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Chelopech Mine, Bulgaria
DENVER GOLD FORUM
DPM CORPORATE PRESENTATION
September 19 & 20, 2016
Colorado Springs
TSX:DPM 2
FORWARD LOOKING STATEMENTS
This presentation contains “forward looking information” or "forward looking statements" that involve a number of risks and uncertainties.
Forward looking information and forward looking statements include, but are not limited to, statements with respect to the future prices of
gold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of
estimated future production and output, costs of production, capital expenditures (including sustaining capex, non-discretionary capex
and discretionary capex), costs and timing of the development of new deposits, success of exploration activities, permitting time lines,
currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated
reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation.
Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, or “does not expect”,
“is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations
of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved. Forward looking statements are based on the opinions and estimates of management as of the date such statements are
made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied
by the forward looking statements. Such factors include, among others: the actual results of current exploration activities; actual results of
current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future
prices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the
completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in
this presentation under and in the Company’s annual information form under the heading "Risk Factors" and other documents filed from
time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. Although
the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated
or intended. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on
forward looking statements.
TSX:DPM 3
AN INNOVATIVE GROWTH ORIENTED GOLD PRODUCER
Offer Investors a deep value investment opportunity
Low cost gold production growth of over 60% by 2019 with the fully
permitted Krumovgrad Gold Project
Strong EBITDA growth with growing free cash flow
Strong balance sheet with financial flexibility
Strong reserve base with exploration upside potential around existing
assets and regionally
Recognized as a leading innovator in the mining industry
TSX:DPM 4
DPM’S GLOBAL PORTFOLIO OF ASSETS
Unique Assets With Commodity & Geographic Diversity
Avala
Serbia
100%
Tsumeb Smelter
Namibia
100%
Chelopech Mine
Bulgaria
100%
Sabina
Canada
11%
Krumovgrad Gold Project
Bulgaria
100%
Operating assets
Development asset
Exploration assets
TSX:DPM 5
DPM’S VISION AND STRATEGY
Optimize Portfolio Growth Innovation
Increased profitability by
driving operational
excellence, underpinned by
effective leadership and
systems
A progressive gold mining company that unlocks and delivers superior value
through innovation and strong partnerships with stakeholders
Grow the business by
realizing the value of our
pipeline of assets
enhanced by M&A,
exploration and rapid
deployment
Create value through
deployment of technology
and innovation underpinned
by internal capability and
strategic partnerships
Maintain Financial Strength and Flexibility
TSX:DPM 6
ATTRACTIVE VALUE INVESTMENT OPPORTUNITY
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
20132012 2014
Hard Hit Sector Valuations Creating
A Rare Investment Opportunity
DPM share priceGDXJ performance
2015
Attractive Valuation Metrics
EV/2016F EBITDA (Cons. Est.) (4)(12)
P/NAV (Cons. Est.)(12)
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$0
$500
$1,000
$1,500
$2,000
2013 2014 2015
Cu price
2012
Au price
2016
2016
$500
$800
$1,100
Dundee Alacer New Gold Alamos Primero
Average = $890/oz
$750-850/oz
Below Average 2016F All-In-Sustaining Mine Cost (3)(4)(10)(11)(12)(14)
