DPM Metals (TSX: DPM) reported a record Q3 2025 as revenue jumped 82% to $267.4 million and net earnings more than doubled to $96.0 million, driven primarily by pricing rather than volume as the quarter also locked in structurally higher unit costs versus 2024.
The average realized gold price in the quarter climbed 43% to $3,635 per ounce from $2,548, while the realized copper price rose 6% to $4.49 per pound from $4.24. Revenue also benefited from post-acquisition contributions from the Vareš operation, which generated $41.8 million of revenue between September 3 and quarter-end.
Cost of sales increased 69% to $113.9 million from $67.3 million, lifted by higher labour, a $25.5 million non-cash fair value adjustment on Vareš inventories, higher depreciation and a stronger Euro. Earnings before income taxes nearly doubled to $108.3 million from $55.3 million.
The bottom line also pushed basic earnings per share 108% to $0.54 from $0.26 last year, while adjusted basic earnings per share rose 181% to $0.73 from $0.26.
Adjusted EBITDA climbed 142% to $165.6 million from $68.5 million, putting the adjusted EBITDA margin at roughly 62% of revenue versus about 46% a year earlier.
Cash provided from operating activities reached $184.6 million in the quarter, up 252% from $52.5 million. Free cash flow from continuing operations more than doubled to $147.8 million from $70.9 million in the quarter.
Cash and cash equivalents ended the quarter at $413.6 million and the company carried no debt, with an undrawn $150.0 million revolving credit facility. Cash decreased by $221.2 million in the first nine months, primarily due to cash consideration paid for the Adriatic acquisition, repayment of Adriatic debt immediately after closing, $59.7 million of capital expenditures, $116.1 million of share repurchases, and $20.5 million of dividends, together with higher income taxes and the Bulgarian levy.
Operationally, ore processed rose 10% in the third quarter to 780,924 tonnes from 711,090 tonnes. Gold contained in concentrates produced increased 6% to 63,638 ounces from 60,145 ounces as Chelopech production grew 1% to 44,275 ounces and Ada Tepe rose 19% to 19,363 ounces on stronger grades.
Copper production followed the same pattern, up 6% in the quarter to 7.8 million pounds from 7.3 million pounds.
Payable gold in concentrates sold rose 9% in the quarter to 57,912 ounces from 53,228 ounces while payable copper in concentrates sold increased 5% in the quarter to 6.82 million pounds from 6.48 million pounds.
Cost inflation is most visible in the consolidated AISC per ounce of gold sold, which rose 16% to $1,168 in the third quarter from $1,005 in 2024. Consolidated cost of sales per ounce of gold sold moved up 5% in the quarter to $1,329 from $1,265.
At the mine level, Chelopech posted AISC of $671 per ounce, up 5% from $638, with cash cost per ounce effectively flat at $533 versus $534 and cost of sales per ounce up 6% to $1,130 from $1,069. Ada Tepe’s AISC fell 12% in the quarter to $1,030 from $1,171 as cash cost per ounce improved to $775 from $938, although cost of sales per ounce still edged higher by 1% to $1,761 from $1,742.
Management attributes a large portion of the AISC expansion to mark-to-market share-based compensation and currency. Mark-to-market adjustments added $281 per ounce of gold sold to AISC in the third quarter of 2025 and $193 per ounce in the first nine months, compared with only $79 and $43 per ounce in the respective 2024 periods, while a stronger Euro also pushed costs higher.
Updated guidance now pegs 2025 exploration expenses at $49 million to $54 million, up from $44 million to $49 million, and resets 2025 Loma Larga growth capital to the original $12 million to $14 million range after the October 6 revocation of the project’s environmental licence.
The firm reaffirmed 2025 production guidance of 225,000 to 265,000 ounces of gold and 28 to 33 million pounds of copper, while Vareš is expected to contribute more strongly from 2026.
DPM Metals last traded at $32.19 on the TSX.
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