What exactly does it do?
Is DPM a well run mining company - what kind of metals does it mine?
Does it have a promising future - is it a good investment?
What is the relationship to Dundee Corp.
DC.A has enjoyed the sector rally and it is a cheap stock. However, it is a holding company primarily, and we think in a sector rally operating companies will have more upside potential. It is not bad, but it is also quite small and we would prefer something else.
Historically DC.A owned a large position in DPM but they are independent now. DPM has a very strong balance sheet, growing revenue and earnings, and good potential. The stock is up 225% in the past year and still relatively cheap on valuation.
Dundee Precious Metals Inc. (DPM) primarily produces gold and copper from its key operations. The Chelopech mine in Bulgaria is an underground copper-gold operation, yielding significant volumes of both metals, such as 167,029 ounces of gold and 30 million pounds of copper in the last full year of reported numbers.