DPM Metals Inc.

Thank you. All right. It’s my pleasure this afternoon to be able to update you on what’s happening at DPM. It’s been an exciting couple of months with some of the discoveries that we’ve had, and I’m looking forward to talking about how those are gonna make a material impact to our business. So DPM has its assets within a thousand kilometers, so from basically Bulgaria across to our new asset in Bosnia. Adasev which ran for seven years, running at $500 an ounce, all-in sustaining costs, roughly 100,000 ounces per year. It’s really set the stage in terms of free cash flow that’s gonna be our next phase as we have both Vares and Celopek. We also have project assets in Serbia, which we’re looking forward to realize into our near-term production.

So just stepping out a little bit, very proud of our production track record. We’re now eleven years meeting guidance. We’ve had a great deal of success in terms of discoveries in the areas that we’re in. European presence, I think, is underestimated. So as Christian was saying, there’s a lot of skills, a lot of young talent that’s coming through, and we’re happy to be taking advantage of that, building a company on that youth. And finally, we have a high margin business and capital discipline, which is gonna support our growth profile.

Just moving to that, on the left-hand side, you can see the increase in gold equivalent ounces until 2027. And you’ll notice as well that we’ll have a slight reduction, which is indicated here in our three-year guidance in 2028. With the discovery that we found fifteen months ago underneath our existing asset at Celopek, we’re now anticipating that reduction in production is going to be eliminated, and we’ll actually be adding high-grade ounces into the production, both in 2028, and also supporting our growth activities in 2029 with Coka Rakeeta. On top of that, we’ve had a great deal of success over the last few years with four different discoveries, one of which is Coka Rakeeta, a kilometer to the north, Dimitri Potok, which has large-scale, high-grade copper-gold opportunity. And then more recently, we’ve discovered the wedge zone, which I talked about, plus, most excitingly, a porphyry underneath our existing operation at Celopek, which has some real scale potential and some grades which I think are quite out of the ordinary.

So just moving along a little bit, I’ve talked about the discovery. Our exploration team has done an absolutely amazing job of looking at what we can find within our existing assets, and as a consequence of that, have found four of the top six discoveries globally since 2024. And if you added Coka Rakeeta to this, it would be probably six out of eight because Coka Rakeeta has at least two discovery holes that are at or above these grades. In the region, there’s lots of ten-million-ounce-plus deposits, and therefore, there’s good reason to keep looking over and above the discovery that we’ve found.

And if you have a look at the translation of value, discovery cost in Serbia on the Rakeeta camp at all levels is $20 an ounce. And at the moment, we’re at feasibility level, and what that’s doing is it’s translating into for Coka Rakeeta, a thirty-three fold increase in attributable EV per ounce on an asset that’s at feasibility, and eight for Dimitra Potok, and expecting that we’re gonna see a similar sort of realization of value as we advance Dimitra Potok.

I think, as Christian was saying and what we’ve seen, this is an area that’s underappreciated in terms of capability. So typically, people have looked at the Balkans as maybe emerging market opportunity. But if you have a look at here, it really tells you that we’re underestimating the capability. Lots of industrial skills available, plus technical knowledge, which is gonna support quality production, high margins, and innovation. And we’re happy to say that that innovation is both well accepted and easily implemented relative to other places that I’ve had the privilege of working in. On top of that, if you have a look at the tax regimes, the average tax in the three areas that we’re in is 12%. And if you compare that to other regions where there’s a lot of mining, clearly that’s very attractive.

So I’ll just close in terms of this first part before I get into the exploration, talking about what we’ve been doing with the free cash flow we’ve generated. So first, a good example of the cash we’re generating is that September last year, we completed a transaction where there was a $430 million of cash as part of a $1.3 billion transaction, clearing roughly $200 million of debt. We’ve recovered all of that, and our cash position is back to where it was a year ago, despite the fact that we returned $146 million as a combination of both dividends and buybacks last year. To this point, we’re showing $91 million, which is a combination of $17 million of dividends and the balance buybacks. We’re accelerating those buybacks based on what we see as the value of our organization, and we’re up to $121 million, excluding dividends, to the end of last week.

