Highlights
(Unless otherwise stated, all monetary figures in this news release are expressed in U.S. dollars.)
On-track to meet guidance: Produced 84,042 gold equivalent ounces ("GEO")1 in the first quarter. DPM is on-track to achieve 2026 production guidance.
All-in sustaining cost: Reported cost of sales per GEO sold of $1,323 and all-in sustaining cost per GEO sold2 of $1,686, which reflected a $186 per GEO sold impact related to mark-to-market adjustments to share-based compensation as a result of DPM's strong share price performance. DPM reconfirmed its 2026 guidance for all-in sustaining cost of $1,300 to $1,450 per GEO sold.
Record free cash flow generation: Generated $203 million of free cash flow2 and $155 million of cash provided from operating activities.
Strong adjusted net earnings per share: Reported adjusted net earnings2 of $168 million ($0.76 per share2) and record net earnings of $166 million ($0.75 per share).
Vareš ramp-up to full production on-track: DPM has continued to make strong progress at Vareš, with development rates in-line with expectations. Vareš is on track to achieve the 850,000 tonnes per year rate by year-end.
Advancing Čoka Rakita: Permitting continues to advance as planned, in support of targeted start-up of mine construction in early 2027.
Dumitru Potok drilling program: DPM received the normal course renewal of exploration permits for the Čoka Rakita licence as anticipated in mid-March 2026. A 20,000-metre drilling program was initiated with nine drill rigs currently active.
Substantial liquidity for growth: Ended the quarter with a total of $575.5 million in cash and cash equivalents and an undrawn revolving $400 million credit facility with accordion feature to $550 million.
Continued capital discipline: Returned $33.6 million, representing 17% of free cash flow, to shareholders during the quarter through dividends paid and shares repurchased.
___________________1 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 average market metal prices, and dividing the resulting figure by the average market gold price.2 Free cash flow, adjusted net earnings, adjusted basic earnings per share, 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 12 of this news release for more information, including reconciliations to IFRS measures.
CEO Commentary
David Rae, President and Chief Executive Officer, made the following comments in relation to the first quarter results:
"The combination of DPM's solid operating performance in the first quarter and strong metals prices generated a record $203 million of free cash flow. The high-grade, low-cost nature of our operations and our disciplined focus on cost management positions us well to continue delivering consistent margins in the midst of challenging global economic conditions.
We are very pleased with the progress we are making at Vareš, which continues to be on track to achieve the 850,000 tonne per year run-rate by year-end. We are achieving our targeted development rates, and advancing construction of the paste backfill plant, which is expected to commission in the third quarter.
"We initiated a 20,000-metre drilling program at Dumitru Potok near the end of March as planned. With a significant mineral resource already defined, we are excited to continue work to infill and extend Dumitru Potok, which together with the Čoka Rakita project, highlight the Rakita camp's district-scale potential."
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 GEO sold
all-in sustaining cost
all-in sustaining cost per GEO 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 14 of this news release.
Key Operating and Financial Highlights
$ millions, except where noted
Three Months
Ended March 31,
2026
2025
Change
Operating Highlights(1)
Ore processed
t
732,966
680,142
8
%
GEO produced(2)
oz
84,042
59,227
42
%
GEO sold(2)
oz
65,985
52,982
25
%
Cost of sales per GEO sold(3)
$/oz
1,323
1,124
18
%
All-in sustaining cost per GEO sold(3,4)
$/oz
1,686
1,509
12
%
Capital expenditures incurred(5):
Sustaining(6)
3.2
7.6
(58
%)
Growth and other(7)
34.1
11.7
190
%
Total capital expenditures
37.3
19.3
93
%
Financial Highlights(1)
Revenue
310.4
144.1
115
%
Cost of sales
87.3
59.5
47
%
Earnings before income taxes
189.1
38.6
391
%
Adjusted EBITDA(4)
213.5
75.2
184
%
Net earnings
165.9
33.5
395
%
Basic earnings per share
$/sh
0.75
0.19
295
%
