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03-08-2025
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Dundee Precious Metals Delivers Record Free Cash Flow and Adjusted Net Earnings; Announces Second Quarter 2025 Results
TORONTO, July 31, 2025 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) ('DPM' or the 'Company') announced its operating and financial results for the second quarter and first half ended June 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 $94.5 million of free cash flow1 and $99.5 million of cash provided from operating activities of continuing operations in the second quarter. Record adjusted net earnings per share: Reported second quarter adjusted net earnings1 of $87.6 million ($0.52 per share1) and net earnings from continuing operations of $82.4 million ($0.49 per share). Creating a premier mining business: Announced on June 13, 2025 that it had agreed with Adriatic Metals plc ("Adriatic") to the terms pursuant to which it would acquire Adriatic and its high-quality Vareš silver-lead-zinc-gold operation for an implied equity value of approximately $1.3 billion2, forming a peer-leading growth profile. Advancing growth pipeline: Čoka Rakita feasibility study ('FS') advancing well and on-track for completion at year-end 2025. Received the environmental licence for Loma Larga in June, a significant milestone for the project. Substantial liquidity for growth: Ended the quarter with a total of $796.6 million, consisting of $331.7 million in cash and cash equivalents and $464.9 million in restricted cash pursuant to the agreement to acquire Adriatic. Record capital returns: Returned $129.9 million, or 75% of free cash flow, to shareholders during the first half of 2025 through the repurchase of approximately 10 million shares and the quarterly dividend of $0.04 per share. On-track to meet 2025 guidance: With strong production of 61,212 ounces of gold and 6.4 million pounds of copper during the second quarter, and 111,075 ounces of gold and 12.3 million pounds of copper during the first half of 2025, DPM is well-positioned to meet its 2025 production guidance. Generating robust margins: Reported cost of sales per ounce of gold sold3 of $1,328 and an all-in sustaining cost per ounce of gold sold1,3 of $1,118 for the first half of the year, compared to an average realized gold price of $3,183 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 13 of this news release for more information, including reconciliations to IFRS measures. 2 Based on the June 11, 2025 closing price of DPM shares of Cdn$20.33, and a GBP/CAD exchange rate of 1.85. 3 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. CEO Commentary David Rae, President and Chief Executive Officer, made the following comments in relation to the second quarter results: 'We continue to consistently deliver robust free cash flow, generating a record $174 million year-to-date, further strengthening our financial capacity to fund growth. At the same time, our investors are benefiting from our low-cost, high-margin gold production as we continue to return capital to shareholders, demonstrated by the repurchase of a record 10 million shares during the first half of the year. 'We received the environmental licence for Loma Larga at the end of June, achieving a significant milestone for the project, which is an attractive future growth opportunity for DPM. We continue to advance permitting and the feasibility study for the Čoka Rakita project, which is on track for completion by year-end. 'The proposed acquisition of Adriatic is an excellent fit with our operating expertise and financial strength, and offers a clear and compelling value proposition for all of our shareholders. This is an exciting time for DPM and our shareholders, as we look to our future as a growing precious metals producer, offering a peer-leading development pipeline, a strong balance sheet and capital returns, all of which are underpinned by our exceptional operational track record.' 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 13 of this news release. Key Operating and Financial Highlights from Continuing Operations $ millions, except where noted Three Months Six Months 2025 2024 Change 2025 2024 Change Operating Highlights Ore Processed t 730,980 755,543 (3%) 1,411,122 1,456,741 (3%) Metals contained in concentrates produced: Gold Chelopech oz 47,032 43,734 8% 84,445 81,229 4% Ada Tepe oz 14,180 23,910 (41%) 26,630 49,142 (46%) Total gold in concentrates produced oz 61,212 67,644 (10%) 111,075 130,371 (15%) Copper Klbs 6,439 7,880 (18%) 12,344 14,572 (15%) Payable metals in concentrates sold: Gold Chelopech oz 38,333 37,849 1% 70,755 67,417 5% Ada Tepe oz 14,544 22,974 (37%) 26,911 48,618 (45%) Total payable gold in concentrates sold oz 52,877 60,823 (13%) 97,666 116,035 (16%) Copper Klbs 5,204 6,469 (20%) 10,367 11,926 (13%) Cost of sales per ounce of gold sold(1): Chelopech $/oz 1,097 1,003 9% 1,103 1,094 1% Ada Tepe $/oz 1,933 1,188 63% 1,920 1,105 74% Consolidated $/oz 1,327 1,073 24% 1,328 1,099 21% All-in sustaining cost per ounce of gold sold(2): Chelopech $/oz 682 531 28% 678 670 1% Ada Tepe $/oz 1,166 699 67% 1,246 638 95% Consolidated $/oz 1,011 710 42% 1,118 793 41% Capital expenditures incurred(3): Sustaining(4) 5.9 7.9 (24%) 13.5 13.6 0% Growth and other(5) 16.3 3.6 343% 28.0 11.9 134% Total capital expenditures 22.2 11.5 92% 41.5 25.5 63% Financial Highlights Average realized prices(2): Gold $/oz 3,334 2,369 41% 3,183 2,254 41% Copper $/lb 4.36 4.57 (5%) 4.36 4.26 2% Revenue 186.5 156.8 19% 330.6 280.6 18% Cost of sales 70.2 65.2 8% 129.7 127.5 2% Earnings before income taxes 92.0 80.2 15% 130.6 126.5 3% Adjusted EBITDA(2) 114.1 93.1 23% 189.3 147.6 28% Net earnings 82.4 70.9 16% 115.9 110.3 5% Basic earnings per share $/sh 0.49 0.39 26% 0.68 0.61 11% Adjusted net earnings(2) 87.6 70.9 24% 143.0 103.4 38% Adjusted basic earnings per share(2) $/sh 0.52 0.39 33% 0.84 0.57 47% Cash provided from operating activities(6) 99.5 125.8 (21%) 154.5 161.6 (4%) Free cash flow(2) 94.6 82.4 15% 173.7 142.5 22%(1) 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. (2) 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 13 of this news release for more information, including reconciliations to IFRS measures. (3) Capital expenditures incurred are reported on an accrual basis and do not represent the cash outlays for capital expenditures. (4) 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. (5) 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. (6) Excludes cash used in operating activities of discontinued operations of $5.3 million (2024 – $9.1 million) and cash provided from operating activities of discontinued operations of $167.9 million (2024 – $8.5 million), respectively, during the second quarter and first half of 2025. Performance HighlightsA table comparing production, sales and cash cost measures by asset for the second quarter and first half ended June 30, 2025 against 2025 guidance is located on page 10 of this news release. In the second quarter and first half of 2025, the Company's operations delivered gold production in line with expectations. With higher grades at Chelopech and increased production from both mines planned for the second half of the year, DPM is on track to achieve its 2025 production guidance. Highlights include the following: Chelopech, Bulgaria: Gold contained in concentrates produced in the second quarter and first half of 2025 was higher than 2024 due primarily to higher gold grades, partially offset by lower volumes of ore processed and lower gold recoveries, in line with the mine plan. As per the mine plan, the Company continues to expect higher grades and increased production over the balance of the year. Copper production in the second quarter and first half 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 second quarter of 2025 was comparable to 2024 due primarily to higher gold production offset by timing of shipments. Payable gold in concentrates sold in the first half of 2025 was higher than 2024 due primarily to higher production and favourable payable gold terms, partially offset by timing of shipments. Payable copper in concentrate sold in the second quarter and first half of 2025 was lower than 2024 due primarily to lower copper production. All-in sustaining cost per ounce of gold sold in the second quarter and first half of 2025 was higher than 2024 due primarily to lower by-product credits reflecting lower volumes of copper sold, a stronger Euro relative to the U.S. dollar and higher labour costs including higher mark-to-market adjustments for share-based compensation as a result of DPM's strong share price performance, partially offset by lower freight charges and lower cash outlays for sustaining capital expenditures for the year, as expected. All-in sustaining cost per ounce of gold sold in the second quarter of 2025 also benefited from lower treatment charges as a result of favourable market conditions. Ada Tepe, Bulgaria: Gold contained in concentrate produced in the second quarter and first half 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. As disclosed in February 2025, gold production at Ada Tepe is forecast to nearly double in the second half of 2025, relative to the first half, due to the cell sequencing of its integrated mine waste facility. All-in sustaining cost per ounce of gold sold in the second quarter and first half of 2025 was higher than 2024 due primarily to lower volumes of gold sold, higher labour costs and a stronger Euro relative to the U.S. dollar, as well as higher cash outlays for sustaining capital expenditures, partially offset by lower royalties reflecting lower contained ounces mined. Consolidated Operating Highlights Production: Gold contained in concentrates produced in the second quarter and first half of 2025 was 10% and 15% lower than 2024, respectively, due primarily to lower gold grades at Ada Tepe, as well as lower volumes of ore processed and lower gold recoveries at both mines, partially offset by higher gold grades at Chelopech, in line with the mine plan for each operation. Copper production in the second quarter and first half of 2025 was 18% and 15% lower than 2024, respectively, due primarily to lower copper grades and recoveries, in line with the mine plan. Deliveries: Payable gold in concentrates sold in the second quarter and first half of 2025 was 13% and 16% lower than 2024, respectively, primarily reflecting lower gold production. Payable copper in concentrate sold in the second quarter and first half of 2025 was 20% and 13% lower than 2024, respectively, due primarily to lower copper production. Cost measures: Cost of sales in the second quarter and first half of 2025 was 8% and 2% higher than 2024, respectively, due primarily to higher labour costs and a stronger Euro relative to the U.S. dollar. All-in sustaining cost per ounce of gold sold in the second quarter and first half of 2025 was 42% and 41% higher than 2024, respectively, due primarily to lower volumes of gold sold, higher mark-to-market adjustments to share-based compensation expenses reflecting DPM's strong share price performance, lower by-product credits reflecting lower volumes of copper 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 $138 per ounce of gold sold in the first half of 2025 compared to an increase of $26 per ounce of gold sold in 2024. Capital expenditures: Sustaining capital expenditures incurred in the second quarter of 2025 were 24% 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, in line with the mine plan at Ada Tepe. Sustaining capital expenditures incurred in the first half of 2025 were comparable to 2024. Growth and other capital expenditures incurred in the second quarter and first half of 2025 were 343% and 134% 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 second quarter and first half of 2025, including record revenue, earnings and free cash flow. Financial results in the second quarter and first half of 2025 continued to reflect higher realized metal prices, partially offset by lower volumes of gold sold at Ada Tepe. Revenue: Revenue in the second quarter and first half of 2025 was 19% and 18% higher than 2024, respectively, due primarily to higher realized metal prices, partially offset by lower volumes of gold sold at Ada Tepe. Net earnings: Net earnings from continuing operations in the second quarter of 2025 was 16% higher than 2024 due primarily to higher revenue and lower evaluation expenses as a result of the capitalization of costs