DPM Metals (DPM) Q2 2025 earnings summary

Executive summary

• Achieved record financial results in Q2 and H1 2025, including record revenue, earnings, and free cash flow, driven by high-margin production and strong gold prices, despite lower gold volumes at Ada Tepe.

• Announced $1.3 billion acquisition of Adriatic Metals, expected to add the Vareš mine and enhance growth profile, with the deal anticipated to close in Q4 2025.

• Returned $129.9 million to shareholders in H1 2025 via dividends and share repurchases, representing a significant portion of free cash flow.

• Maintained a strong balance sheet with $331.7 million in cash, $464.9 million in restricted cash for the Adriatic deal, and no debt.

• Advanced key growth projects, including Čoka Rakita (feasibility study expected by year-end 2025) and Loma Larga (environmental license issued, drilling to commence H2 2025).

Financial highlights

• Q2 2025 revenue rose 19% year-over-year to $186–$186.5 million; H1 revenue up 18% to $330.6–$331 million.

• Adjusted net earnings for Q2 2025 were $87.6–$88 million ($0.52/share), up 24% year-over-year; H1 adjusted net earnings reached $143 million (up 38%).

• Free cash flow in Q2 2025 was $94.5–$95 million (up 15%); H1 2025 free cash flow totaled $173.7–$174 million (up 22%).

• Cash provided from operating activities was $99.5–$100 million in Q2 and $154–$154.5 million in H1 2025.

• Adjusted EBITDA was $114.1 million in Q2 (up 23%) and $189.3 million in H1 (up 28%).

Outlook and guidance

• 2025 guidance reaffirmed: gold production of 205,000–265,000 oz, copper 28–33 Mlbs, all-in sustaining cost (AISC) $780–$900/oz.

• Growth capital for Loma Larga raised to $23–$25 million for 2025 after environmental license approval.

• Exploration budget increased to $44–$49 million for 2025, reflecting expanded drilling in Serbia and Bulgaria.

• Higher production expected in H2 2025, especially at Ada Tepe, where output is set to nearly double compared to H1.

• Three-year outlook to be updated post-Adriatic acquisition to reflect new production and cost metrics.