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.

• Achieved gold production of 60,145 oz and copper production of 7.3M lbs in Q3 2024; year-to-date gold and copper production at 190,516 oz and 21.9M lbs, on track to meet 2024 guidance.

• Maintained a strong cash position of $658.2M and no debt, with a 10-year track record of meeting guidance.

• Advanced growth pipeline with Čoka Rakita PFS on track for Q1 2025, new high-grade discoveries at Dumitru Potok and Frasen, and progress on Loma Larga permitting.

• Returned $49.5M to shareholders year-to-date via dividends and share repurchases, representing 23% of free cash flow.

Financial highlights

• Q3 2024 revenue: $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).

• Nine-month revenue reached $427.9M (+12% YoY); net earnings $156.5M (+20% YoY); adjusted EBITDA $216.1M.

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

• Average realized gold price in Q3 was $2,548/oz (+33% YoY); copper at $4.24/lb (+14% YoY).

• Dividends and share repurchases in the first nine months represented 23% of free cash flow.

Outlook and guidance

• On track to meet 2024 guidance: gold production of 245,000–285,000 oz, copper production of 29–34M lbs, and AISC of $790–$930/oz.

• Čoka Rakita pre-feasibility study expected in Q1 2025; first gold production targeted for 2028.

• Loma Larga project advancing through permitting and stakeholder engagement, with environmental licence expected after indigenous consultation.

• Chelopech and Ada Tepe are on track to achieve 2024 production and cost guidance.

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