-- Stifel Canada on Wednesday reiterated its buy rating on the shares of DPM Metals (DPM.TO) and its C$61.00 following the company's first-quarter results.
"After pre-releasing production of 84koz AuEq, DPM posted a slight beat on cash flow (CFPS ex. W/C of $0.94/sh vs. street at $0.91/sh) and FCF (13% ahead) as Vares AISC of $892/oz was 15% below the street at $1,048/oz. Guidance has been maintained, with 1Q26 representing 25% of the midpoint of 305-365koz AuEq. All eyes on the quarter were on indications of Vares ramping towards DPM's updated DFS released in 2025. To this end, we see indications of DPM operatorship crystallizing value tracking to plan, with both grades and recoveries for precious metals ahead of the 2025 study, supporting DPM's approach, and de-risking operational horsepower towards a [permit dependent] Coka Rakita construction start in 2027. DPM currently trades at 0.68x P/NAV, versus peers at 0.52x, sporting a compelling, organic growth profile to +500kozpa AuEq by 2030," analyst Cole McGill wrote.
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