DPM Metals Inc.

Second-quarter revenue was $362 million, up 94% from the prior year, driven mainly by higher realized metal prices and $110 million of Vares pre-commercial production revenue. Adjusted net earnings were $211 million, or $0.95 per share, more than double last year, and cash flow from operating activities was $271 million, up $172 million year over year. Free cash flow reached a record $227 million, up $133 million year over year, and consolidated cash ended the quarter at $761 million with $1.2 billion of total liquidity and no debt. Consolidated AISC was $1,214 per GEO sold versus an average realized gold price of $4,375 per ounce; first-half AISC was $1,470 per GEO sold versus an average realized gold price of $4,635 per ounce. Vares produced about 35,000 GEOs at AISC of $563 per GEO sold, and Chelopech produced about 57,000 GEOs at AISC of $1,174 per GEO sold. Management said it remains on track to meet 2026 production guidance and full-year AISC guidance; Vares is expected to reach commercial production by the end of Q3 and the 850,000-tonne-per-year run rate by year-end, while Coka Rakita permitting remains on track for a construction decision and early-2027 start.

David Rae emphasized that DPM is executing on a multi-asset growth story, led by Vares ramp-up and a pipeline of exploration-driven opportunities. He described the quarter as exceptional, saying the company is generating free cash flow and earnings while advancing discoveries such as Brevene South Porphyry and Wedge Zone. His tone was confident and upbeat, repeatedly stressing that DPM has a strong path forward as a European-focused precious metals producer.

Navin Dyal framed the quarter as a record financial period, highlighting $362 million of revenue, $211 million of adjusted net earnings, $271 million of operating cash flow, and $227 million of free cash flow. He noted $48 million of total Vares capitalization in the half year, including $37 million of capitalized operating costs, and said Vares AISC is expected to move into guidance as commercial production is achieved by the end of Q3. He also pointed to a strong balance sheet with $761 million of cash, no debt, a $400 million undrawn revolver, $75 million of share repurchases and about $18 million of dividends in the first half, and another $27 million of buybacks in July.

Analysts focused on Coka Rakita permitting timing, Vares cost normalization, Wedge Zone development plans, and the Brevene South Porphyry permit timeline. Management said it is in regular dialogue with Serbian authorities and remains confident in an early-2027 construction start for Coka Rakita, while noting that the permitting process is well defined but still subject to government timing. On Vares, management explained that commercial production requires 30 continuous days at 60% throughput and that current low costs partly reflect capitalization of pre-commercial operating costs; on Brevene, management said 15 to 18 months is not unusual before drilling can resume, but it sees opportunities to test related mineralization from within the Chelopech concession sooner.