DPM’s Vareš Ramp-Up Raises 2026 Output Expectations Despite Concession Review

DPM Metals’ Vareš mine has moved quickly from commercial-production declaration to becoming a major quarterly contributor, producing about 45,000 gold-equivalent ounces in the third quarter. That performance accounted for nearly half of DPM’s preliminary group output of approximately 97,000 GEO and has led management to raise its operating expectations for the Bosnia and Herzegovina asset.1

The company now expects Vareš to exceed the high end of its 2026 production guidance, while DPM as a whole is expected to reach the high end of its annual range. The improved outlook is linked to stronger-than-expected grades during the ramp-up, an important distinction for a mine still working toward its intended operating configuration rather than one that has already demonstrated a full year of steady-state production.1

Vareš declared commercial production on 10 August. Its third-quarter contribution compared with about 50,000 GEO from Chelopech and 2,000 GEO from Ada Tepe, underscoring the speed with which the new operation has become central to DPM’s production mix. Ada Tepe’s plant stopped on 15 July, increasing the importance of Vareš and Chelopech to group output through the remainder of the year.1

The next test is whether the ramp-up can translate encouraging grades and quarterly output into sustained throughput. DPM is targeting an annualized throughput rate of 850,000 tonnes by year-end. It expects commissioning of the second tailings filter in November and of the paste-backfill plant in December. Those are forward operating milestones, not completed upgrades, and their delivery will help determine how quickly Vareš can operate at the capacity DPM is targeting.1

The improved production outlook arrives alongside a separate legal and regulatory uncertainty. On 1 October, DPM said a Bosnia and Herzegovina Constitutional Court decision concerning state-owned forest land did not terminate or suspend the Vareš concession or its annexes. The company said normal operations were continuing.2

However, the final court ruling requires relevant authorities and the Attorney General’s Office to review challenged acts within six months, bring them into conformity where necessary and set aside acts found to be non-compliant. The dispute concerns the authority of Federation, cantonal and municipal bodies to grant rights, including those associated with the Vareš concession and its annexes. DPM has said it will engage with the authorities to protect its rights.2

That process should not be treated as an operating shutdown or as a cancelled concession. Equally, it is not resolved: the review creates a continuing uncertainty around a mine that has become particularly consequential for DPM’s near-term production profile. The quarter’s production figures show Vareš is generating material output; they do not remove the need for the concession-related review to be completed in a manner that preserves the mine’s operating framework.12

For now, the company’s operational indicators are moving in the favorable direction. DPM’s third-quarter output, Vareš grade performance and expectation of exceeding the mine’s guidance range provide the basis for a stronger 2026 outlook. Detailed financial results are scheduled for 12 November, when investors will have a clearer view of the cost and cash-flow implications of the ramp-up. Until then, the central balance is clear: Vareš is advancing faster operationally than previously expected, while the legal review remains a distinct risk that production momentum alone cannot settle.12