First Quarter 2025 Report

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# First Quarter 2025 Report

Source: https://dpmmetals.com/site/assets/files/16939/q1_2025_report.pdf
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## Content

# First Quarter 2025 Report
2025 FIRST QUARTER REPORT
FIRST QUARTER REPORT – Q1 2025
TABLE OF CONTENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS 1
Overview 3
Operating and Financial Highlights 4
Three-Year Outlook 7
Review of Operating Results by Segment 9
Development and Other Major Projects 11
Exploration 13
Review of Financial Results 15
Discontinued Operations 17
Liquidity and Capital Resources 18
Financial Instruments 23
Off Balance Sheet Arrangements 23
Selected Quarterly Annual Information 24
Critical Accounting Estimates 24
Non-GAAP Financial Measures 25
Risks and Uncertainties 30
Disclosure Controls & Procedures and Internal Control Over Financial Reporting 31
Cautionary Note Regarding Forward Looking Statements 31
Cautionary Note to United States Investors Concerning Differences in Reporting 34
of Mineral Resource Estimates
CONSOLIDATED FINANCIAL STATEMENTS
Condensed Interim Consolidated Statements of Financial Position 36
Condensed Interim Consolidated Statements of Earnings (Loss) 37
Condensed Interim Consolidated Statements of Comprehensive Income (Loss) 38
Condensed Interim Consolidated Statements of Cash Flows 39
Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity 40
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 41
Note 1: Corporate Information 41
Note 2: Basis of Preparation 41
Note 3: Tsumeb Disposition and Discontinued Operations 42
Note 4: Financial Instruments 43
Note 5: Debt 45
Note 6: Share-Based Compensation Plans 46
Note 7: Other Income and Expense 47
Note 8: Related Party Transactions 47
Note 9: Supplementary Cash Flow Information 48
Note 10: Supplementary Shareholders’ Equity Information 48
Note 11: Commitments and Contingencies 49
Note 12: Operating Segment Information 49
CORPORATE INFORMATION 52
MA N A GEMEN T’S DISCUSSION AND ANALYSIS
of Consolidated Financial Condition and Results of Operations
for the quarter ended March 31, 2025
(All monetary figures are expressed in U.S. dollars unless otherwise stated)
The following is Management’s Discussion and Analysis (“MD&A”) of the consolidated financial condition
and results of operations of Dundee Precious Metals Inc. (“DPM” and, together with its consolidated
subsidiaries, collectively referred to as the “Company”) as at March 31, 2025. This MD&A should be read
in conjunction with DPM’s unaudited condensed interim consolidated financial statements for the three
months ended March 31, 2025 prepared in accordance with IFRS Accounting Standards (“IFRS”).
Additional Company information, including the Company’s most recent annual information form (“AIF”)
and other continuous disclosure documents, can be accessed through the System for Electronic
Document Analysis and Retrieval (“SEDAR+”) at www.sedarplus.ca and the Company’s website at
www.dundeeprecious.com. To the extent applicable, updated information contained in this MD&A
supersedes older information contained in previously filed continuous disclosure documents. Capitalized
terms used in this MD&A that have not been defined have the same meanings attributed to them as in
DPM’s unaudited condensed interim consolidated financial statements for the three months ended March
31, 2025. Information contained on the Company’s website is not incorporated by reference herein and
does not form part of this MD&A.
This MD&A contains forward looking statements that are based on certain estimates and assumptions
and involve risks and uncertainties. Actual results may vary materially from management’s expectations.
See the “Cautionary Note Regarding Forward Looking Statements” and “Risks and Uncertainties”
sections later in this MD&A for further information.
1 I DUNDEE PRECIOUS METALS INC.
Certain financial measures referred to in this MD&A 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 MD&A:
• 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 (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 MD&A and
a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the “Non-
GAAP Financial Measures” section commencing on page 25 of this MD&A.
The technical and scientific information in this MD&A has been prepared in accordance with Canadian
regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral
Projects (“NI 43-101”) of the Canadian Securities Administrators and the Canadian Institute of Mining,
Metallurgy and Petroleum (“CIM”) – Definition Standards adopted by CIM Council on May 10, 2014 (the
“CIM Definition Standards”) for Mineral Resources and Mineral Reserves, and has been reviewed and
approved by Ross Overall, B.Sc. (Applied Geology), Director, Corporate Technical Services, of DPM, who
is a Qualified Person (“QP”) as defined under NI 43-101, and who is not independent of the Company.
