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Dundee Precious Mtl (TSE:DPM)
:DPM

Dundee Precious Mtl (DPM) AI Stock Analysis

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Dundee Precious Mtl

(TSX:DPM)

82Outperform
Dundee Precious Metals demonstrates a robust financial position with strong revenue growth and profitability metrics. Despite cash flow challenges, the company efficiently manages its financials. Technical analysis indicates a positive trend, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock may be undervalued. The earnings call provided a positive outlook with strategic growth plans, though attention is needed for potential production dips and mine closures.
Positive Factors
Cash Flow
The company is set to generate significant cash flow, thereby building a buffer to account for the drop in production.
Financial Performance
DPM reported Q4/24 financials with adjusted EPS higher than expected.
Production Guidance
Dundee Precious Metals met both gold and copper production guidance for 2024, indicating strong operational performance.
Negative Factors
Production Drop
Management has provided a three-year outlook that is slightly better than expected.
Valuation
DPM is seen as an underappreciated investment opportunity due to its discounted valuation and consistent operational track record.

Dundee Precious Mtl (DPM) vs. S&P 500 (SPY)

Dundee Precious Mtl Business Overview & Revenue Model

Company DescriptionDundee Precious Metals Inc. (DPM) is a Canadian-based international mining company primarily focused on the acquisition, exploration, development, mining, and processing of precious metal properties. Operating within the mining sector, DPM's core products include gold and copper concentrates. The company has established mining operations and development projects in Eastern Europe and Namibia, leveraging advanced technologies and sustainable practices to maximize output and efficiency.
How the Company Makes MoneyDundee Precious Metals generates revenue primarily through the extraction and sale of precious metal concentrates, particularly gold and copper. The company operates several key mining sites, including the Chelopech mine in Bulgaria for gold and copper concentrate, and the Tsumeb smelter in Namibia, which processes complex concentrate materials. DPM sells its metal concentrates to international smelters and refiners, who then refine the materials into pure metals that can be used in various industries. Additionally, the company benefits from strategic partnerships and long-term contracts with these smelters and refiners, ensuring consistent demand and revenue streams. By optimizing production efficiency and maintaining sustainable mining and processing practices, DPM enhances its profitability and competitive position in the global mining market.

Dundee Precious Mtl Financial Statement Overview

Summary
Dundee Precious Metals shows strong financial performance with robust revenue growth, high profit margins, and a solid balance sheet characterized by low leverage. However, the decrease in free cash flow presents a challenge despite efficient cash conversion from operating activities.
Income Statement
82
Very Positive
Dundee Precious Metals shows strong financial performance with a significant increase in revenue from $520 million to $606 million, indicating a robust growth trajectory. The company maintains a high gross profit margin of 57.1% and a net profit margin of 38.9%, reflecting effective cost management and profitability. EBITDA margin is also impressive at 60.4%. However, the absence of EBIT data for the latest year limits full analysis.
Balance Sheet
85
Very Positive
The company exhibits a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. With a strong equity ratio of 90.6%, Dundee Precious Metals boasts a solid financial foundation. The return on equity is 18.3%, showcasing effective use of shareholder funds to generate profits. The company's balance sheet reflects stability and financial health.
Cash Flow
78
Positive
Free cash flow decreased from $220 million to $99 million, reflecting a challenging cash flow environment. However, the operating cash flow to net income ratio of 0.61 indicates that the company efficiently translates profits into cash flow. The decrease in free cash flow, despite positive operating cash flow, suggests increased capital expenditures impacting cash reserves.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
606.99M520.09M569.79M641.44M609.56M
Gross Profit
346.29M275.88M188.12M263.50M259.63M
EBIT
0.00187.85M155.01M239.36M220.26M
EBITDA
366.95M292.11M226.07M335.57M321.73M
Net Income Common Stockholders
235.88M192.94M35.92M210.10M196.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
634.83M595.28M433.18M334.38M149.53M
Total Assets
1.42B1.29B1.16B1.17B974.86M
Total Debt
13.52M12.53M14.58M15.19M17.08M
Net Debt
-621.31M-582.75M-418.59M-319.19M-132.45M
Total Liabilities
134.38M169.69M164.16M164.00M169.58M
Stockholders Equity
1.29B1.12B993.09M1.00B798.67M
Cash FlowFree Cash Flow
99.44M220.28M182.98M188.54M159.51M
Operating Cash Flow
144.71M275.68M232.05M252.68M197.07M
Investing Cash Flow
-23.90M-12.37M-85.81M-32.07M-43.85M
Financing Cash Flow
-83.09M-99.38M-47.44M-36.35M-26.54M

Dundee Precious Mtl Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price18.79
Price Trends
50DMA
17.87
Positive
100DMA
15.79
Positive
200DMA
14.35
Positive
Market Momentum
MACD
0.36
Positive
RSI
47.72
Neutral
STOCH
53.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPM, the sentiment is Neutral. The current price of 18.79 is above the 20-day moving average (MA) of 18.78, above the 50-day MA of 17.87, and above the 200-day MA of 14.35, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 53.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DPM.

