Earnings call transcript: Dundee Precious Metals Q2 2025 reports record results

Dundee Precious Metals (DPM) reported robust financial performance for the second quarter of 2025, with a notable increase in revenue and earnings. The company’s stock price responded positively, rising by 5.23% to close at $34.61, continuing its impressive momentum that has delivered a 230% return over the past six months. The company highlighted its strategic initiatives and operational advancements during its earnings call. According to InvestingPro data, DPM achieved a perfect Piotroski Score of 9, indicating exceptional financial strength and operational efficiency.

Key Takeaways

• Dundee Precious Metals achieved record Q2 results with a 19% revenue increase.
• The company maintained a strong cash position with no debt.
• Operational advancements include exploration in new mineralization zones.
• The stock price rose by 5.23% following the earnings report.
• Strategic projects are on track, including the Adriatic Metals acquisition.

Company Performance

Dundee Precious Metals demonstrated solid performance in Q2 2025, marked by a significant revenue increase to $186 million, a 19% rise from the same period in 2023. This growth underscores the company’s strong operational efficiency and strategic focus on organic growth. With a robust gross profit margin of 61% and strong cash flows that easily cover interest payments, DPM’s continued exploration efforts and project advancements position it well within the mid-tier precious metals sector. InvestingPro subscribers can access 14 additional key insights about DPM’s financial health and growth prospects.

Financial Highlights

• Revenue: $186 million, up 19% year-over-year
• Adjusted net earnings: $88 million, or $0.52 per share
• Free cash flow: $95 million
• Cash balance: $332 million
• All-in sustaining costs: $1,011 per ounce of gold sold

Outlook & Guidance

Dundee Precious Metals provided forward guidance, with expectations of producing 600,000 gold equivalent ounces by 2028. The company is on track to close its Adriatic Metals acquisition by Q4 2025, with a shareholder vote scheduled for August 13th. Exploration expenses are projected to increase, reflecting the company’s commitment to its growth strategy.

Executive Commentary

David Rae, CEO of Dundee Precious Metals, emphasized the company’s strong operational performance and its focus on delivering shareholder value. "We continue to deliver strong performance from our mining operations," Rae stated, highlighting the company’s robust free cash flow and strategic initiatives.

Risks and Challenges

• Market volatility in gold prices could impact revenue and profitability.
• Regulatory challenges may arise with new project developments.
• Potential operational disruptions due to unforeseen environmental factors.
• Increased exploration expenses may impact short-term financial performance.
• Strategic acquisitions present integration risks.

Dundee Precious Metals remains focused on its strategic objectives, leveraging its strong financial position and operational capabilities to drive future growth. The company’s proactive approach to exploration and project development positions it well for continued success in the precious metals industry. For comprehensive analysis and detailed insights, investors can access DPM’s full Pro Research Report, available exclusively on InvestingPro, along with in-depth reports on 1,400+ other top stocks.

Full transcript - DPM Metals Inc (DPM) Q2 2025:

Conference Operator: Good day and thank you for standing by. Welcome to the Dundee Precious Metals second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Please be advised that today’s conference is being recorded. After the speaker’s presentation, there will be a question and answer session. To ask a question, please press Star one one on your telephone and wait for your name to be announced. To withdraw your question, please press Star one one again. I would now like to hand the conference over to your speaker today, Jennifer Cameron.

Jennifer Cameron, Director of Investor Relations, Dundee Precious Metals: Thank you and good morning. I’m Jennifer Cameron, Director of Investor Relations, and I’d like to welcome you to the Dundee Precious Metals second quarter conference call. Joining us today are members of our senior management team including David Rae, President and CEO, and Navin Dyal, Chief Financial Officer. Before we begin, I’d like to remind you that all forward-looking information provided during this call is subject to the Forward-Looking Qualification, which is detailed in our news release and incorporated in full for the purposes of today’s call. Certain financial measures referred to during this call are not measures recognized under IFRS and are referred to as non-GAAP measures or ratios. These measures have no standardized meanings under IFRS and may not be comparable to similar measures presented by other companies. The definitions established and calculations performed by DPM are based on management’s reasonable judgment and are consistently applied.