related to the Čoka Rakita project, partially offset by higher employee costs reflecting primarily higher mark-to-market adjustments to share-based compensation expenses and Adriatic acquisition related costs of $5.1 million. Net earnings from continuing operations in the first half of 2025 was 5% higher than 2024, due primarily to the same factors affecting the quarter, partially offset by the 2025 Bulgarian levy of $24.4 million. Adjusted net earnings: Adjusted net earnings from continuing operations in the second quarter and first half of 2025 was 24% and 38% higher than 2024, respectively, due primarily to the same factors affecting net earnings from continuing operations, with the exception of adjusting items primarily related to the 2025 Bulgarian levy and Adriatic acquisition related costs, as well as a net termination fee received from Osino Resources Corp. ('Osino') in 2024. Cash provided from operating activities of continuing operations in the second quarter and first half of 2025 was 21% and 4% lower than 2024, respectively, due primarily to the timing of deliveries and subsequent receipt of cash, the timing of payments to suppliers and the first payment of the 2025 Bulgarian levy, partially offset by higher earnings generated in the periods. Free cash flow: Free cash flow from continuing operations in the second quarter and first half of 2025 was 15% and 22% higher than 2024, respectively, due primarily to higher adjusted net earnings generated in the periods, partially offset by the first payment of the 2025 Bulgarian levy. Free cash flow is calculated before changes in working capital. Proposed Acquisition of Adriatic On June 13, 2025, the Company announced that it had agreed with Adriatic to the terms of a recommended acquisition of the entire issued, and to be issued, ordinary share capital of Adriatic (the 'Transaction') for an implied equity value of approximately $1.3 billion. Upon completion of the Transaction, DPM will acquire 100% of the Vareš operation in Bosnia and Herzegovina, a producing silver-lead-zinc-gold underground mine. Under the terms of the Transaction, shareholders of Adriatic ('Adriatic Shareholders') will be entitled to receive 0.1590 of a common share of DPM (each whole share, a 'DPM Share') and 93 pence in cash for each ordinary share of Adriatic (each, an 'Adriatic Share'). The implied value for each Adriatic Share is £2.68 (and CHESS Depository Interests of Adriatic at AUD$5.56), based on the closing price of Cdn$20.33 per DPM Share and a GBP/CAD exchange rate of 1.85 on June 11, 2025. Immediately following completion of the Transaction, it is expected that current shareholders of DPM (the 'DPM Shareholders') will own approximately 75%, and former Adriatic Shareholders will own approximately 25%, of DPM's issued share capital. The Transaction will be subject to certain closing conditions, including, among other things: (i) approval of the Transaction by Adriatic Shareholders; (ii) court approval; (iii) the issuance of the DPM Shares to be issued in the Transaction being approved by DPM Shareholders; (iv) receipt of the approval for listing of such DPM common shares by the TSX; (v) receipt by DPM of an unconditional approval of the Transaction by the Bosnian Competition Council in accordance with the Bosnian Competition Act; and (vi) the Transaction becoming effective no later than December 31, 2025. The TSX has conditionally approved the listing of the DPM Shares to be issued under the Transaction, subject to DPM satisfying the customary listing conditions of the TSX and filing (or causing to be filed) certain documents in connection with the closing of the Transaction. Balance Sheet Strength and Financial Flexibility The Company continues to maintain a strong financial position, with a growing cash position, no debt and an undrawn $150 million revolving credit facility. Cash and cash equivalents decreased by $303.1 million to $331.7 million in the first half of 2025, due primarily to the restricted cash set aside pursuant to the agreement to acquire Adriatic, payments for shares repurchased under the Normal Course Issuer Bid ('NCIB'), cash outlays for capital expenditures and dividends paid, partially offset by earnings generated in the period and cash interest received, as well as a net cash inflow of $167.9 million under a DPM tolling agreement related to the disposition of the Tsumeb smelter in 2024. Return of Capital to Shareholders In line with its disciplined capital allocation framework, DPM continues to return excess capital to shareholders, which currently includes a sustainable quarterly dividend and periodic share repurchases under the NCIB. During the first half of 2025, the Company returned a total of $129.9 million to shareholders through the repurchase of approximately 10.0 million shares, for a total cash payment of $116.1 million, and $13.8 million of dividends paid. On July 31, 2025, the Company declared a dividend of $0.04 per common share payable on October 15, 2025 to shareholders of record on September 30, 2025. Development Projects Update Čoka Rakita, Serbia The Company continues to advance the Čoka Rakita project, targeting first concentrate production in 2028. The FS is advancing as planned and is expected to be completed by year-end 2025. Most of the surface and underground geotechnical and hydrogeological drilling is now complete. Advancing the design to the basic engineering level, the project execution readiness, and commencing operational readiness activities are all proceeding as planned. Permitting activities have continued to advance, with a detailed permitting timeline focused on supporting commencement of construction in mid-2026. Work continues on various baseline studies required for the Environmental and Social Impact Assessment. DPM continues to focus on completing all preparatory work for the Special Purpose Spatial Plan, pending a decision by the Serbian government to initiate the process, and is proactively engaging with relevant stakeholders to mitigate the risk of administrative delays. The Company has planned to spend $40 million to $45 million of growth capital expenditures for the Čoka Rakita project in 2025, with $19.0 million incurred in the first half of the year. Loma Larga, Ecuador During the second quarter, the environmental licence for the Loma Larga project was issued by the Ministry of Environment, Water and Ecological Transition, which represents a significant milestone for the project and is the result of a rigorous process by the government to ensure high Ecuadorian standards are applied in the development of mining projects. DPM's commitment to these standards is consistent with the Company's proven development practices and adoption of international standards and best practices which meet or exceed national standards. Following the environmental licence issuance, negotiations for the exploitation agreement are in progress. The approval of the environmental licence follows the successful completion of the prior, informed indigenous consultation process in May 2025, and the fulfilment of the requirements of the August 2023 ruling by the Provincial Court of Azuay. Preparations are ongoing for a planned 23,000-metre drilling campaign at Loma Larga, with additional mapping, re-logging and drilling and site logistics planning. The drilling program will prioritize geotechnical and hydrological monitoring holes, as well as metallurgical and resource infill and extensional drilling, and is planned to commence in the second half of 2025. Following receipt of the environmental licence, the Company increased its guidance for growth capital expenditures related to the Loma Larga project in 2025 to a total of $23 million to $25 million, up from the previous guidance range of $12 million to $14 million, to support the planned drilling and certain early works in 2025. The Company has incurred $7.5 million in the first half of the year. Exploration Čoka Rakita and Dumitru Potok, Serbia Exploration activities in Serbia continued to focus on the Čoka Rakita and Potaj Čuka licences, including scout drilling campaigns at the Dumitru Potok, Frasen, Valja Saka and various Potaj Čuka targets, completing 10,787 metres of drilling during the second quarter of 2025 and 22,411 metres in total during the first half of 2025. At Dumitru Potok, drilling continues to confirm the presence of a large, high-grade copper-gold-silver skarn system with mineralization concentrated along both the eastern and western sides of a causative intrusion. Based on drilling to date, a one-kilometre strike length of the mineralization has been outlined and will be the focus of further delineation drilling. Drilling confirmed the high potential for shallow porphyry copper-gold mineralization in the Frasen area, with one drill hole demonstrating significant intercepts within a fertile diorite intrusion. This relatively narrow zone, approximately 150 metres wide, was intersected 350 metres along strike to the northwest, with previous drill holes where a vertical distribution of up to 450 metres from surface was confirmed with most recent drilling. It still remains open up to some extent towards the northwest and southeast, as well as at depth. At the Rakita North prospect, the drilling continued to highlight the marble-hosted copper-gold-silver mineralization on the northern flank of the Čoka Rakita deposit, proximal to the Čoka Rakita planned underground development. The overall dimensions of the orebody are yet to be defined but drilling to date has outlined a high-grade zone of approximately 300 metres by 150 metres. It remains open in multiple directions, with the prospect demonstrating the highest potential towards the east. Within the Potaj Čuka licence, exploration drilling has continued at the Valja Saka prospect, which is located approximately two kilometres north of Čoka Rakita, as well as several target areas in the central and northern part of the licence, supported by magneto-telluric, soil and magnetic anomalies. Exploration drilling at the Valja Saka prospect continued to encounter strong skarn (garnet and magnetite) altered sediments, zones of porphyry type copper-gold mineralization, weak strata-bound and marble hosted copper-gold mineralization. DPM has integrated the collected information regarding the alteration and mineralization assemblages into its exploration targeting models, which will be used for vector exploration drilling towards potentially higher grade mineralization. These geological observations are strong indications of the prospectivity of the Potaj Čuka licence for additional copper and gold mineralization. Tulare, Serbia Drilling continued at the Tulare exploration licence, which is located in southern Serbia, with 3,370 metres in total drilled during the second quarter of 2025 and 3,708 metres during the first half of 2025. The Company continued drilling at the Kiseljak and Yellow Creek prospects and commenced drill testing the conceptual target at the Gubavce prospect, which is supported by a combination of geophysics, soil geochemistry, short-wave-infrared and portable X-ray fluorescence measurement anomalies. The Company has planned to spend between $23 million and $25 million for Serbian exploration activities in 2025, with $15.9 million incurred in the first half of the year. These activities are primarily focused on testing prospective targets around the Čoka Rakita project and defining the upside potential of the Dumitru Potok and Frasen discoveries, as well as planned scout drilling on the Potaj Čuka and Pešter Jug licences. Chelopech, Bulgaria DPM continues to prioritize in-mine and brownfield exploration activities with the objective of extending Chelopech's mine life to over 10 years. During the second quarter of 2025, the Company completed approximately 10,557 metres of drilling with 2,409 metres dedicated to extensional drilling, which was primarily focused on discovering new mineralization along identified geological trends in the Chelopech mine. During the second quarter of 2025, extensional drilling activity was concentrated on higher elevations of Blocks 150 and 151. This initiative aims to explore the western (150) and northern (151) parts of these blocks, potentially uncovering new mineralization. At the beginning of the quarter, a drilling program was completed to test new mineralization in Block 8, with 2 holes returning results demonstrating zones with grades exceeding 2 g/t AuEq and highlighting the zone's potential for economic mineralization. During