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For further information, please contact:
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Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
[email protected]
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Cautionary Note Regarding Forward Looking Statements
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This news release contains “forward looking statements” or “forward looking information” (collectively, “Forward Looking Statements”) that involve a number of risks and uncertainties. Forward Looking Statements are statements that are not historical facts and are generally, but not always, identified by the use of forward looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “guidance”, “outlook”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or that state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms or similar expressions. The Forward Looking Statements in this news release relate to, among other things: forecasted results of production in 2026 and onward and the ability of the Company to meet previously provided guidance in respect thereof; expected cash flows; the price of gold, copper, and silver, and other minerals; estimated capital costs, all-in sustaining costs, operating costs and other financial metrics, including those set out in the outlook and guidance provided by the Company; anticipated rates of production from the Vareš operation and the timing thereof; anticipated steps in the development and ramp-up of the Vareš operation, including commissioning of infrastructure and construction of the paste backfill plant and second tailings filter, and the anticipated timing for completion thereof; currency fluctuations; the completion of technical and economic studies and the timing and results thereof; anticipated steps in the continued development of the Čoka Rakita project, including exploration, permitting activities, environmental assessments, and stakeholder engagement, the commencement of construction, and the anticipated timing thereof; refurbishment of Ada Tepe infrastructure and anticipated deployment at the Čoka Rakita project; exploration activities at the Company’s operating and development properties and the anticipated results thereof; closure and rehabilitation activities at Ada Tepe and the anticipated timing thereof; the ability of the Company to extend the life of mine at Chelopech; anticipated amounts of future expenditures at the Company’s operating and development properties, including expenses related to exploration activities; statements under the heading “2026 Guidance and Three-year Outlook”; timing of payments and amounts of dividends; the number of common shares of the Company that may be purchased under the NCIB; and the Company’s future business plans, objectives, and strategy, including, without limitation, meeting its targeted annual gold production and the completion of one or more strategic transactions.
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Forward Looking Statements are based on certain key assumptions and the opinions and estimates of management and Qualified Person (in the case of technical and scientific information), as of the date such statements are made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the Forward Looking Statements. In addition to factors already discussed in this news release, such factors include, among others: fluctuations in metal prices, foreign exchange rates and oil prices; risks arising from the current economic environment and the impact on operating costs and other financial metrics, including risks of recession; the commencement, continuation or escalation of geopolitical crises and armed conflicts, including in Iran and the broader Middle East region, and their direct and indirect effects on the business and operations of DPM; risks arising from counterparties being unable to or unwilling to fulfill their contractual obligations to the Company; the speculative nature of mineral exploration, development and production, including changes in mineral production performance, exploitation and exploration results; the Company’s dependence on its operations at the Chelopech mine and the Vareš operation; changes in tax and tariff regimes in the jurisdictions in which the Company operates or which are otherwise applicable to the Company’s business, operations, or financial condition; possible inaccurate estimates relating to future production, operating costs and other costs for operations; possible variations in ore grade and recovery rates; inherent uncertainties in respect of conclusions of economic evaluations, economic studies and mine plans; uncertainties with respect to the results of technical studies of the Company’s exploration and development projects and the results thereof; the Company’s dependence on continually developing, replacing and expanding its mineral reserves; uncertainties and risks inherent to developing and commissioning new mines into production, which may be subject to unforeseen delays; risks related to the possibility that future exploration results will not be consistent with the Company’s expectations, that quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; risks associated with the fact that certain of the Company’s initiatives are still in the early stages and may not materialize; risks related to the Company’s ability to develop the Loma Larga project and to obtain necessary permits in respect thereof; changes in project parameters, including schedule and budget, as plans continue to be refined; risks related to the financial results of operations, changes in interest rates, and the Company’s ability to finance its operations; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; uncertainties inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the Company’s activities; potential disputes and uncertainties with respect to the Company’s concessions, permits, and land title rights, as well as the related legal systems in the jurisdictions in which the Company operates; accidents, labour disputes and other risks inherent to the mining industry; risks related to the Company’s ability to manage environmental and social matters, including risks and obligations related to closure of the Company’s mining properties; risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations relating to related to greenhouse gas emission levels, energy efficiency and reporting of risks; land reclamation and mine closure requirements, and costs associated therewith; the Company’s controls over financial reporting and obligations as a public company; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; opposition by social and non-governmental organizations to mining projects; uncertainties with respect to realizing the anticipated benefits from the development of the Company’s exploration and development projects; cyber-attacks and other cybersecurity risks; competition in the mining industry; exercising judgment when undertaking impairment assessments; claims or litigation; limitations on insurance coverage; changes in values of the Company’s investment portfolio; changes in laws and regulations applicable to the Company and its business and operations, and judicial interpretations thereof; the effects of international economic and trade sanctions; the Company’s ability to successfully obtain all necessary permits and other approvals required to conduct its operations; employee relations, including unionized and non-union employees, and the Company’s ability to retain key personnel and attract other highly skilled employees; ability to successfully integrate acquisitions or complete divestitures; unanticipated title disputes; volatility in the price of the common shares of the Company; potential dilution to the common shares of the Company; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; risks related to holding assets in foreign jurisdictions; conflicts of interest between the Company and its directors and officers; the timing and amounts of dividends; there being no assurance that the Company will purchase additional common shares of the Company under the NCIB, as well as those risk factors discussed or referred to in the MD&A, the Company’s most recent AIF, and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available on SEDAR+ at www.sedarplus.ca.
