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Dundee Precious Mtl (TSE:DPM)
TSX:DPM

Dundee Precious Mtl (DPM) AI Stock Analysis

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Dundee Precious Mtl

(TSX:DPM)

Rating:76Outperform
Price Target:
C$23.00
▲(9.00%Upside)
Dundee Precious Metals receives a strong overall stock score, driven by robust financial performance and strategic corporate actions. While technical indicators show moderate strength, valuation metrics and recent corporate events bolster investor confidence. The strategic acquisition and strong shareholder support enhance growth prospects, further supporting the score.
Positive Factors
Earnings
DPM reported Q4/24 financials with adjusted EPS higher than expected.
Operational Performance
Dundee Precious Metals met both gold and copper production guidance for 2024, indicating strong operational performance.
Shareholder Returns
The board of directors has approved the repurchase of up to US$200M in DPM shares in 2025.
Negative Factors
Production Challenges
The company is set to generate significant cash flow this year, thereby building a buffer to account for the drop in production.

Dundee Precious Mtl (DPM) vs. iShares MSCI Canada ETF (EWC)

Dundee Precious Mtl Business Overview & Revenue Model

Company DescriptionDundee 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 MoneyDundee Precious Metals generates revenue primarily through the extraction and sale of precious metal concentrates, particularly gold and copper. The company operates several key mining sites, including the Chelopech mine in Bulgaria for gold and copper concentrate, and the Tsumeb smelter in Namibia, which processes complex concentrate materials. DPM sells its metal concentrates to international smelters and refiners, who then refine the materials into pure metals that can be used in various industries. Additionally, the company benefits from strategic partnerships and long-term contracts with these smelters and refiners, ensuring consistent demand and revenue streams. By optimizing production efficiency and maintaining sustainable mining and processing practices, DPM enhances its profitability and competitive position in the global mining market.

Dundee Precious Mtl Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 8.43%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Dundee Precious Metals reported a strong financial and operational performance for the first quarter of 2025, with significant free cash flow, a robust share buyback program, and successful exploration activities. However, the company faced challenges with increased all-in sustaining costs and a one-time levy impacting earnings.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Dundee Precious Metals reported a revenue of $144 million in the quarter, higher than the prior year due to higher realized metal prices. Adjusted net earnings were $55 million, or $0.32 per share, an increase from the previous year.
Robust Free Cash Flow
The company generated approximately $79 million in free cash flow during the quarter, further strengthening their financial capacity.
Share Buyback Program
A record 7.5 million shares were repurchased at a total cost of $83 million, returning an aggregate of 114% of free cash flow to shareholders in the first quarter.
Operational Success at Chelopech
Chelopech produced approximately 37,000 ounces of gold and 5.9 million pounds of copper with an all-in sustaining cost of $673 per ounce of gold sold.
Exploration Success
Strong exploration results from Serbia, particularly at Dumitru Potok, where drilling confirmed a large high-grade copper, gold, and silver skarn system.
Negative Updates
Higher All-in Sustaining Costs
All-in sustaining cost increased by 41% to $1,244 per ounce of gold sold, driven by lower volumes of gold sold and higher mark-to-market adjustments for share-based compensation.
One-Time Levy Impact
A one-time levy to the 2025 Bulgarian state budget resulted in an after-tax amount of $22 million.
Challenges at Ada Tepe
Ada Tepe produced 12,500 ounces of gold with an all-in sustaining cost of $1,340 per ounce of gold sold, which is higher than the cost at Chelopech.
Company Guidance
In the first quarter of 2025, Dundee Precious Metals reported a solid production of approximately 50,000 ounces of gold and 5.9 million pounds of copper. The company achieved a strong all-in sustaining cost of $1,244 per ounce of gold sold, alongside generating $79 million in free cash flow. Dundee's financial strength was further evidenced by a consolidated cash balance of $763 million and a record repurchase of 7.5 million shares. Chelopech achieved an all-in sustaining cost of $673 per ounce of gold sold, while Ada Tepe produced 12,500 ounces of gold with costs of $1,340 per ounce. The company also advanced its Coka Rakita project, targeting production by 2028, and continued exploration in Serbia, with a focus on the Dumitru Potok and Frasen prospects. Additionally, Dundee maintained a strong balance sheet with no debt and a $150 million undrawn revolving credit facility, positioning it well for future growth and shareholder returns.