Our all-in sustaining costs, as I’d mentioned, we’re managing to maintain high margins and intend to continue doing that. Coka Rakeeta, which is set to come online in 2029, will deliver at $644 an ounce, all-in sustaining cost. The wedge zone, which has a lot of similarities to Coka Rakeeta, where we’ve still to demonstrate the initial resource and what that’s gonna look like in terms of its potential. This, as part of our existing operation at a level 250 to 300 meters below our existing mine, should have similarly high returns. So all-in sustaining costs should remain low relative to our peers.

Just wanted to talk about the pipeline. It’s become quite congested recently, which is a very nice problem to have. I talked a little bit about the Wedge Zone. We will start ramping down to the Wedge Zone in December of this year with twin declines, with the idea being that we’ll be able to generate production stopes to bring in towards the end of 2028. And we will see material, even at the average grade, more than three times the grade of our life of mine plan at that point, so displacing tonnage has a material impact. What we’ll be doing is we’re expecting then to be moving that to more into a normalized production position in 2029.

If we have a look at Vares, successfully brought that through commercial production, and they’re now looking to demonstrate at the metallurgical facility full production in Q4. We’re already at that level in the mines. Very happy to say that we’ve very successfully identified and developed local talent, where all of our senior leadership now, with the exception of the general manager and some minor support, are local talent from either Sarajevo or locally within the area around the mines.

So if we’re looking at then what’s going into the future, I mentioned Cukaraki, but Dimitro Potok is behind this. Dimitro Potok is a contact scan that I’ll show you. We’re anticipating that we’re gonna update the existing resource estimate in Q1 of ’27 and bring that to a PEA towards the end of ’27. And then the porphyry south in Celopek, this is our most recent discovery where we only started drilling it in January this year. There we’re looking for resources at an initial estimate in second half of next year, PEA early in 2028, and looking to move that towards a concession in 2029. There’s two elements to that, partly in the concession, partly out of the concession, so we will be advancing both in parallel.

Let’s touch on the assets a little. So if we talk about Celopek, it’s been in operation since 1932. When we talk about tier one assets, this was clearly a tier one asset. Mine consider it reaching the end of its mine life. It’s been a eight to ten-year reserve life as long as I’ve been with the company, and that’s fourteen years, and we’re now set to dramatically transform that. Runs at 2.2 million tons per annum. Has the capability to increase with relatively minor capital from that to 2.5 million tons. Currently operating at 185,000 to 215,000 ounces of Gs per year. We’re actually set to step down to 160,000 as we get to 2028, and that’s as a result of the grade reductions I was talking about when I was referring to Wedge Zone. And this has always operated in class one, tier one all-in sustaining costs.

If we come then to talk about some very specific assets. So I’ve mentioned Wedge Zone. Here are a couple of intercepts which give an idea of what we’ve got. So sixty-eight meters at seven, eighty-one meters at eight, and in the upper parts, we’re seeing consistent high grades, in this case, shown as fifty-eight meters of fifteen grams a ton. So if you can imagine, what we’re gonna do is we’re gonna ramp to this from the bottom of one five one, just below the area where we have the crushing and conveying system. And we’ll use that in order to have the ability to do some exploration from cutties that we’ll develop along that decline in order to look for other wedge zones.

The reason why I mention that, initially this was thought to have been displaced, and it’s why we looked where we did. Subsequently, the assessments that our geologists have done has shown that it looks to be formed in situ. There is not a single drill hole three hundred meters north, south, and three kilometers east, west. So therefore, lots of potential if this, in fact, has been a secondary formation for this type of material. Another comment here is that this is very similar to the high-sulfidation epithermal material we’ve got in the rest of Celopek that contains enargite and tennantite, and therefore arsenic. And that will continue to go through a facility as we currently have, which will produce a concentrate which goes to certain smelters.