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The reader has been cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward Looking Statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that Forward Looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company’s Forward Looking Statements reflect current expectations regarding future events and speak only as of the date hereof. Other than as it may be required by law, the Company undertakes no obligation to update Forward Looking Statements if circumstances or management’s estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on Forward Looking Statements.
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Non-GAAP Financial Measures
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Certain financial measures referred to in this news release 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 used by management and investors to assist with assessing the Company’s performance, including its ability to generate sufficient cash flow to meet its return objectives and support its investing activities and debt service obligations. In addition, the Human Capital and Compensation Committee of the Board of Directors uses certain of these measures, together with other measures, to set incentive compensation goals and assess performance. 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.
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Cash cost and all-in sustaining cost measures
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Mine cash cost; mine cash cost of sales; and all-in sustaining cost are non-GAAP financial measures. Cash cost per tonne of ore processed; cash cost per GEO sold; and all-in sustaining cost per GEO sold are non-GAAP ratios. These measures capture the important components of the Company’s production and related costs. Management and investors utilize these metrics as an important tool to monitor cost performance at the Company’s operations. In addition, the Human Capital and Compensation Committee of the Board of Directors uses certain of these measures, together with other measures, to set incentive compensation goals and assess performance.
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The following table provides a reconciliation of the Company’s cash cost per tonne of ore processed to its cost of sales:
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| $ thousands, unless otherwise indicated | Chelopech | Ada Tepe | Vareš | ||||
| For the three months ended June 30, 2026 | |||||||
| Ore processed | t | 549,114 | 217,962 | 117,250 | |||
| Cost of sales | 48,845 | 33,483 | 12,074 | ||||
| Add/(deduct): | |||||||
| Capitalized pre-commercial production operating costs | 14,896 | ||||||
| Depreciation and amortization | (7,557 | ) | (15,108 | ) | (1,093 | ) | |
| Change in concentrate inventory | (812 | ) | (1,222 | ) | (1,783 | ) | |
| Mine cash cost(1) | 40,476 | 17,153 | 24,094 | ||||
| Cost of sales per tonne of ore processed(2) | $/t | 89 | 154 | 103 | |||
| Cash cost per tonne of ore processed(2,3) | $/t | 74 | 79 | 205 | |||
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| $ thousands, unless otherwise indicated | Chelopech | Ada Tepe | Vareš | |||
| For the three months ended June 30, 2025 | ||||||
| Ore processed | t | 541,096 | 189,884 | – | ||
| Cost of sales | 42,046 | 28,115 | – | |||
| Add/(deduct): | ||||||
| Depreciation and amortization | (8,475 | ) | (14,458 | ) | – | |
| Change in concentrate inventory | 542 | (355 | ) | – | ||
| Mine cash cost(1) | 34,113 | 13,302 | – | |||
| Cost of sales per tonne of ore processed(2) | $/t | 78 | 148 | – | ||
| Cash cost per tonne of ore processed(2) | $/t | 63 | 70 | – | ||
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| $ thousands, unless otherwise indicated | Chelopech | Ada Tepe | Vareš | ||||
| For the six months ended June 30, 2026 | |||||||
| Ore processed | t | 1,055,614 | 365,347 | 196,331 | |||
| Cost of sales | 95,175 | 63,488 | 23,007 | ||||
| Add/(deduct): | |||||||
| Capitalized pre-commercial production operating costs | 37,185 | ||||||
| Depreciation and amortization | (14,906 | ) | (30,626 | ) | (2,104 | ) | |
| Change in concentrate inventory | (2,134 | ) | (49 | ) | 2,718 | ||
| Mine cash cost(1) | 78,135 | 32,813 | 60,806 | ||||
| Cost of sales per tonne of ore processed(2) | $/t | 90 | 174 | 117 | |||
