Shares of DPM Metals surged 6.9% to CA$49.30 on July 9, snapping a two-day slide, after the company reported preliminary Q2 production that showed its multi-mine strategy is delivering. For the three months ended June 30, DPM logged 102,000 gold-equivalent ounces (GEOs) of production — a measure that converts all its metals output into a single gold-based number for easier comparison. The question for investors: with one mine shutting down permanently, can the ramp-up at Vareš in Bosnia carry the load fast enough?
The Workhorse Mine Delivered a Big Quarter
Chelopech, DPM's flagship mine in Bulgaria, increased production to approximately 56,000 GEO, up from 43,000 in Q1, driven by planned higher gold and silver grades.
Chelopech is on track to achieve its full-year production guidance. That Q1-to-Q2 jump — roughly 30% — is critical because it confirms the company's back-half-weighted production guidance is credible, not aspirational.
Vareš Is Scaling, but the Clock Is Ticking
Vareš produced approximately 35,000 GEO in Q2, with the mine processing 117,000 tonnes — a 48% quarter-on-quarter increase — while achieving underground development rates above 400 metres per month.
DPM expects Vareš to reach its full run-rate of 850,000 tonnes per year by year-end. That target matters enormously: the company's three-year outlook calls for average annual production of 350,000 GEO at an all-in sustaining cost of $1,450 per ounce sold , and Vareš is the engine of that growth.
One Mine Is Closing for Good
Ada Tepe produced about 11,000 GEO in Q2, but its final production blast occurred in mid-April; the processing plant is scheduled to shut down on July 15, 2026.
Equipment will be dismantled and refurbished for the Čoka Rakita development project in Serbia. Losing Ada Tepe eliminates roughly 45,000–50,000 annual GEO from the portfolio, making Vareš's on-time ramp-up non-negotiable.
Management Is Betting Big on Its Own Stock
DPM repurchased over US$49 million of its own shares during Q2 , and the board has authorized up to $200 million in buybacks for 2026. Combined with record Q1 free cash flow of $203 million , the buyback pace signals management believes the stock remains undervalued even after today's pop. The full financial update on July 30 will show whether Vareš's costs match the production momentum — and whether this rally has further to run.