Dundee Precious Mtl Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSDPM
82
Outperform
C$3.25B10.4820.10%1.19%2.05%28.90%
TSK
80
Outperform
$25.06B19.2614.66%0.83%23.38%131.87%
TSAEM
80
Outperform
$84.67B32.249.42%1.32%26.99%-6.63%
TSELD
79
Outperform
$5.54B13.868.12%33.06%177.69%
TSSSL
68
Neutral
$3.23B167.171.00%0.69%-0.35%-65.11%
TSOR
68
Neutral
$5.93B266.051.33%0.80%6.02%
49
Neutral
$1.92B-1.52-22.04%3.84%0.67%-27.41%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DPM
Dundee Precious Mtl
18.32
7.99
77.35%
TSE:SSL
Sandstorm Gold
11.50
4.20
57.51%
TSE:OR
Osisko Gold Royalties
31.78
10.46
49.07%
TSE:K
Kinross Gold
19.90
10.97
122.97%
TSE:AEM
Agnico Eagle
164.26
78.70
91.99%
TSE:ELD
Eldorado Gold
26.47
6.82
34.71%

Dundee Precious Mtl Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: 19.53% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
Dundee Precious Metals reported strong financial and operational performance with record free cash flow, strategic project advancements, and significant shareholder returns. However, challenges include the impending closure of the Ada Tepe mine and a forecasted production dip in 2027.
Highlights
Record Free Cash Flow
Dundee Precious Metals (DPM) generated a record $305 million in free cash flow in 2024, growing its cash position to over $800 million at the beginning of 2025.
Strong Operational Performance
DPM consistently delivered on gold production and cost guidance, maintaining a low cost structure with all-in sustaining costs averaging $872 per ounce of gold sold, only a 3% increase from the prior year.
Čoka Rakita Project Advancements
DPM rapidly advanced the Čoka Rakita project, completing a prefeasibility study and targeting production by 2028 with $23 million to $25 million planned for exploration in 2025.
Significant Capital Returns
DPM returned $261 million to shareholders since 2020 and plans up to $200 million in additional share repurchases in 2025.
Strong Financial Position
DPM maintains a strong balance sheet with $635 million in cash, no debt, and a $150 million undrawn revolving credit facility.
Lowlights
Decreasing Mine Life at Ada Tepe
The Ada Tepe mine is nearing the end of its life, expected to close mid-2026, with no significant extension in sight despite exploration efforts.
Production Dip in 2027
A dip in gold production is anticipated in 2027 due to the closure of the Ada Tepe mine before Čoka Rakita starts production in 2028.
Higher Costs and Expenditures
All-in sustaining costs increased by 3% due to various factors, including higher labor costs and maintenance activities. Sustaining capital expenditures rose to $34 million due to higher deferred stripping costs.
Company Guidance
During the Dundee Precious Metals Fourth Quarter 2024 Earnings Results Conference Call, the company provided detailed guidance for the coming years. Dundee Precious Metals achieved significant milestones in 2024, including record free cash flow of $305 million and a cash position exceeding $800 million at the start of 2025. The company plans to invest over $90 million in growth capital and exploration in 2025, focusing on the Čoka Rakita project and further exploration in Serbia. Gold production is expected to average around 200,000 ounces per year, with copper production at approximately 30 million pounds annually over the next three years. The all-in sustaining cost is projected to be $865 per ounce of gold sold. Additionally, Dundee Precious Metals aims to return up to $200 million to shareholders through share repurchases in 2025, building on the $261 million returned since 2020. The company remains committed to a strong operational track record and exploring organic growth opportunities while maintaining a low-cost production profile.

Dundee Precious Mtl Corporate Events

Stock BuybackDividendsFinancial Disclosures
Dundee Precious Metals Reports Strong Q1 2025 Production and Share Repurchase
Positive
Apr 7, 2025

Dundee Precious Metals reported solid gold production in the first quarter of 2025, with expectations to meet its annual guidance. The company also repurchased $83 million in shares, continuing its capital returns program. Chelopech and Ada Tepe mines performed in line with expectations, with increased production anticipated in the latter half of the year. A quarterly dividend is set to be paid in April, and the company will release its full financial results in May.

Spark’s Take on TSE:DPM Stock

According to Spark, TipRanks’ AI Analyst, TSE:DPM is a Outperform.