| Cash cost per tonne of ore processed(2,3) | $/t | 74 | 90 | 310 | |||
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| $ thousands, unless otherwise indicated | Chelopech | Ada Tepe | Vareš | |||
| For the six months ended June 30, 2025 | ||||||
| Ore processed | t | 1,073,947 | 337,175 | – | ||
| Cost of sales | 78,044 | 51,666 | – | |||
| Add/(deduct): | ||||||
| Depreciation and amortization | (16,448 | ) | (25,832 | ) | – | |
| Change in concentrate inventory | 656 | (32 | ) | – | ||
| Mine cash cost(1) | 62,252 | 25,802 | – | |||
| Cost of sales per tonne of ore processed(2) | $/t | 73 | 153 | – | ||
| Cash cost per tonne of ore processed(2) | $/t | 58 | 77 | – | ||
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| (1) | Cash costs are reported in U.S. dollars, although the majority of costs incurred are denominated in non-U.S. dollars, and consist of all production related expenses including mining, processing, services, royalties and general and administrative. |
| (2) | Represents cost of sales and mine cash cost, respectively, divided by tonnes of ore processed. |
| (3) | Cash cost per tonne of ore processed at Vareš is calculated based on gross operating costs, prior to pre-commercial production cost capitalization, divided by total volumes of ore processed. On a net basis, cash cost was $78 and $120 per tonne of ore processed, respectively, for the second quarter and first half of 2026. |
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The following tables provide, for the periods indicated, a reconciliation of the Company’s cash cost per GEO sold and all-in sustaining cost per GEO sold to its cost of sales:
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| $ thousands, unless otherwise indicated | Chelopech | Ada Tepe | Vareš | Consolidated | |||||
| For the three months ended June 30, 2026 | |||||||||
| Cost of sales(1) | 48,845 | 33,483 | 12,074 | 94,402 | |||||
| Add/(deduct): | |||||||||
| Depreciation and amortization | (7,557 | ) | (15,108 | ) | (1,093 | ) | (23,758 | ) | |
| Treatment charges, transportation and other related selling costs(2) | 13,955 | 701 | 2,724 | 17,380 | |||||
| Mine cash cost of sales | 55,243 | 19,076 | 13,705 | 88,024 | |||||
| Rehabilitation related accretion and depreciation expenses(3) | 10 | 426 | 243 | 679 | |||||
| Allocated general and administrative expenses(4) | 13,182 | ||||||||
| Cash outlays for sustaining capital expenditures(5) | 2,584 | 70 | – | 2,654 | |||||
| Cash outlays for leases(5) | 341 | 121 | 621 | 1,083 | |||||
| All-in sustaining cost | 58,178 | 19,693 | 14,569 | 105,622 | |||||
| GEO sold(6) | oz | 49,558 | 11,615 | 25,858 | 87,031 | ||||
| Cost of sales per GEO sold(7) | $/oz | 986 | 2,883 | 467 | 1,085 | ||||
| Cash cost per GEO sold(7) | $/oz | 1,115 | 1,642 | 530 | 1,011 | ||||
| All-in sustaining cost per GEO sold(7) | $/oz | 1,174 | 1,695 | 563 | 1,214 | ||||
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| $ thousands, unless otherwise indicated | Chelopech | Ada Tepe | Vareš | Consolidated | ||||
| For the three months ended June 30, 2025 | ||||||||
| Cost of sales(1) | 42,046 | 28,115 | – | 70,161 | ||||
| Add/(deduct): | ||||||||
| Depreciation and amortization | (8,475 | ) | (14,458 | ) | – | (22,933 | ) | |
| Treatment charges, transportation and other related selling costs(2) | 14,256 | (113 | ) | – | 14,143 | |||
| Mine cash cost of sales | 47,827 | 13,544 | – | 61,371 | ||||
| Rehabilitation related accretion and depreciation expenses(3) | 20 | 394 | – | 414 | ||||
| Allocated general and administrative expenses(4) | 10,351 | |||||||
| Cash outlays for sustaining capital expenditures(5) | 1,827 | 3,075 | – | 4,902 | ||||
| Cash outlays for leases(5) | 554 | 186 | – | 740 | ||||
| All-in sustaining cost | 50,228 | 17,199 | – | 77,778 | ||||
| GEO sold(6) | oz | 45,599 | 14,616 | – | 60,215 | |||
| Cost of sales per GEO sold(7) | $/oz | 922 | 1,924 | – | 1,165 | |||
| Cash cost per GEO sold(7) | $/oz | 1,049 | 927 | – | 1,019 | |||
| All-in sustaining cost per GEO sold(7) | $/oz | 1,102 | 1,177 | – | 1,292 | |||
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| (1) | Included in cost of sales were share-based compensation expenses of $2.2 million (2025 – $0.8 million) in the second quarter of 2026. |
| (2) | Represents revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice. |
| (3) | Included in cost of sales and finance cost in the condensed interim consolidated statements of earnings (loss). |