the quarter, assay results were received from drill holes targeting Zone 701. The results identified new zones of mineralization, expanding the orebody contour, particularly on horizons between 410 mRL and 200 mRL. Brownfield exploration continued within the Chelopech mine concession during the second quarter of 2025 with a total of 9,146 metres of exploration and target delineation drilling with five active diamond drill rigs. Results from initial drilling at the Wedge Zone Deep ('WZD') target discovered a new zone of approximately 150 metres down hole of contiguous semi-massive and stockwork pyrite rich high-sulphidation mineralization. The target, which remains open in multiple directions, is located within the northern flank of Chelopech mine concession and approximately 300 metres below existing Mineral Reserves. The Company is increasing the 2025 Chelopech exploration program, in part, to expand the scope of this mineralization and define the geological setting and structural context. An additional 12,000 metres of exploration drilling has been planned in order to test the WZD target's vertical extent and continuation along strike, as well as continuing to test the mineral potential at the shallow levels, on the northeastern and southern flanks of the Chelopech mine concession. Drill testing of some of the generated targets has already commenced and will continue over the balance of the year. The Company continues to advance the process of converting the Brevene exploration licence to a Commercial Discovery, with a one-year extension of the exploration rights granted by the Ministry of Energy on May 5, 2025, and received a positive statement from the Ministry of Environment and Water to implement an exploration program. Based on these positive permitting steps and expectation that drilling will commence in later 2025, after drilling permits are obtained with the land owner, an additional budget for 28,000 metres of infill and target delineation drilling was approved to advance the targets to Commercial Discovery technical requirements. The Company has increased the planned budget for Chelopech in-mine and brownfield exploration activities to be between $14 million and $15 million, up from the previous guidance range of $6 million to $7 million, to focus on intensive drilling at the Brevene licence and exploring the near-mine targets on the Chelopech mine concession. The Company has incurred $4.9 million in the first half of the year. 2025 Guidance and Three-year Outlook With higher production planned for the second half of the year, DPM is on track to achieve its 2025 guidance, including expected gold production of 225,000 to 265,000 ounces, copper production of 28 to 33 million pounds, and an all-in sustaining cost of $780 to $900 per ounce of gold sold. The three-year outlook previously issued in DPM's MD&A for the year ended December 31, 2024 remains unchanged, except for the following updates to the Company's guidance for 2025: Growth capital expenditures related to the Loma Larga project are now expected to be between $23 million and $25 million, up from the previous guidance range of $12 million to $14 million, due primarily to the receipt of the environmental licence for exploitation, representing an important milestone. The additional funding will be used primarily to resume drilling at Loma Larga as well as certain early works. Based on positive results, exploration expenses are now expected to be between $44 million and $49 million, up from the previous guidance range of $36 million to $41 million. This updated guidance supports exploration activities associated with Chelopech near-mine exploration, drilling at the Brevene exploration licence and Serbian exploration programs. The Company's three-year outlook and 2025 detailed guidance do not reflect the potential acquisition of the anticipated operating and financial results of Adriatic. Selected Production, Delivery and Cost Performance versus 2025 Guidance Q2 2025 YTD June 2025 2025 Consolidated Guidance Chelopech Ada Tepe Consolidated Chelopech Ada Tepe Consolidated Ore processed Kt 541.1 189.9 731.0 1,073.9 337.2 1,411.1 2,700 – 2,900 Metals contained in concentrates produced Gold Koz 47.0 14.2 61.2 84.4 26.6 111.0 225 – 265 Copper Mlbs 6.4 – 6.4 12.3 – 12.3 28 – 33 Payable metals in concentrates sold Gold Koz 38.3 14.5 52.8 70.8 26.9 97.7 205 – 240 Copper Mlbs 5.2 – 5.2 10.4 – 10.4 25 – 29 All-in sustaining cost per ounce of gold sold $/oz 682 1,166 1,011 678 1,246 1,118 780 – 900 For additional information regarding the Company's detailed guidance for 2025 and current three-year outlook, please refer to the 'Three-Year Outlook' section of the MD&A. Second Quarter 2025 Results Conference Call and Webcast At 9 a.m. EDT on Friday, August 1, 2025, DPM will host a conference call and audio webcast to discuss the results, followed by a question-and-answer session. To participate via conference call, register in advance at the link provided below to receive the dial-in information as well as a unique PIN code to access the call. The call registration and webcast details are as follows: Conference call date and time Friday, August 1, 20259 a.m. EDT Call registration Webcast link Replay Archive will be available on This news release and DPM's unaudited condensed interim financial statements and MD&A for the three and six months ended June 30, 2025 are posted on the Company's website at and have been filed on SEDAR+ at Qualified Person The technical and scientific information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects ('NI 43-101') of the Canadian Securities Administrators and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves, and has been reviewed and approved by Ross Overall, (Applied Geology), Director, Corporate Technical Services, of DPM, who is a Qualified Person as defined under NI 43-101, and who is not independent of the Company. About Dundee Precious Metals Dundee Precious Metals Inc. is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Serbia and Ecuador. The Company's purpose is to unlock resources and generate value to thrive and grow together. Our strategic objective is to become a mid-tier precious metals company, which is based on sustainable, responsible and efficient gold production from our portfolio, the development of quality assets, and maintaining a strong financial position to support growth in mineral reserves and production through disciplined strategic transactions. This strategy creates a platform for robust growth to deliver above-average returns for our shareholders. DPM's shares are traded on the Toronto Stock Exchange (symbol: DPM). For further information, please contact: Jennifer CameronDirector, Investor RelationsTel: (416) 219-6177jcameron@ Cautionary Note Regarding Forward Looking Statements This news release contains 'forward looking statements' or 'forward looking information' (collectively, 'Forward Looking Statements') that involve a number of risks and uncertainties. Forward Looking Statements are statements that are not historical facts and are generally, but not always, identified by the use of forward looking terminology such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'guidance', 'outlook', 'intends', 'anticipates', 'believes', or variations of such words and phrases or that state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved, or the negative of any of these terms or similar expressions. The Forward Looking Statements in this news release relate to, among other things: forecasted results of production in 2025 and the ability of the Company to meet previously provided guidance in respect thereof; expected cash flows; the price of gold, copper, and silver; estimated capital costs, all-in sustaining costs, operating costs and other financial metrics, including those set out in the outlook and guidance provided by the Company; the intention of the Company to complete the Transaction and the anticipated timing thereof; the receipt of all necessary shareholder and regulatory approvals in connection with the Transaction; the anticipated benefits of the Transaction; currency fluctuations; results of economic studies; the intention to complete the FS in respect of the Čoka Rakita project and the anticipated timing thereof; anticipated steps in the continued development of the Čoka Rakita project, including exploration, permitting activities, environmental assessments, and stakeholder engagement, and the timing for completion and anticipated results thereof; anticipated timing regarding a construction decision in respect of the Čoka Rakita project; anticipated steps in the development of the Loma Larga project, including the intention to resume drilling activities and to commence formal negotiations in respect of an exploitation agreement, and the anticipated timing thereof; exploration activities at the Company's operating and development properties and the anticipated results thereof; permitting requirements, the ability of the Company to obtain such permits, and the anticipated timing thereof; anticipated amounts of future expenditures at the Company's operating and development properties; statements under the heading '2025 Guidance and Three-year Outlook'; timing of payments and amounts of dividends; and the number of common shares of the Company that may be purchased under the NCIB. Forward Looking Statements are based on certain key assumptions and the opinions and estimates of management and Qualified Person (in the case of technical and scientific information), as of the date such statements are made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the Forward Looking Statements. In addition to factors already discussed in this news release, such factors include, among others: fluctuations in metal prices and foreign exchange rates; risks arising from the current economic environment and the impact on operating costs and other financial metrics, including risks of recession; the ability of the Company to complete the Transaction, including the ability to obtain all necessary shareholder and regulatory approvals in connection therewith; the ability of the Company to realize the anticipated benefits of the Transaction; the commencement, continuation or escalation of geopolitical crises and armed conflicts, including without limitation, in Ukraine, the Middle East, Ecuador, and other jurisdictions from time to time, and their direct and indirect effects on the operations of DPM; risks arising from counterparties being unable to or unwilling to fulfill their contractual obligations to the Company; the speculative nature of mineral exploration, development and production, including changes in mineral production performance, exploitation and exploration results; the Company's dependence on its operations at the Chelopech mine and Ada Tepe mine; changes in tax and tariff regimes in the jurisdictions in which the Company operate or which are otherwise applicable to the Company's business, operations, or financial condition; possible inaccurate estimates relating to future production, operating costs and other costs for operations; possible variations in ore grade and recovery rates; inherent uncertainties in respect of conclusions of economic evaluations, economic studies and mine plans; uncertainties with respect to the timing of completion and publication of the FS in respect of each of the Čoka Rakita project and the Loma Larga project, and the results thereof; the Company's dependence on continually developing, replacing and expanding its mineral reserves; uncertainties and risks inherent to developing and commissioning new mines into production, which may be subject to unforeseen delays; risks related to the possibility that future exploration results will not be consistent with the Company's expectations, that quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; risks associated with the fact that certain of the Company's initiatives are still in the early stages and may not materialize; changes in project parameters, including schedule and budget, as plans continue to be refined; risks related to the financial results of operations, changes in interest rates, and the Company's ability to finance its operations; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; uncertainties inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the Company's activities; accidents, labour disputes and other risks inherent to the mining industry; failure to achieve certain cost savings; risks related to the