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 realized metal prices and strong cost performance, despite lower gold production at Ada Tepe due to mine sequencing.

• Maintained a robust balance sheet with $707.5 million in cash, no debt, and a $150 million undrawn credit facility, providing significant financial flexibility.

• Returned $32.5 million (23% of free cash flow) to shareholders in H1 2024 via dividends and share repurchases, demonstrating ongoing capital discipline.

• Advanced growth pipeline with Čoka Rakita PEA completed and PFS underway (completion expected Q1 2025), and progress on Loma Larga permitting and stakeholder engagement.

• Both Chelopech and Ada Tepe mines are on track to meet or exceed 2024 production and cost guidance, continuing a 10-year record of meeting guidance.

Financial highlights

• Q2 2024 revenue was $156.8 million, up 18% year-over-year, driven by higher realized gold and copper prices.

• Record adjusted net earnings of $70.9 million ($0.39/share), and record free cash flow of $82.4 million, both up over 40% year-over-year.

• Cash flow from operating activities reached $125.8 million in Q2 2024, up 131% year-over-year.

• All-in sustaining cost (AISC) was $710/oz in Q2 2024, down 3% year-over-year, with Chelopech at $531/oz and Ada Tepe at $699/oz.

• Average realized gold price was $2,369/oz in Q2 2024, up 21% year-over-year.

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), with Chelopech and Ada Tepe both expected to meet or exceed targets.

• Sustaining capital expenditures for 2024 expected at $36–46 million; growth capex at $16–20 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 in Ecuador.