Dundee Precious Metals has unveiled a promising preliminary economic assessment (PEA) for its Čoka Rakita gold discovery in Serbia. Despite initial investment of US$381 million, the project boasts robust economics, with an after-tax net present value (NPV) of US$588 million at a base gold price of US$1,700 per ounce. The mine, projected to produce 129,000 ounces of gold annually over a 10-year span, promises significant free cash flow of US$891 million.
Operating costs are projected to be among the lowest quartile in the industry, with all-in sustaining costs (AISC) of US$715 per ounce of metal. This solid financial outlook underscores the project’s potential to enhance Dundee’s growth trajectory and alleviate investor concerns about its cash reserves.
Dundee aims to accelerate development, targeting a pre-feasibility study by the first quarter of next year, followed by construction commencing in mid-2026 and production two years thereafter. The company’s CEO, David Rae, expressed confidence in the project’s economic viability and potential to bolster their portfolio.
With its Čoka Rakita gold-copper project, Dundee expands its presence in Serbia, leveraging its experience in the region since 2004. The project’s strategic significance is underscored by Dundee’s forecasted gold production of 240,000 ounces over the next three years. Additionally, the company expects gold all-in sustaining costs to remain below US$1,000 per ounce during this period.
The Čoka Rakita deposit, situated 160 km southeast of Belgrade, offers convenient access to infrastructure and technical support, benefiting from the region’s mining heritage and Dundee’s expertise in underground mining.
Dundee’s exploration efforts extend beyond Čoka Rakita, with ongoing drilling activities revealing high-grade skarn copper-gold mineralization potential in neighboring areas. The company has allocated a substantial budget for exploration in Serbia this year, signaling its commitment to unlocking the region’s mineral potential.
Despite market fluctuations, Dundee continues to demonstrate resilience and strategic focus, evident in its recent divestment of the non-core Tsumeb smelter in Namibia. The company’s shares closed marginally higher on Thursday, reflecting ongoing investor interest in its promising projects.
