High-Grade Gold Discovery with Large Defined Footprint
| Location | Serbia |
| Ownership | 100% |
| Stage | Feasibility study |
Čoka Rakita Project, Serbia
High-Grade Gold Discovery with Large Defined Footprint
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The Čoka Rakita project is located in southeastern Serbia and in close proximity to our operations in Bulgaria. In January 2023, DPM announced the discovery of a high-grade deposit at Čoka Rakita, and commenced an aggressive infill, extensional and target delineation drilling program at the prospect. Following the discovery of Čoka Rakita in 2023, we rapidly advanced this high-quality organic project. In less than 24 months since announcing the initial discovery, we have outlined a very robust project with first production targeted for 2028.
Highlights
Čoka Rakita benefits from good established infrastructure, including power and road access to site. The project is located in close regional proximity to DPM’s existing operations in Bulgaria, and is a strong fit with our underground mining and processing expertise, with metallurgical test work demonstrating gold recoveries of approximately 90% by gravity concentration and conventional flotation.
The results of the PFS released in January 2025 confirm Čoka Rakita as a robust project with potential to add strong economic returns and high margin gold production to DPM’s portfolio.
| Čoka Rakita project PFS highlights (Based on a $1,900 per ounce gold price) |
|
|---|---|
| Throughput capacity | 850,000 tonnes per annum |
| Average annual gold production (life of mine) | 147,000 ounces of gold |
| Average annual gold production (first five full years) | 170,000 ounces of gold |
| Average cash cost1 (life of mine) | $596 per ounce of gold |
| Average all-in sustaining cost1 (life of mine) | $644 per ounce of gold |
| Initial capital expenditures | $379 million |
| Free cash flow1 (life of mine) | $1,077 million |
| NPV (after-tax, 5% discount)2 | $735 million |
| IRR (after tax)2 | 41.4% |
1Cash cost per ounce of gold sold, all-in sustaining cost per ounce of gold sold and free cash flow are non-GAAP financial measures or ratios and have no standardized meaning under IFRS Accounting Standards (“IFRS”) and may not be comparable to similar measures used by other issuers. As the Čoka Rakita project is not in production, the Company does not have historical non-GAAP financial measures nor historical comparable measures under IFRS, and therefore the foregoing prospective non-GAAP financial measures or ratios may not be reconciled to the nearest comparable measures under IFRS. Refer to the “Non-GAAP Financial Measures” section on page 10 of this news release for more information, including a detailed description of each of these measures.
2Current legislation in Serbia allows for tax relief for large investments for a maximum period of 10 years, subject to certain conditions. The PEA assumes that the Čoka Rakita project is eligible for this tax relief and the effective income tax rate applied is 0% over the project’s 10-year mine life.
Next Steps
DPM is in the process of completing a feasibility study, expected by year-end 2025, and is advancing stakeholder engagement and permitting activities for the project.
In parallel, DPM is advancing various activities to support the project development timeline, including permitting to enable construction start-up in mid-2026, progressing design to basic engineering level, and preparing execution readiness and operational readiness activities.
Permitting and Stakeholder Engagement
Consistent with its approach across all operations and projects, DPM seeks to build and maintain strong partnerships with local communities and governments. We have had a local presence in Serbia since 2004 and developed strong relationships in the region, and we will continue to proactively engage with all stakeholders as the project advances.
Planning for the project will be focused on ensuring responsible environmental management and social development in-line with industry best practices. DPM is committed to working closely with local communities around the Čoka Rakita project to understand and support local development opportunities, with a focus on maximizing benefits of the project for Serbia.