These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Please refer to the Non-GAAP Financial Measures section of our most recent MD&A and a reconciliation of these non-GAAP measures. Please note that unless otherwise stated, operational and financial information communicated during this call are related to continuing operations and have generally been rounded. References to 2024 pertain to the comparable periods in 2024, and references to averages are based on midpoints of our outlook or guidance. I’ll now turn the call over to David Rae.

David Rae, President and CEO, Dundee Precious Metals: Good morning and thank you all for joining us. I’m pleased to provide you with an overview of our second quarter results to provide insights into our achievements during this period. Proud to report that DPM delivered record financial results during the quarter, including record revenue, earnings, and free cash flow results, which reflect reliable high margin production from our portfolio and the strength of the current gold price environment. This has been a defining quarter for DPM not only in terms of our record results but strategically as our proposed acquisition of Adriatic Metals, announced in June, creates a premier mining business to deliver peer-leading growth. The response to the proposed transaction from both our investors and the broader market has been notably positive, which I believe highlights the clear strategic merits of the deal.

The Vares operation is an excellent fit with our operating expertise and financial strength, and its addition to our portfolio offers a clear and compelling value proposition for.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: All of our shareholders.

David Rae, President and CEO, Dundee Precious Metals: This represents a key next step in our growth strategy and consolidates our position as a mid-tier precious metals producer. The shareholder vote to approve the transaction is scheduled for August 13th, and we’ve submitted the documentation for the Bosnian Merger Council. We continue to anticipate closing the transaction in the fourth quarter. Turning now to the highlights from the second quarter, which include solid production of 61,000 ounces of gold and 6.4 million pounds of copper, generating strong margins with an all-in sustaining cost of $1,011 per ounce of gold sold compared to an average realized gold price of $3,334. We continue to consistently deliver free cash flow, generating a record $95 million during the quarter and further strengthening our financial capacity to fund growth. We also continue to advance our organic growth pipeline, which I’ll touch on in a moment, looking at our operations in more detail.

Chelopech’s performance was in line with the mine plan, producing 47,000 ounces of gold and 6.4 million pounds of copper with an all-in sustaining cost of $682 per ounce of gold sold. Cash costs of $63 per tonne of ore processed were on target for the quarter, reflecting Chelopech’s track record of solid, efficient operations, and the mine is on track to meet its 2025 guidance targets for the year. We continue to prioritize in-mine and brownfields exploration work to further extend mine life at Chelopech, targeting a 10+ year reserve life during the quarter. Results from initial drilling at the Wedge Zone Deep Target discovered a new zone 150 meters downhole of contiguous pyrite-rich high-sulfidation mineralization. The target, which remains open in multiple directions, is located within the northern flank of Chelopech within the mine concession and 300 meters below existing mineral reserves.

We’re increasing the 2025 Chelopech exploration program in part to expand the scope of this mineralization and to define the geological setting and structural context. In addition, 12,000 meters of exploration drilling has been planned to test this target’s vertical extent and continuation along strike, as well as continuing to test the mineral potential of the shallow levels on the north, eastern, and southern flanks of the Chelopech mine concession. Drill testing of newly generated targets has already commenced and will continue to year end.

2025 Ada Tepe produced 14,200 ounces of gold with an all-in sustaining cost of $1,166 per ounce of gold sold as we guided at the beginning of the year. Ada Tepe’s production is expected to nearly double in the second half of the year compared to the first half due to cell sequencing in the IMWA, with higher production expected in the second half of the year. Ada Tepe is on track to achieve its guidance. We continue to focus on developing quality assets and our growth priority is advancing Coka Rakita to production which is targeted for 2028. The feasibility study is advancing as planned and is expected to be completed by year end. Most of the surface and underground geotechnical and hydrogeological drilling is now complete.

Activities planned for the remainder of 2025 in support of a construction decision in mid-2026 include progressing the design to the basic engineering level, advancing the project execution readiness, and commencing operational readiness activities. Leveraging Coka Rakita’s regional proximity to Chelopech to train and develop key personnel for operating roles, in parallel, permitting activities continue to advance. We submitted the final report on mineral reserves and mineral resources, known as the Elaborative Reserves, to the relevant authorities in the first quarter and continue to engage with relevant stakeholders regarding the spatial types. In terms of camp-wide exploration, our drilling program focused on testing high-priority targets proximal to our Coka Rakita project and that continues to yield results from a large prospective land package at Dimitra Potok.

