DPM Metals (DPM) Q2 2024 earnings summary

Executive summary

• Achieved record free cash flow of $82.4 million and adjusted net earnings of $70.9 million ($0.39/share) in Q2 2024, driven by higher metal prices and strong cost performance.

• Maintained a robust balance sheet with $707 million in cash, no debt, and a $150 million undrawn credit facility.

• Returned 23% of free cash flow to shareholders in H1 2024 via $18.4 million in share buybacks and $14.5 million in dividends.

• Advanced growth pipeline with Čoka Rakita PFS underway and progress on Loma Larga permitting and exploration.

• Both Chelopech and Ada Tepe mines are on track to meet or exceed 2024 production and cost guidance.

Financial highlights

• Q2 2024 revenue rose 18% year-over-year to $157 million, driven by higher realized metal prices.

• Record adjusted net earnings of $70.9 million and free cash flow of $82.4 million in Q2 2024.

• Cash flow from operating activities reached $125.8 million, more than doubling year-over-year.

• All-in sustaining cost (AISC) was $710/oz consolidated, with Chelopech at $531/oz and Ada Tepe at $699/oz.

• Adjusted EBITDA from continuing operations was $93.1 million in Q2 2024.

Outlook and guidance

• On track to achieve 2024 guidance for gold production (245,000–285,000 oz), copper (29–34 million lbs), and AISC ($790–$930/oz gold sold).

• Chelopech expected to see improved copper grades in H2 and remain within cost guidance.

• Sustaining capital expenditures expected to be back-end weighted in 2024, with guidance of $16–19 million.

• Čoka Rakita PFS expected to complete in Q1 2025, with construction targeted for mid-2026.

• Loma Larga project advancing through environmental consultation and permitting.