DPM Metals Inc. (TSX: DPM, ASX: DPM) has reached a critical operational threshold at its Čoka Rakita project in Serbia, with first ore brought to surface at the underground mine — a milestone that marks the transition from development-stage asset to producing mine and carries direct implications for gold supply dynamics and mining equities.
The project, located 35 kilometres northwest of Bor in Serbia and developed in under 36 months from discovery, is backed by a feasibility study released in November 2025 that outlines one of the more compelling economics in the current gold mining landscape. At a base gold price assumption of $1,900 per ounce, the study projects an after-tax net present value (NPV5%) of $782 million, an internal rate of return (IRR) of 36%, and a payback period of just 1.8 years on $448 million in initial capital.
Supply Profile: High Grade, Low Cost
From a commodity supply perspective, Čoka Rakita adds a meaningful volume of gold at costs well below the global industry average. The mine's all-in sustaining cost (AISC) is estimated at $644 per ounce over its mine life — placing it firmly in the first quartile of global gold producers. With spot gold trading well above $2,000 per ounce in recent months, the margin profile is substantial.
Annual throughput of 850,000 tonnes of ore will support average gold production of 148,000 ounces per year across the nine-year mine life, with peak years delivering significantly more. In 2031, the mine is forecast to produce 247,000 ounces at an AISC of just $425 per ounce — making it one of the lowest-cost operations globally during that period. The first five years average 189,000 ounces annually, reflecting the high-grade front-loading typical of underground stoping operations.
Total reserves stand at 7.34 million tonnes grading 6.44 grams per tonne gold, containing 1.52 million ounces — a 10% improvement in tonnage and 11% improvement in contained ounces over the prior prefeasibility estimate.
Market and Investor Implications
For investors tracking mining equities, the first ore milestone de-risks the asset considerably. Development-stage projects carry execution uncertainty that disappears once ore hits the surface. DPM enters this production phase from a position of financial strength: the company reported approximately $414 million in cash and zero debt as of September 30, 2025, alongside a $150 million undrawn revolving credit facility.
The project's sensitivity to gold prices is also worth noting. At $2,500 per ounce — a level gold has already tested — the NPV climbs to $1.317 billion with an IRR of 49.5% and a payback of just 1.4 years. At $3,500 per ounce, the numbers become exceptional: $2.207 billion NPV and a 67.8% IRR. These figures illustrate how leveraged Čoka Rakita's economics are to prevailing gold prices.
The mine uses underground long-hole open stoping with cemented paste backfill — a proven, efficient method for high-grade ore bodies. Processing combines gravity concentration, flotation, and doré production, achieving an average metallurgical recovery of 87.9%.
Broader Context
While Čoka Rakita is a gold-dominant project, its location in the Bor mining district — Serbia's historically copper-rich region — keeps it on the radar of base metals watchers as well. The district's geological context, adjacent to DPM's existing Chelopech copper-gold operation in Bulgaria, underscores the polymetallic potential of the broader region.
With global gold supply growth constrained by declining ore grades and rising development costs across the industry, a new first-quartile producer entering the market is a noteworthy development. For DPM shareholders and gold market participants alike, first ore at Čoka Rakita signals that one of the more economically robust new mines of this cycle is now operational.