Company's ability to manage environmental and social matters, including risks and obligations related to closure of the Company's mining properties; risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations relating to related to greenhouse gas emission levels, energy efficiency and reporting of risks; land reclamation and mine closure requirements, and costs associated therewith; the Company's controls over financial reporting and obligations as a public company; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; opposition by social and non-governmental organizations to mining projects; uncertainties with respect to realizing the anticipated benefits from the development of the Loma Larga or Čoka Rakita projects; cyber-attacks and other cybersecurity risks; competition in the mining industry; exercising judgment when undertaking impairment assessments; claims or litigation; limitations on insurance coverage; changes in values of the Company's investment portfolio; changes in laws and regulations, including with respect to taxes, and the Company's ability to successfully obtain all necessary permits and other approvals required to conduct its operations; employee relations, including unionized and non-union employees, and the Company's ability to retain key personnel and attract other highly skilled employees; ability to successfully integrate acquisitions or complete divestitures; unanticipated title disputes; volatility in the price of the common shares of the Company; potential dilution to the common shares of the Company; damage to the Company's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company's handling of environmental matters or dealings with community groups, whether true or not; risks related to holding assets in foreign jurisdictions; conflicts of interest between the Company and its directors and officers; the timing and amounts of dividends; there being no assurance that the Company will purchase additional common shares of the Company under the NCIB, as well as those risk factors discussed or referred to in the MD&A, the Company's most recent AIF, the Company's management information circular dated July 11, 2024, and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available on SEDAR+ at The reader has been cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward Looking Statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that Forward Looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company's Forward Looking Statements reflect current expectations regarding future events and speak only as of the date hereof. Other than as it may be required by law, the Company undertakes no obligation to update Forward Looking Statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on Forward Looking Statements. 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 used by management and investors to assist with assessing the Company's performance, including its ability to generate sufficient cash flow to meet its return objectives and support its investing activities and debt service obligations. In addition, the Human Capital and Compensation Committee of the Board of Directors uses certain of these measures, together with other measures, to set incentive compensation goals and assess performance. 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. Cash cost and all-in sustaining cost measures Mine cash cost; mine cash cost of sales; and all-in sustaining cost are non-GAAP financial measures. Cash cost per tonne of ore processed; cash cost per ounce of gold sold; and all-in sustaining cost per ounce of gold sold are non-GAAP ratios. These measures capture the important components of the Company's production and related costs. Management and investors utilize these metrics as an important tool to monitor cost performance at the Company's operations. In addition, the Human Capital and Compensation Committee of the Board of Directors uses certain of these measures, together with other measures, to set incentive compensation goals and assess performance. The following table provides a reconciliation of the Company's cash cost per tonne of ore processed to its cost of sales: $ thousands Three Months Six Months unless otherwise indicated 2025 2024 2025 2024 Chelopech Ore processed t 541,096 559,026 1,073,947 1,080,150 Cost of sales 42,046 37,950 78,044 73,743 Add/(deduct): Depreciation and amortization (8,475 ) (7,962 ) (16,448 ) (15,654 ) Change in concentrate inventory 542 1,119 656 1,510 Mine cash cost(1) 34,113 31,107 62,252 59,599 Cost of sales per tonne of ore processed(2) $/t 78 68 73 68 Cash cost per tonne of ore processed(2) $/t 63 56 58 55 Ada Tepe Ore processed t 189,884 196,517 337,175 376,591 Cost of sales 28,115 27,286 51,666 53,722 Deduct: Depreciation and amortization (14,458 ) (13,596 ) (25,832 ) (28,051 ) Change in concentrate inventory (355 ) 284 (32 ) (4 ) Mine cash cost(1) 13,302 13,974 25,802 25,667 Cost of sales per tonne of ore processed(2) $/t 148 139 153 143 Cash cost per tonne of ore processed(2) $/t 70 71 77 68 (1) Cash costs are reported in U.S. dollars, although the majority of costs incurred are denominated in non-U.S. dollars, and consist of all production related expenses including mining, processing, services, royalties and general and administrative. (2) Represents cost of sales and mine cash cost, respectively, divided by tonnes of ore processed. The following tables provide, for the periods indicated, a reconciliation of the Company's cash cost per ounce of gold sold and all-in sustaining cost per ounce of gold sold to its cost of sales: $ thousands, unless otherwise indicatedFor the three months ended June 30, 2025 Chelopech Ada Tepe Consolidated Cost of sales(1) 42,046 28,115 70,161 Add/(deduct): Depreciation and amortization (8,475 ) (14,458 ) (22,933 ) Treatment charges, transportation and other related selling costs(2) 14,256 (113 ) 14,143 By-product credits(3) (24,085 ) (244 ) (24,329 ) Mine cash cost of sales 23,742 13,300 37,042 Rehabilitation related accretion and depreciation expenses(4) 20 394 414 Allocated general and administrative expenses(5) - - 10,351 Cash outlays for sustaining capital expenditures(6) 1,827 3,075 4,902 Cash outlays for leases(6) 554 186 740 All-in sustaining cost 26,143 16,955 53,449 Payable gold in concentrates sold oz 38,333 14,544 52,877 Cost of sales per ounce of gold sold(7) $/oz 1,097 1,933 1,327 Cash cost per ounce of gold sold(7) $/oz 619 914 701 All-in sustaining cost per ounce of gold sold(7) $/oz 682 1,166 1,011 $ thousands, unless otherwise indicatedFor the three months ended June 30, 2024 Chelopech Ada Tepe Consolidated Cost of sales(1) 37,950 27,286 65,236 Add/(deduct): Depreciation and amortization (7,962 ) (13,596 ) (21,558 ) Treatment charges, transportation and other related selling costs(2) 17,904 272 18,176 By-product credits(3) (30,574 ) (305 ) (30,879 ) Mine cash cost of sales 17,318 13,657 30,975 Rehabilitation related accretion expenses(4) 65 319 384 Allocated general and administrative expenses(5) - - 7,060 Cash outlays for sustaining capital expenditures(6) 2,559 1,920 4,479 Cash outlays for leases(6) 143 170 313 All-in sustaining cost 20,085 16,066 43,211 Payable gold in concentrates sold oz 37,849 22,974 60,823 Cost of sales per ounce of gold sold(7) $/oz 1,003 1,188 1,073 Cash cost per ounce of gold sold(7) $/oz 458 594 509 All-in sustaining cost per ounce of gold sold(7) $/oz 531 699 710 (1) Included in cost of sales were share-based compensation expenses of $0.8 million (2024 – $0.5 million) in the second quarter of 2025. (2) Represent revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice. (3) Represent copper and silver revenue. (4) Included in cost of sales and finance cost in the condensed interim consolidated statements of earnings (loss). (5) Represent an allocated portion of DPM's general and administrative expenses, including share-based compensation expenses of $5.1 million (2024 – $2.3 million) for the second quarter of 2025, based on Chelopech's and Ada Tepe's proportion of total revenue, including revenue from discontinued operations in 2024. Allocated general and administrative expenses, including corporate social responsibility expenses and excluding depreciation and amortization, are reflected in consolidated all-in sustaining cost per ounce of gold sold and are not reflected in the cost measures for Chelopech and Ada Tepe. (6) Included in cash used in investing activities and financing activities, respectively, in the condensed interim consolidated statements of cash flows. (7) Represents cost of sales, mine cash cost of sales and all-in sustaining cost, respectively, divided by payable gold in concentrates sold. $ thousands, unless otherwise indicatedFor the six months ended June 30, 2025 Chelopech Ada Tepe Consolidated Cost of sales(1) 78,044 51,666 129,710 Add/(deduct): Depreciation and amortization (16,448 ) (25,832 ) (42,280 ) Treatment charges, transportation and other related selling costs(2) 28,335 420 28,755 By-product credits(3) (48,129 ) (431 ) (48,560 ) Mine cash cost of sales 41,802 25,823 67,625 Rehabilitation related accretion and depreciation expenses(4) 19 553 572 Allocated general and administrative expenses(5) - - 27,673 Cash outlays for sustaining capital expenditures(6) 4,919 6,796 11,715 Cash outlays for leases(6) 1,216 357 1,573 All-in sustaining cost 47,956 33,529 109,158 Payable gold in concentrates sold oz 70,755 26,911 97,666 Cost of sales per ounce of gold sold(7) $/oz 1,103 1,920 1,328 Cash cost per ounce of gold sold(7) $/oz 591 960 692 All-in sustaining cost per ounce of gold sold(7) $/oz 678 1,246 1,118 $ thousands, unless otherwise indicatedFor the six months ended June 30, 2024 Chelopech Ada Tepe Consolidated Cost of sales(1) 73,743 53,722 127,465 Add/(deduct): Depreciation and amortization (15,654 ) (28,051 ) (43,705 ) Treatment charges, transportation and other related selling costs(2) 33,360 961 34,321 By-product credits(3) (52,774 ) (583 ) (53,357 ) Mine cash cost of sales 38,675 26,049 64,724 Rehabilitation related accretion expenses(4) 149 673 822 Allocated general and administrative expenses(5) - - 15,764 Cash outlays for sustaining capital expenditures(6) 6,024 3,967 9,991 Cash outlays for leases(6) 340 338 678 All-in sustaining cost 45,188 31,027 91,979 Payable gold in concentrates sold oz 67,417 48,618 116,035 Cost of sales per ounce of gold sold(7) $/oz 1,094 1,105 1,099 Cash cost per ounce of gold sold(7) $/oz 574 536 558 All-in sustaining cost per ounce of gold sold(7) $/oz 670 638 793 (1) Included in cost of sales were share-based compensation expenses of $2.5 million (2024 – $1.0 million) in the first half of 2025. (2) Represents revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice. (3) Represents copper and silver revenue. (4) Included in cost of sales and finance cost in the condensed interim consolidated statements of earnings (loss). (5) Represents an allocated portion of DPM's general and administrative expenses, including share-based compensation expenses of $14.6 million (2024 – $5.3 million) in the first half of 2025, based on Chelopech and Ada Tepe's proportion of total revenue, including revenue from discontinued operations in 2024. Allocated general and administrative expenses are reflected in consolidated all-in sustaining cost per ounce of gold sold and are not reflected in the cost measures for Chelopech and Ada Tepe. (6) Included in cash used in investing activities and financing activities, respectively, in the condensed interim consolidated statements of cash flows. (7) Represents cost of sales, mine cash cost of sales and all-in sustaining cost, respectively, divided by payable gold in concentrates sold. Adjusted net earnings and adjusted basic earnings per share Adjusted net earnings is a non-GAAP financial measure and adjusted basic earnings per share is a non-GAAP ratio used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods. Adjusted net earnings are defined as net earnings, adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including: impairment charges or reversals thereof; unrealized and realized gains or losses related to investments carried at fair value; significant tax adjustments not related to current period earnings; and non-recurring or unusual income or expenses that are either not related to the Company's operating segments or unlikely to occur on a regular basis. The following table provides a reconciliation of adjusted net earnings to net earnings from continuing operations: $ thousands, except per share amounts Three Months Six Months Ended June 30, 2025 2024 2025 2024 Net earnings 82,399 70,849 115,903 110,275 Add/(deduct): Adriatic acquisition related costs, net of income taxes of $nil 5,130 - 5,130 - 2025 Bulgarian levy, net of income tax recoveries of $2,438(1) - - 21,938 - Net termination fee received from Osino, net of income taxes of $nil - - - (6,901 ) Adjusted net earnings 87,529 70,849 142,971 103,374 Basic earnings per share $/sh 0.49 0.39 0.68 0.61 Adjusted basic earnings per share $/sh 0.52 0.39 0.84 0.57 (1) Represents a one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure used by management and investors to measure the underlying operating performance of the Company's operating segments. