Dundee Precious Metals (TSX: DPM) posted mixed Q2 2025 results, with record earnings and free cash flow driven by stronger gold prices, even as production volumes fell and cost pressures mounted.
Quarterly revenue rose 19% YoY to $186.5 million from $156.8 million, supported by a 41% surge in realized gold prices to $3,334 per ounce. This offset a 13% drop in payable gold sales to 52,877 ounces and a 20% decline in copper sales to 5.2 million pounds. Cost of sales climbed 8% to $70.2 million, compressing operating leverage despite higher pricing.
Net earnings increased 16% to $82.4 million, or $0.49 per share, compared with $70.9 million, or $0.39 per share, last year. Meanwhile, on adjusted basis, net earnings came in at $87.6 million, a 24% jump, reflecting higher realized prices and capitalization of costs tied to the Čoka Rakita project, partially offset by $5.1 million in expenses related to the Adriatic acquisition. Adjusted EPS of $0.52 was up 33% from $0.39 a year ago.
Adjusted EBITDA rose 23% to $114.1 million from $93.1 million, with margins buoyed by gold’s price surge.
Cash provided from operating activities dropped 21% to $99.5 million, down from $125.8 million last year, impacted by timing of deliveries and supplier payments, as well as the first installment of a new Bulgarian levy. Free cash flow improved 15% to $94.5 million, reflecting earnings strength despite outflows.
The balance sheet remained solid with $796.6 million in liquidity, including $331.7 million in cash and $464.9 million in restricted cash earmarked for the $1.3 billion acquisition of Adriatic Metals.
On operations, gold production fell 10% YoY to 61,212 ounces, with output at Ada Tepe down 41% to 14,180 ounces on weaker grades. Copper production also slipped 18% to 6.4 million pounds.
Consolidated AISC surged 42% to $1,011 per ounce, far above last year’s $710, as lower volumes, weaker copper by-product credits, higher labor costs, and mark-to-market adjustments on share-based compensation weighed heavily. At Ada Tepe, AISC nearly doubled to $1,166 per ounce from $699 a year ago.
Capital spending nearly doubled to $22.2 million, driven by growth investments at Čoka Rakita, with sustaining capital at $5.9 million, down 24%. Shareholder returns were aggressive: $129.9 million, or 75% of free cash flow, was returned in the first half through $116.1 million in buybacks and $13.8 million in dividends.
Looking ahead, the company reaffirmed its 2025 guidance of 225,000–265,000 ounces of gold and 28–33 million pounds of copper, with AISC of $780–$900 per ounce. However, guidance costs now sit below current run rates, suggesting the second half must deliver significant efficiency gains.
Dundee Precious Metals last traded at $22.40 on the TSX.
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