Highlights
(Unless otherwise stated, all monetary figures in this news release are expressed in U.S. dollars, and all operational and financial information contained in this news release is related to continuing operations.)
Record free cash flow generation: Generated $505 million of free cash flow1 and $492 million of cash provided from operating activities of continuing operations.
Record adjusted net earnings per share: Reported adjusted net earnings1 of $443 million ($2.39 per share1) and net earnings from continuing operations of $369 million ($1.99 per share).
11-year track record of operational delivery: DPM achieved its gold production guidance, producing 244,979 ounces of gold and 30.0 million pounds of copper.
Vareš ramp-up to full production on-track: On track to achieve 850,000 tonnes per year by year-end, with an improved 2026 production forecast of 30,000 to 35,000 ounces of gold and 3.5 to 4.1 million ounces of silver.
Advancing Čoka Rakita: Approval to initiate the Special Purpose Spatial Plan, a key milestone, received in November 2025. Mine construction is expected to commence in early 2027.
Rakita camp district scale potential: Announced initial Inferred Mineral Resource Estimate for the Rakita camp of 84.4 million tonnes at a grade of 0.97 g/t Au for 2.6 million ounces of gold and at a grade of 1.02% Cu for 1.9 billion pounds of contained copper, with significant potential for continued growth as all three deposits remain open in multiple directions.2
Chelopech mine life extended to 2036: Updated Mineral Reserve and Mineral Resource estimate and life of mine plan for Chelopech extends mine life to 2036 and sustains production at an annual average of approximately 160,000 GEO.3
Adding value through exploration: Discovered high-grade Wedge Zone Deep prospect, located on the Chelopech mine concession, close to existing mine infrastructure and Mineral Reserves.
Growing high-margin production: Average annual production of 350,000 gold equivalent ounces4 ("GEO") over the next three years, with an all-in sustaining cost of $1,450 per GEO sold1.
Substantial liquidity for growth: Ended the quarter with a total of $497.8 million in cash and cash equivalents. New revolving $400 million credit facility with accordion feature to $550 million.
Continued capital discipline: Returned $145.5 million, representing 29% of free cash flow, to shareholders during 2025 through dividends paid and shares repurchased. Board of Directors has authorized the repurchase of up to $200 million of shares within 2026.
Track record of responsible mining: DPM scored in the top decile among metals and mining companies in the S&P Global Corporate Sustainability Assessment for the fifth consecutive year.
_______________________________1 Free cash flow, adjusted net earnings, adjusted basic earnings per share, all-in sustaining cost per ounce of gold sold and all-in sustaining cost per GEO sold are non-GAAP financial measures or ratios. These measures have no standardized meanings under IFRS Accounting Standards ("IFRS") and may not be comparable to similar measures presented by other companies. Refer to the "Non-GAAP Financial Measures" section commencing on page 20 of this news release for more information, including reconciliations to IFRS measures.2 Refer to the "Technical Report - Mineral Resource Estimate for Dumitru Potok, Frasen and Rakita North Prospects, Eastern Serbia," dated January 16, 2026, available on the Company's website at www.dpmmetals.com and SEDAR+ at www.sedarplus.ca.3 Refer to the news release "DPM Extends Chelopech Mine Life to Ten Years; Provides Updated Mineral Reserve and Resource Estimate and Life of Mine Plan" dated February 5, 2026, available on the Company's website at www.dpmmetals.com and SEDAR+ at www.sedarplus.ca.4 The Company uses conversion ratios for calculating GEO for its silver, copper, zinc and lead production and sales, which are calculated by multiplying the volumes of metal produced or sold, as applicable, by the respective assumed metal prices, and dividing the resulting figure by assumed gold price.
CEO Commentary
David Rae, President and Chief Executive Officer, made the following comments in relation to the fourth quarter and year-end 2025 results:
"We once again generated record financial results in 2025, including $505 million of free cash flow, demonstrating the quality of our low-cost, high-margin mining operations. Our exceptional 11-year track record of delivery has created long-term shareholder value and underpins our ability to realize Vareš' full potential and grow the business with Čoka Rakita, which is on track for first concentrate production in the first half of 2029.
"Together with the Čoka Rakita project, the initial Inferred Mineral Resource Estimates for Dumitru Potok, Frasen and Rakita North prospects completed in December highlight the Rakita camp's potential as a Tier One gold asset for DPM, offering a rare combination of scale, grade and longevity. Further upside potential remains as we test the continuation of the system with step-out drilling on the adjacent licence.
