-- Stifel Canada on Thursday maintained its buy rating on the shares of DPM Metals (DPM.TO) and its C$61.00 price target after the company reported first-quarter production results.
"DPM reported Q1 production of 84k GEOs, which exceeded our estimate of 73.4k GEOs. Vares was the clear standout with production at 29k GEOs (Stifel Est: 11k GEOs). We believe the ramp-up of the mine to full-production is showing some good signs and although grades were not reported we suspect Vares' grades are already benefitting from DPM's efforts to improve the underground mine along with minimizing mine-dilution. Based on DPM's consolidated 2026 GEO guidance, Q1 represents 25% of FY expectations or ~23% our FY 2026 GEO estimate, which is a good start to the year. The main takeaway - Q1 results from Vares confirms to us that the mine is on a good path to achieve its annual targets. As a reminder, 2026 GEO production guidance points to 16% YoY growth driven by Vares. DPM trades at a 0.83x LT P/NAV while offering a 3-Yr forward average FCF-yield of ~10%," analyst Ingrid Rico wrote.
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