The porphyry on the other hand, which we started to look for most closely. I’ll zoom this back out in a moment. Here’s Wedge Zone. And as you’ll see, there’s really no drilling in this area here and three kilometers into the page. But there clearly had to be a source for this new target. Now we’ve identified that there’s something been formed at a couple of hundred meters below the existing resources and reserves. Targeting this particular area and using some methodologies to find the high-temperature zones, there was work done from Celopek where we found this phyllic to potassic transition, but the rig that was used was unable to get us into this to any degree, and it was decided to move to a different pad from surface, and in January, we started drilling from here.

So at roughly a kilometer below ground, we transitioned through that phyllic to potassic interface. And if I zoom out, you’ll see the results in the second bullet point here. So this is originally 712 meters at 2.49 grams a ton. We had another 300 meters that hadn’t been analyzed at the point that we reported on this. Happy to say that when we analyzed that, we got to 1,054 meters at 2.49 grams per ton. And that finished not outside of the resource. It finished because we’re at the mechanical limit of the drill.

So the second hole is the top bullet, and this was just recently reported. 760 meters at 3.3, including the last 138 meters at 5.7 grams per ton, finishing in 6 grams per ton. And again, limited by the mechanical capability of the drill, not the end of the resource. So therefore, we intend to put some more higher capacity drills in here in order to understand what’s below this. And I’ll give you another slide in a moment showing how we’re exactly targeting that. So at this point, this looks like a footprint with 500 by 500 by a kilometer depth at least.

So if we move on, I just wanna show you this first, which has wedge zone as part of the overall footprint in gold of Celopek. And you can see the relative size of this and why we’re excited about the fact there’s no drill holes down there. The reason for that is historically there was thinking that there would be nothing below sea level. So the circumstances of formation were therefore no point looking, let’s say more than a hundred meters beyond the bottom of the existing Celopek asset.

Moving a little bit down then to what’s going on with the porphyry. First of all, we’re working in an exploration license, which is at a stage where we’re applying for a commercial discovery. Now that’s completed, we’re actually moving the drill rigs to focus inside the concession and working towards the Celopek ore body. Happy to say that the last drilling that we reported indicated that we were in fact finding that this extended inside the concession. So if you look here, the goal at the moment is to understand how much further can this actually go in towards the constraining fault on the north side of the Celopek ore body.

Now, in terms of targeting, we’ve done some work which actually came about as some of the magnetite that we found in the holes as we were drilling down towards depth. And what we found is a signature here that suggests a strong magnetic core just below the extent of where we’ve been drilling. So our intent is basically to extend the drilling from the depth of where we are now towards this magnetic core. So lots still to come from here, but this is obviously a very significant occurrence. These types of grades are very unusual in this part of the world, or in fact, I think pretty much anywhere else you don’t find too many assets like this. So we’re very excited in terms of the future.

But just to step back, there’ll be two parts to the future of Celopek. The first part is continuity of the existing production, perhaps an expansion to that production with material which will go through the mill and generate an arsenic-containing concentrate, gold-copper concentrate. The other part of this will be a porphyry source, which will produce conventional concentrates with no issue in terms of deleterious elements. So you’ve got these two different sources and something that’s worthwhile looking at just for terms of reference.

If you have a look at Celopek, and if I were to zoom out and look at the town of Celopek, what we can see here looking towards Sofia, this is Celopek, the lee of the hill. This is Celopek town center. This photograph is actually taken from the mayor’s building. And if you look in the distance on the right, here we have the second biggest copper smelter in Europe. So therefore, lots of synergy in the area and benefit from finding something that’s generating critical metals, as well as some other materials which are suitable for facilities here and elsewhere.