"DPM continues to be in a very strong position to carry out our strategy of becoming a mid-tier gold producer. This is driven by the quality of our team, our high-margin production base generating significant free cash flow, and our financial strength to internally fund growth and exploration activities while continuing to return capital to shareholders."
Use of non-GAAP Financial Measures
Certain financial measures referred to in this news release are not measures recognized under IFRS and are referred to as non-GAAP financial 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. Non-GAAP financial measures and ratios, together with other financial measures calculated in accordance with IFRS, are considered to be important factors that assist investors in assessing the Company's performance. The Company uses the following non-GAAP financial measures and ratios in this news release:
mine cash cost
cash cost per tonne of ore processed
mine cash cost of sales
cash cost per ounce of gold sold
all-in sustaining cost
all-in sustaining cost per GEO sold
all-in sustaining cost per ounce of gold sold
adjusted earnings (loss) before interest, taxes, depreciation and amortization ("adjusted EBITDA")
adjusted net earnings (loss)
adjusted basic earnings (loss) per share
cash provided from operating activities, before changes in working capital
free cash flow
average realized metal prices
For a detailed description of each of the non-GAAP financial measures and ratios used in this news release and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the "Non-GAAP Financial Measures" section commencing on page 20 of this news release.
Key Operating and Financial Highlights from Continuing Operations
$ millions, except where noted
Fourth Quarter
Full Year
Ended December 31,
2025
2024
Change
2025
2024
Change
Operating Highlights(1)
Ore processed
t
786,091
748,196
5
%
2,978,137
2,916,027
2
%
Metals contained in concentrates produced:
Gold
Chelopech
oz
45,714
41,901
9
%
174,434
167,029
4
%
Ada Tepe
oz
24,552
28,918
(15
%)
70,545
94,306
(25
%)
Total gold in concentrates produced
oz
70,266
70,819
(1
%)
244,979
261,335
(6
%)
Copper
Klbs
9,879
7,781
27
%
29,995
29,671
1
%
Payable metals in concentrates sold:
Gold
Chelopech
oz
40,142
36,862
9
%
150,524
142,004
6
%
Ada Tepe
oz
23,319
28,003
(17
%)
68,515
92,124
(26
%)
Total payable gold in concentrates sold
oz
63,461
64,865
(2
%)
219,039
234,128
(6
%)
Copper
Klbs
7,647
6,652
15
%
24,834
25,062
(1
%)
Cost of sales per ounce of gold sold(2):
Chelopech
$/oz
1,172
1,027
14
%
1,129
1,070
6
%
Ada Tepe
$/oz
1,638
1,002
63
%
1,781
1,181
51
%
Consolidated
$/oz
1,343
1,016
32
%
1,333
1,113
20
%
All-in sustaining cost per ounce of gold sold(3):
Chelopech
$/oz
453
799
(43
%)
616
695
(11
%)
Ada Tepe
$/oz
989
694
43
%
1,101
745
48
%
Consolidated
$/oz
1,082
904
20
%
1,121
872
29
%
Capital expenditures incurred(4):
Sustaining(5)
10.7
9.8
9
%
32.8
34.2
(4
%)
Growth and other(6)
17.9
2.1
762
%
55.5
17.2
223
%
Total capital expenditures
28.6
11.9
140
%
88.3
51.4
72
%
Financial Highlights(1)
Average realized prices(3):
Gold
$/oz
4,323
2,663
62
%
3,632
2,434
49
%
Copper
$/lb
5.15
3.91
32
%
4.64
4.16
12
%
Revenue
352.5
179.1
97
%
950.5
607.0
57
%
Cost of sales
101.0
65.9
53
%
344.6
260.7
32
%
Earnings before income taxes
183.1
94.3
94
%
422.0
276.1
53
%
Adjusted EBITDA(3)
230.0
110.8
108
%
585.6
326.9
79
%
Net earnings
157.3
86.7
81
%
369.2
243.2
52
%
Basic earnings per share
$/sh
0.71
0.49
45
%
1.99
1.35
47
%
Adjusted net earnings(3)
170.4
82.6
106
%
443.2
232.2
91
%
Adjusted basic earnings per share(3)
$/sh
0.77
0.46
67
%
2.39
1.29
85
%
Cash provided from operating activities(7)
152.5
82.7
84
%
491.6
296.8
66
%
Free cash flow(3)
182.8
91.7
99
%
504.9
305.1
66
%
(1) Operating highlights for the fourth quarter and full year of 2025 did not include the operating results of Vareš. For a more detailed discussion on the operating results of Vareš, refer to the "Review of Operating Results by Segment, Review of Vareš Results" section of the Management's Discussion and Analysis ("MD&A"). In the meantime, financial highlights for the year of 2025 included the pre-commercial production financial results of Vareš during the period from September 3 to December 31, 2025, in compliance with IFRS, with the exception of average realized metal price, which is a non-GAAP measure and its exclusion of Vareš was consistent with the operating highlights above.(2) Cost of sales per ounce of gold sold represents total cost of sales for Chelopech and Ada Tepe, divided by total payable gold in concentrates sold.