Dundee Precious Mtl Financial Statement Overview

Summary
Dundee Precious Metals demonstrates strong financial health with impressive revenue growth and profitability metrics. The balance sheet is solid, with low leverage and high equity, indicating financial stability. Although the cash flow statement reveals some challenges with decreased free cash flow, the company efficiently converts income into operating cash flow. Overall, the financial position supports continued growth and stability in the mining industry.
Income Statement
82
Very Positive
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
85
Very Positive
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
78
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
627.35M606.99M520.09M569.79M641.44M609.56M
Gross Profit
369.33M346.29M275.88M188.12M263.50M259.63M
EBIT
258.25M237.07M187.85M155.01M239.36M220.26M
EBITDA
356.56M366.95M292.11M226.07M335.57M321.73M
Net Income Common Stockholders
223.64M235.88M192.94M35.92M210.10M196.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
763.03M634.83M595.28M433.18M334.38M149.53M
Total Assets
1.41B1.42B1.29B1.16B1.17B974.86M
Total Debt
0.0013.52M12.53M14.58M15.19M17.08M
Net Debt
-763.03M-621.31M-582.75M-418.59M-319.19M-132.45M
Total Liabilities
180.58M134.38M169.69M164.16M164.00M169.58M
Stockholders Equity
1.23B1.29B1.12B993.09M1.00B798.67M
Cash FlowFree Cash Flow
270.81M99.44M220.28M182.98M188.54M159.51M
Operating Cash Flow
319.40M144.71M275.68M232.05M252.68M197.07M
Investing Cash Flow
-17.53M-23.90M-12.37M-85.81M-32.07M-43.85M
Financing Cash Flow
-164.45M-83.09M-99.38M-47.44M-36.35M-26.54M

Dundee Precious Mtl Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.10
Price Trends
50DMA
19.78
Positive
100DMA
18.39
Positive
200DMA
15.87
Positive
Market Momentum
MACD
0.36
Positive
RSI
55.29
Neutral
STOCH
50.20
Neutral
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 21.1 is below the 20-day moving average (MA) of 21.16, above the 50-day MA of 19.78, and above the 200-day MA of 15.87, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.20 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSDPM
76
Outperform
C$3.58B12.0819.71%1.07%10.57%24.23%
51
Neutral
$2.01B-1.26-21.11%4.38%2.92%-30.46%
$2.60B32.242.71%0.76%
$3.51B12.1916.21%0.79%
TSWDO
78
Outperform
C$2.95B15.6934.73%80.44%3757.72%
TSKNT
77
Outperform
C$3.85B15.2139.28%105.06%481.75%
TSCXB
69
Neutral
C$2.56B28.696.74%20.03%-46.48%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DPM
Dundee Precious Mtl
21.10
10.28
95.01%
SSRM
SSR Mining
13.07
8.46
183.51%
OCANF
OceanaGold
5.01
2.59
107.02%
TSE:CXB
Calibre Mining
2.99
1.13
60.75%
TSE:KNT
K92 Mining
15.95
8.16
104.75%
TSE:WDO
Wesdome Gold Mines
19.42
8.36
75.59%

Dundee Precious Mtl Corporate Events

M&A TransactionsBusiness Operations and Strategy
Dundee Precious Metals Announces Strategic Acquisition of Adriatic Metals
Positive
Jun 13, 2025

Dundee Precious Metals Inc. has announced a recommended acquisition of Adriatic Metals Plc, valuing the entire issued share capital of Adriatic at approximately US$1.251 billion. This transaction, which offers a significant premium to Adriatic’s recent share prices, is expected to create a strong combined entity with enhanced operational and financial profiles, leveraging DPM’s strengths and aligning with its strategic goals.

The most recent analyst rating on (TSE:DPM) stock is a Buy with a C$15.50 price target. To see the full list of analyst forecasts on Dundee Precious Mtl stock, see the TSE:DPM Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Dundee Precious Metals to Acquire Adriatic Metals, Enhancing Growth and Regional Presence
Positive
Jun 13, 2025

Dundee Precious Metals Inc. has announced a proposed acquisition of Adriatic Metals plc for approximately $1.3 billion, which will include the Vareš operation in Bosnia and Herzegovina. This acquisition is expected to significantly enhance DPM’s asset portfolio by increasing production, extending mine life, and boosting cash flow generation. The strategic move aims to create a premier mining business with a robust growth profile and strong regional presence, benefiting shareholders and regional stakeholders through enhanced operational capabilities and community relationships.

