Dundee Precious Metals Delivers Record Free Cash Flow and Adjusted Net Earnings; Announces Second Quarter 2025 Results

Core Insights - Dundee Precious Metals Inc. reported strong financial and operational results for Q2 and the first half of 2025, highlighting record free cash flow and adjusted net earnings, alongside significant growth initiatives and capital returns to shareholders [4][26][37]. Financial Highlights - Free cash flow reached $94.5 million in Q2 and $174 million year-to-date, marking a 15% increase compared to 2024 [4][31]. - Adjusted net earnings for Q2 were $87.6 million ($0.52 per share), a 24% increase year-over-year, while net earnings from continuing operations were $82.4 million ($0.49 per share), up 16% [4][28][29]. - Revenue for Q2 was $186.5 million, a 19% increase from 2024, driven by higher realized metal prices [27]. - The company returned $129.9 million to shareholders in the first half of 2025, representing 75% of free cash flow [4][37]. Operational Highlights - Gold production in Q2 was 61,212 ounces, a 10% decrease from 2024, while copper production was 6.4 million pounds, down 18% [9][20]. - Cost of sales per ounce of gold sold was $1,328, a 24% increase from the previous year, while all-in sustaining costs were $1,118, up 41% [11][23]. - The company processed 730,980 tonnes of ore in Q2, a 3% decrease from 2024 [9]. Growth Initiatives - The acquisition of Adriatic Metals plc for an implied equity value of approximately $1.3 billion was announced, aimed at enhancing the company's growth profile [4][32]. - The Čoka Rakita feasibility study is on track for completion by year-end 2025, with significant progress in permitting and environmental licensing for the Loma Larga project [4][39][43]. Capital Expenditures - Total capital expenditures in Q2 were $22.2 million, a 92% increase from 2024, with growth capital expenditures for the Čoka Rakita project significantly higher due to project advancement [11][25]. - Growth capital expenditures related to the Loma Larga project are now expected to be between $23 million and $25 million, up from previous guidance [70]. Market Position and Outlook - The company maintains a strong financial position with $796.6 million in liquidity, including $331.7 million in cash and cash equivalents [4][35]. - DPM is on track to meet its 2025 production guidance of 225,000 to 265,000 ounces of gold and 28 to 33 million pounds of copper, with an all-in sustaining cost of $780 to $900 per ounce of gold sold [64].