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods. In addition, the Human Capital and Compensation Committee of the Board of Directors uses adjusted EBITDA, together with other measures, to set incentive compensation goals and assess performance. Adjusted EBITDA excludes the following from earnings before income taxes: depreciation and amortization; interest income; finance cost; impairment charges or reversals thereof; unrealized and realized gains or losses related to investments carried at fair value; and non-recurring or unusual income or expenses that are either not related to the Company's operating segments or unlikely to occur on a regular basis. The following table provides a reconciliation of adjusted EBITDA to earnings before income taxes from continuing operations: $ thousands Three Months Six Months Ended June 30, 2025 2024 2025 2024 Earnings before income taxes 92,004 80,220 130,556 126,499 Add/(deduct): Depreciation and amortization 23,691 22,108 43,863 44,944 Finance costs 1,100 696 1,812 1,402 Interest income (7,849 ) (9,935 ) (16,417 ) (18,342 ) Adriatic acquisition related costs 5,130 - 5,130 - 2025 Bulgarian levy(1) - - 24,376 - Net termination fee received from Osino - - - (6,901 ) Adjusted EBITDA 114,076 93,089 189,320 147,602 (1) Represents a one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. Cash provided from operating activities, before changes in working capital Cash provided from operating activities, before changes in working capital, is a non-GAAP financial measure defined as cash provided from operating activities excluding changes in working capital as set out in the Company's consolidated statements of cash flows. This measure is used by the Company and investors to measure the cash flow generated by the Company's operating segments prior to any changes in working capital, which at times can distort performance. Free cash flow Free cash flow is a non-GAAP financial measure defined as cash provided from operating activities, before changes in working capital which includes changes in share-based compensation liabilities, less cash outlays for sustaining capital expenditures, mandatory principal repayments and interest payments related to debt and leases. Free cash flow excludes non-recurring or unusual income or expenses that are not related to the Company's operating segments. This measure is used by the Company and investors to measure the cash flow available to fund growth related initiatives and capital expenditures, dividends and share repurchases. The following table provides a reconciliation of cash provided from operating activities, before changes in working capital and free cash flow to cash provided from operating activities of continuing operations: $ thousands Three Months Six Months Ended June 30, 2025 2024 2025 2024 Cash provided from operating activities 99,541 125,793 154,467 161,593 Excluding: Changes in working capital(1) 2,324 (26,394 ) 11,067 7,222 Cash provided from operating activities, before changes in working capital(2) 101,865 99,399 165,534 168,815 Adriatic acquisition related costs 5,130 - 5,130 - 2025 Bulgarian levy(3) (6,094 ) - 18,282 - Cash outlays for sustaining capital expenditures(4) (4,513 ) (5,351 ) (11,779 ) (11,311 ) Principal repayments related to leases (1,482 ) (1,153 ) (2,806 ) (2,125 ) Interest payments(4) (366 ) (467 ) (693 ) (699 ) Other non-cash items - (10,000 ) - (12,200 ) Free cash flow 94,540 82,428 173,668 142,480 (1) Excludes an unfavourable change in working capital from discontinued operations of $5.3 million (2024 – a favourable change of $6.8 million) and a favourable change of $167.9 million (2024 – $16.6 million), respectively, during the second quarter and first half of 2025. (2) Excludes cash used in operating activities of discontinued operations, before changes in working capital, of $15.9 million and $8.1 million, respectively, during the second quarter and first half of 2024. (3) Represents an accrual of a one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. During the second quarter of 2025, $6.1 million was paid in cash and the remaining accrual was $18.3 million as of June 30, 2025. (4) Included in cash used in investing and financing activities, respectively, in the condensed interim consolidated statements of cash flows. Average realized metal prices Average realized gold and copper prices are non-GAAP ratios used by management and investors to highlight the price actually realized by the Company relative to the average market price, which can differ due to the timing of sales, hedging and other factors. Average realized gold and copper prices represent the average per unit price recognized in the Company's consolidated statements of earnings (loss) prior to any deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice. The following table provides a reconciliation of the Company's average realized gold and copper prices to its revenue: $ thousands, unless otherwise stated Three Months Six Months Ended June 30, 2025 2024 2025 2024 Total revenue 186,487 156,838 330,634 280,629 Add/(deduct): Treatment charges and other deductions(1) 14,143 18,176 28,755 34,321 Silver revenue (1,637 ) (1,334 ) (3,401 ) (2,610 ) Revenue from gold and copper 198,993 173,680 355,988 312,340 Revenue from gold 176,301 144,099 310,829 261,557 Payable gold in concentrates sold oz 52,877 60,823 97,666 116,035 Average realized gold price per ounce $/oz 3,334 2,369 3,183 2,254 Revenue from copper 22,692 29,581 45,159 50,783 Payable copper in concentrate sold Klbs 5,204 6,469 10,367 11,926 Average realized copper price per pound $/lb 4.36 4.57 4.36 4.26 (1) Represent revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice. 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Dundee Precious Metals Announces Filing of Management Information Circular for Acquisition of Adriatic Metals & Name Change
(Unless otherwise noted, all dollar amounts in this release are expressed in U.S dollars.) TORONTO, July 23, 2025 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) ('DPM') is pleased to announce that it has filed its management information circular and related voting materials (collectively, the 'Meeting Materials') in connection with a special meeting of shareholders ('DPM Shareholders') to be held on August 13, 2025 (the 'Meeting'). The purpose of the Meeting is to approve the issuance of DPM common shares in connection with the acquisition by DPM of Adriatic Metals plc ('Adriatic'), as previously announced on June 13, 2025 (the 'Transaction'), as well as to approve a change of DPM's name from 'Dundee Precious Metals Inc.' to 'DPM Metals Inc.' (the 'Name Change'). 'The high-quality Vareš operation is an excellent fit with our operating expertise and financial strength to develop a growth pipeline of high-margin assets. Creating a premier mining business with peer-leading growth offers a clear and compelling value proposition for all of our shareholders,' said David Rae, President and Chief Executive Officer. 'Building on momentum from this combination, we are excited to announce the proposed name change to DPM Metals Inc. This is an opportunity to differentiate our precious metals business amongst the global capital markets that have already begun to recognize our exceptional growth pipeline, strong balance sheet, capital returns and operational track record.' DPM Shareholders should receive the Meeting Materials by mail shortly. The Meeting Materials can also be accessed on DPM's website at or on DPM's SEDAR+ profile at Your vote is important. DPM encourages DPM Shareholders to read the Meeting Materials in detail. To ensure that your DPM shares will be represented at the Meeting, DPM Shareholders should carefully follow the voting instructions provided in the Meeting Materials. The deadline for the receipt of proxies is 10:00 a.m. (Toronto time) on August 11, 2025. The acquisition of Adriatic and its Vareš operation in Bosnia and Herzegovina, a producing silver-lead-zinc-gold underground mine, will enhance DPM's existing high-margin asset portfolio with peer-leading production growth and a high-quality development and exploration pipeline. Board of Directors' Recommendation The board of directors of DPM (the 'DPM Board') has been advised by BMO Capital Markets as to the financial terms of the Transaction and considers the Transaction to be in the best interest of DPM and fair to DPM from a financial point of view. The DPM Board recommends that DPM Shareholders vote FOR the resolution of the DPM Shareholders to approve the issuance of DPM common shares in the Transaction at the Meeting (the 'Share Issuance Resolution'). The approval of the Name Change is not required for the Transaction to be implemented. However, the DPM Board recommends that DPM Shareholders vote FOR the resolution of the DPM Shareholders to approve the Name Change at the Meeting, to better promote DPM's corporate identity in light of its business following completion of the Transaction. Reasons and Benefits In reaching its conclusions and formulating its recommendation, the DPM Board consulted with representatives of DPM's management team and its legal and financial advisors. The DPM Board also reviewed technical, financial and operational information relating to Adriatic and DPM and considered a number of factors and reasons, including those listed below. The following is a summary of the principal reasons for the determination of the DPM Board that the Transaction is in the best interests of DPM and fair to DPM from a financial point of view, for its reaffirmation of its initial recommendation, and for its continued recommendation that DPM Shareholders vote FOR the Share Issuance Resolution. Improved financial strength: The DPM Board anticipates that the Transaction will result in value creation from corporate and other operational synergies and enhanced financial flexibility to support the growth initiatives of DPM following completion of the Transaction (as so constituted, the 'Combined Company'). Specifically, DPM's strong balance sheet and cash flow is expected to fund remaining ramp-up requirements at Vareš, construction capex for an additional operating mine and accelerate exploration across its expanded portfolio, thereby resulting in meaningful value creation for the Combined Company and avoiding dilution associated with large third-party financings. Optimized capital allocation and investment: The Combined Company is expected to have a strong balance sheet, with significant free cash flow generation and exposure to mineral projects with strong economics across Bulgaria, Serbia, Ecuador and Bosnia and Herzegovina, which the DPM Board believes will enable the Combined Company to optimize capital allocation, enhance its market valuation and investment across its portfolio of mining assets. The DPM Board also believes that the strength of the Combined Company (expected to be evidenced by significant management expertise, free cash flow, a strong balance sheet and borrowing base potential) will provide an excellent platform for future investment and consolidation within the regions in which the Combined Company will operate. De-Risking mine development: The completion of the Transaction is expected to enhance DPM's ability to successfully develop a mine and launch operations at DPM's Čoka Rakita Project in Serbia, effectively de-risking the Čoka Rakita Project. By integrating Adriatic's experienced mining personnel into the Combined Company's operations, DPM is expected to demonstrate its ability to navigate the complexities of mine development and mitigate associated risks. Strong and proven management team: The Combined Company will benefit from the skill and expertise of DPM's current management team, who possess extensive experience in mine development, operations, finance, exploration