| (4) | Represents an allocated portion of DPM’s general and administrative expenses, including share-based compensation expenses of $2.5 million (2025 – $5.1 million) for the second quarter of 2026, based on the mines’ proportion of total revenue, where applicable. Allocated general and administrative expenses, including corporate social responsibility expenses and excluding depreciation and amortization, are reflected in consolidated all-in sustaining cost and are not reflected in the cost measures for each of the mine operations. |
| (5) | Included in cash used in investing activities and financing activities, respectively, in the condensed interim consolidated statements of cash flows. |
| (6) | The Company uses conversion ratios for calculating GEO for its silver and copper production and sales, which are calculated by multiplying the volumes of metal sold, as applicable, by the respective average market metal prices, and dividing the resulting figure by the average market gold price. |
| (7) | Represents cost of sales, mine cash cost of sales and all-in sustaining cost, respectively, divided by GEO sold. |
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| $ thousands, unless otherwise indicated | Chelopech | Ada Tepe | Vareš | Consolidated | |||||
| For the six months ended June 30, 2026 | |||||||||
| Cost of sales(1) | 95,175 | 63,488 | 23,007 | 181,670 | |||||
| Add/(deduct): | |||||||||
| Depreciation and amortization | (14,906 | ) | (30,626 | ) | (2,104 | ) | (47,636 | ) | |
| Treatment charges, transportation and other related selling costs(2) | 30,547 | 1,163 | 4,356 | 36,066 | |||||
| Mine cash cost of sales | 110,816 | 34,025 | 25,259 | 170,100 | |||||
| Rehabilitation related accretion and depreciation expenses(3) | 27 | 1,498 | 323 | 1,848 | |||||
| Allocated general and administrative expenses(4) | 35,269 | ||||||||
| Cash outlays for sustaining capital expenditures(5) | 6,452 | 672 | – | 7,124 | |||||
| Cash outlays for leases(5) | 682 | 333 | 1,538 | 2,553 | |||||
| All-in sustaining cost | 117,977 | 36,528 | 27,120 | 216,894 | |||||
| GEO sold(6) | oz | 89,517 | 23,575 | 39,924 | 153,016 | ||||
| Cost of sales per GEO sold(7) | $/oz | 1,063 | 2,693 | 576 | 1,187 | ||||
| Cash cost per GEO sold(7) | $/oz | 1,238 | 1,443 | 633 | 1,112 | ||||
| All-in sustaining cost per GEO sold(7) | $/GEO | 1,318 | 1,549 | 679 | 1,417 | ||||
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| $ thousands, unless otherwise indicated | Chelopech | Ada Tepe | Vareš | Consolidated | ||||
| For the six months ended June 30, 2025 | ||||||||
| Cost of sales(1) | 78,044 | 51,666 | – | 129,710 | ||||
| Add/(deduct): | ||||||||
| Depreciation and amortization | (16,448 | ) | (25,832 | ) | – | (42,280 | ) | |
| Treatment charges, transportation and other related selling costs(2) | 28,335 | 420 | – | 28,755 | ||||
| Mine cash cost of sales | 89,931 | 26,254 | – | 116,185 | ||||
| Rehabilitation related accretion and depreciation expenses(3) | 19 | 553 | – | 572 | ||||
| Allocated general and administrative expenses(4) | 27,673 | |||||||
| Cash outlays for sustaining capital expenditures(5) | 4,919 | 6,796 | – | 11,715 | ||||
| Cash outlays for leases(5) | 1,216 | 357 | – | 1,573 | ||||
| All-in sustaining cost | 96,085 | 33,960 | – | 157,718 | ||||
| GEO sold(6) | oz | 86,157 | 27,040 | – | 113,197 | |||
| Cost of sales per GEO sold(7) | $/oz | 906 | 1,911 | – | 1,146 | |||
| Cash cost per GEO sold(7) | $/oz | 1,044 | 971 | – | 1,026 | |||
| All-in sustaining cost per GEO sold(7) | $/oz | 1,115 | 1,256 | – | 1,393 | |||
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| (1) | Included in cost of sales were share-based compensation expenses of $3.9 million (2025 – $2.5 million) in the first half of 2026. |
| (2) | Represents revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice. |
| (3) | Included in cost of sales and finance cost in the condensed interim consolidated statements of earnings (loss). |
| (4) | Represents an allocated portion of DPM’s general and administrative expenses, including share-based compensation expenses of $14.8 million (2025–$14.6 million) in the first half of 2026, based on the mines’ proportion of total revenue, where applicable. Allocated general and administrative expenses, including corporate social responsibility expenses and excluding depreciation and amortization, are reflected in consolidated all-in sustaining cost and are not reflected in the cost measures for each of the mine operations. |
