TORONTO, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) ("DPM” or the "Company”) announced its operating and financial results for the quarter and year ended December 31, 2024.
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 adjusted net earnings: Reported adjusted net earnings1 of $232.2 million ($1.29 per share1) and net earnings from continuing operations of $243.2 million ($1.35 per share).
- Record free cash flow: Generated $305.1 million of free cash flow1 and $296.8 million of cash provided from operating activities from continuing operations.
- 10-year track record of operational delivery: DPM achieved its gold production guidance for the tenth consecutive year, producing 261,335 ounces of gold in 2024. Copper production of 29.7 million pounds was in-line with guidance.
- Advancing growth pipeline: Initiated the Čoka Rakita project feasibility study ("FS”) to enable an accelerated construction decision, with first concentrate concentration production targeted for 2028. The Čoka Rakita pre-feasibility study ("PFS”) was completed December 2024.
- Generating robust margins: Reported cost of sales per ounce of gold sold of $1,113.2 All-in sustaining cost per ounce of gold sold1 of $872 was within guidance for 2024. DPM has met its all-in sustaining cost guidance every year since 2014.
- Peer-leading sustainability performance: DPM scored in the top decile among metals and mining companies in the S&P Global Corporate Sustainability Assessment for the fourth consecutive year.
- Continued capital discipline: Returned $78.8 million, or 26% of free cash flow, to shareholders during 2024 through dividends paid and shares repurchased. Board of Directors has authorized the repurchase of up to $200 million of shares within 2025.
- Substantial liquidity for growth: Ended the quarter with a strong balance sheet, including a total of $634.8 million of cash, a $150.0 million undrawn revolving credit facility, and no debt. In January 2025, the Company received an additional $170.6 million in cash following the conclusion of the temporary tolling agreement related to the sale of the Tsumeb smelter ("DPM Tolling Agreement”).
- 2025 guidance and three-year outlook: Three-year outlook highlights DPM's focus on its next phase of growth, including planned growth capital and exploration expenditures. 2025 production expected to be between 225,000 and 265,000 ounces of gold at an all-in sustaining cost of between $780 to $900 per ounce of gold sold.
1 All-in sustaining cost per ounce of gold sold, free cash flow, adjusted net earnings and adjusted basic earnings per share 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 17 of this news release for more information, including reconciliations to IFRS measures.
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 concentrate sold, while all-in sustaining cost per ounce of gold sold includes treatment and freight charges, net of by-product credits, all of which are reflected in revenue.
CEO Commentary
"We once again generated record financial results in 2024, including free cash flow of $305 million, demonstrating the quality of our low-cost, high-margin mining operations. Our exceptional 10-year track record of delivery has created long-term shareholder value and provides confidence in our ability to grow the business with Čoka Rakita,” said David Rae, President and Chief Executive Officer.
"We achieved a significant milestone for Čoka Rakita by completing the pre-feasibility study for this high-grade, low-cost growth project. The project team initiated the feasibility study and is advancing permitting activities to support start-up of construction in mid-2026. And, importantly, our scout drilling programs near Čoka Rakita continue to return strong results confirming the large-scale potential for further high-grade copper-gold mineralization, highlighting the significant potential to generate additional value through exploration.
"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 ounce of gold sold
- adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA”)
- adjusted net earnings
- adjusted basic earnings per share
- cash provided from operating activities, before changes in working capital
- free cash flow
- average realized metal prices
Key Operating and Financial Highlights from Continuing Operations
| $ millions, except where noted | Fourth Quarter | Full Year | ||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||
| Operating Highlights | ||||||||||
| Ore Processed | t | 748,196 | 735,524 | 2 | % | 2,916,027 | 2,952,711 | (1 | %) | |
| Metals contained in concentrate produced: | ||||||||||
| Gold | ||||||||||
