gross Profit
346.29M	275.88M	188.12M	263.50M	259.63M
	EBIT
0.00	187.85M	155.01M	239.36M	220.26M
	EBITDA
366.95M	292.11M	226.07M	335.57M	321.73M
	Net Income Common Stockholders
235.88M	192.94M	35.92M	210.10M	196.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
634.83M	595.28M	433.18M	334.38M	149.53M
	Total Assets
1.42B	1.29B	1.16B	1.17B	974.86M
	Total Debt
13.52M	12.53M	14.58M	15.19M	17.08M
	Net Debt
-621.31M	-582.75M	-418.59M	-319.19M	-132.45M
	Total Liabilities
134.38M	169.69M	164.16M	164.00M	169.58M
	Stockholders Equity
1.29B	1.12B	993.09M	1.00B	798.67M
Cash Flow		Free Cash Flow
99.44M	220.28M	182.98M	188.54M	159.51M
	Operating Cash Flow
144.71M	275.68M	232.05M	252.68M	197.07M
	Investing Cash Flow
-23.90M	-12.37M	-85.81M	-32.07M	-43.85M
	Financing Cash Flow
-83.09M	-99.38M	-47.44M	-36.35M	-26.54M

Dundee Precious Mtl Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPM, the sentiment is Positive. The current price of 18.98 is above the 20-day moving average (MA) of 18.36, above the 50-day MA of 16.85, and above the 200-day MA of 13.83, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 79.81 is Negative, neither overbought nor oversold. The STOCH value of 80.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DPM.

Dundee Precious Mtl Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DPM	81 Outperform	C$3.29B	10.58	20.10%	1.18%	2.05%	28.90%
Sector *	47 Neutral	$2.64B	-3.21	-21.68%	3.30%	4.19%	-30.23%

Dundee Precious Mtl Corporate Events

Dundee Precious Metals Adopts Shareholder Rights Plan to Protect Against Unsolicited Bids

Dundee Precious Metals has adopted a Shareholder Rights Plan to provide its Board and shareholders with adequate time to evaluate unsolicited take-over bids and negotiate value-enhancing alternatives. This plan, similar to those adopted by other Canadian public companies, aims to ensure fair treatment of shareholders and was not prompted by any specific acquisition proposal. The plan requires ratification at the company’s upcoming annual meeting and has been conditionally accepted by the Toronto Stock Exchange.

Dundee Precious Metals Renews Share Repurchase Program

Dundee Precious Metals Inc. has announced the renewal of its normal course issuer bid, allowing the company to repurchase up to 15 million of its common shares, representing approximately 9.8% of its public float. This move, facilitated through the Toronto Stock Exchange and alternative trading systems, reflects the company’s strategic approach to capital allocation and its commitment to managing its share structure effectively. The renewed bid, which will run from March 18, 2025, to March 17, 2026, is supported by an automatic share purchase plan to ensure compliance during regulatory restrictions or black-out periods, with RBC Capital Markets re-appointed to execute purchases on behalf of the company.

Dundee Precious Metals Uncovers High-Grade Mineralization at Dumitru Potok

Dundee Precious Metals has reported significant results from its drilling activities at the Dumitru Potok prospect, which have revealed wide, high-grade intercepts of copper, gold, and silver. These findings have prompted the company to accelerate its drilling campaign in the area to further explore and extend these zones. The discovery of a substantial copper-gold-silver skarn system, with mineralization detected over a significant strike length, positions the Dumitru Potok prospect as a potentially valuable asset for the company, promising to enhance its operational output and strengthen its standing in the precious metals industry.

Dundee Precious Metals Reports Record 2024 Financial Results and Strategic Growth Plans

Dundee Precious Metals reported record financial results for 2024, with adjusted net earnings of $232.2 million and free cash flow of $305.1 million. The company maintained its 10-year track record of meeting gold production guidance and initiated a feasibility study for the Čoka Rakita project, aiming to boost future growth. DPM also demonstrated financial strength with substantial liquidity and no debt, alongside a commitment to returning value to shareholders. The company plans to focus on growth in the next three years, with a 2025 gold production target and cost guidance in place.

Dundee Precious Metals Declares First Quarter Dividend

Dundee Precious Metals announced a first quarter dividend of US$0.04 per common share, payable on April 15, 2025, to shareholders of record on March 31, 2025. This move aligns with the company’s strategy to deliver above-average returns for shareholders, showcasing its financial stability and commitment to growth, potentially enhancing its attractiveness to investors in the precious metals sector.

Dundee Precious Metals Files Technical Report for Serbian Gold Project

Dundee Precious Metals has filed a technical report for its Čoka Rakita gold project in Serbia, which is aimed at supporting the mineral resource and reserve estimate and pre-feasibility study. This filing, prepared under Canadian disclosure standards, underscores DPM’s commitment to transparency and resource optimization, potentially enhancing its market position and stakeholder value.

Dundee Precious Metals Meets Gold Production Targets for Tenth Year

Dundee Precious Metals announced that it met its gold production guidance for the tenth consecutive year, marking a significant achievement in the mining industry. The company reported strong performance for 2024, with Ada Tepe achieving its highest quarterly production and both mines meeting their annual production targets, underscoring the company’s operational strengths and industry positioning.