(3) All-in sustaining cost per ounce of gold sold, average realized metal prices, adjusted EBITDA, adjusted net earnings, adjusted basic earnings per share, and free cash flow are non-GAAP financial measures or ratios. Refer to the "Non-GAAP Financial Measures" section commencing on page 20 of this news release for more information, including reconciliations to IFRS measures.(4) Capital expenditures incurred are reported on an accrual basis and do not represent the cash outlays for capital expenditures.(5) Sustaining capital expenditures are generally defined as expenditures that support the ongoing operation of the asset or business without any associated increase in capacity, life of assets or future earnings. This measure is used by management and investors to assess the extent of non-discretionary capital spending being incurred by the Company each period.(6) Growth capital expenditures are generally defined as capital expenditures that expand existing capacity, increase life of assets and/or increase future earnings. This measure is used by management and investors to assess the extent of discretionary capital spending being undertaken by the Company each period.(7) Excludes cash used in operating activities of discontinued operations of $7.4 million (2024, $61.0 million) and cash provided from operating activities of discontinued operations of $160.5 million (2024, cash used in operating activities of discontinued operations of $152.1 million), respectively, during the fourth quarter and full year of 2025.
Performance Highlights
A table comparing production, sales and cash cost measures by asset for the fourth quarter and full year ended December 31, 2025 against 2025 guidance is located on page 17 of this news release.
In the fourth quarter and full year of 2025, the Company's Chelopech and Ada Tepe operations delivered gold production in line with expectations, and both mines achieved production guidance for the year 2025.
Highlights include the following:
Chelopech, Bulgaria: Gold contained in concentrates produced in the fourth quarter and full year of 2025 was higher than 2024 due primarily to higher gold grades, in line with the mine plan.
Copper production in the fourth quarter of 2025 was higher than 2024 due primarily to higher copper grades. Copper production in 2025 was comparable to 2024.
Payable gold in concentrates sold in the fourth quarter and full year of 2025 was higher than 2024 due primarily to higher gold production, with favourable payable gold terms for the full year.
Payable copper in concentrate sold in the fourth quarter of 2025 was 15% higher than 2024 due primarily to higher copper production. Payable copper in concentrate sold in 2025 was comparable to 2024.
All-in sustaining cost per ounce of gold sold in the fourth quarter and full year of 2025 was lower than 2024 due primarily to higher by-product credits reflecting higher realized prices and volumes of copper sold, and higher volumes of gold sold, partially offset by a stronger Euro relative to the U.S. dollar, higher labour costs, higher royalties, and lower cash outlays for sustaining capital expenditures.
Ada Tepe, Bulgaria: Gold contained in concentrate produced in the fourth quarter and full year of 2025 was lower than 2024 due primarily to mining in lower grade zones, in line with the mine plan.
Payable gold in concentrate sold in the fourth quarter and full year of 2025 was consistent with the gold production compared to 2024.
All-in sustaining cost per ounce of gold sold in the fourth quarter and full year of 2025 was higher than 2024 due primarily to lower volumes of gold sold and a stronger Euro relative to the U.S. dollar, and higher rehabilitation related depreciation expenses as a result of an updated closure plan for Ada Tepe, as well as lower cash outlays for sustaining capital expenditures in the fourth quarter of the year.
Consolidated Operating Highlights
Operating highlights discussed below exclude the operating results of Vareš, except for cost of sales.
Production: Gold contained in concentrates produced in the fourth quarter of 2025 was comparable to 2024, due primarily to higher gold grades at Chelopech offset by mining in lower grade zones at Ada Tepe. Gold contained in concentrates produced in 2025 was 6% lower than 2024, due primarily to lower gold grades and recoveries at Ada Tepe.
Copper production in the fourth quarter of 2025 was 27% higher than 2024 due primarily to higher copper grades. Copper production in 2025 was comparable to 2024.
Deliveries: Payable gold in concentrates sold in the fourth quarter and full year of 2025 was 2% lower than and 6% lower than 2024, respectively, primarily reflecting gold production.