The most recent analyst rating on (TSE:DPM) stock is a Buy with a C$15.50 price target. To see the full list of analyst forecasts on Dundee Precious Mtl stock, see the TSE:DPM Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Dundee Precious Metals Announces Possible Offer for Adriatic Metals
Neutral
May 26, 2025

Dundee Precious Metals Inc. has announced a possible offer for Adriatic Metals plc, highlighting the disclosure requirements under the UK City Code on Takeovers and Mergers. This move aligns with DPM’s strategic objective to expand its portfolio and strengthen its position in the precious metals industry, potentially impacting stakeholders involved in the offer.

The most recent analyst rating on (TSE:DPM) stock is a Buy with a C$15.50 price target. To see the full list of analyst forecasts on Dundee Precious Mtl stock, see the TSE:DPM Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Dundee Precious Metals Considers Potential Acquisition of Adriatic Metals
Neutral
May 20, 2025

Dundee Precious Metals Inc. has confirmed discussions regarding a potential offer for the entire share capital of Adriatic Metals plc, although there is no certainty that an offer will be made or the terms it might include. This move aligns with Dundee’s strategic objective to grow through disciplined strategic transactions, potentially impacting its market positioning and shareholder returns.

The most recent analyst rating on (TSE:DPM) stock is a Buy with a C$15.50 price target. To see the full list of analyst forecasts on Dundee Precious Mtl stock, see the TSE:DPM Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Dundee Precious Metals Reports Strong Shareholder Support at 2025 Meeting
Positive
May 7, 2025

Dundee Precious Metals Inc. announced the results of its 2025 Annual and Special Meeting of Shareholders, where approximately 77.83% of outstanding shares were voted. Shareholders approved all items, including the election of directors, appointment of auditors, approval of the Shareholder Rights Plan, and the company’s approach to executive compensation, indicating strong shareholder support and reinforcing the company’s strategic direction.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Dundee Precious Metals Reports Strong Q1 2025 Results and Strategic Advancements
Positive
May 6, 2025

Dundee Precious Metals reported strong financial and operational results for the first quarter of 2025, with gold and copper production on track to meet annual guidance. The company achieved record capital returns to shareholders, robust free cash flow, and maintained substantial liquidity, positioning itself well for future growth. The advancement of feasibility studies and exploration projects, along with a strategic board succession, underscores DPM’s commitment to growth and value creation for stakeholders.

DividendsBusiness Operations and Strategy
Dundee Precious Metals Declares Q2 Dividend
Positive
May 6, 2025

Dundee Precious Metals announced a second quarter dividend of US$0.04 per common share, payable on July 15, 2025, to shareholders of record on June 30, 2025. This dividend declaration underscores the company’s commitment to delivering returns to shareholders and maintaining a robust financial strategy, potentially strengthening its position in the gold mining industry.

Executive/Board Changes
Dundee Precious Metals Announces New Chair Following Passing of R. Peter Gillin
Neutral
May 5, 2025

Dundee Precious Metals announced the passing of R. Peter Gillin, who served as Chair of the Board since 2022 and was a director for 16 years. His leadership was instrumental in the company’s transformation into a responsible and growing precious metals producer. The company has appointed Juanita Montalvo as the new Chair of the Board, who brings over 25 years of international experience in the mining and extractive sectors, along with extensive governance expertise.

Stock BuybackDividendsFinancial Disclosures
Dundee Precious Metals Reports Strong Q1 2025 Production and Share Repurchase
Positive
Apr 7, 2025

Dundee Precious Metals reported solid gold production in the first quarter of 2025, with expectations to meet its annual guidance. The company also repurchased $83 million in shares, continuing its capital returns program. Chelopech and Ada Tepe mines performed in line with expectations, with increased production anticipated in the latter half of the year. A quarterly dividend is set to be paid in April, and the company will release its full financial results in May.

Shareholder Meetings
Dundee Precious Metals Schedules 2025 Shareholders Meeting
Neutral
Apr 7, 2025

Dundee Precious Metals Inc. has announced its Annual and Special Meeting of Shareholders scheduled for May 7, 2025, to be held via live audio webcast. This meeting is part of the company’s ongoing efforts to engage with shareholders and maintain transparency in its operations, reflecting its commitment to responsible and efficient growth in the precious metals industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.