3,4,10,11,12,14 See footnotes contained in Appendix on slide 38
New Gold Argonaut Alamos DPM Alacer Primero
0.8x
1.1x
1.0x0.9x 0.9x
0.5x
Avg. 0.9x
18.5x
10.8x 8.7x
6.7x 6.5x 5.2x
Alamos New Gold Argonaut Alacer DPM Primero
Average: 9.4x
TSX:DPM 7
CONSOLIDATED RESULTS AND OUTLOOK
626690
890
725
640
510
2013 2014 2015 2016F 2017F 2018F 2019F 2020F
687
750-
850
153 161 169132-155 143
166
217
270
2013 2014 2015 2016F 2017F 2018F 2019F 2020F
198
200-220
220-250
265-320
370
2013 2014 2015 2016F 2017F 2018F 2019F 2020F
196
46 4340
35.7-39.7
34 36 36 37
2013 2014 2015 2016F 2017F 2018F 2019F 2020F
Payable Copper (Mlbs)Payable Gold (Koz) Smelter Production (Kt)
All-in Sustaining Cost (US$/oz)Capital Expenditures (US$M) Smelter Cash cost (US$/t)
152
2013 2014 2015 2016F 2017F 2018F 2019F 2020F
216 Sustaining CAPEX
Non-discretionary Growth CAPEX
Discretionary Growth CAPEX
184
87
49-59
99
24
380
310275 265
2013 2014 2015 2016F 2017F 2018F 2019F 2020F
27
173
(4) (4) (4)
(3)(4) (3)(4)
(13)(13)
380-
425
409394
479
320-
370
3,4,13,15 See footnotes contained in Appendix on slide 38
(3) (4)
(15) (15)
TSX:DPM 8
STRONG FINANCIAL POSITION
• Net debt at end of Q2 - $115M
• Sale of Kapan - $25M plus working capital adjustment and 2% NSR on future production
• Completion of C$57M equity offering
• Increased Cu and Au hedge positions to the following levels
• Cu hedged 73% and 38% of BOY2016 and 2017 production at avg. price of $2.24/lb
• Au hedged 16% and 30% of BOY2016 and 2017 payable gold production using
collars with avg. floor/cap of $1,200/$1,495 per ounce
Cash &
cash equivalents
$24MUndrawn RCF
$160M
Available liquidity
@ June 30, 20162015 Net Debt/EBITDA
@ June 30, 2016
1.66x
TSX:DPM 9
STRONG RESOURCES & RESERVES BASE
Mineral Resources Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%)
Chelopech
M&I
Inferred
14.2
2.8
1.533
0.82
329
51
3.37
2.48
1.06
0.82
Krumovgrad
Inferred (upper) 0.3 0.013 1.31
Timok 1
Indicated
Inferred
67.42
4.3
2.48
0.2
1.14
1.0
Tulare 2
Inferred 547 3.8 2.8 billion 0.22 0.23
TOTAL RESOURCES
Indicated
Inferred
81.62
554.4
4.013
4.833
329
2.8 billion
Mineral Reserves Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%)
Chelopech
Proven
Probable
11.88
9.64
1.167
1.020
266
178
3.06
3.29
1.02
0.84
Krumovgrad
Proven upper zone
Proven wall
Probable upper zone
Probable wall
1.1
1.5
3.5
0.1
0.124
0.325
0.337
0.02
3.46
6.83
3.00
5.54
Total Mineral Reserves 27.72 2.993 444
1. NI 43-101
Technical
Report
dated May
1, 2014
2. Dunav
Press
Release
dated
June 23,
2014
TSX:DPM 10
2016 OPERATING H1 RESULTS
Bulgaria
50%Namibia
45%
Canada
5%
2016 Asset Diversification(2)
Tsumeb
25%
Chelopech
75%
2016 Adjusted EBITDA
Generation (3)(5) 2016 Revenue Diversification (1)
Smelter
35%Gold
45%
Copper
19%
Ag 1%
1,2,3,5 See footnotes contained in Appendix on slide 38
Performance in line with full year guidance
Q2 2016 Six Months 2016
Consolidated Mines
Gold production (incl. pyrite) 41,519 oz 90,950 oz
All in sustaining costs $580/oz Au $627/oz Au
Tsumeb Smelter
Concentrate smelted 44,545 T 101,967 T
Cast cost/T con smelted $502 $409
Consolidated Adjusted EBITDA* $17.8M $39.3M
* From continuing operations
Chelopech Mine, Bulgaria
TSX:DPM 12
CHELOPECH H1 RESULTS
Highlights:
• Copper production – 20.2 million pounds
• Gold production (incl. pyrite) – 84,910 ounces
• Cash cost/ounce Au in Cu Con produced - $359
• Adjusted EBITDA – $46.7 million
Chelopech H1 results in line with full year guidance
SAG Mill Underground crushing & conveying systems
TSX:DPM 13
CHELOPECH – A WORLD CLASS, LOW COST MINE
Recent Achievements
• Continuing to ramp up production beyond
2M tpy
• Real time operations with underground
wireless technology to optimize
operating performance
• Step change improvements in stope
mucking rates
• Successful reserves replacement
Building on that Success
• Aggressively drilling upper levels around old
cave zones to add additional resources