Dundee Precious Metals is well-positioned with strong financial performance, attractive valuation, and positive earnings call insights. While technical trends are favorable, caution is warranted due to potential overbought conditions. The company’s robust operational and financial strategies offset challenges such as the Ada Tepe mine’s closure and production dips.

To see Spark’s full report on TSE:DPM stock, click here.

Shareholder Meetings
Dundee Precious Metals Schedules 2025 Shareholders Meeting
Neutral
Apr 7, 2025

Dundee Precious Metals Inc. has announced its Annual and Special Meeting of Shareholders scheduled for May 7, 2025, to be held via live audio webcast. This meeting is part of the company’s ongoing efforts to engage with shareholders and maintain transparency in its operations, reflecting its commitment to responsible and efficient growth in the precious metals industry.

Spark’s Take on TSE:DPM Stock

According to Spark, TipRanks’ AI Analyst, TSE:DPM is a Outperform.

Dundee Precious Metals is well-positioned with strong financial performance, attractive valuation, and positive earnings call insights. While technical trends are favorable, caution is warranted due to potential overbought conditions. The company’s robust operational and financial strategies offset challenges such as the Ada Tepe mine’s closure and production dips.

To see Spark’s full report on TSE:DPM stock, click here.

Shareholder MeetingsBusiness Operations and Strategy
Dundee Precious Metals Adopts Shareholder Rights Plan to Protect Against Unsolicited Bids
Neutral
Mar 17, 2025

Dundee Precious Metals has adopted a Shareholder Rights Plan to provide its Board and shareholders with adequate time to evaluate unsolicited take-over bids and negotiate value-enhancing alternatives. This plan, similar to those adopted by other Canadian public companies, aims to ensure fair treatment of shareholders and was not prompted by any specific acquisition proposal. The plan requires ratification at the company’s upcoming annual meeting and has been conditionally accepted by the Toronto Stock Exchange.

Stock BuybackBusiness Operations and Strategy
Dundee Precious Metals Renews Share Repurchase Program
Neutral
Mar 14, 2025

Dundee Precious Metals Inc. has announced the renewal of its normal course issuer bid, allowing the company to repurchase up to 15 million of its common shares, representing approximately 9.8% of its public float. This move, facilitated through the Toronto Stock Exchange and alternative trading systems, reflects the company’s strategic approach to capital allocation and its commitment to managing its share structure effectively. The renewed bid, which will run from March 18, 2025, to March 17, 2026, is supported by an automatic share purchase plan to ensure compliance during regulatory restrictions or black-out periods, with RBC Capital Markets re-appointed to execute purchases on behalf of the company.

Business Operations and Strategy
Dundee Precious Metals Uncovers High-Grade Mineralization at Dumitru Potok
Positive
Feb 19, 2025

Dundee Precious Metals has reported significant results from its drilling activities at the Dumitru Potok prospect, which have revealed wide, high-grade intercepts of copper, gold, and silver. These findings have prompted the company to accelerate its drilling campaign in the area to further explore and extend these zones. The discovery of a substantial copper-gold-silver skarn system, with mineralization detected over a significant strike length, positions the Dumitru Potok prospect as a potentially valuable asset for the company, promising to enhance its operational output and strengthen its standing in the precious metals industry.

Business Operations and StrategyFinancial Disclosures
Dundee Precious Metals Reports Record 2024 Financial Results and Strategic Growth Plans
Positive
Feb 13, 2025

Dundee Precious Metals reported record financial results for 2024, with adjusted net earnings of $232.2 million and free cash flow of $305.1 million. The company maintained its 10-year track record of meeting gold production guidance and initiated a feasibility study for the Čoka Rakita project, aiming to boost future growth. DPM also demonstrated financial strength with substantial liquidity and no debt, alongside a commitment to returning value to shareholders. The company plans to focus on growth in the next three years, with a 2025 gold production target and cost guidance in place.

DividendsBusiness Operations and Strategy
Dundee Precious Metals Declares First Quarter Dividend
Positive
Feb 13, 2025

Dundee Precious Metals announced a first quarter dividend of US$0.04 per common share, payable on April 15, 2025, to shareholders of record on March 31, 2025. This move aligns with the company’s strategy to deliver above-average returns for shareholders, showcasing its financial stability and commitment to growth, potentially enhancing its attractiveness to investors in the precious metals sector.

Business Operations and StrategyRegulatory Filings and Compliance
Dundee Precious Metals Files Technical Report for Serbian Gold Project
Positive
Jan 31, 2025

Dundee Precious Metals has filed a technical report for its Čoka Rakita gold project in Serbia, which is aimed at supporting the mineral resource and reserve estimate and pre-feasibility study. This filing, prepared under Canadian disclosure standards, underscores DPM’s commitment to transparency and resource optimization, potentially enhancing its market position and stakeholder value.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.