DPM Metals increased production across its Balkan mining operations in the third quarter, supported by stronger ore grades and rising throughput at the Vareš mine in Bosnia and Herzegovina. The company is also advancing preparations for its Čoka Rakita gold project in Serbia, with construction targeted to begin in early 2027.
The miner produced approximately 97,000 gold-equivalent ounces (GEO) during the quarter and remains on track to achieve the upper end of its 2026 production guidance.
Vareš Production Strengthens as Processing Capacity Expands
Vareš contributed approximately 45,000 gold-equivalent ounces during the quarter, benefiting from higher-than-expected ore grades and increasing processing volumes. The operation processed around 143,000 tonnes of ore, producing concentrates containing approximately 887,000 ounces of silver, 28 million pounds of zinc, 17 million pounds of lead and 10,000 ounces of gold.
DPM expects Vareš to reach its targeted processing capacity of approximately 850,000 tonnes annually by the end of 2026. Achieving that rate would represent a significant milestone in the mine’s ramp-up and strengthen its contribution to the company’s overall production profile following its acquisition. Infrastructure development is progressing alongside the increase in output. Construction of a second tailings filter is nearing completion, with commissioning planned for November. A paste-backfill plant is expected to enter commissioning in December.
Both facilities are intended to support higher processing volumes and improve the management of underground waste and tailings as Vareš advances towards steady-state operations.
Concession Uncertainty Remains a Key Risk
Despite the operational progress, the Vareš concession remains subject to regulatory uncertainty following a September 30 decision by Bosnia and Herzegovina’s Constitutional Court. The legal situation remains an important consideration for investors as DPM works to increase production and expand the mine’s operating capacity.
Chelopech Plans High-Grade Expansion
DPM’s Chelopech mine in Bulgaria produced approximately 50,000 gold-equivalent ounces during the third quarter.
The company plans to begin developing twin declines towards the high-grade Wedge Zone in the fourth quarter. The development is intended to support additional production from late 2028.
Serbia’s Čoka Rakita Targets Construction in 2027
In Serbia, DPM is preparing its Čoka Rakita gold project for the next development phase, with construction scheduled to begin in early 2027.
As part of its capital-efficiency strategy, the company is dismantling and refurbishing equipment from the closed Ada Tepe mine for reuse at Čoka Rakita. Reusing existing equipment is expected to reduce part of the project’s capital requirements compared with purchasing entirely new infrastructure. Cash flow generated by Vareš and Chelopech provides DPM with internal funding capacity as it prepares to advance the Serbian project.
Operational and Development Milestones Ahead
DPM’s near-term priorities include bringing Vareš to its planned 850,000-tonne annual processing capacity, progressing the installation and commissioning of supporting infrastructure, and addressing uncertainty surrounding the mine’s concession. At the same time, the company must keep Čoka Rakita on schedule for construction in early 2027 and advance the Wedge Zone development at Chelopech. The performance of these projects will shape DPM Metals’ production growth and investment programme across the Balkans.
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