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  5. DPM: What do you think about DPMs recent purchase of Adriatic? [Dundee Precious Metals Inc.]
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Q: What do you think about DPMs recent purchase of Adriatic? Please comment on the nature of the purchased asset and your thoughts about how it impact DPM and its growth profile?
Asked by Robert on June 18, 2025
5i Research Answer:

The $1B transaction for all of ADT1 is GBP 0.93 per share plus 0.159 DPM shares. This represents a 17% premium and there remains 6.6% in the market to the value of the deal. It's at 3.5X revenue and 22.5X EV/EBITDA. It is a friendly deal at an all-time price for Adriatic, so we do expect it to go through. DPM had a lot of cash, and a declining production profile, so was expected to go hunting. Adriatic Metals, with production in Bosnia and Herzegovina, fits in
well with Dundee's other assets in Bulgaria and Serbia, and adds more silver, lead, and zinc to the portfolio, Altogether, the acquisition is about 5% accretive to net asset value and about 15% accretive to forward cash flow. 2025 is expected to be Adriatic's first year of full profit, with EPS expected in the 40% range next year.