Payable copper in concentrate sold in the fourth quarter of 2025 was 15% higher than 2024 due primarily to higher copper production. Payable copper in concentrate sold in 2025 was comparable to 2024.
Cost measures: Cost of sales in the fourth quarter and full year of 2025 was 53% and 32% higher than 2024, respectively, due primarily to Vareš operating costs and a non-cash fair value adjustment on inventories recognized in cost of sales at Vareš following the acquisition of Adriatic, higher depreciation expense, higher labour cost, a stronger Euro relative to the U.S. dollar and higher royalties reflecting higher metal prices.
All-in sustaining cost per ounce of gold sold in the fourth quarter of 2025 was 20% higher than 2024 due primarily to higher mark-to-market adjustments to share-based compensation expenses reflecting DPM's strong share price performance, and a stronger Euro relative to the U.S. dollar, partially offset by higher by-product credits reflecting higher realized prices and volumes for copper sold. All-in sustaining cost per ounce of gold sold in 2025 was 29% higher than 2024 due primarily to higher mark-to-market adjustments to share-based compensation expenses, lower volumes of gold sold and a stronger Euro relative to the U.S. dollar, partially offset by higher by-product credits reflecting higher realized prices for copper and silver sold.
Mark-to-market adjustments to share-based compensation expenses resulted in an increase of $344 and $242 per ounce of gold sold, respectively, in the fourth quarter and full year of 2025, compared to a decrease of $7 and an increase of $28 per ounce of gold sold in the corresponding periods in 2024.
Capital expenditures: Sustaining capital expenditures incurred in the fourth quarter of 2025 were 9% higher than 2024, due primarily to timing of expenditures at Chelopech, partially offset by lower deferred stripping costs as a result of lower stripping ratios at Ada Tepe. Sustaining capital expenditures incurred in 2025 were 4% lower than 2024 due primarily to changes in deferred stripping costs as a result of changes in the stripping ratios at Ada Tepe, in line with the mine plan.
Growth and other capital expenditures incurred in the fourth quarter and full year of 2025 were $15.8 million and $38.3 million higher than 2024, respectively, due primarily to costs related to the Čoka Rakita project being capitalized from 2025 as a result of the project's advancement to the feasibility study ("FS") stage.
Consolidated Financial Highlights
DPM achieved record financial results for 2025 in revenue, earnings and free cash flow, reflecting high realized metal prices, combined with the Company's stable operating performance for the year. Financial results in 2025 also reflected the inclusion of Vareš for the period of September 3 to December 31, 2025.
Revenue: Revenue in the fourth quarter and full year of 2025 was 97% and 57% higher than 2024, respectively, due primarily to higher realized metal prices, partially offset by lower volumes of gold sold at Ada Tepe. Revenue in the fourth quarter and full year of 2025 also benefited from the post-acquisition revenue from Vareš.
Net earnings: Net earnings from continuing operations in the fourth quarter of 2025 were 81% higher than 2024, due primarily to higher revenue, partially offset by higher cost of sales, higher mark-to-market adjustments to share-based compensation expenses and a fair value loss on copper stream liability of $8.5 million. Net earnings from continuing operations in 2025 were 52% higher than 2024, due primarily to the same factors affecting the quarter, partially offset by the 2025 Bulgarian levy of $24.4 million Adriatic acquisition related costs of $15.4 million and a fair value loss on copper stream liability of $9.2 million.
Adjusted net earnings: Adjusted net earnings from continuing operations in the fourth quarter and full year of 2025 were 106% and 91% higher than 2024, respectively, due primarily to the same factors affecting net earnings from continuing operations, with the exception of adjusting items primarily related to the 2025 Bulgarian levy, Adriatic acquisition related costs, the non-cash fair value adjustment on inventories at Vareš, and the fair value loss on copper stream liability, as well as a net termination fee received from Osino Resources Corp. ("Osino") in 2024.
Cash provided from operating activities: Cash provided from operating activities of continuing operations in the fourth quarter and full year of 2025 was 84% and 66% higher than 2024, respectively, due primarily to higher earnings generated in the periods and the timing of deliveries and subsequent receipt of cash, partially offset by the timing of payments to suppliers, the payments of the 2025 Bulgarian levy and higher income taxes paid.
Free cash flow: Free cash flow from continuing operations in the fourth quarter and full year of 2025 was 99% and 66% higher than 2024, respectively, due primarily to higher adjusted net earnings generated in the periods, partially offset by the payments of the 2025 Bulgarian levy. Free cash flow is calculated before changes in working capital.