Adjusted net earnings(4)
168.2
55.4
203
%
Adjusted basic earnings per share(4)
$/sh
0.76
0.32
138
%
Cash provided from operating activities(8)
154.5
55.0
181
%
Free cash flow(4)
203.3
79.1
157
%
Dividends paid
8.9
7.1
26
%
Payments for share repurchases(9)
24.7
82.3
(70
%)
$ thousands, unless otherwise indicated
Three Months
Ended March 31,
2026
2025
Change
Metal Prices
Average market prices:
Gold
$/oz
4,875
2,862
70
%
Silver
$/oz
84.39
31.91
164
%
Copper
$/lb
5.83
4.24
38
%
Zinc
$/lb
1.47
-
100
%
Lead
$/lb
0.88
-
100
%
Average realized prices(4):
Gold
$/oz
4,955
3,004
65
%
Silver
$/oz
90.66
35.69
154
%
Copper
$/lb
5.88
4.35
35
%
Zinc
$/lb
1.54
-
100
%
Lead
$/lb
0.86
-
100
%
(1) Operating and financial highlights for the first quarter of 2025 did not include Vareš results, which was acquired on September 3, 2025.(2) 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 average market metal prices, and dividing the resulting figure by the average market gold price.(3) Cost of sales per GEO sold represents total cost of sales for Chelopech, Ada Tepe and Vareš, where applicable, divided by GEO sold, while all-in sustaining cost per GEO sold includes treatment and freight charges, where applicable, all of which are reflected in revenue.(4) All-in sustaining cost per GEO 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 14 of this news release for more information, including reconciliations to IFRS measures.(5) Capital expenditures incurred are reported on an accrual basis and do not represent the cash outlays for capital expenditures.(6) 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.(7) 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.(8) Excluded cash provided from operating activities of $173.2 million during the first quarter of 2025 related to a tolling agreement between DPM and Sinomine Resource Group Co. Ltd. ("Sinomine") as a result of the disposition of the Tsumeb smelter by DPM in August 2024 (the "DPM Tolling Agreement").(9) Excludes payments for taxes on share repurchases of $2.3 million (2025, $1.0 million) for the first quarter of 2026.
Performance Highlights
The following table compares production, sales and cash cost measures by asset for the first quarter of 2026 against 2026 guidance:
Q12026
2026 Consolidated Guidance
Chelopech
Ada Tepe
Vareš
Consolidated
Ore processed
Kt
506.5
147.4
79.1
733.0
2,870 - 3,100
Metals contained in concentrates produced
Gold
Koz
32.4
12.2
6.9
51.5
195 - 225
Silver
Koz
116.9
7.7
912.4
1,037.0
3,700 - 4,400
Copper
Mlbs
6.9
–
0.8
7.7
34 - 40
Zinc
Mlbs
–
–
10.0
10.0
59 - 71
Lead
Mlbs
–
–
7.5
7.5
35 - 42
GEO
Koz
42.7
12.3
29.0
84.0
305 - 365
Payable metals in concentrates sold
Gold
Koz
30.0
11.8
3.4
45.2
175 - 205
Silver
Koz
125.5
6.3
478.4
610.2
3,300 - 4,000
Copper
Mlbs
6.5
–
0.1
6.6
26 - 31
Zinc
Mlbs
–
–
4.8
4.8
44 - 53
Lead
Mlbs
–
–
4.4
4.4
27 - 32
GEO
Koz
40.0
12.0
14.0
66.0
265 - 310
Cost of sales per tonne of ore processed
$/t
91
204
138
Cash cost per tonne of ore processed(1)
$/t
74
106
464
Cost of sales per GEO sold
$/oz
1,159
2,509
777
1,323
All-in sustaining cost per GEO sold
$/oz
1,497
1,408
892
1,686
1,300 - 1,450
(1) At Vareš, cash cost per tonne of ore processed is calculated based on gross operating costs, prior to pre-commercial production cost capitalization, divided by total volumes of ore processed. On a net basis, cash cost was $182 per tonne of ore processed for the first quarter of 2026.
With solid operating performance in the first quarter of 2026, the Company is on track to meet its guidance for 2026, with higher production planned in the second half of the year as Vareš continues to ramp-up and remains on track to achieve full production by year-end.
Highlights include the following:
Chelopech, Bulgaria: GEO produced in the first quarter of 2026 was lower than 2025, due primarily to lower production and higher prices for gold, partially offset by higher production and prices for copper and silver. Production is expected to increase in the second quarter, and Chelopech is on-track to achieve its production guidance for 2026. Gold contained in concentrates produced in the first quarter of 2026 was lower than 2025, due primarily to lower gold recoveries and lower volumes of ore processed. Copper production in the first quarter of 2026 was higher than 2025, due primarily to higher copper grades, in line with the mine plan.