Results are continuing to confirm the presence of a large high-grade copper-gold-silver skarn system with mineralization concentrated along both the eastern and western sides of an intrusion. Based on drilling to date, mineralization has been detected over a 1 km strike length, up to 300 meters vertically, and up to 500 meters away from the intrusion. The drill program continues to expand the Dimitra Potok discovery announced in February 2025 and we have yet to define its limits as it remains open in multiple directions and at depth. We’re also advancing drilling at the Rakita North and Vajasaka prospects and look forward to providing further updates on our progress likely in the third quarter. At the Loma Larga project in Ecuador, we achieved a significant milestone with the receipt of the environmental license in June.

This follows the successful completion of the prior informed Indigenous consultation process in May and is the result of a rigorous process by the government to ensure high Ecuadorian standards are applied in the development of mining projects. Negotiations for the exploitation agreement have been initiated and we’re also planning a 23,000-meter drilling campaign for Loma Larga. This program will prioritize geotechnical and hydrogeological monitoring holes as well as metallurgical and resource infill drilling and is expected to commence in Q3. Overall, we continue to deliver strong results and with both mines on track to achieve our 2025 guidance and execute on our strategy to deliver above average returns for our stakeholders, I’ll now turn the call over to Navin for a review of the financial results.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Thanks, Dave. I’ll be touching briefly on the financial highlights for the quarter and provide an update on how we are tracking to our guidance for the year.

David Rae, President and CEO, Dundee Precious Metals: As well as any changes and conclude.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: With some commentary on our balance sheet and return of capital program. All of my remarks will focus on results from continuing operations unless otherwise noted. Looking at our financial results, second quarter highlights include revenue of $186 million, adjusted net earnings of $88 million or $0.52 per share, cash flow provided from operating activities of $100 million, and free cash flow of $95 million. Overall, we saw record financial results during the quarter, which reflected our strong operating performance, the low cost nature of our operation, and a favorable commodity price environment. Looking at our earnings and cash flow in more detail, revenue of $186 million in the quarter was 19% higher than 2023 due to higher realized metal prices, partially offset by lower volumes of gold sold at Ada Tepe.

Adjusted net earnings in Q2 of $88 million, or $0.52 per share, increased compared to the prior year due primarily to higher revenue and lower valuation expenses as a result of costs related to the Coka Rakita project now being capitalized due to the project’s advancement to the feasibility study stage. This was partially offset by higher costs, primarily related to higher mark to market adjustments to share-based compensation expenses reflecting DPM’s strong share price performance this year. Cash flow provided from operating activities of $100 million for the quarter was lower than the prior year, mainly due to the timing of collections from sales and payments to suppliers. Free cash flow, which is calculated before changes in working capital, was $95 million for the quarter, an increase of $12 million compared to 2023 due primarily to higher adjusted net earnings generated in the quarter.

Taking a look at our cost metrics, all-in sustaining costs for the first half of the year of $1,118 per ounce of gold sold was 41% higher than the prior year due primarily to lower volumes of gold sold, higher mark.

David Rae, President and CEO, Dundee Precious Metals: To market adjustments to share-based compensation.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Expenses, lower byproduct credits reflecting lower volumes of copper sold and a stronger euro relative to the U.S. dollar, all partially offset by lower freight charges. Given our strong share price performance in the first half of the year, the mark to market adjustments to share-based compensation expenses resulted in an increase of $138 per ounce of gold sold compared to an increase of only $26 per ounce of gold sold in 2024.

We reconfirmed our 2025 guidance for all-in sustaining costs of $780 to $900 per ounce of gold sold with lower cost per ounce expected in the second half of the year commensurate with the nearly doubling of production from Ada Tepe, keeping in mind that our all-in sustaining cost guidance remains subject to external factors such as the mark to market impact of DPM share prices as well as metal prices and foreign exchange movements relative to our guidance assumptions. In terms of our capital spending, sustaining capital expenditures of $6 million for the quarter were lower than 2024 due primarily to lower expenditures on mobile equipment at Chelopech as expected, partially offset by higher deferred stripping costs as a result of higher strip ratios at Ada Tepe.