| Chelopech | oz | 41,901 | 41,871 | 0 | % | 167,029 | 161,872 | 3 | % | |
| Ada Tepe | oz | 28,918 | 35,212 | (18 | %) | 94,306 | 134,200 | (30 | %) | |
| Total gold in concentrate produced | oz | 70,819 | 77,083 | (8 | %) | 261,335 | 296,072 | (12 | %) | |
| Copper | Klbs | 7,781 | 8,229 | (5 | %) | 29,671 | 30,547 | (3 | %) | |
| Payable metals in concentrate sold: | ||||||||||
| Gold | ||||||||||
| Chelopech | oz | 36,862 | 36,276 | 2 | % | 142,004 | 135,862 | 5 | % | |
| Ada Tepe | oz | 28,003 | 33,288 | (16 | %) | 92,124 | 129,881 | (29 | %) | |
| Total payable gold in concentrate sold | oz | 64,865 | 69,564 | (7 | %) | 234,128 | 265,743 | (12 | %) | |
| Copper | Klbs | 6,652 | 7,009 | (5 | %) | 25,062 | 26,651 | (6 | %) | |
| Cost of sales per tonne of ore processed(1): | ||||||||||
| Chelopech | $/t | 69 | 64 | 8 | % | 71 | 63 | 13 | % | |
| Ada Tepe | $/t | 142 | 146 | (3 | %) | 141 | 140 | 1 | % | |
| Cash cost per tonne of ore processed(2): | ||||||||||
| Chelopech | $/t | 54 | 51 | 6 | % | 56 | 50 | 12 | % | |
| Ada Tepe | $/t | 71 | 72 | (1 | %) | 70 | 67 | 4 | % | |
| Cost of sales per ounce of gold sold(3) | $/oz | 1,016 | 877 | 16 | % | 1,113 | 919 | 21 | % | |
| All-in sustaining cost per ounce of gold sold(2) | $/oz | 904 | 876 | 3 | % | 872 | 849 | 3 | % | |
| Financial Highlights | ||||||||||
| Average realized prices(2): | ||||||||||
| Gold | $/oz | 2,663 | 2,025 | 32 | % | 2,434 | 1,957 | 24 | % | |
| Copper | $/lb | 3.91 | 3.74 | 5 | % | 4.16 | 3.82 | 9 | % | |
| Revenue | 179.1 | 139.3 | 29 | % | 607.0 | 520.1 | 17 | % | ||
| Cost of sales | 65.9 | 61.0 | 8 | % | 260.7 | 244.2 | 7 | % | ||
| Earnings before income taxes | 94.3 | 58.5 | 61 | % | 276.1 | 205.7 | 34 | % | ||
| Adjusted EBITDA(2) | 110.8 | 72.0 | 54 | % | 326.9 | 268.4 | 22 | % | ||
| Net earnings | 86.7 | 52.1 | 67 | % | 243.2 | 182.0 | 34 | % | ||
| Basic earnings per share | $/sh | 0.49 | 0.29 | 69 | % | 1.35 | 0.98 | 38 | % | |
| Adjusted net earnings(2) | 82.6 | 50.1 | 65 | % | 232.2 | 180.0 | 29 | % | ||
| Adjusted basic earnings per share(2) | $/sh | 0.46 | 0.28 | 64 | % | 1.29 | 0.97 | 33 | % | |
| Cash provided from operating activities | 82.7 | 71.3 | 16 | % | 296.8 | 261.6 | 13 | % | ||
| Free cash flow(2) | 91.7 | 49.3 | 86 | % | 305.1 | 227.9 | 34 | % | ||
| Capital expenditures incurred(4): | ||||||||||
| Sustaining(5) | 9.8 | 8.0 | 22 | % | 34.2 | 31.2 | 10 | % | ||
| Growth and other(6) | 2.1 | 10.0 | (79 | %) | 17.2 | 29.3 | (41 | %) | ||
| Total capital expenditures | 11.9 | 18.0 | (34 | %) | 51.4 | 60.5 | (15 | %) | ||
| (1) | Cost of sales per tonne of ore processed represents cost of sales for Chelopech and Ada Tepe, respectively, divided by tonnes of ore processed. | |
| (2) | Cash cost per tonne of ore processed, 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 17 of this news release for more information, including reconciliations to IFRS measures. | |
| (3) | Cost of sales per ounce of gold sold represents total cost of sales for Chelopech and Ada Tepe, divided by total payable gold in concentrate sold. | |
| (4) | Capital expenditures incurred were reported on an accrual basis and do not represent the cash outlays for the 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. |
A table comparing production, sales and cash cost measures by asset for the fourth quarter and full year ended December 31, 2024 against 2024 guidance is located on page 14 of this news release.
In 2024, DPM achieved its gold production and cost guidance for the tenth consecutive year, continuing its long track record of operational delivery.
Highlights include the following:
Chelopech, Bulgaria: Gold contained in concentrates produced in fourth quarter and full year 2024 was higher than 2023 due primarily to higher gold recoveries.
Payable gold in concentrates sold in the fourth quarter of 2024 was higher than 2023 due primarily to favourable payable gold terms. Payable gold in concentrates sold in 2024 was higher than 2023 due primarily to higher gold production and favourable payable gold terms.
Payable copper in concentrate sold in the fourth quarter and full year of 2024 was lower than 2023 due primarily to lower copper production.
All-in sustaining cost per ounce of gold sold in the fourth quarter and full year of 2024 was lower than 2023 due primarily to lower treatment charges as a result of DPM having secured more favourable commercial terms for the year under the current tight market for copper concentrates and higher by-product credits reflecting higher realized copper prices, as well as lower cash outlays for sustaining capital expenditures for the year.