GEO sold in the first quarter of 2026 was comparable to 2025 due primarily to lower GEO produced, largely offset by timing of deliveries. Payable gold in concentrates sold in the first quarter of 2026 was lower than 2025, due primarily to timing of deliveries. Payable copper in the first quarter of 2026 was higher than 2025, due primarily to higher copper production and timing of deliveries.
All-in sustaining cost per GEO sold in the first quarter of 2026 was higher than 2025, due primarily to a stronger Euro relative to the U.S. dollar, higher labour costs, higher royalties reflecting higher metal prices, and timing of maintenance activities.
Ada Tepe, Bulgaria: Ada Tepe is scheduled to reach the end of its life by mid-2026, with the final production blast completed on April 16, 2026. Gold contained in concentrate produced and GEO produced in the first quarter of 2026 were comparable to 2025.
Payable gold in concentrate sold and GEO sold in the first quarter of 2026 were slightly lower than 2025 due primarily to the timing of deliveries.
All-in sustaining cost per GEO sold in the first quarter of 2026 was higher than 2025, due primarily to higher royalties reflecting higher royalty rates effective January 2026 and higher metal prices, a stronger Euro relative to the U.S. dollar and lower volumes of GEO sold, partially offset by lower cash outlays for sustaining capital expenditures as a result of the upcoming mine closure.
Vareš, Bosnia and Herzegovina: DPM has continued to make strong progress at Vareš, with development rates in-line with expectations, and continues to advance construction of the paste backfill plant. Metals contained in concentrates produced was in line with the planned ramp-up of the mine to full production of 850,000 tonnes per annum by the end of 2026. Vareš is on track to achieve its guidance for 2026. During the second quarter, the processing plant will be shut down for approximately 20 days for the preparation of installation tie-ins for the second tailings filter. This will allow installation of the tailings filter with minimal impact to the higher production rates anticipated in the second half of the year.
Payable metals in concentrates sold were lower than metals produced due primarily to timing of deliveries.
Cash operating costs, before capitalization, are expected to be in line with the 2026 guidance. As the mine achieves commercial production, the Company will be evaluating opportunities to optimize the cost structure for 2027 and beyond, targeting the cash cost per tonne metrics outlined in the Vareš Technical Report.
Consolidated Operating Highlights
Production: GEO production in the first quarter of 2026 was 42% higher than 2025 due primarily to higher overall metal production following the acquisition of Vareš.
Deliveries: GEO sold in the first quarter of 2026 was 25% higher than 2025 due primarily to higher overall metals sold following the acquisition of Vareš, partially offset set by timing of deliveries.
Cost measures: Cost of sales in the first quarter of 2026 was 47% higher than 2025 due primarily to the inclusion of Vareš, a stronger Euro relative to U.S. dollar, higher labour costs and higher royalties.
All-in sustaining cost per GEO sold in the first quarter of 2026 was 12% higher than 2025, due primarily to a stronger Euro relative to the U.S. dollar, and higher royalties reflecting higher metal prices at Chelopech and Ada Tepe, as well as higher royalty rates at Ada Tepe.
Mark-to-market adjustments to share-based compensation expenses resulted in an increase of $186 per GEO sold in the first quarter of 2026 compared to an increase of $188 per GEO sold in 2025.
Capital expenditures: Sustaining capital expenditures incurred in the first quarter of 2026 were 58% lower than 2025, due primarily to no capital expenditures at Ada Tepe as a result of its upcoming mine closure, partially offset by timing of expenditures at Chelopech.
Growth and other capital expenditures incurred in the first quarter of 2026 were 190% higher than 2025, due primarily to the capital expenditures at Vareš, including the capitalization of certain pre-commercial production operating costs, partially offset by lower costs related to the Čoka Rakita project due primarily to timing of expenditures.
Consolidated Financial Highlights
DPM delivered record quarterly financial results in the first quarter of 2026 in earnings and free cash flow, benefiting from higher metal prices and the addition of the Vareš mine to its portfolio. The financial results of Vareš have been included in the Company's consolidated financial statements since September 3, 2025, the date of acquisition.
Revenue: Revenue in the first quarter of 2026 was 115% higher than 2025 due primarily to higher realized metal prices and the inclusion of Vareš pre-commercial production revenue.
Net earnings: Net earnings in the first quarter of 2026 were 395% higher than 2025 due primarily to higher realized metal prices and the inclusion of Vareš, partially offset by higher income taxes and cost of sales. The first quarter of 2025 also included a one-time levy of $24.4 million to ...