In line with the mine plan, gross capital expenditures of $16 million for the quarter were higher than 2024 as a result of costs related to the Coka Rakita project being capitalized from the beginning of 2025. Last night we provided an updated three-year outlook supporting our continued focus on funding our high-quality organic growth pipeline while maintaining our portfolio of high-margin operations which has generated our exceptional track record of delivery. The three-year outlook remains unchanged except for the following updates to the company’s guidance for 2025: gross capital expenditures related to the Loma Larga project are now expected to be between $23 million and $25 million, up $11 million due primarily to the receipt of the environmental license for exploitation, representing an important milestone allowing the company to resume drilling at Loma Larga.

In addition, based on positive results, exploration expenses are now expected to be between $44 million and $49 million, up $8 million to support exploration activities associated with near-mine exploration on the Chelopech mine concession and drilling at the Brevene exploration license. The company’s three-year outlook does not reflect the potential impact of the proposed acquisition of Adriatic Metals. Upon closing of the transaction, we intend to update our production and cost guidance along with other key operational and financial metrics to incorporate the contribution of Adriatic Metals on a gold equivalent basis. This approach ensures our guidance remains transparent, reliable, and aligned with the timing of the transaction. We continue to maintain a strong balance.

David Rae, President and CEO, Dundee Precious Metals: Sheet and cash flow position with a.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Consolidated cash balance of $332 million, restricted cash pursuant to the agreement to acquire Adriatic Metals of $465 million, no debt, and a $150 million undrawn revolving credit facility. Given the strength of our balance sheet and our positive outlook for continued strong free cash flow generation, we are in a unique position with the financial flexibility to fund growth opportunities such as the acquisition of Adriatic Metals and our investments in our development and exploration activities, while continuing to return a portion of our free cash flow to our shareholders, in line with our commitment to capital discipline. In the first half of 2025, we repurchased 10 million shares at a total cost of $116 million under the company’s normal course issuer bid or NCIB and paid approximately $14 million of dividends. In closing, we continue to deliver strong performance from our mining operations.

We are focused on growth and we’re in a strong cash position to achieve our guidance and continue our track record of generating significant free cash flow. I’ll now turn the call back to Dave for his concluding remarks.

David Rae, President and CEO, Dundee Precious Metals: Thanks very much, Nathan. Overall, we continue to deliver. This is an exciting time for DPM and our shareholders as we look to our future as a growing precious metals producer offering a peer-leading development pipeline, a strong balance sheet, and capital returns, all of which are underpinned by our exceptional operational track record. Our portfolio is generating solid, consistent results, and we are very well positioned as one of the lowest-cost, highest-growth producers. We’re generating strong free cash flow and delivering peer-leading returns to shareholders. We’re progressing Choka Rakita and its feasibility study for an accelerated construction decision. We have substantial financial strength to fund growth opportunities and explorations, and we focus on executing our strategy to deliver above-average returns for our shareholders. As a mid-tier precious metals company, DPM has a clear path forward, and we’re very excited about our future.

I’d now like to open up the call for any questions.

Conference Operator: Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. One moment for questions. Our first question comes from Wayne Lam with TD Cowen.

David Rae, President and CEO, Dundee Precious Metals: You may proceed.

Wayne Lam, Analyst, TD Cowen: Oh, hey, morning guys. Just a question on the Adriatic Metals deal. Obviously you guys have done a lot of work around the due diligence process with the independent study in conjunction with the acquisition. Just wondering if you can maybe comment on the most recent update there and the revision in guidance post the announcement. Just curious, in the month leading up to the closing, how much input or influence will you have in terms of the operations given your reinterpretation of what’s needed to get the mine.

David Rae, President and CEO, Dundee Precious Metals: To a steady state? Yeah, thanks for the question, Wayne. First of all, the updates in the second quarter, that changes nothing on our view on Vares. We’d anticipated and made our own assessment of what we expected, and this was in line. In terms of your second question, which was what’s going to happen just ahead of closing, it’s important that we recognize that we need to operate as independent companies. While we are talking about things that we might do technically and opportunities in terms of learning for Adriatic, Adriatic deserves as to whether they do or do not take advantage of. We’re maintaining an appropriate distance. Of course, we are talking about integration and how we might go about doing that. Just to repeat, we are separate companies and we have to remain so until closing. Great, thanks.

Wayne Lam, Analyst, TD Cowen: Maybe Ada Tepe, you guys have been fairly consistent in terms of guiding the wind down in operation next year, but just wondering, given the significant change in the gold price, particularly versus the $1,600 resource price assumption, would you see any possibility for additional material via an incremental layback, or just maybe curious if there might be any renewed potential to perhaps consider processing ore from other deposits within a reasonable truckable distance?

