Dundee Precious Metals: Attractively Priced Low-Cost Gold Miner

2025-05-21 11:17:50 ET

Summary

• Dundee Precious Metals Inc. is a low-cost gold and copper producer with strong cash flow, no debt, and significant cash reserves.
• Production is set to decline in 2026-2027, but the Coka Rakita project could double output by 2028-2029 if it stays on track.
• Aggressive share buybacks and a solid dividend enhance shareholder returns, while the stock remains undervalued versus peers.
• I rate DPMLF stock a buy due to its compelling free cash flow yield, strong financials, and upside from development projects.

Overview

Dundee Precious Metals Inc. ( DPMLF , DPM:CA ) is a Canadian-listed precious metals company, and the reporting currency is U.S. Dollars. The two producing assets are Chelopech and Ada Tepe, both located in Bulgaria. Chelopech is expected to produce around 165Koz of gold over the next few years, along with about 29Mlbs of copper per year. The mine life stretches to 2032 for Chelopech, but it is probably fair to assume the company will be able to extend that further with more drilling....

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