and rightsholder and stakeholder engagement, all of which would accelerate the successful development of Adriatic's mineral projects. Enhanced capital markets profile: The Transaction is expected to result in increased scale and liquidity with enhanced market relevance and financial flexibility and a lower cost of capital, with wider investor appeal and analyst coverage due to an even larger market capitalization, which could provide an opportunity for a re-rating of the common shares of DPM following completion of the Transaction. In making its determinations and recommendations, the DPM Board observed that a number of procedural safeguards are in place and present to permit the DPM Board to protect the interests of DPM, the DPM Shareholders and other DPM stakeholders. These procedural safeguards include, among others: Ability to pursue alternate transactions: DPM is not restricted from engaging in discussions or negotiations with third parties regarding potential alternative transactions involving DPM, which affords the DPM Board latitude to duly discharge its fiduciary duties under applicable laws and pursue viable, value-enhancing transactions in the best interests of DPM. Reasonable termination fee payment: The amount of the termination payment, being $15,000,000 or $37,500,000, payable to Adriatic under certain specified circumstances, is reasonable in the circumstances of the Transaction. DPM shareholder approval: The Share Issuance Resolution must be approved, with or without variation, by the affirmative vote of at least a simple majority of the votes cast by DPM Shareholders present (in person or virtually) or represented by proxy and entitled to vote at the Meeting. The DPM Board also considered a variety of risks and other potentially negative factors relating to the Transaction. The DPM Board believes that, overall, the anticipated benefits of the Transaction to DPM outweigh these risks and negative factors. DPM Shareholders are encouraged to read the management information circular included in the Meeting Materials for more information regarding the reasons and benefits of the Transaction, risk factors with respect to the Transaction, and the Transaction generally. Shareholder Questions and Assistance If you have any questions or require assistance voting your shares, please contact our proxy solicitation agent, Laurel Hill Advisory Group, at 1-877-452-7184 toll-free in North America, or call collect outside North America at +1 416 304-0211, or by e-mail at assistance@ About Dundee Precious Metals Inc. Dundee Precious Metals Inc. is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Serbia and Ecuador. Our strategic objective is to become a mid-tier precious metals company, which is based on sustainable, responsible and efficient gold production from our portfolio, the development of quality assets, and maintaining a strong financial position to support growth in mineral reserves and production through disciplined strategic transactions. This strategy creates a platform for robust growth to deliver above-average returns for DPM Shareholders. DPM's shares are traded on the Toronto Stock Exchange (symbol: DPM). For further information please contact: Jennifer CameronDirector, Investor RelationsTel: (416) 219-6177jcameron@ Cautionary Note Regarding Forward Looking Information This news release (including information incorporated by reference into this news release) contains statements which are, or may be deemed to be, 'forward-looking statements' within the meaning of applicable securities laws. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of DPM and Adriatic (as applicable) about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. The forward-looking statements contained in this news release include statements with respect to the expected benefits of the Transaction to DPM, the anticipated date and timing for the Meeting, the reasons for, and anticipated benefits of, the Transaction, and the ability of the Combined Company to successfully integrate Adriatic into its portfolio of assets, the future plans, business prospects and performance, growth potential, financial strength, revenues, working capital, costs, cash flow, capital expenditures, investment valuations, income, margins, access to capital, and overall strategy of the Combined Company following completion of the Transaction, the capital markets profile of the Combined Company, statements made in, and based upon, the fairness opinion, and other statements other than historical facts. Often, but not always, forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and may use forward-looking words, phrases and expressions such as 'anticipate', 'target', 'expect', 'believe', 'intend', 'foresee', 'predict', 'project', 'estimate', 'forecast', 'intend', 'plan', 'budget', 'scheduled', 'goal', 'believe', 'hope', 'aims', 'continue', 'likely', 'will', 'may', 'might', 'should', 'would', 'could', 'seek', 'plan', 'scheduled', 'possible', 'continue', 'potential', 'outlook', 'target' or other similar words, phrases, and expressions; provided that the absence thereof does not mean that a statement is not forward-looking. Similarly, statements that describe objectives, plans or goals are or may be forward-looking statements. These statements are based on assumptions and assessments made by DPM in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve known and unknown risk and uncertainty and other factors which may cause actual results, performance, actions, achievements or developments to differ materially from those expressed in or implied by such forward-looking statements, because they relate to events and depend on circumstances that will occur in the future. Although DPM believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and readers are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this news release. There are a number of factors which could cause actual results, performance, actions, achievements or developments to differ materially from those expressed or implied in forward-looking statements. Such factors include, but are not limited to: the ability to proceed with or complete the Transaction; the ability to obtain requisite regulatory and shareholder approvals and the satisfaction of other conditions to the Transaction on the proposed terms; changes in the global, political, economic, social, business and competitive environments and in market and regulatory forces; changes in future inflation, deflation, exchange and interest rates; changes in tax and national insurance rates; future business combinations, capital expenditures, acquisitions or dispositions; changes in general and economic business conditions; changes in the behaviour of other market participants; the anticipated benefits of the Transaction not being realised as a result of changes in general economic and market conditions in the countries in which DPM and Adriatic operate; changes in or enforcement of national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalisation of property and political or economic developments in Bosnia, Serbia, Bulgaria and Ecuador and other jurisdictions in which DPM and Adriatic carry on business or may carry on business in the future; fluctuations in the spot and forward price of gold, copper, silver and other metals or certain other commodities (such as diesel fuel, natural gas and electricity); the results of exploration activities and feasibility studies; the speculative nature of mineral exploitation and development; risks that exploration data may be incomplete and considerable additional work may be required to complete future evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; future prices of gold and other metals; possible variations of ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; discovery of archaeological ruins; risk of loss due to acts of war, terrorism, sabotage and civil disturbances operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; outcome of pending or future litigation proceedings; the failure to maintain effective internal control over financial reporting or effective disclosure controls and procedures, the inability to remediate one or more material weaknesses, or the discovery of additional material weaknesses, in the internal control over financial reporting; other business and operational risks and challenges; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary notices, concessions, permits and approvals; weak, volatile or illiquid capital and/or credit markets; changes in the degree of competition in the geographic and business areas in which DPM and Adriatic operate; any public health crises, pandemics or epidemics and repercussions thereof; changes to the board of directors of DPM and/or Adriatic and/ or the composition of their respective workforces; safety and technology risks; exposures to terrorist activity, information technology system failures, cyber-crime, fraud and pension scheme liabilities; risks relating to environmental matters such as climate change including DPM and/or Adriatic's ability along with applicable governmental bodies and/or other stakeholders to measure, manage and mitigate the impacts of climate change effectively; changes to law and/or the policies and practices of regulatory and governmental bodies; Russia's invasion of Ukraine, conflicts in the Middle East, and any cost of living crisis or recession. Specific reference is made to the most recent Annual Information Form and other disclosure documents filed by DPM at for additional information on some of the factors and risks that may affect DPM's ability to achieve the expectations set forth in the forward-looking statements contained in this news release. Other unknown or unpredictable factors could cause actual results, performance, actions, achievements or developments to differ materially from those expected, estimated or projected in the forward-looking statements. If any one or more of these risks or uncertainties materialises or if any one or more of the assumptions proves incorrect, actual results, performance, actions, achievements or developments may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. DPM, nor any of its respective associates, directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this news release will actually occur. DPM does not assume any obligation to update or correct the information contained in this news release (whether as a result of new information, future events or otherwise), except as required by applicable law. All subsequent written or oral forward-looking statements attributable to DPM or any person acting on their behalf are qualified by the cautionary statements in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Australian
21-06-2025
- Business
- The Australian
The next ASX mining takeover targets