Vareš Update
On September 3, 2025, DPM completed the acquisition of Adriatic, integrating the Vareš operation into its portfolio. Integration activities have progressed well, and DPM continues to advance its priorities for Vareš with a focus on ramping up to full production by year-end 2026. Development rates have continued to progress in-line with plan, and mine production recommenced in January 2026. Construction of the paste backfill plant is well-advanced, and expected to be commissioned in the third quarter.
Vareš production in 2026 is now expected to be better as compared to the estimates in the technical report entitled "Amended and Rested NI 43-101 Technical Report on the Vareš Operation, Bosnia and Herzegovina" dated June 9, 2025, with increased ore processed and higher gold and silver grades. This technical report has been posted on the Company's website at www.dpmmetals.com and filed on SEDAR+ at www.sedarplus.ca. See the section of the news release entitled "2026 Guidance and Three-Year Outlook" for further details.
Development Projects Update
Čoka Rakita, Serbia
During the fourth quarter, DPM completed the FS for the Čoka Rakita project as planned. The FS confirmed robust economics for a high-margin underground gold mining operation with first quartile life of mine all-in sustaining costs of $644 per ounce of gold sold, and an attractive internal rate of return of 68% and net present value of $2.2 billion, using a $3,500 per ounce gold price assumption. Based on the positive results, DPM is proceeding to execution readiness and construction permitting, with first concentrate production anticipated in the first half of 2029.
Activities during 2025 focused on completing various technical studies and the FS, while advancing the design to a basic engineering level. Project execution readiness as well as operational readiness planning continued, leveraging the project's proximity to DPM's Chelopech underground mine and Ada Tepe processing facilities to support training and development of key personnel for future operating roles.
In November 2025, a key permitting milestone was achieved with the approval to initiate the Special Purpose Spatial Plan process. Permitting activities continue, with a detailed permitting timeline focused on supporting commencement of construction in early 2027. Most baseline studies required for the Environmental and Social Impact Assessment have been completed. The approval and adoption of the SPSP is expected in the second half of 2026, following which DPM anticipates submitting the exploitation field application in accordance with the Serbian permitting process. The Company continues to proactively engage with relevant authorities and stakeholders to support timely advancement of remaining permits and approvals.
Consistent with its approach across all operations, DPM seeks to build and maintain strong partnerships with local communities and governments. The Company has had a local presence in Serbia since 2004 and has developed strong relationships in the region. Proactive stakeholder engagement continued throughout 2025 and remains a core component of the Company's approach as the project advances.
Planning for the Čoka Rakita project continues to emphasize responsible environmental management, social development, and the design, operation, and closure of the mine in accordance with industry best practices and applicable Serbian and European Union standards.
In 2025, the Company incurred $38.4 million of growth capital expenditures for the Čoka Rakita project. For 2026, the Company has planned $49 million to $53 million of growth capital expenditures primarily related to pre-construction activities, including detailed engineering, environmental and permitting activities, early works, and operational readiness planning. Subject to permitting progress and schedule acceleration, approximately $42 million of pre-committed initial capital for the project was also included in the 2026 detailed guidance related to early contractor engagement and procurement activities in advance of a formal construction decision, which is expected in early 2027.
See the "NI 43-101 Technical Report Čoka Rakita Project Feasibility Study, Eastern Serbia" dated January 9, 2026, for additional information, which has been posted on the Company's website at www.dpmmetals.com and filed on SEDAR+ at www.sedarplus.ca.
Exploration
Rakita Camp, Serbia
During the fourth quarter, DPM published an Inferred Mineral Resource Estimate for the Dumitru Potok, Frasen and Rakita North prospects. The prospects are located on the Čoka Rakita and the Potaj Čuka exploration license, and are within one kilometre of the Čoka Rakita project. The total Inferred Mineral Resource Estimate, effective as of October 23, 2025, comprises 2.6 million ounces of gold and 1.9 billion pounds of copper contained within 84.4 million tonnes grading 0.97 g/t gold and 1.02% copper, and assumes an underground mining scenario. The Inferred Mineral Resource Estimate demonstrates the Rakita camp's potential as a district-scale gold-copper system. Each of Dumitru Potok, Rakita North and Frasen remain opens in multiple directions and sits alongside several high-potential targets along a six-kilometre trend.
