TSX:DPM

Stock Analysis Report

Dundee Precious Metals

Executive Summary

Dundee Precious Metals Inc., a gold mining company, engages in the acquisition of mineral properties, exploration, development, mining, and processing of precious metals.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Dundee Precious Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DPM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.5%

DPM

11.5%

CA Metals and Mining

6.4%

CA Market


1 Year Return

2.0%

DPM

-11.6%

CA Metals and Mining

-25.5%

CA Market

Return vs Industry: DPM exceeded the Canadian Metals and Mining industry which returned -9.7% over the past year.

Return vs Market: DPM exceeded the Canadian Market which returned -25.3% over the past year.


Shareholder returns

DPMIndustryMarket
7 Day16.5%11.5%6.4%
30 Day-13.9%-9.8%-22.6%
90 Day-20.0%-17.2%-26.8%
1 Year2.0%2.0%-11.0%-11.6%-23.2%-25.5%
3 Year60.3%60.3%-16.3%-17.9%-15.7%-23.5%
5 Year55.3%55.3%7.0%3.9%-3.1%-17.4%

Price Volatility Vs. Market

How volatile is Dundee Precious Metals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dundee Precious Metals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DPM (CA$4.52) is trading below our estimate of fair value (CA$29.83)

Significantly Below Fair Value: DPM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DPM is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: DPM is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DPM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DPM is good value based on its PB Ratio (1x) compared to the CA Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is Dundee Precious Metals forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

64.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DPM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: DPM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DPM's is expected to become profitable in the next 3 years.

Revenue vs Market: DPM's revenue (5.3% per year) is forecast to grow faster than the Canadian market (3.9% per year).

High Growth Revenue: DPM's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DPM's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Dundee Precious Metals performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DPM is currently unprofitable.

Growing Profit Margin: DPM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DPM is unprofitable, but has reduced losses over the past 5 years at a rate of 20.7% per year.

Accelerating Growth: Unable to compare DPM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DPM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (25.4%).


Return on Equity

High ROE: DPM has a negative Return on Equity (-12.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Dundee Precious Metals's financial position?


Financial Position Analysis

Short Term Liabilities: DPM's short term assets ($105.0M) do not cover its short term liabilities ($109.6M).

Long Term Liabilities: DPM's short term assets ($105.0M) exceed its long term liabilities ($82.2M).


Debt to Equity History and Analysis

Debt Level: DPM's debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: DPM's debt to equity ratio has reduced from 19.7% to 1.7% over the past 5 years.


Balance Sheet

Inventory Level: DPM has a high level of physical assets or inventory.

Debt Coverage by Assets: DPM's debt is covered by short term assets (assets are 10.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DPM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DPM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 47.2% per year.


Next Steps

Dividend

What is Dundee Precious Metals's current dividend yield, its reliability and sustainability?

2.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DPM's dividend (2.49%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.75%).

High Dividend: DPM's dividend (2.49%) is low compared to the top 25% of dividend payers in the Canadian market (8.79%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether DPM's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if DPM's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Rick Howes (61yo)

6.92s

Tenure

US$2,875,700

Compensation

Mr. Richard Allen Howes, also known as Rick, is President and Chief Executive Officer at Dundee Precious Metals Inc. Mr. Howes is a Director of Dundee Precious Metals Inc. since 2012. He is a Professional  ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD2.04M) is about average for companies of similar size in the Canadian market ($USD1.69M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Howes
President6.92yrsUS$2.88m0.075% $610.3k
Hume Kyle
Executive VP & CFO8.75yrsUS$1.24mno data
David Rae
Executive VP0.17yrUS$1.32mno data
Michael Dorfman
Executive Vice President of Corporate Development8.33yrsUS$790.50k0.0094% $76.8k
Matthieu Risgallah
Vice President of Technology0.75yrno datano data
Jennifer Cameron
Director of Investor Relationsno datano datano data
Kelly Stark-Anderson
Executive VP of Corporate Affairs2.5yrsno datano data
Alex Wilson
Vice President of Human Resources1.83yrsno datano data
Iliya Garkov
VP & MD of Bulgaria1.17yrsno datano data
Sylvia Chen
Global Controllerno datano datano data

4.7yrs

Average Tenure

58yo

Average Age

Experienced Management: DPM's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Howes
President6.92yrsUS$2.88m0.075% $610.3k
David Rae
Executive VP0.17yrUS$1.32mno data
Anthony Walsh
Independent Director8.17yrsUS$193.30k0.00030% $2.4k
R. Gillin
Lead Director6.92yrsUS$234.50k0.0083% $67.8k
Jonathan Goodman
Chairman of the Board6.92yrsUS$380.80k0.22% $1.8m
Peter Nixon
Independent Director17.75yrsUS$197.00k0.0029% $23.5k
Donald Young
Independent Director9.83yrsUS$211.80k0.00094% $7.7k
Marie-Anne Tawil
Independent Director4.33yrsUS$193.00kno data
Jeremy Kinsman
Independent Director13.17yrsUS$193.30k0.012% $101.7k
Juanita Montalvo
Independent Director3yrsUS$195.50kno data

7.5yrs

Average Tenure

64yo

Average Age

Experienced Board: DPM's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DPM insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dundee Precious Metals Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dundee Precious Metals Inc.
  • Ticker: DPM
  • Exchange: TSX
  • Founded: 1983
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$816.224m
  • Shares outstanding: 180.58m
  • Website: https://www.dundeeprecious.com

Number of Employees


Location

  • Dundee Precious Metals Inc.
  • 1 Adelaide Street East
  • Suite 500
  • Toronto
  • Ontario
  • M5C 2V9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DPMTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1983
DPUDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1983
DPML.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1983

Biography

Dundee Precious Metals Inc., a gold mining company, engages in the acquisition of mineral properties, exploration, development, mining, and processing of precious metals. The company's operating assets include the Chelopech operation, which produces a gold-copper concentrate containing gold, copper, and silver and a pyrite concentrate containing gold located east of Sofia, Bulgaria; the Ada Tepe operation, which produces a gold concentrate containing gold and silver located in southern Bulgaria; and the Tsumeb smelter, a complex copper concentrate processing facility located in Namibia. It also holds interests in various developing gold and exploration properties located in Canada and Serbia. The company was founded in 1983 and is based in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 01:03
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.