| (5) | Included in cash used in investing activities and financing activities, respectively, in the condensed interim consolidated statements of cash flows. |
| (6) | The Company uses conversion ratios for calculating GEO for its silver and copper production and sales, which are calculated by multiplying the volumes of metal sold, as applicable, by the respective average market metal prices, and dividing the resulting figure by the average market gold price. |
| (7) | Represents cost of sales, mine cash cost of sales and all-in sustaining cost, respectively, divided by GEO sold. |
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Adjusted net earnings (loss) and adjusted basic earnings (loss) per share
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Adjusted net earnings (loss) is a non-GAAP financial measure and adjusted basic earnings (loss) per share is a non-GAAP ratio used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods.
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Adjusted net earnings (loss) are defined as net earnings (loss), adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including:
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- impairment charges or reversals thereof;
- unrealized and realized gains or losses related to investments carried at fair value;
- significant tax adjustments not related to current period earnings; and
- non-recurring or unusual income or expenses that are either not related to the Company’s operating segments or unlikely to occur on a regular basis.
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The following table provides a reconciliation of adjusted net earnings to net earnings. All adjusting items in the table below were recognized in other (income) expense in the condensed interim consolidated statements of earnings (loss).
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| $ thousands, except per share amounts | Three Months | Six Months | ||||||
| Ended June 30, | 2026 | 2025 | 2026 | 2025 | ||||
| Net earnings | 230,046 | 82,399 | 395,958 | 115,903 | ||||
| Add/(deduct): | ||||||||
| Reversal of provision at Vareš, net of income taxes of $nil(1) | (32,915 | ) | – | (32,915 | ) | – | ||
| Gain on sale of Serbian exploration data, net of income taxes of $nil(2) | (2,650 | ) | – | (2,650 | ) | – | ||
| Loss on settlement of tolling receivables, net of income tax recoveries of $nil(3) | 9,521 | – | 9,521 | – | ||||
| Fair value loss on copper stream liability, net of income taxes of $nil | 3,910 | – | 6,236 | – | ||||
| Ada Tepe employee termination benefit expense, net of income tax recoveries of $313(4) | 2,813 | – | 2,813 | – | ||||
| 2025 Bulgarian levy, net of income tax recoveries of $2,438(5) | – | – | – | 21,938 | ||||
| Adriatic acquisition related costs, net of income taxes of $nil | – | 5,130 | – | 5,130 | ||||
| Adjusted net earnings | 210,725 | 87,529 | 378,963 | 142,971 | ||||
| Basic earnings per share | $/sh | 1.04 | 0.49 | 1.79 | 0.68 | |||
| Adjusted basic earnings per share | $/sh | 0.95 | 0.52 | 1.71 | 0.84 | |||
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| (1) | Represented a reversal of certain provisions in connection with the purchase price allocation arising from the acquisition of Adriatic. |
| (2) | Represented proceeds from a sale of certain assets and data for a Serbian exploration license no longer retained by DPM. |
| (3) | Represented a write-off of a previously recognized receivable related to the DPM Tolling Agreement. |
| (4) | Represented accrued employee termination benefits as Ada Tepe reached the end of its mine life in July 2026. |
| (5) | Represented a one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. |
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Adjusted EBITDA
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Adjusted EBITDA is a non-GAAP financial measure used by management and investors to measure the underlying operating performance of the Company’s operating segments. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods. In addition, the Human Capital and Compensation Committee of the Board of Directors uses adjusted EBITDA, together with other measures, to set incentive compensation goals and assess performance.
