Second Quarter 2025 Report

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# Second Quarter 2025 Report

Source: https://dpmmetals.com/site/assets/files/17223/second_quarter_2025_report.pdf
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## Content

# Second Quarter 2025 Report
2025 SECOND QUARTER REPORT
SECOND QUARTER REPORT – Q2 2025
TABLE OF CONTENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS 1
Overview 3
Operating and Financial Highlights 5
Three-Year Outlook 8
Review of Operating Results by Segment 11
Development and Other Major Projects 13
Exploration 15
Review of Financial Results 17
Discontinued Operations 20
Liquidity and Capital Resources 20
Financial Instruments 26
Off Balance Sheet Arrangements 27
Selected Quarterly and Annual Information 27
Critical Accounting Estimates 28
Non-GAAP Financial Measures 28
Risks and Uncertainties 34
Disclosure Controls & Procedures and Internal Control Over Financial Reporting 35
Cautionary Note Regarding Forward Looking Statements 35
Cautionary Note to United States Investors Concerning Differences in Reporting 39
of Mineral Resource Estimates
CONSOLIDATED FINANCIAL STATEMENTS
Condensed Interim Consolidated Statements of Financial Position 40
Condensed Interim Consolidated Statements of Earnings (Loss) 41
Condensed Interim Consolidated Statements of Comprehensive Income (Loss) 42
Condensed Interim Consolidated Statements of Cash Flows 43
Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity 44
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 45
Note 1: Corporate Information 45
Note 2: Basis of Preparation 45
Note 3: Proposed Acquisition of Adriatic Metals plc (“Adriatic”) 46
Note 4: Tsumeb Disposition and Discontinued Operations 46
Note 5: Financial Instruments 48
Note 6: Debt 50
Note 7: Share-Based Compensation Plans 51
Note 8: Other Income and Expense 52
Note 9: Related Party Transactions 52
Note 10: Supplementary Cash Flow Information 53
Note 11: Supplementary Shareholders’ Equity Information 53
Note 12: Commitments and other Contingencies 54
Note 13: Operating Segment Information 54
CORPORATE INFORMATION 57
MA N A GEMEN T’S DISCUSSION AND ANALYSIS
of Consolidated Financial Condition and Results of Operations
for three and six months ended June 30, 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 June 30, 2025. This MD&A should be read in
conjunction with DPM’s unaudited condensed interim consolidated financial statements for the three and
six months ended June 30, 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 and six months ended
June 30, 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 28 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 July 31, 2025.
SECOND 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 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 owned and operated 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
and six months ended June 30, 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.
Corporate Development
Proposed Acquisition of Adriatic Metals plc (“Adriatic”):
On June 13, 2025, the Company announced that it had agreed with Adriatic to the terms of a
recommended acquisition of the entire issued, and to be issued, ordinary share capital of Adriatic (the
“Transaction”) for an implied equity value of approximately $1.3 billion. Upon completion of the
Transaction, DPM will acquire 100% of the Vareš operation in Bosnia and Herzegovina, a producing
silver-lead-zinc-gold underground mine.
Under the terms of the Transaction, shareholders of Adriatic (“Adriatic Shareholders”) will be entitled to
receive 0.1590 of a common share of DPM (each whole share, a “DPM Share”) and 93 pence in cash for
each ordinary share of Adriatic (each, an “Adriatic Share”). The implied value for each Adriatic Share is
£2.68 (and CHESS Depository Interests of Adriatic at AUD$5.56), based on the closing price of
Cdn$20.33 per DPM Share and a GBP/CAD exchange rate of 1.85 on June 11, 2025. Immediately
following completion of the Transaction, it is expected that current shareholders of DPM (the “DPM
Shareholders”) will own approximately 75%, and former Adriatic Shareholders will own approximately
25%, of DPM’s issued share capital.
The Transaction will be subject to certain closing conditions, including, among other things: (i) approval of
the Transaction by Adriatic Shareholders; (ii) court approval; (iii) the issuance of the DPM Shares to be
issued in the Transaction being approved by DPM Shareholders; (iv) receipt of the approval for listing of
such DPM common shares by the TSX; (v) receipt by DPM of an unconditional approval of the
Transaction by the Bosnian Competition Council in accordance with the Bosnian Competition Act; and (vi)
the Transaction becoming effective no later than December 31, 2025. The TSX has conditionally
approved the listing of the DPM Shares to be issued under the Transaction, subject to DPM satisfying the
customary listing conditions of the TSX and filing (or causing to be filed) certain documents in connection
with the closing of the Transaction.
SECOND QUARTER I 4
OPERATING AND FINANCIAL HIGHLIGHTS
The following table summarizes the Company’s selected operating and financial highlights from
continuing operations for the three and six months ended June 30, 2025 and 2024:
$ thousands, unless otherwise indicated Three Months Six Months
Ended June 30, 2025 2024 Change 2025 2024 Change
Operating Highlights
Ore processed t 730,980 755,543 (3%) 1,411,122 1,456,741 (3%)
Metals contained in concentrates produced:
Gold oz 61,212 67,644 (10%) 111,075 130,371 (15%)
Copper Klbs 6,439 7,880 (18%) 12,344 14,572 (15%)
Payable metals in concentrates sold:
Gold oz 52,877 60,823 (13%) 97,666 116,035 (16%)
Copper Klbs 5,204 6,469 (20%) 10,367 11,926 (13%)
Cost of sales per ounce of gold sold $/oz 1,327 1,073 24% 1,328 1,099 21%
Cash cost per ounce of gold sold(1) $/oz 701 509 38% 692 558 24%
All-in sustaining cost per ounce of gold
sold(1) $/oz 1,011 710 42% 1,118 793 41%
Capital expenditures incurred(2):
Sustaining(3) 5,948 7,870 (24%) 13,546 13,589 0%
Growth and other(4) 16,240 3,666 343% 27,991 11,945 134%
Total capital expenditures 22,188 11,536 92% 41,537 25,534 63%

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