Ada Tepe, Bulgaria: Gold contained in concentrate produced in the fourth quarter and full year of 2024 was lower than 2023 due primarily to mining in lower grade zones in 2024, in line with mine plan.
All-in sustaining cost per ounce of gold sold in the fourth quarter and full year of 2024 was higher than 2023 due primarily to lower volumes of gold sold, higher labour costs, and higher royalties for the quarter, as well as higher cash outlays for sustaining capital expenditures.
Consolidated Operating Highlights
Production: Gold contained in concentrate produced in the fourth quarter and full year of 2024 was 8% and 12% lower than 2023, due primarily to lower gold production at Ada Tepe, partially offset by higher gold recoveries at Chelopech.
Copper production in fourth quarter and full year of 2024 was 5% and 3% lower than 2023 due primarily to lower copper grades.
Deliveries: Payable gold in concentrate sold in the fourth quarter and full year of 2024 was 7% and 12% lower than 2023, primarily reflecting lower gold production.
Payable copper in concentrate sold in fourth quarter and full year of 2024 was 5% and 6% lower than 2023 due primarily to lower copper production.
Cost measures: Cost of sales in fourth quarter and full year of 2024 was 8% and 7% higher than 2023, due primarily to higher labour costs, timing of maintenance activities and higher depreciation expense.
All-in sustaining cost per ounce of gold sold in the fourth quarter and full year of 2024 was 3% higher than 2023 due primarily to lower volumes of gold sold, higher labour costs and timing of maintenance activities, largely offset by lower treatment charges at Chelopech and higher by-product credits as a result of higher realized copper prices.
Capital expenditures: Sustaining capital expenditures incurred in the fourth quarter and full year of 2024 were 22% and 10% higher than 2023, respectively, due primarily to timing of expenditures and higher deferred stripping costs as a result of higher stripping ratios, in line with the mine plan at Ada Tepe.
Growth and other capital expenditures incurred in the fourth quarter and full year of 2024 was 79% and 41% lower than 2023, respectively, due primarily to lower expenditures related to the Loma Larga gold project in 2024, as expected.
Consolidated Financial Highlights
Financial results in 2024 reported record earnings and free cash flow generation, reflecting higher realized metal prices combined with the Company's strong all-in sustaining cost performance, and lower treatment charges at Chelopech, partially offset by lower volumes of gold sold at Ada Tepe and higher planned exploration and evaluation expenses.
Revenue: Revenue in the fourth quarter and full year 2024 was 29% and 17% higher than 2023, respectively, due primarily to higher realized metal prices and lower treatment charges at Chelopech, partially offset by lower volumes of gold sold at Ada Tepe.
Net earnings: Net earnings from continuing operations in the fourth quarter of 2024 was 67% higher than 2023, due primarily to higher revenue, partially offset by higher planned exploration and evaluation expenses and higher income taxes. Net earnings from continuing operations in 2024 was 34% higher than 2023, due primarily to higher revenue and interest income, partially offset by higher planned exploration and evaluation expenses, higher income taxes and higher labour costs.
Adjusted net earnings: Adjusted net earnings from continuing operations in the fourth quarter and full year of 2024 was 65% and 29% higher than 2023, respectively, due primarily to the same factors affecting net earnings from continuing operations, with the exception of adjusting items primarily related to the net termination fee received from Osino Resources Corp. ("Osino”), tax adjustments not related to current period earnings, and gains or losses on derivatives.
Cash provided from operating activities: Cash provided from operating activities from continuing operations in the fourth quarter and full year of 2024 was 16% and 13% higher than 2023 due primarily to higher earnings generated from continuing operations and higher cash interest received, partially offset by the timing of deliveries and subsequent receipt of cash for the year, and the timing of payments to suppliers.
Free cash flow: Free cash flow from continuing operations in the fourth quarter and full year of 2024 was 86% and 34% higher than 2023, respectively, due primarily to higher earnings generated in the periods. Free cash flow is calculated before changes in working capital.
Balance Sheet Strength and Financial Flexibility
The Company continues to maintain a strong financial position, with a growing cash position, no debt and an undrawn $150 million revolving credit facility.
Cash and cash equivalents increased from $595.3 million as at December 31, 2023 to $634.8 million as at December 31, 2024 due primarily to earnings generated in the year, and cash proceeds from the disposition of Osino shares and the Tsumeb smelter, partially offset by a net cash outflow of $156.2 million related to the DPM Tolling Agreement, cash outlays for capital expenditures, payments for shares repurchased under the Normal Course Issuer Bid ("NCIB”) and dividends paid.
In January 2025, the Company received an additional $170.6 million in cash, as the Company concluded the DPM Tolling Agreement, of which $161.9 million was received from Sinomine Resource Group Co. Ltd. related to the inventory buyback, and $8.7 million was received from IXM S.A. related to the