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Adjusted EBITDA excludes the following from earnings before income taxes:
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- depreciation and amortization;
- interest income;
- finance cost;
- impairment charges or reversals thereof;
- unrealized and realized gains or losses related to investments carried at fair value; and
- non-recurring or unusual income or expenses that are either not related to the Company’s operating segments or unlikely to occur on a regular basis.
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The following table provides a reconciliation of adjusted EBITDA to earnings before income taxes:
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| $ thousands | Three Months | Six Months | |||||||
| Ended June 30, | 2026 | 2025 | 2026 | 2025 | |||||
| Earnings before income taxes | 255,921 | 92,004 | 445,036 | 130,556 | |||||
| Add/(deduct): | |||||||||
| Depreciation and amortization | 24,464 | 23,691 | 49,096 | 43,863 | |||||
| Finance costs | 1,349 | 1,100 | 2,437 | 1,812 | |||||
| Interest income | (4,857 | ) | (7,849 | ) | (8,545 | ) | (16,417 | ) | |
| Reversal of provision at Vareš(1) | (32,915 | ) | – | (32,915 | ) | – | |||
| Gain on sale of Serbian exploration data(2) | (2,650 | ) | – | (2,650 | ) | – | |||
| Loss on settlement of tolling receivables(3) | 9,521 | – | 9,521 | – | |||||
| Fair value loss on copper stream liability | 3,910 | – | 6,236 | – | |||||
| Ada Tepe employee termination benefit expense(4) | 3,126 | – | 3,126 | – | |||||
| 2025 Bulgarian levy(5) | – | – | – | 24,376 | |||||
| Adriatic acquisition related costs | – | 5,130 | – | 5,130 | |||||
| Adjusted EBITDA | 257,869 | 114,076 | 471,342 | 189,320 | |||||
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| (1) | Represented a reversal of certain provisions in connection with the purchase price allocation arising from the acquisition of Adriatic. |
| (2) | Represented proceeds from a sale of certain assets and data for a Serbian exploration license no longer retained by DPM. |
| (3) | Represented the write-off of a previously recognized receivable related to the DPM Tolling Agreement. |
| (4) | Represented accrued employee termination benefits as Ada Tepe reached the end of its mine life in July 2026. |
| (5) | Represented a one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. |
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Cash provided from operating activities, before changes in working capital
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Cash provided from operating activities, before changes in working capital, is a non-GAAP financial measure defined as cash provided from operating activities excluding changes in working capital as set out in the Company’s consolidated statements of cash flows. This measure is used by the Company and investors to measure the cash flow generated by the Company’s operating segments prior to any changes in working capital, which at times can distort performance.
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Free cash flow
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Free cash flow is a non-GAAP financial measure defined as cash provided from operating activities, before changes in working capital which includes changes in share-based compensation liabilities, less cash outlays for sustaining capital expenditures, mandatory principal repayments and interest payments related to debt and leases. Free cash flow excludes non-recurring or unusual income or expenses that are not related to the Company’s operating segments. This measure is used by the Company and investors to measure the cash flow available to fund growth related initiatives and capital expenditures, dividends and share repurchases.
