DPM Metals (DPM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 21% year-over-year to $147.3M, with net earnings up 26% to $46.2M and free cash flow up 54% to $70.9M, driven by higher metal prices and strong operational performance.

• Maintained a strong cash position of $658M and no debt, with a 10-year track record of meeting guidance.

• Advanced Čoka Rakita project with infill drilling completed, PFS on track for Q1 2025, and new high-grade discoveries at Dumitru Potok and Frasen.

• Loma Larga project progressed with environmental studies, community consultation, and key permitting milestones achieved, awaiting license issuance.

• Returned 23% of YTD free cash flow to shareholders via buybacks and dividends, demonstrating ongoing capital discipline.

Financial highlights

• Q3 2024 revenue was $147.3M (+21% YoY); net earnings from continuing operations $46.2M (+26% YoY); adjusted EBITDA $68.5M (+15% YoY); free cash flow $70.9M (+54% YoY).

• YTD 2024 revenue reached $427.9M (+12% YoY); net earnings YTD $156.5M (+20% YoY); adjusted net earnings YTD $149.6M (+15% YoY).

• All-in sustaining cost per gold ounce sold: $1,005 in Q3 2024 (+10% YoY); Chelopech $638, Ada Tepe $1,171.

• Cash provided from operating activities was $52.5M in Q3 2024, down 25% YoY, but $214.1M YTD, up 12%.

• Cash and cash equivalents increased by $62.9M in the first nine months of 2024.

Outlook and guidance

• On track to meet 2024 production and cost guidance for both Chelopech and Ada Tepe; consolidated AISC guidance $790–$930/oz.

• Čoka Rakita PFS expected in Q1 2025, with first gold production targeted for 2028.

• Loma Larga's next steps depend on regulatory clearance and further drilling, with environmental consultation completed.

• Expect higher Ada Tepe production in Q4 as operational issues have been resolved.

• 2025–2026 outlook: Chelopech gold production to remain stable, Ada Tepe to decline; sustaining capital expenditures expected to decrease.