Dundee Precious Metals (TSX:DPM) - Strong Cash Flows; Evaluating Growth Opportunities

Interview with David Rae, CEO of Dundee Precious Metals (TSX:DPM) Our previous interview: https://youtu.be/tSF0PGM3bBM and https://youtu.be/eiJ6SEBxTHk Recording date: 18th September 2023 Dundee Precious Metals CEO David Rae provided an update on the company's performance and outlook in an interview at the Precious Metals Summit in Colorado. DPM operates two mines in Bulgaria, Ada Tepe and Chelopech, which have delivered exceptional results in 2022. In the first half of 2022, DPM generated $135 million of free cash flow based on strong production and low costs. All-in sustaining costs at Chelopech are in the mid $400s per ounce, with the mine meeting all performance targets. Improvements underground and a shift to 5-day per week mining are delivering increased efficiencies. Rae noted inflationary pressures drove costs up around 30% initially, though some input prices such as energy are now seeing reductions. He believes DPM's low-cost assets provide flexibility to maintain margins despite cost pressures. DPM is investing to extend Chelopech's mine life through expanded exploration. At Ada Tepe, the focus is on optimizing recoveries and costs as the mine nears end of life in coming years. DPM is also advancing electric fleet and automation initiatives to improve productivity and lower costs. In Ecuador, DPM continues permitting for its Loma Larga project but does not expect resolution until a new government is in place. More exciting is the Choquepitita project in Peru, which Rae likened to a second Ada Tepe just 5 hours from existing operations by road. DPM is fast-tracking scoping studies and exploration to outline development potential. With $540 million in cash and consistent free cash flow generation, DPM is evaluating M&A opportunities but remains disciplined. The goal is to create value on a per share basis rather than growth for growth's sake. Rae believes DPM is undervalued based on current assets and sees a path to building value both organically and through acquisitions.