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The following table provides a reconciliation of cash provided from operating activities, before changes in working capital and free cash flow to cash provided from operating activities:
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| $ thousands | Three Months | Six Months | |||||||
| Ended June 30, | 2026 | 2025 | 2026 | 2025 | |||||
| Cash provided from operating activities(1) | 271,043 | 99,541 | 425,552 | 154,467 | |||||
| Excluding: | |||||||||
| Changes in working capital(1) | (42,167 | ) | 2,324 | 11,216 | 11,067 | ||||
| Cash provided from operating activities, before changes in working capital | 228,876 | 101,865 | 436,768 | 165,534 | |||||
| Adriatic acquisition related costs | – | 5,130 | – | 5,130 | |||||
| Fair value loss on copper stream liability | 3,910 | – | 6,236 | – | |||||
| Ada Tepe employee termination benefit expense(2) | 3,126 | – | 3,126 | – | |||||
| Gain on sale of Serbian exploration data(3) | (2,650 | ) | – | (2,650 | ) | – | |||
| 2025 Bulgarian levy(4) | – | (6,094 | ) | – | 18,282 | ||||
| Cash outlays for sustaining capital expenditures(5) | (3,065 | ) | (4,513 | ) | (7,382 | ) | (11,779 | ) | |
| Principal repayments related to leases(5) | (1,909 | ) | (1,482 | ) | (3,887 | ) | (2,806 | ) | |
| Interest payments(5) | (998 | ) | (366 | ) | (1,604 | ) | (693 | ) | |
| Free cash flow | 227,290 | 94,540 | 430,607 | 173,668 | |||||
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| (1) | Excluded a favourable change in working capital of $13.0 million (2025 – an unfavourable change in working capital of $5.3 million) and $13.0 million (2025 – $167.9 million), respectively, during the second quarter and first half of 2026 related to the DPM Tolling Agreement. |
| (2) | Represented accrued employee termination benefits as Ada Tepe reached the end of its mine life in July 2026. |
| (3) | Represented proceeds from a sale of certain assets and data for a Serbian exploration license no longer retained by DPM. |
| (4) | Represented an accrual of the one-time levy to the 2025 Bulgarian state budget in respect of both the Chelopech and Ada Tepe mines. During the second quarter of 2025, $6.1 million was paid in cash and the remaining accrual was $18.3 million as of June 30, 2026. |
| (5) | Included in cash used in investing and financing activities, respectively, in the condensed interim consolidated statements of cash flows. |
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Average realized metal prices
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Average realized metal prices are non-GAAP ratios used by management and investors to highlight the price actually realized by the Company relative to the average market price, which can differ due to the timing of sales, hedging and other factors.
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Average realized metal prices represent the average per unit price recognized in the Company’s consolidated statements of earnings (loss) prior to any deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice.
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The following table provides a reconciliation of the Company’s average realized metal prices to its revenue:
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| $ thousands, unless otherwise stated | Three Months | Six Months | ||||||
| Ended June 30, | 2026 | 2025 | 2026 | 2025 | ||||
| Total revenue | 361,543 | 186,487 | 671,907 | 330,634 | ||||
| Add/(deduct): | ||||||||
| Treatment charges and other deductions(1) | 17,380 | 14,143 | 36,066 | 28,755 | ||||
| Antimony revenue | (263 | ) | – | (301 | ) | – | ||
| Gross revenue | 378,660 | 200,630 | 707,672 | 359,389 | ||||
| Revenue from gold | 243,458 | 176,301 | 467,524 | 310,829 | ||||
| Payable gold in concentrates sold | oz | 55,643 | 52,877 | 100,862 | 97,666 | |||
| Average realized gold price | $/oz | 4,375 | 3,334 | 4,635 | 3,183 | |||
| Revenue from silver | 73,325 | 1,637 | 128,643 | 3,401 | ||||
| Payable silver in concentrates sold | oz | 1,085,595 | 47,756 | 1,695,785 | 97,184 | |||
| Average realized silver price | $/oz | 67.54 | 34.28 | 75.86 | 35.00 | |||
| Revenue from copper | 41,133 | 22,692 | 79,671 | 45,159 | ||||
| Payable copper in concentrates sold | Klbs | 6,818 | 5,204 | 13,372 | 10,367 | |||
| Average realized copper price | $/lb | 6.03 | 4.36 | 5.96 | 4.36 | |||
| Revenue from zinc | 14,245 | – | 21,561 | – | ||||
| Payable zinc in concentrates sold | Klbs | 8,873 | – | 13,629 | – | |||
| Average realized zinc price | $/lb | 1.61 | – | 1.58 | – | |||
| Revenue from lead | 6,499 | – | 10,273 | – | ||||
| Payable lead in concentrates sold | Klbs | 7,379 | – | 11,784 | – | |||
| Average realized lead price | $/lb | 0.88 | – | 0.87 | – | |||
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(1) Represents revenue deductions for treatment charges, refining charges, penalties, freight and final settlements to adjust for any differences relative to the provisional invoice.
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