Dundee Precious Metals Inc.

Dundee Precious Metals Inc. is a mid-tier gold and copper producer headquartered in Toronto, Canada, operating primarily in Europe. The company's portfolio consists of 4 projects, comprising 2 operating mines and 2 development projects. Key assets include Chelopech and Čoka Rakita. The business model centers on optimizing a focused portfolio of producing assets and development projects, emphasizing operational efficiency and internal funding for growth. A key characteristic is the strategic redeployment of assets and expertise, such as utilizing existing processing equipment and experienced personnel from established operations to de-risk the timeline and execution of new projects. This approach leverages internal technical capabilities in project development, including a track record of delivering projects on time and on budget, to advance its organic growth pipeline. The company recently simplified its portfolio through the divestiture of a custom smelter, sharpening its focus on its core mining and development activities. This strategy supports the generation of significant free cash flow from a high-margin production base, enabling the organization to fund growth and exploration internally while maintaining a strong, debt-free financial position. The operational approach is underpinned by a consistent 10-year record of achieving production and cost guidance, providing confidence in its ability to execute its growth strategy.

The organization's strategic objective is to transition into a mid-tier producer by advancing a high-quality organic growth pipeline while optimizing its existing operational portfolio. A core tenet of this strategy is a disciplined capital allocation framework that balances maintaining balance sheet strength, reinvesting in the business for long-term value, and returning capital to shareholders. Near-term priorities include advancing key development projects through feasibility studies to support accelerated construction decisions and extending the operational life of producing assets through focused in-mine and brownfield exploration programs. The enterprise aims to internally fund its growth projects and exploration activities, leveraging its strong financial position and cash flow from operations. This approach is designed to support growth in mineral reserves and production through disciplined strategic transactions and organic development, creating a platform to deliver above-average returns for shareholders. The strategy also involves rationalizing the asset portfolio to simplify operations and focus on core competencies.

Executive leadership, under the President and CEO, emphasizes a track record of consistent operational delivery, disciplined project advancement, and peer-leading capital returns. The governance framework is overseen by a Board of Directors, with the Sustainability Committee, composed entirely of independent directors, providing dedicated oversight of environmental and social impacts, including human rights. This committee meets quarterly and reviews management's approach to sustainable development. The Board also receives quarterly updates on reports filed through the company's third-party Speak-Up mechanism, ensuring direct oversight of ethical concerns. Management's commitment to transparency and accountability is demonstrated through formal reports, including a Management's Report on Internal Control Over Financial Reporting and a detailed report under the Fighting Against Forced Labour and Child Labour in Supply Chains Act. A new Executive Safety Taskforce was created in 2024 to drive continuous safety improvements across the business.

The sustainability approach is integrated into the business model, evidenced by a ranking in the top decile of the S&P Global Corporate Sustainability Assessment for 4 consecutive years. In 2024, the company performed a CSRD-aligned double materiality assessment and launched a Generative Safety Initiative, achieving 2.8 million hours without a Lost Time Injury. Environmental commitments include a target to reduce GHG emissions by 37.5% by 2035, maintaining zero industrial wastewater discharges across mine sites, and pursuing ongoing reductions in freshwater usage. The organization's supply chain due diligence includes a comprehensive, risk-based third-party process (3PDD) that was modified in 2023 to explicitly include human-rights related screening for forced and child labour. As part of mine closure planning, the company invests in local small and medium enterprises to foster economic development independent of the mining industry, ensuring long-term community resilience.

In 2024, the company completed a significant portfolio rationalization by selling its 98% ownership interest in the Tsumeb smelter to a subsidiary of Sinomine Resource Group Co. Ltd., a strategic move to focus on its core mining and development business. Early in 2024, a previously announced Arrangement Agreement to acquire Osino Resources Corp. was terminated after Osino received a superior proposal; the company subsequently received a net termination fee. Key operational subsidiaries through which the company holds its assets and conducts its activities include Dundee Precious Metals Chelopech EAD, Dundee Precious Metals Krumovgrad EAD, Crni Vrh Resources d.o.o., DPM Avala d.o.o., and DPM Ecuador S.A. These entities are central to the company's operating, development, and exploration activities.