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Dundee Precious Mtl (TSE:DPM)
TSX:DPM
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Dundee Precious Mtl
(TSX:DPM)
81Outperform
Positive Factors
Financial Performance
DPM reported Q4/24 financials with adjusted EPS higher than expected.
Share Buyback
The board of directors has approved the repurchase of up to US$200M in DPM shares in 2025.
Negative Factors
Production Results
Dundee Precious Metals reported its Q3/24 production results with gold and copper production lower than estimates.
Dundee Precious Mtl (DPM) vs. S&P 500 (SPY)
Market Cap
C$3.01B
Dividend Yield1.28%
Average Volume (3M)659.40K
Price to Earnings (P/E)9.6
Beta (1Y)0.69
Revenue Growth2.05%
EPS Growth28.90%
CountryCA
Employees2,176
SectorBasic Materials
Sector Strength62
IndustryMining
Share Statistics
EPS (TTM)1.81
Shares Outstanding173,174,130
10 Day Avg. Volume734,316
30 Day Avg. Volume659,401
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)N/A
Price to Sales (P/S)3.59
Price to Cash Flow (P/CF)25.10
P/FCF Ratio61.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$18.93Price Target Upside8.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Dundee Precious Mtl Business Overview & Revenue Model
Company DescriptionDundee Precious Metals Inc is an international gold mining company. It is engaged in acquisition, exploration, development, mining, and processing of precious metals. The Company has three reportable operating segments Chelopech and Ada Tepe in Bulgaria and Tsumeb in Namibia. The firm's current operations are in Namibia and Bulgaria, with exploration in Armenia, Bulgaria, and Serbia.
How the Company Makes MoneyDundee Precious Metals generates revenue primarily through the mining and sale of gold, as well as by-products like copper and silver. The company's revenue streams are bolstered by the production from its two main mines: the Chelopech mine, which produces gold and copper concentrates, and the Ada Tepe mine, which produces gold concentrate. Additionally, the Tsumeb smelter in Namibia plays a crucial role in processing complex copper concentrates, further contributing to DPM's revenue. The company benefits from strategic partnerships and long-term contracts with global metal traders and refiners, ensuring stable demand and pricing for its products. Factors such as fluctuations in global commodity prices, operational efficiencies, and successful exploration or expansion projects significantly impact DPM's earnings.
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
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.82
Very Positive
Balance Sheet
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.85
Very Positive
Cash Flow
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.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 606.99M | 520.09M | 569.79M | 641.44M | 609.56M | Gross Profit |
| 346.29M | 275.88M | 188.12M | 263.50M | 259.63M | EBIT |
| 0.00 | 187.85M | 155.01M | 239.36M | 220.26M | EBITDA |
| 366.95M | 292.11M | 226.07M | 335.57M | 321.73M | Net Income Common Stockholders |
| 235.88M | 192.94M | 35.92M | 210.10M | 196.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 634.83M | 595.28M | 433.18M | 334.38M | 149.53M | Total Assets |
| 1.42B | 1.29B | 1.16B | 1.17B | 974.86M | Total Debt |
| 13.52M | 12.53M | 14.58M | 15.19M | 17.08M | Net Debt |
| -621.31M | -582.75M | -418.59M | -319.19M | -132.45M | Total Liabilities |
| 134.38M | 169.69M | 164.16M | 164.00M | 169.58M | Stockholders Equity |
| 1.29B | 1.12B | 993.09M | 1.00B | 798.67M |
| Cash Flow | Free Cash Flow | |||
| 99.44M | 220.28M | 182.98M | 188.54M | 159.51M | Operating Cash Flow |
| 144.71M | 275.68M | 232.05M | 252.68M | 197.07M | 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
Positive
17.41
Price Trends
15.32
Positive
14.29
Positive
13.25
Positive
Market Momentum
0.62
Positive
69.15
Neutral
72.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPM, the sentiment is Positive. The current price of 17.41 is above the 20-day moving average (MA) of 16.89, above the 50-day MA of 15.32, and above the 200-day MA of 13.25, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 72.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DPM.
Dundee Precious Mtl Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Performance Comparison
TSE:DPM
Dundee Precious Mtl
17.56
7.98
83.30%
AEM
Agnico Eagle
101.05
45.93
83.33%
EGO
Eldorado Gold
14.65
2.03
16.09%
KGC
Kinross Gold
11.13
5.49
97.34%
SAND
Sandstorm Gold
6.31
1.48
30.64%
OR
Osisko Gold Royalties
18.97
2.97
18.56%
Dundee Precious Mtl Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 10.40% | Next Earnings Date: Apr 30, 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
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.
Dundee Precious Metals Meets Gold Production Targets for Tenth Year
Jan 8, 2025
Dundee Precious Metals announced that it met its gold production guidance for the tenth consecutive year, marking a significant achievement in the mining industry. The company reported strong performance for 2024, with Ada Tepe achieving its highest quarterly production and both mines meeting their annual production targets, underscoring the company’s operational strengths and industry positioning.
Dundee Precious Metals Unveils Promising Čoka Rakita Results
Dec 18, 2024
Dundee Precious Metals has released promising pre-feasibility study results for its Čoka Rakita gold project in Serbia, revealing an impressive net present value of $735 million and an internal rate of return of 41%. The company aims for accelerated gold production, with an average of 170,000 ounces annually in the first five years, and plans to advance to a feasibility study by the end of 2025.
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.