Mid-tier Canadian goldminer DPM Metals to debut on ASX

A mid-tier Canadian goldminer with projects and operations in Bulgaria, Serbia and Ecuador is getting set to join the ASX next week as the yellow metal continues to soar.

Toronto-headquartered Dundee Precious Metals is set to debut on the ASX on September 17, under its new name of DPM Metals, following its $2 billion acquisition of ASX-listed Adriatic Metals.

It'll be a secondary listing for DPM, whose primary listing is the Toronto Stock Exchange.

DPM's takeover of Adriatic Metals was completed on Wednesday, about two months after Adriatic's Vares silver mine in Bosnia began commercial operations.

"With the addition of the Vares operation, DPM is a premier mining business with a peer-leading growth profile and a high-quality development and exploration pipeline," said DPM president and CEO David Rae.

"We will be leveraging our expertise in underground mining, our regional presence, successful track record of operations, optimisation and project management, as well as our strong financial position, to further optimise and realize Vares' full value potential."

Dundee said on July 31 it had generated $US94.5m of free cash flow in the second quarter after producing 61,212 ounces of gold and 6.4 million pounds of copper.

In addition to the Vares operation, it has two goldmines operational in Bulgaria and is developing two more in Ecuador and Serbia.

Its market capitalisation this week was around $C4.5 billion ($5b), which would make DPM about the sixth-most valuable goldminer on the ASX, between Persius Mining and Capricorn Metals.

It has paid dividends every quarter since 2020 and also has an active share buyback program.

Gold was trading for US$3,564 an ounce on Friday, just under its record highs set earlier in the week.

Silver had also broken out, changing hands at over $US40 for the first time since 2011.