M&A has emerged as one of the key mining investment themes of 2025 Billions are being splurged by cashed up majors on undervalued small and mid caps We ask five experts which ASX companies could become takeover targets next No theme has shouted louder in the junior and mid-tier mining space this year than M&A. With majors cashed to the gills and looking to both grow and upgrade their portfolios, and the share prices of junior miners trading at big discounts to the values of their assets, there's no time like the present to get a deal done. The latest non-orchestral manoeuvres in the dark (deals tend to be negotiated after hours under the cover of night by shadowy advisors and lawyers) have included the $1.6bn takeover of MAC Copper (ASX:MAC) proposed by South Africa's Harmony Gold, Dundee Precious Metals' US$1.25bn splurge on Vares silver mine owner Adriatic Metals (ASX:ADT) and the $185m deal for Arizona copper stock New World Resources (ASX:NWC) from London-listed Central Asia Metals. It's shares are now in a halt above the 5c offer price with the company paused for a proposed increase in the scheme consideration (ie more dosh for investors) as PE Kinterra Capital, owner of the shuttered Pumpkin Hollow copper mine in nearby Nevada, emerged as a near 12% shareholder of NWC. Intrigue, subterfuge and, most importantly, gains are all on the menu for ASX investors as larger international players and cashed up gold and copper producers look to pick up new projects. The question is not whether there will be more takeover activity. The question is, in the immortal words of Bill Goldberg, WHO'S NEXT?! We won't deign to suggest we have the keys to the castle here. But we have tapped our extensive list of experts, with analysts and fund managers giving us their tips for who may be the next corporate prey. David Franklyn – Argonaut Funds Management Pilbara Minerals (ASX:PLS) A large scale efficient spodumene producer with plenty of cash. If Rio Tinto (ASX:RIO) are committed to becoming a major player in the lithium market then PLS is the logical target. FireFly Metals (ASX:FFM) A standout Canadian copper development opportunity with a growing resource base and good grades. NexGen Energy (ASX:NXG) Nuclear power is gaining increasing momentum globally as a carbon free producer of base load power. If you want to be a major player in the Industry then NXG is the logical acquisition. The Argonaut Natural Resources Fund owns FireFly Metals and NexGen Energy. Andy Clayton – Precision Funds Management NexGen Energy (ASX:NXG) This is a genuine tier-1 asset (high grade, low cost, long life) in a tier-1 jurisdiction/country (Canada). The Rook I feasibility study showed a project capable of producing up to 30Mlb per year at a cash operating cost of US$10/lb. The economics are driven by its ultra high grade, with a reserve of 4.5Mt at 2.37% U3O8 for 239Mlb of U3O8. At a uranium price of US$95/lb, the annual after-tax free cash flow from the project in years 1-5 is US$1.47bn per annum. An NPV8 is estimated at US$4.7bn with an IRR of 45% and capital payback of approximately one year. These are outstanding economics. Once permitting is completed – expected in the next 12-18 months – we believe there is a good chance for corporate activity. Toubani Resources (ASX:TRE) Toubani has an excellent oxide gold deposit in Mali which has potential to produce +150,000ozpa at a low AISC of US$1175/oz for +10yrs. The capital is a modest US$216m and at a US$3000oz gold price a post-tax NPV8 is estimated at US$951m (A$1.46bn) and an IRR of 79%. This compares to TRE's current market capitalisation of a meagre $70m. A recent strategic funding deal to raise $29m which includes a $15.2m placement to an A2MP Investments DMCC, an African focussed investment vehicle owned by Eagle Eye Asset Management sees TRE well funded for the medium term. A2MP and TRE also executed a debt commitment letter for a minimum of US$160m. TRE trades at a fraction of its peer group due to the Malian discount currently being applied (resulting from changes to Mali's mining tax system and recent disputes with western gold miners operating in the country). We believe that as political stability and sentiment returns then TRE is a potential takeover candidate. Encounter Resources (ASX:ENR) Encounter has the largest land holding in the West Arunta region, which over the past three years has seen significant exploration success from its neighbour WA1 Resources (ASX:WA1), which outlined a large, high grade niobium deposit. Successful drilling by ENR in the last field season culminated in a maiden resource of 19.2Mt at 1.74% Nb2O5 from three separate deposits. This resource is expected to grow as further extensional drilling is done in the current field season. WA1 Resources has a market capitalisation of ~$900m – almost 8x that of ENR at $120m – and whilst it's further ahead in terms of development, we ultimately believe there will only be one key player in this area. Whether that is WA1 Resources or another corporate only time will tell, but logic would suggest there is likely to be only one ferroniobium plant build in this remote area. Guy Le Page – RM Capital Meteoric Resources (ASX:MEI) and/or Viridis Mining and Minerals (ASX:VMM) There is increasing demand for strategic rare earth projects to supply NdPr and Dy/Tb outside of China, driven by national interests, particularly in Western countries seeking supply chain security. Recent reports indicate that Lynas (ASX:LYC) is showing growing interest in Brazil for potential rare earth assets, likely aiming to secure supply and diversify geographically. Both Meteoric and Viridis possess ionic clay rare earth projects in Brazil with substantial resources and well-developed flowsheets. Although current financial metrics for these projects are not favourable at prevailing NdPr prices, the global push for secure supply could elevate their strategic value. Their proximity to the US market may also attract interest for potential takeovers, especially as Lynas advances its US operations with backing and funding from American entities. Lynas has been actively expanding its global supply chain, exemplified by its recent partnership with Menteri Besar in Malaysia. This initiative aims to leverage local processing infrastructure and diversify supply sources, further supporting Lynas' interest in ionic clay REE projects. Such moves suggest Lynas may consider acquiring strategically located assets like Meteoric and Viridis to strengthen its position in the global rare earth industry. Tesoro Gold (ASX:TSO) Tesoro owns 100% of the 1.5 Moz El Zorro Gold Project (Ternera deposit), covering 570km2 of highly prospective geology in Chile's Atacama region, approximately 800km north of Santiago. The project benefits from its strategic location near roads, power lines and an airport, and is situated 190km southwest of Gold Fields' (NYSE: GFI) high-grade open-pit gold and silver mine, Salares Norte. El Zorro is Chile's first discovered intrusive-related gold system, with a proven record of a low discovery cost of US$14/oz to date. A scoping study completed in 2023 estimates a 1.3Moz mineral resource within a US$1800/oz pit shell. The study projects an NPV of US$210 million, based on a 2.4Mtpa throughput over an initial 8-year mine life, with an upfront capital expenditure of US$132m. This scoping study represents a preliminary 'starter' pit, and there is considerable upside potential, as the Ternera deposit remains open in all directions and district-scale exploration targets present additional opportunities for resource growth. Gold Fields owns 17.1% of Tesoro and has been providing ongoing technical support for Tesoro's regional exploration efforts. Astral Resources (ASX:AAR) A noteworthy takeover target in the gold space considering their open pit resource of 1.76Moz located 70km of Kalgoorlie. PFS is due late July. Paul Howard – Canaccord Genuity Given 25% of my coverage list was acquired last financial year and two of my covered stocks in ADT and NWC are currently under the microscope, this is a question I'm all too familiar with! (Ed's note: For context, Howard normally has 16-20 stocks under coverage) The mining sector typically expands and contracts over time in terms of number of participants. We had record IPOs post-Covid but now we're in a period of consolidation; the sector is getting smaller as the number of M&A deals increase. Although counter cyclical M&A deals make most sense, I see most upcoming M&A happening in the precious metals space, signalling that we are still far from the top. On the counter cyclical view, I wouldn't write off something happening in the nickel space with the likes of Centaurus Metals (ASX:CTM) (large nickel sulphide project in Brazil, Jaguar) and see opportunities for companies with copper offerings given the notion of decarbonisation and energy transition (Firefly, Cygnus Metals (ASX:CY5) or even Caravel Minerals (ASX:CVV)). But it's in precious metals where I see the most likely deals. Bellevue Gold (ASX:BGL) could go to an established producer in the near term; Antipa Minerals (ASX:AZY) could bolt on to Greatland Gold, continuing its Paterson Province consolidation moves; and the very large Rogozna project, owned by Strickland Metals (ASX:STK) in Serbia surely appeals to a major given the scale that could grow to 10Moz AuEq before long (Ed: Zijin is a large player in the geographical region). In the silver space, Andean Silver's (ASX:ASL) high grade and existing infrastructure offers appeal against a backdrop of global silver M&A deals (PASS-NYSE and MAG-TSX; DPM-TSX and ADT-ASX; AG-TSX and GATO-TSX). At the smaller end of town, companies like Astral Resources, Caprice Resources (ASX:CRS) and Great Boulder Resources (ASX:GBR) offer potentially accretive ounces to their neighbours, in our view. In West Africa, where many a M&A deal has taken place in recent years, we flag Predictive Discovery (ASX:PDI) and Turaco Gold (ASX:TCG) as having severe M&A appeal and wouldn't write off the prospect of seeing more strategic investments in smaller explorers such as Many Peaks Minerals (ASX:MPK) or Asara Resources (ASX:AS1). In fact, the whole global junior and emerging space is probably open to further strategic investments rather than pure takeover. We've seen Lundin, Montage and Zijin take this approach recently and to good effect. Hedley Widdup – Lion Selection Group Antipa Minerals (ASX:AZY) Given the amount of airtime this one has got I risk being Captain Obvious. The summary is that Greatland have done a wonderful job of outlining their plan to rejuvenate Telfer, which will benefit immensely from additional ore sources. Telfer is a big process plant, so anything that can be brought in probably needs to deliver volume as well. Antipa's Minyari contains a lot of its inventory in a single footprint, so offers up what appears to be both volume and compatibility. With Greatland set to list on ASX and suddenly become a big new domestically listed and focused gold miner, at a capitalisation that will likely see it gain index inclusion rapidly, you would expect them to have strong paper. I have to declare, Lion is a shareholder in Antipa. Bellevue Gold (ASX:BGL) This is also a name that has had chins wagging all over the place, and I think surrounds a notion that the market had a level of tolerance for commissioning issues, but Bellevue has taken too long and it's beginning to look like the ability to deliver large tonnage from a narrow vein underground at high grade is more challenging than hoped. The sport here appears to be in who the buyer might be, almost as if the chattering classes have decided a change of control is assured. Catalyst Metals (ASX:CYL) has not been concealing growth interest, although hasn't engaged in company-scale growth M&A since two deals to reunite the Plutonic field – their ambition would appear to be commensurate with a Bellevue sized target. Regis Resources (ASX:RRL) has been fingered for acquisitive interest and is probably seen as one of the most motivated project acquirers in the gold space aside of strategic neighbour consolidation. And I have wondered for a while if it is foolish to rule out Develop Global (ASX:DVP) – who spectacularly ruled out gold on the sidelines of Diggers and Dealers several years back ('gold isn't green, I'm sorry but its not') and is hitting its straps at its own project in NSW. My suspicion arises from (former Northern Star boss and now Develop MD) Bill Beament's personal history of buying projects he had previously operated at as a contractor. What would surprise us? At the moment the most deal speculation I read is around gold miners who have been piling in cash, buying up undeveloped growth options cheaply or bigger sized strategic deals like BHP for Anglo, Rio for Glencore etc. Who else is well funded, and what could they be looking at? With the competition between Trump and China leading to a renewed focus on rare earths and antimony, I think M&A interest may be relevant where deposits have either grade or scale or both, where they are located in safe jurisdictions and offtake is available. And to be clear, these are a few examples of a larger population, that might suddenly begin to look important as geopolitics changes. In rare earths, Critica (ASX:CRI) – resource stage which might make it a bit early for strategic corporates but it's very, very big, high grade and strongly located in WA's Gascoyne region (Lion owns some Critica). In antimony, Warriedar Resources (ASX:WA8) – very large antimony resource has emerged rapidly and largely from un-assayed historic holes that were drilled for gold and Southern Cross Gold (ASX:SX2) – it would be rare, but not unprecedented for a pre-resource situation to become a target. I am sure the high grades of antimony have been recognised. At Stockhead, we tell it like it is. While Astral Resources, Antipa Minerals, Caprice Resources and New World Resources are Stockhead advertisers, they did not sponsor this article. The views, information, or opinions expressed in this article are solely those of the fund managers, brokers8 and analysts and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial advice contained in this article.