David Rae, President and CEO, Dundee Precious Metals: Yeah, Wayne, in terms of, obviously we keep track of what’s going on and we make sure that whatever we’re treating is economic at any point if the share price were to go the other way. Similarly, we understand what’s going on in terms of what will happen with an increased share price, and the answer simply is no, it’s not going to change the outlook. We do keep track of that. We do anticipate that we will close out of Tethy in the second quarter of next year. Also, we’re not considering the idea of using this as a custom mill treatment facility for other, let’s say, potential mines.

Wayne Lam, Analyst, TD Cowen: Okay, got it, thanks. Maybe just last one at Loma Larga. Obviously some good news here in terms of the environmental license. Just wondering with the restart drilling and the upcoming update fees, how quickly could that asset now be moved forward to a potential construction decision, and has the relationship with the community evolved to where they would be fully on board to green light the project if, say, you were just to decide.

Conference Operator: To build it tomorrow.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Okay.

David Rae, President and CEO, Dundee Precious Metals: We obviously need to go back to drilling. Starting with that, we have 22,000 to 23,000 meters of drilling planned. This is going to be primarily focused on geotech and hydrogeological information as well as condemnation. That is to support the final decisions within the feasibility. That is going to take, let’s say, between the feasibility and the drilling, somewhere north of six months for the information to be brought in. For the reporting, you’re looking at at least another six months, so it is some way out. Basically, watch this space in terms of what drilling is progressing and when we’re actually ready to bring that into the feasibility study.

In terms of the second part, the relationship, this is an ongoing thing where you’re continuing to develop the relationship with the local communities, and there are concerns that you have to address and overcome in the sense of people’s perceptions of what might happen, which unfortunately are colored by other unfortunate situations with illegal and informal mining in the country. We continue to build that. We have time until we get to a point where there is a construction decision and anticipate success in bringing forward all of our stakeholders such that we can start constructing and bring to fruition Loma Larga in good time.

Wayne Lam, Analyst, TD Cowen: Okay, got it.

Conference Operator: All right.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Yeah.

Wayne Lam, Analyst, TD Cowen: Thanks for taking my questions.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Thank you.

Conference Operator: Thank you. Our next question comes from Fahad Tariq with Jefferies. You may proceed. Hi.

Fahad Tariq, Analyst, Jefferies: Thanks for taking my question. Maybe just continuing on the theme of Loma Larga, now that you’ve de-risked it with the environmental permit and you’re doing some additional drilling in the second half of this year, maybe talk about.

David Rae, President and CEO, Dundee Precious Metals: How Loma Larga fits into the rest.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Of the portfolio as a priority.

Fahad Tariq, Analyst, Jefferies: It stands out a bit, I guess, geographically, and maybe think about is that something that you think would be core to the portfolio longer term, or is that something that you’re looking.

David Rae, President and CEO, Dundee Precious Metals: Maybe to monetize after it’s been de-risked some more? Yeah, thanks, Fahad. If we have a look at Loma Larga, historically we’ve been progressing this project at the pace that we can. There have been some necessary steps in terms of information that we’ve needed to provide, which we’ve now completed, and also the prior informed consultation, all of which have been completed. We’ve now successfully got the EIA and are in conversations with the government about the exploitation permit. In terms of fit, we’d always identified this asset as a good fit with our skill set, and this was some years back, well before we acquired the asset back in 2021.

Clearly, in proximity of our existing operations, Coka Rakita and the other opportunities in Serbia and now in Bosnia and Herzegovina, these things obviously stand out in terms of the opportunity to realize value through proximity, expertise, deployment of capital, and this type of thing. We do see Loma Larga as an asset that will bring value to the organization, so we’ll continue to pursue that to a point where we’re expecting to construct and operate. We will, of course, as we do with all of our assets, consider strategically what’s the best thing for the organization going forward. At this point, we anticipate construction and realizing production.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Okay, that’s clear.

Fahad Tariq, Analyst, Jefferies: Maybe just a housekeeping item.

David Rae, President and CEO, Dundee Precious Metals: When is the updated feasibility study expected?

Fahad Tariq, Analyst, Jefferies: Again for Loma Larga?