This MD&A has been prepared as at May 6, 2025.
FIRST QUARTER I 2
OVERVIEW
Our Business
DPM is a Canadian-based, international gold mining company engaged in the acquisition of mineral
properties, exploration, development, mining and processing of precious metals. Its common shares
(symbol: DPM) are traded on the Toronto Stock Exchange (“TSX”).
The Company’s purpose is to unlock resources and generate value to thrive and grow together. Our
strategic objective is to become a mid-tier precious metals company, which is based on sustainable,
responsible and efficient gold production from our portfolio, the development of quality assets, and
maintaining a strong financial position to support growth in mineral reserves and production through
disciplined strategic transactions. This strategy creates a platform for robust growth to deliver above-
average returns for our shareholders.
Continuing operations:
DPM’s principal subsidiaries include:
• 100% of Dundee Precious Metals Chelopech EAD (“Chelopech”), which owns and operates a gold,
copper and silver mine located east of Sofia, Bulgaria; and
• 100% of Dundee Precious Metals Krumovgrad EAD (“Ada Tepe”), which owns and operates a gold
mine located in south eastern Bulgaria, near the town of Krumovgrad.
DPM holds interests in a number of exploration and development properties located in Serbia and
Ecuador through its subsidiaries, including:
• 100% of Crni Vrh Resources d.o.o. and DPM Avala d.o.o., which hold the Čoka Rakita project and
the Timok gold project, respectively, in Serbia; and
• 100% of DPM Ecuador S.A., which is focused on the exploration and development of the Loma
Larga gold project and the Tierras Coloradas exploration property in Ecuador.
Discontinued operations:
On August 30, 2024, DPM sold its 98% ownership interest of Dundee Precious Metals Tsumeb
(Proprietary) Limited (“Tsumeb”), which owns and operates a custom smelter located in Tsumeb, Namibia
(“Tsumeb Disposition”).
As a result of the Tsumeb Disposition, the operating results of Tsumeb have been presented as
discontinued operations in the condensed interim consolidated statements of earnings (loss) for the three
months ended March 31, 2024.
All operational and financial information contained in this MD&A are related to continuing operations,
unless otherwise stated.
3 I DUNDEE PRECIOUS METALS INC.
OPERATING AND FINANCIAL HIGHLIGHTS
The following table summarizes the Company’s selected operating and financial highlights from
continuing operations for the three months ended March 31, 2025 and 2024:
$ thousands, unless otherwise indicated Three Months
Ended March 31, 2025 2024 Change
Operating Highlights
Ore processed t 680,142 701,198 (3%)
Metals contained in concentrate produced:
Gold oz 49,863 62,727 (21%)
Copper Klbs 5,905 6,692 (12%)
Payable metals in concentrate sold:
Gold oz 44,789 55,212 (19%)
Copper Klbs 5,163 5,457 (5%)
Cost of sales per ounce of gold sold $/oz 1,330 1,127 18%
Cash cost per ounce of gold sold(1) $/oz 683 611 12%
All-in sustaining cost per ounce of gold sold(1) $/oz 1,244 883 41%
Capital expenditures incurred(2):
Sustaining(3) 7,598 5,719 33%
Growth and other(4) 11,751 8,279 42%
Total capital expenditures 19,349 13,998 38%
Financial Highlights
Average market prices:
Gold $/oz 2,862 2,072 38%
Copper $/lb 4.24 3.83 11%
Average realized prices(1):
Gold $/oz 3,004 2,127 41%
Copper $/lb 4.35 3.89 12%
Revenue 144,147 123,791 16%
Cost of sales 59,549 62,229 (4%)
Earnings before income taxes 38,552 46,279 (17%)
Adjusted EBITDA(1) 75,244 54,513 38%
Net earnings 33,504 39,426 (15%)
Basic earnings per share $/sh 0.19 0.22 (14%)
Adjusted net earnings(1) 55,442 32,525 70%
Adjusted basic earnings per share(1) $/sh 0.32 0.18 78%
Cash provided from operating activities(5) 54,926 35,800 53%
Free cash flow(1) 79,128 60,052 32%
Dividends paid 7,069 7,237 (2%)
Payments for share repurchases 83,263 1,865 4,365%
March 31, December 31, Increase/
As at 2025 2024 (Decrease)
Financial Position and Available Liquidity
Cash and cash equivalents 763,026 634,830 128,196
Available liquidity(6) 913,026 784,830 128,196
(1) Cash cost per ounce of gold sold; 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 25 of this MD&A for more information, including reconciliations to IFRS measures.
(2) Capital expenditures incurred were reported on an accrual basis and do not represent the cash outlays for the capital expenditures.
(3) 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.
FIRST QUARTER I 4
(4) 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.
(5) Excludes cash provided from operating activities of discontinued operations of $173.2 million (2024 – $17.7 million) during the first quarter of
2025.
(6) Available liquidity is defined as cash and cash equivalents plus the available capacity under DPM’s long-term revolving credit facility (“RCF”) at
the end of each reporting period.
Operating Highlights
In t

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