Just coming back then to the other activities that we’ve got going on. If we’d have talked last year, we would’ve been focused entirely on Serbia. We’ve been adding to that information. We’ve had about four months of drilling after we got into the second three-year phase of the license in the Rekita camp. Happy to say that our focus in terms of extending Dimitri Potok is yielding some interesting numbers. So 300 meters away from the current extent of Dimitri Potok, we found 50 meters at 3.68% copper at a level of roughly a kilometer underground. And there’s been a number of other showings that were unusual relative to the initial findings. This is a good example. So this is Rekita North. It’s a little offset and under Rekita at roughly a kilometer. And here just recently, we found something in an area where we’ve been expecting maybe 1% copper equivalent combined gold and copper, and here 76 meters at 2.66%. So much more to come from Serbia.

And if you look at where we are, this is the Rekita deposit that we’re anticipating bringing into construction starting next year and operation in 2029. I talked about Dimitri Potok. Everything that I’ve talked about so far is only one kilometer to the north, and we still have a number of other targets up to five kilometers north of this. So lots still to do in terms of our understanding. But at the moment, if we go back to the resource estimate that we produced towards the end of last year, we started with 84 million tons, with 64 million tons of that in Dimitra Potok, and clearly that’s got the potential to expand and be a second major facility, a tier one facility, in Serbia.

Just moving to Vares, we acquired Adriatic Metals last year on the third of September, and the goal here was to take the good work that had been done and translate that into a fully operating facility and develop local resources. Happy to say that we demonstrated all of our preparation for Čokor Rekita. So the operational readiness, we simply took those people and took them to Vares to refine the practices we have ready. What that translated into was the capital development, where there’d been a struggle to achieve the rates of advance that were being looked at. Within eight weeks, with exactly the same people, we were at those advance rates. So where we are now is we’ve met exactly what we were looking for. This is the overall life of mine. So we are now at the bottom of block two. We’re at the end of block three, and this gives us a number of opportunities to support not only our outlook in terms of tonnage and ounces, but also our exploration opportunities of which there are some material opportunities on the northwest of this property.

So what I’ll do is I’ll maybe come back to the news that’s gonna be coming out in the near future. We continue to work aggressively on our exploration. This year, we’ll spend $70 million on exploration. In the three-year outlook, we’d estimated that would drop back to forty next year. Fully expect that to be at $70 million or more. Clearly, we’ve been generating some real value from that work. So this is the pattern of activity, but what to watch for are obviously the resource estimates and the PEAs that come with that. Recognizing I’m almost out of time, I’ll pause there.

Great. Any questions for David and his team? David, just picking up on Varesh. You’ve described it as a transition year. We’re gonna start working on some of these opportunity costs to bring that cost structure down. Just wondering how much of that is unit cost related, how much of it is volume related? And how can we look through 2027 when you mention things like mining method, reconciliation, dilution control, how do those factor into the cost structure?

So you’re quite right that it’s a combination of volume plus opportunities in terms of reduction in some of the cost contributors. So if you look at cement, currently we’re using consolidated aggregate fill, and we’ll be translating that into a paste fill. That will save considerably on cement, which is one of our main drivers. We’re still working through to get the local workforce fully into position. That will also reduce costs as we reduce the amount of expats. Efficiencies and operation through the mill now as we get to full tonnage, they will give us a clear indication of what else we might be able to do. Sorry, the second part of that question?

Yes, whether mining method and/or dilution control will factor into some of the cost savings.

Yeah, absolutely. So one of the things that we were asked often was, when are we gonna go to an increase in tonnage? But in fact, we’ve been focusing on quality over quantity, particularly in the first year. So what we said by going to bottom-up mining from top-down mining is we expected a reduction in dilution, and we’ve seen exactly that. It’s been one of the key contributors to the grades being at or above what we expect it to be. Reconciliation is a process that’s just started, but at this point, we seem to see a positive reconciliation to what we expected from our reserves and resources.

Well, that’s great work so far. Please join me in thanking David for his presentation. [audience applauding]

Appreciate it. Thanks very much. Cheers.