DPM Metals Inc. (ASX: DPM) has announced a robust start to the 2026 financial year, reporting record free cash flow and significant production growth for the first quarter ended March 31, 2026. The Canadian-based international gold mining company, which has operations and projects in Bulgaria, Bosnia and Herzegovina, Serbia, and Ecuador, aims to become a mid-tier precious metals producer through sustainable and efficient operations. The company achieved a record free cash flow of US$203 million, a substantial 157% increase year-on-year. Gold equivalent ounces (GEO) produced rose by 42% to 84,042 ounces, keeping DPM on track to meet its full-year 2026 production guidance.
This impressive performance was largely driven by the successful ramp-up of the Vareš operation in Bosnia and Herzegovina, which is on track to achieve its full production rate of 850,000 tonnes per year by year-end, with development rates in-line with expectations. The quarter saw adjusted net earnings climb by 203% to US$168 million, or US$0.76 per share. DPM maintains a strong liquidity position, closing the quarter with US$575.5 million in cash and an undrawn US$400 million revolving credit facility. Further development is also underway, with permitting for the Coka Rakita project advancing and a 20,000-metre drilling program initiated at Dumitru Potok.
DPM President and CEO, David Rae, attributed the record free cash flow to solid operating performance and strong metal prices, noting the high-grade, low-cost nature of their operations and disciplined cost management. While the all-in sustaining cost per GEO sold was reported at US$1,686, it included a US$186 impact from mark-to-market adjustments on share-based compensation due to DPM’s strong share price performance. The company reconfirmed its 2026 guidance for all-in sustaining cost at US$1,300 to US$1,450 per GEO sold. Demonstrating capital discipline, DPM returned US$33.6 million, or 17% of free cash flow, to shareholders through dividends and share repurchases during the period.