When viewed separately, the Dumitru Potok Mineral Resource represents a significant higher-grade core totalling 64.1 Mt grading 1.07 g/t gold for 2.2 million ounces of contained gold and 1.08% copper for 1.5 billion pounds of contained copper. The Rakita North Inferred Mineral Resource totals 17.9 million tonnes grading 0.56 g/t gold for 0.3 million ounces of contained gold and 0.84% copper for 0.3 billion pounds of contained copper. The Frasen Inferred Mineral Resource totals 2.4 million tonnes grading 1.21 g/t gold for 95 thousand ounces of contained gold and 0.70% copper for 37 million pounds of contained copper.
Drilling is currently paused on the Čoka Rakita licence pending the normal course renewal of permits and is anticipated to recommence in the second quarter of 2026. Field work focused on the Potaj Čuka and Pešter Jug exploration licences, including scout drilling campaigns at the Valja Saka prospect and other Potaj Čuka targets, with 13,674 metres of drilling completed during the fourth quarter of 2025 and 60,528 metres year-to-date.
On the Potaj Čuka licence, the main focus was the Valja Saka prospect, which has been prioritized for further exploration. During the fourth quarter, the drilling campaign continued with six drill rigs to test higher-grade mineralization. Drilling also encountered different mineralization styles and confirmed the interpreted structural architecture. At other Potaj Čuka targets, individual gold grades were intersected along with alteration styles that represent an excellent vector toward potentially mineralized zones, which will support the design of a follow-up program.
In 2025, the Company incurred $36.1 million for Rakita camp exploration activities. In 2026, the Company has planned a total of $25 million to $30 million, primarily focused on Čoka Rakita and Potaj Čuka licences.Chelopech, Bulgaria
DPM remains committed to extending the life of the Chelopech mine through its focused in-mine exploration program targeting resource development. During 2025, the Company completed 44,464 metres of drilling with 14,798 meters dedicated to extensional drilling. The program aimed to expand the existing mineralization, improve ore boundary definition, and increase confidence in the Mineral Resource Estimate.
In November 2025, DPM announced the discovery of new high-grade mineralization at the WZD target, which is located within the northern flank of the Chelopech mine concession and approximately 300 metres below existing Mineral Reserves and current mine infrastructure. This significant discovery, which was made in a relatively underexplored and deep area of the mine concession demonstrates that the level of the WZD target is highly prospective, and that the hydrothermal system has potential for additional discoveries at this depth. Given the significance of the WZD target, DPM has planned an additional 10,000 metres of drilling, which is expected to be completed within the first quarter of 2026. DPM intends to provide an update on results from drilling in the second quarter of 2026.
Brownfield exploration continued within the Chelopech mine concession and Brevene exploration licence during the fourth quarter of 2025 with a total of 12,587 metres of exploration and target delineation drilling across eight active diamond drill rigs. The Company continues to advance the process of converting the Brevene exploration licence to a Commercial Discovery, the next phase of work towards converting the licence to a mining concession under the Bulgarian permitting process. Surface drilling continues sequentially, following receipt of drilling permits, with six drill rigs focused on assessing the mineral resource potential in the Vozdol area and prioritized targets within the exploration licence.
In 2025, the Company incurred $10.8 million for Chelopech brownfield exploration activities. In 2026, the Company has planned a total of $16 million to $17 million for Chelopech brownfield exploration activities, primarily focused on testing near-mine targets on the Chelopech mine concession.
For more information regarding the Wedge Zone Deep prospect, see the Company news release dated November 19, 2025, entitled "DPM Metals Announces Discovery of New High-Grade Mineralization at the Chelopech Mine; Results Include 68.3 metres at 7.42 g/t AuEq," available on DPM's website at www.dpmmetals.com and SEDAR+ at www.sedarplus.ca.
Vareš, Bosnia and Herzegovina
During the fourth quarter of 2025, exploration activities at Vareš focused on the Seliste and Brezik West prospects, which are located on the Veovaca-Orti-Seliste-Mekuse and Droskovac-Brezik exploration licences, respectively, approximately 10 kilometres to the southeast of the Rupice mine and along the same geological trend. Work undertaken included drilling, mapping, soil/rock sampling and three-dimensional modelling. A total of 968 metres were drilled with two diamond rigs. Nine scout holes from Seliste returned positive results, supporting planned infill and extensional drilling in 2026.
In 2025, the Company incurred $2.2 million for Vareš exploration activities. In 2026, the Company has planned a total of $10 million to $11 million in expenditures for Vareš brownfield exploration, and $1 million to $2 million for Bosnia greenfield exploration. This will include testing the extension of mineralization to the east and at depth, as well as scout drilling of newly outlined geophysical targets along the same mineralization trend and to the south of the known orebody.