David Rae, President and CEO, Dundee Precious Metals: I know it was the second quarter.

Fahad Tariq, Analyst, Jefferies: It got pushed out with the Adriatic Metals transaction.

David Rae, President and CEO, Dundee Precious Metals: What’s the most recent timeline? That remains the case at this point. We’ll look to release that at an appropriate time so that information is available. Recall, it was not a complete feasibility update. It was only focused on the capital increases since the INV study, plus impacts on OpEx and metal prices. It did not take into account updates to reserves and resources due to cutoff grade changes. Part of the 22,000 meters will do some work actually on that. For the next feasibility update, I would anticipate cutoff grade change and resource implications, and then the capital and OpEx coming to a full feasibility study. In terms of timing, we’re anticipating at this point that is something that will come out later, potentially at the end of the transaction when we close the transaction with Adriatic Metals.

Fahad Tariq, Analyst, Jefferies: Okay, great. Thank you.

Conference Operator: Thank you. Our next question comes from Eric Winmill with Scotiabank Global Banking and Markets. You may proceed.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Hey, good morning, David and team. Thanks for taking my question. Just wanted to follow up quickly on Serbia. You know, you’re obviously increasing exploration budget there. I guess you’re liking what you’re seeing. Maybe on this Tulare exploration license, which we don’t hear a whole lot about, any comments there? Also, I guess seeing some forest fires in country, I’m assuming you’re still not seeing any impact from those. Thank you.

David Rae, President and CEO, Dundee Precious Metals: Yep. We continue to find Serbia an attractive destination to do the work that we do. We’ve been there since 2004, so we have a long track record for the local communities and the authorities. Clearly exciting in terms of exploration upside. I think where we’re really focusing our attention at the moment is at a kilometer depth. It takes a little longer to be able to get information that we can show in terms of what’s happening. We have indicated that drilling does continue at Dimitra Potok with an intent to expand the view on that discovery. At this point we’ve communicated that it’s a 1 km strike length, 300 meter depth at a minimum of 500 meter. It is very exciting. We anticipate there’ll be more information coming on this in the fall. In terms of Tulare, we have done work on this.

Historically there were two different companies that we brought in under one name. These were assets we’ve been involved in since 2004, but other people were directing that work through until 2016 when we took them both back in. Tulare was a copper focused asset as opposed to Havala, which was more gold focused. We’ve done some work on this during the course of the year. I believe we’re 3,300 meters through a 66,600 meter drill program. By the end of the year we’ll have a sense of what this is. It has, we would see that. If you look at prior technical reports, they’ll tell you the same thing. It’s a big lower grade asset that we’re trying to just fully understand with the idea being that we want to realize the value of these sort of hidden gems in our portfolio.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Okay, I appreciate that. Forest fires, again, no impact in country at this point.

David Rae, President and CEO, Dundee Precious Metals: Yeah, sorry Eric, I didn’t answer that. The answer is no. We obviously watch for that. We’ve got forest fires in both Bulgaria and Serbia. The answer is no. We continue to support the authorities and groups around us to do what we can as stakeholders within our communities to make sure that not only our assets are protected, but our stakeholders around us are as well.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Okay, great. I really appreciate that. Thanks very much. I’ll hop back in the queue. Okay, cheers.

Conference Operator: Thank you. As a reminder, to ask a question, please press star 11 on your telephone. Our next question comes from Don DeMarco with National Bank Financial. You may proceed.

Fahad Tariq, Analyst, Jefferies: Thank you, operator, and good morning, David and team. My first question is for Navin. Navin, I see the $465 million that’s been moved into restricted cash ahead of an Adriatic closing. Can you comment on this in the context of the $437 million cash component of the purchase price and the $200 million in closing costs and debt repayments and so on that were in addition to that? Is that restricted cash amount enough?

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Hi Don. Yeah, it’s not. The restricted cash amount is actually just covering off the costs that will incur as a result of the transaction costs related to basically acquiring Adriatic Metals. It also includes a very, very small amount for stamp duties as well as for certain transaction related costs. It does not cover the full debt repayments that otherwise would cost contemplating for repaying certain of Adriatic Metals’ debt. That would just come out of our regular cash balance post transaction, but we’re required under the UK rules to set aside the cash component of the.

David Rae, President and CEO, Dundee Precious Metals: Transaction, and that’s what you’re seeing there.