Associated Press
13-06-2025
- Business
- Associated Press
Terra Balcanica Welcomes Acquisition of Neighboring Producer in Bosnia and Herzegovina
Vancouver, British Columbia, June 13, 2025 (GLOBE NEWSWIRE) -- Terra Balcanica Resources Corp. ('Terra' or the 'Company') (CSE:TERA; FRA:UB10) welcomes the acquisition of Adriatic Metals ( by the Canadian Dundee Precious Metals ( in a cash-and-stock deal valued at C$1.3 billion ( ). This development highlights the unique geological and jurisdictional potential of Bosnia and Herzegovina where Terra is advancing its Viogor-Zanik polymetallic project expected to see the Phase III drilling campaign start in the next two weeks. Dr. Aleksandar Mišković, the President and CEO of Terra Balcanica Resources Corp. commented: ' From the beginning, Terra's operational focus was aimed at the highly prolific Western Tethyan Metallogenic Belt as it extends over the western Balkans. The Company strategically targeted critical metals (Sb-Zn-Ag-Au) needed by the resource-hungry European economy which is what brought us to eastern Bosnia in 2020. Today's major announcement of a mine located only 80 km west of our flagship polymetallic targets at Chumavichi and Brezani is a testament to both amazing rate of advancement of Adriatic's Vareš mine but also the mineral resource riches of the jurisdiction in which we proudly operate. Although comparatively early in our corporate development, Terra's next steps aim to drill-confirm the size potential of the Brezani Sb-Ag fault-hosted mineralization that could indicate the same order of magnitude of ore resources as seen at Vareš.' Bosnia and Herzegovina and Western Tethyan Metallogenic Belt Bosnia and Herzegovina is situated in is a largely overlooked but ancient European mining belt with multiple jurisdictional advantages that make it a country of choice to explore for metals needed by the energy transition markets. Bosnia is a stable democracy that obtained a 'candidate status' for EU membership in 2022 and is well on the way of synchronizing its legislative and legal frameworks with European standards. It is extensively linked by road and rail networks to European smelters and the seaborne markets via Adriatic Sea. The population of Bosnia and Herzegovina, in both entities and both local and federal government levels, is largely supportive of mining industry which is not surprising considering its rich history of coal, base and precious metal mining. The country possesses a highly skilled and business-minded workforce with a youthful engineering base keen to learn about mining and best practices in the mineral resource sector. Both Bosnian entities have enacted clear and concise mining codes with the country-wide corporate tax rate of 10% and favourable royalty regimes without free carry requirements. The Western Tethyan Belt is the world's preeminent metallogenic corridor akin to the Andes and Cordilleras of the Americas. In the Balkans, it is divided into the Cretaceous and Neogene components (Figure 1), both of which are known for multiple Tier-1 deposits of precious, base (Cu-Sb-Zn-Pb), and energy transition (Li-B) metals appearing in a variety of genetic styles (skarn, veined epithermal, porphyry and sediment-hosted associations) Figure metallogenic belts of the Balkan Peninsula. Key regional projects include: the 21.1 Mt at 577 g/t AgEq. Vares silver project in Bosnia owned by Adriatic Metals, the 1.8 Bt at 0.86% Cu Čukaru Peki deposit in Timok, Serbia (Zijin Mining), and the JORC inferred resource of 7.4 Moz Au at the Rogozna project in south Serbia owned by Strickland Metals ( The red arrows indicate locations of Terra's Viogor-Zanik project and the Adriatic's Vares mine, respectively (Click here to view image ). Viogor-Zanik Project Terra Balcanica is currently defining grade and ore approximate volumes of two polymetallic targets situated within our 168 km2 Viogor-Zanik project (Figure 2). The shallow, high grade character of structurally controlled mineralization yields to potentially easy-to-operate, open-pit or shallow underground mining operations. An additional benefit is presented by the adjacent Pb-Zn-Ag-Sb mine owned by Mineco Ltd. that generates 350 ktpa of ore concentrate with onsite crushing and flotation circuits. After 2,200 m of diamond drilling completed at Chumavichi, high grade Ag-Sb-Pb-Zn-Au mineralizations have been confirmed at three targets spanning 2 km of strike along a shallow, fault-hosted, intermediate sulfidation, polymetallic vein system. At the Company's other Viogor-Zanik target of Brezani, where the Company drilled over 1,500 m of diamond core, Terra has discovered a retrograde, chlorite-overprinted gold skarn system starting from surface, superimposed on a >1.2 km long, NE-shallowing Ag-Sb-Pb-Zn mineralized, fault-hosted permeability corridor. Here, with the maiden diamond drill hole BREDD002, Terra intercepted a 20-m wide, antimony-silver mineralization grading 436 g/t Ag Eq. Figure map of the Viogor Zanik project with the Brezani target in the southeastern part of the project. Cumavici, the other high-grade, shallow polymetallic target is located 13 km to centrally located Sase mine (Mineco Ltd.) produces 350,000 tpa of Pb-Zn-Ag concentrate (Click here to view image). Akin to Adriatic's deposits at Rupice and Veovača deposits, the Viogor Zanik project features high grades of a similar mix of strategically needed metals dominated by silver, antimony and zinc that on average exceed 520 g/t Ag Eq. at Brezani and 1,200 g/t Ag Eq. at the Cumavici corridor. Qualified Person Dr. Aleksandar Mišković, is the Company's designated Qualified Person ('QP') for this news release within the meaning of National Instrument 43-101 Standards of Disclosure of Mineral Projects ('NI 43-101'). The QP has reviewed and validated that the information contained in this news release is factual and accurate. About the Company Terra Balcanica is a polymetallic and energy metals exploration company targeting large-scale mineral systems in the Balkans of southeastern Europe and northern Saskatchewan, Canada. The Company has a 90% interest in the Viogor-Zanik Project in eastern Bosnia and Herzegovina. The Canadian assets comprise a 100% optioned portfolio of uranium-prospective licences at the outskirts of the Athabasca basin: Charlot-Neely Lake, Fontaine Lake, Snowbird, and South Pendleton. The Company emphasizes responsible engagement with local communities and stakeholders. It is committed to proactively implementing Good International Industry Practice (GIIP) and sustainable health, safety, and environmental management. ON BEHALF OF THE BOARD OF DIRECTORS Terra Balcanica Resources Corp. 'Aleksandar Mišković' Aleksandar Mišković President and CEO For the complete information on this news release, please contact Aleksandar Mišković at [email protected], +1 (514) 796-7577 or visit Cautionary Statement
Yahoo
13-06-2025
- Business
- Yahoo
Dundee Precious Metals to acquire Adriatic Metals for $1.3bn
Dundee Precious Metals (DPM) has agreed to acquire all issued shares of Adriatic Metals in a transaction valued at approximately $1.3bn (C$1.77bn). The transaction is expected to enhance DPM's production capacity and extend its mineral reserve life through the 100% acquisition of the Vareš silver-lead-zinc-gold mine in Bosnia and Herzegovina. Shareholders of Adriatic Metals will receive 0.1590 of a DPM common share and 93 pence in cash for each Adriatic share under the acquisition. The transaction implies a value of £2.68 ($3.62) per Adriatic share and A$5.56 ($3.62) per CHESS Depository Interest, based on the exchange rates as of 11 June 2025. The scheme of arrangement under the UK Companies Act 2006 will see DPM shareholders owning approximately 75% and former Adriatic Shareholders around 25% of the enlarged issued share capital post-transaction. This strategic move is anticipated to generate enhanced cash flow and provide significant cash generation to fund DPM's growth and capital returns programme. Dundee Precious Metals president and CEO David Rae said: 'Adding Adriatic's Vareš operation to our strong asset portfolio creates a premier mining business with a peer-leading growth profile, high-quality development and exploration pipeline and a robust platform to deliver above-average returns. 'Vareš is a logical fit with our portfolio, as it significantly increases DPM's mine life while adding near-term production growth, a highly prospective land package and cash flow diversification. We are well-positioned to leverage our expertise in underground mining, our regional presence, successful track record of building and ramping up new mines, as well as our strong financial position to further optimise the operation and realise Vareš' full value potential, based on our analysis.' Vareš is an underground mine with an offsite processing facility located near Sarajevo and has been ramping up production since its first concentrate production in 2024. The operation, with a 15-year initial operating life and a 4,400-hectare land package, is expected to bolster DPM's production to as much as 425,000 gold equivalent ounces by 2027. The independent technical report by SRK Consulting (UK), effective as of 1 April 2025, confirms Vareš's potential with an all-in sustaining cost of $893/oz of gold equivalent. Adriatic Metals managing director and CEO Laura Tyler said: 'Vareš remains firmly on track to become a low-cost precious metal producer, underpinned by a long mine life, a high-grade deposit and strong exploration potential. 'What makes Vareš so exciting is that it is at the beginning of its journey, with significant growth potential ahead. This transaction brings together complementary strengths to create a dynamic and diversified mining company with meaningful scale. We see clear synergies between the asset portfolios of DPM and Adriatic, supported by DPM's strong financial capacity and proven operational expertise.' The completion of the acquisition is subject to several conditions including approvals from Adriatic Shareholders, the court, the Toronto Stock Exchange and the Bosnian Competition Council. The transaction is expected to become effective no later than 31 December 2025. In September last year, DPM sold its Tsumeb smelter in Namibia to a subsidiary of China's Sinomine Resource Group for $20m. "Dundee Precious Metals to acquire Adriatic Metals for $1.3bn" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