Senior Management Team Update
DPM today announced the appointment of João Zanon as Senior Vice President, Capital Projects and Evaluations, effective March 2, 2026. In this newly created executive leadership position, Mr. Zanon will lead the strategic direction and execution of capital projects from pre-feasibility, construction and handover to operations, optimizing asset value and ensuring alignment with the Company's strategy. He will also oversee technical evaluations for potential acquisitions, supporting the corporate development team.
Mr. Zanon brings over twenty years of global experience in delivering complex capital projects safely, leading projects from their conceptual design through to operations. Most recently, he was Director, Project Management for Maaden, responsible for leading $2 billion in project development activities annually. He has also held Vice President project development roles with Ero Copper Corp. and Vale S.A.
Kelly Stark-Anderson, Executive Vice-President, Corporate Affairs, General Counsel and Corporate Secretary, has provided her resignation from DPM effective May 31, 2026. Ms. Stark-Anderson has been a critical part of the Company's leadership team, first joining DPM in 2017 to head up the Legal and Compliance department, growing her responsibilities to include Human Resources and Business Optimization, and, for a period of time, Sustainability. One of the areas of significant impact includes her leadership of the refresh of our corporate purpose and values in 2020, which continues to act as the foundation of DPM's culture and strategic direction. Ms. Stark-Anderson also played a significant role in shaping the Company's successful growth, including the recent acquisition of Adriatic, and she has developed a strong team which will help to ensure a seamless transition. A search process has been initiated for a suitable replacement.
Dr. Nikolay Hristov, Senior Vice President, Sustainable Business Development, will be departing the company at the end of April 2026. Dr. Hristov began working with DPM at the Chelopech mine in 2004, becoming Vice President and General Manager in 2011, and led the capital project to expand the mine. He relocated to Toronto in 2015 to lead the Sustainability function, where he has been a passionate advocate for DPM's leadership position as a responsible mining company, driving the incorporation of sustainability across all levels of the organization, strategy and operating model. Dr. Hristov consistently provided support to operations and projects navigating complex social and political environments, and helped to establish and support the Loma Larga project team. He will continue to support a smooth transition over the coming months.
Balance Sheet Strength and Financial Flexibility
The Company continues to maintain a strong cash and liquidity position and is well-positioned to fund growth, ending the year with a cash position of $497.8 million, no debt and an undrawn $400.0 million new committed revolving credit facility (the "New RCF").
Cash and cash equivalents decreased by $137.0 million in 2025 due primarily to cash consideration paid for the acquisition of Adriatic, the repayment of Adriatic debt immediately after the closing of the acquisition, payments for shares repurchased under the Normal Course Issuer Bid ("NCIB"), cash outlays for capital expenditures, dividends paid and income taxes paid, partially offset by earnings generated in the period, a net cash inflow of $160.5 million related to the DPM Tolling Agreement, and cash interest received.
In February 2026, DPM replaced its current RCF with the New RCF with a consortium of five banks that matures in February 2030. Overall, this facility contains more favourable terms and conditions than the current RCF, providing added flexibility, a four-year extended term, and lower pricing. Initially, DPM is permitted to borrow up to an aggregate principal amount of $400.0 million, which can be increased pursuant to an accordion feature that permits, subject to certain conditions, the facility to be increased to $550.0 million.
Return of Capital to Shareholders
In line with its disciplined capital allocation framework, DPM continues to return excess capital to shareholders, which currently includes a sustainable quarterly dividend and periodic share repurchases under the NCIB.
During 2025, the Company returned a total of $145.5 million to shareholders through the repurchase of approximately 10.0 million shares, for a total cash payment of $116.1 million, and $29.4 million of dividends paid.
The Company's Board of Directors has approved the renewal of the NCIB (the "New Bid") and the Company expects to seek approval from the TSX for the New Bid in due course during the first quarter of 2026. If accepted, the New Bid will be made in accordance with the applicable rules and policies of the TSX and applicable Canadian securities laws. The Company expects to be able to purchase up to 5% of its issued and outstanding common shares over a period of twelve months under the New Bid.
The Company's Board of Directors has authorized management to repurchase up to $200 million of the Company's shares under the New Bid.
The actual timing and number of common shares that may be purchased under the NCIB will be undertaken in accordance with DPM's capital allocation framework, having regard for such things as DPM's financial position, business outlook and ongoing capital requirements, as well as its share price relative to market peers and intrinsic value and overall market conditions.