Fahad Tariq, Analyst, Jefferies: Thank you. I’ll just shift over to Coka Rakita. David, with the FS pending release in Q4, what are the next steps after that? Will this be followed by a go forward decision? Do you expect to start spending CapEx Q4 or Q1 2026?

Wayne Lam, Analyst, TD Cowen: If you could just remind us.

Fahad Tariq, Analyst, Jefferies: Again in the context of Adriatic, is Choka Rakita internally funded or would you look for potential external sources of funding to round that out?

David Rae, President and CEO, Dundee Precious Metals: Okay, so the next steps are that we’re completing the feasibility. At the same time we’re working on an additional step. In addition to completing the certificate of resources and the exploitation permit, we anticipate an EIA, which is an application that goes in at the end of the year. That’s the key thing. Once we’re into the new year, we anticipate all of that completed and a construction decision at mid year, so starting to build in mid year. Some of the costs in terms of capital along, we intend to reuse equipment from Ada Tepe, as you know, so a good amount of the service equipment from there. Other acquisitions, I think we’ll talk about that more in due course.

I think the key thing at the moment is to see that we’re on track, anticipate that we’ll basically get permission internally to start building and externally to start building, and that’ll start happening in Q3 next year.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Yeah, very confident in our ability to fund Coka Rakita internally as well as, you know, based on the cash flow and the capital requirements, we’ll be focused on the ramp up of Vares and ensuring Coka Rakita remains on track.

Fahad Tariq, Analyst, Jefferies: Okay, great, thanks for that. David, I think maybe you just mentioned the word acquisition. With that, with Coka Rakita development about to commence, Adriatic ramping up, subject to the deal closing, what has Dundee’s M&A priority and focus over the next year or so? Is it on the back burner for the time being, or is it? I think that’s what you might have alluded to, but if you could just clarify. Thank you.

David Rae, President and CEO, Dundee Precious Metals: Yeah, Don, I wasn’t actually alluding to that. We’ve got a very exciting organic growth portfolio. You know, that’s what we have already with Coka Rakita, potentially Dimitra Potok going forward, Loma Larga. On top of that, we’ve got the 4,400 hectares around Vares operations plus some additional sort of regional potential. That’s all pretty exciting for us. We do the same as we have done historically. We look for opportunities where there are assets which may create value within the company. I would say that’s a little less of something that’s on the front burner now, but you know, it’s something that we do consistently over time. If we find the right asset, we will continue to consider that. Right now I would say that we’ve managed to really change our outlook.

We published information that shows that we’re looking at 600,000 ounces gold equivalent by the end of, really by the time the Coka Rakita comes online, as you sort of exit 2028 going into 2029, and that’s without Loma Larga, which is another 175,000 ounces or so per year over 10 years. That’s a really exciting portfolio to sort of have in front of us. I think the one thing that perhaps people don’t realize is that it’s carrying on at that same margin that we have from Chelopech and Coka Rakita at just under $900.

Fahad Tariq, Analyst, Jefferies: Certainly that’s not lost on us. As a final question, will you be releasing three year guidance as you have or three year outlook as you have in the past? With the next update we might see Adriatic perhaps if it’s subject to deal closing, and then might even catch a little bit of Coka Rakita.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: Yeah, absolutely, Don. The plan would be, post-acquisition of Adriatic Metals, we would release updated three-year outlook. To the extent that there is updated information around Loma Larga in terms of the technical report as well.

David Rae, President and CEO, Dundee Precious Metals: If the feasibility study has been completed.

Navin Dyal, Chief Financial Officer, Dundee Precious Metals: For Coka Rakita, we would certainly update that.

David Rae, President and CEO, Dundee Precious Metals: Let’s update that as well.

Fahad Tariq, Analyst, Jefferies: Okay, thank you very much. That’s all for me, and good luck.

David Rae, President and CEO, Dundee Precious Metals: With the rest of the quarter, guys. Thanks, Tom.

Conference Operator: Thank you. I would now like to turn the call back over to Jennifer Cameron for any closing remarks.

Jennifer Cameron, Director of Investor Relations, Dundee Precious Metals: Thank you, everyone, for joining us. If you have any further questions, please feel free to reach out. For those of us in Ontario, hope you guys have a safe and happy long weekend. We’ll talk to you next quarter. Thank you.

Conference Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

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