On February 10, 2026, the Company declared a dividend of $0.04 per common share payable on April 15, 2026 to shareholders of record on March 31, 2026.
Three-Year Outlook (2026 to 2028)
The following sections of this news release, under the headings "Detailed 2026 Guidance" and "Three-Year Outlook (2026 to 2028)", represent forward-looking information and readers are cautioned that actual results may vary materially from the Company's expectations. Refer to the "Cautionary Note Regarding Forward Looking Statements" located on page 18 of this news release and the "Risks and Uncertainties" section of the MD&A issued on February 10, 2026, available on the Company's website (www.dpmmetals.com) and filed on SEDAR+ (www.sedarplus.ca).
The Company's three-year outlook and 2026 detailed guidance include operating and financial results of Vareš. The Company continues to fund its high-quality organic growth pipeline and exploration activities, and accelerate precious metals production from the Vareš mine as it ramps up to full production in the fourth quarter of 2026. As reflected in the outlook, DPM continues to maintain low-cost, high-margin mining operations, in line with its proven track record of delivering long-term shareholder value.
Starting in 2026, the Company will report and provide guidance and outlook on metals production and all-in sustaining cost on a gold equivalent ounce ("GEO") basis, reflecting the addition of the polymetallic Vareš mine. Highlights of the three-year outlook include:
Metals production: Metals production is expected to average approximately 350,000 GEO annually over the next three years. The growth in production is driven primarily by the contribution from Vareš and stable production at Chelopech, partially offset by lower production at Ada Tepe as it reaches the end of its mine life by mid-2026.
Maintains low-cost position: Consolidated all-in sustaining cost over the next three years is expected to average approximately $1,450 per GEO sold. This outlook reflects variations in metals production and sales year over year, as well as the impact of higher local currency operating costs, combined with a stronger Euro relative to the U.S. dollar as compared to 2025.
Exploration expenses: Exploration activities remain a strategic focus for the Company. Reflecting the success of its exploration programs at increasing shareholder value, DPM is increasing its investment in exploration in 2026 by approximately $10 million as compared to 2025. In 2026, exploration expenses will continue to support drilling at prospective targets around the Čoka Rakita project and surrounding licences, extending the mine life at Chelopech, advancing the geological understanding at Vareš, together with disciplined exploration spending related to other targets and new opportunities in Serbia, Bulgaria and Bosnia and Herzegovina. The Company has allocated approximately $30 million to $40 million for 2027 and 2028, consistent with previous three-year outlook, with potential for further investment in exploration based on ongoing success and the prospectivity of the Company's exploration prospects.
Sustaining capital expenditures: Chelopech is expected to maintain stable sustaining capital expenditures over the next three years. Vareš is expected to incur approximately $10 million to $20 million sustaining capital each year primarily related to the underground capital development. No sustaining capital expenditures are expected at Ada Tepe as the mine reaches the end of its life by mid-2026.
Growth capital expenditures: The three-year outlook for growth capital expenditures primarily relates to the initial capital for the Čoka Rakita project, which is expected to commence construction in early 2027 and achieve first production of concentrate in the first half of 2029. In 2026, growth capital for Čoka Rakita project also includes pre-construction activities, such as detailed engineering, environmental and permitting, early works and operational readiness. Growth capital expenditures in 2026 also include expenditures at Vareš to support the development and ramp-up to commercial production, as well as limited expenditures related to the Loma Larga project, comprising primarily of running costs. DPM is planning to minimize spending at the Loma Larga project pending resolution of the revocation of the environmental licence.
The Company's three-year outlook is set out in the following table:
$ millions, unless otherwise indicated
2025Results, excluding Vareš(1)
2026Guidance(2)
2027Outlook(2)
2028Outlook(2)
Gold contained in concentrates produced(3)
Koz
245
195 - 225
200 - 220
155 - 175
Chelopech
Koz
174
150 - 170
160 - 175
125 - 140
Ada Tepe
Koz
71
15 - 20
Vareš
Koz
30 - 35
40 - 45
30 - 35
Silver contained in concentrate produced(3)
Koz
297
3,700 - 4,400
5,200 - 5,900
5,100 - 5,700
Chelopech
Koz
297
200 - 300
200 - 300
200 - 300
Vareš
Koz
3,500 - 4,100
5,000 - 5,600
4,900 - 5,400
Copper contained in concentrate produced(3)
Mlbs
30
34 - 40
28 - 33
30 - 35
Chelopech
Mlbs
30
29 - 34
21 - 25
22 - 26
Vareš
Mlbs