• Developing mining plans for cave zone
areas to begin mining in 2017
• Regional exploration program for potential
southeast extensions of existing orebodies
on newly acquired Brevene License
1.09
1.31
1.812.03 2.05 2.04
2.0-2.25
2010 2011 2012 2013 2014 2015 2016F
Ore Mined (mt)
(4)
2006 2015
Ore Mined / Reserves (mt)
21.5 21.5
14.1
56 55
46
40 4036 32-36
2010 2011 2012 2013 2014 2015 2016F
Cash Cost / tonne of ore processed (US$/t)(3)
2010 2011 2012 2013 2014 2016F(4)2015
Total ore
mined to date
Ore Reserve
3,4 See footnotes contained in Appendix on slide 38
TSX:DPM 14
Chelopech Real Time Operations
Mining
Planning & Scheduling
Maintenance
Planning & Scheduling
Supply chain / Logistics
Planning & Scheduling
Fe
ed
ba
ck
Info
rma
tionP
lanning
Info
rma
tio
n
Mining Execution Business Processes
Drilling Loading Transportation Crushing Conveying
Support & Maintenance Processes
Real time Process
Monitoring and Control
Mining Operations Management System
Tight Feedback Loop to Minimize Variation and Monitor Schedule Compliance
TSX:DPM 15
CHELOPECH – MOVING CAVE ZONE RESOURCES
INTO MINE PLANS
• Mineral Resource update reclassified 4.2 MT of
resources from inferred to indicated
• Target: start to move these resources into mine
plans in early 2017
Comparison of MRE as at December 31, 2015 with MRE as at December 31, 2014
Mineral Resources exclude all blocks already classified as Mineral Reserves
Resource
Category
2015
MTonnes
2014
MTonnes
Grades
2015 Cu2014
Cu
2015
Au2014 Au
(%) (%) (g/t) (g/t)
Total M+I 14.2 11.3 1.06 1.13 3.37 3.58
Inferred 2.8 8.3 0.82 0.91 2.44 2.66
Chelopech Ore Reserves as at December 31, 2015
Grades
Classification MTonnesGold
(g/t)
Silver
(g/t)
Copper
(%)
Total Proven and Probable 21.51 3.16 7.08 0.94
TSX:DPM 16
CHELOPECH – BROWNFIELDS EXPLORATION UPSIDE
(2)
(3),(4)
HIGHLIGHTS
• New geological model – orebodies are hosted in a diatreme that is part of a multi-phase
intrusive complex
• System is open and untested to the east and southeast
• Exploration focussed on target areas east and southeast of the 10 and 103 orebodies
• Brevene area – licence granted in 2016; 3,500m drill program to follow
Chelopech Mine, Bulgaria
TSX:DPM 18
TSUMEB H1 RESULTS
3
18.5
8.6
2011 2014 2015
26
63
140130
44
24-28
2011 2012 2013 2014 2015 2016F
Total Capital Expenditures (US$M)
2012
2013(4)
Smelter Adjusted EBITDA (US$M)(5)
(2.5) (7)
Highlights:
• Total concentrate smelted – 101,967 tonnes
• Cast cost/T complex con smelted, net of by product credits – $409
• Adjusted EBITDA – $6.4 million
• Acid production – 92.3 MT
4,5 See footnotes contained in Appendix on slide 38
TSX:DPM 19
TSUMEB: SMELTING PERFORMANCE
198 196
200-220
320-370
120
180
159152
370
312
341
420
479
394409
380-425
380
310
275265
2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F
Recent Achievements
• Major 5 year capex program now completed
(in Q1) on budget and schedule
• New convertors successfully commissioned
• Acid plant now capturing all of the convertor
and furnace SO2 offgasses
• Ramping production throughput to 240 ktpy
Building on that success
• Completing Expansion Feasibility Study to
370ktpa in Q4
• Negotiating contracts for third party
concentrate feeds
• Completing Environmental Impact
Assessment – Q1 2017
• Exploring partnership options for expansion
funding
Third Party
con supplied
to smelter
(000s)
Chelopech
concentrate
supplied to
smelter
(000s)
Cash cost per
tonne of
concentrate
smelted (net of by
product credits)(3)
220-
250
265-
320
Anticipated
future capacity
3,4 See footnotes contained in Appendix on slide 38
(4) (4) (4)(4)(4)
TSX:DPM 20
OUTLOOK FOR COMPLEX CONCENTRATES
Mines In Operation Annual Tonnage As (%)
Chelopech 100,000 5.5%
South America(6) 150,000 – 250,000 4.0% - 8.0%
Blend 30,000 – 50,000 5.5% - 7.0%
TOTAL 280,000-400,000
Not in Production Annual Tonnage As (%)
South America(6) 80,000 6.0+%
Rest of the world 100,000 – 150,000 5.0% - 10%
TOTAL 180,000-230,000
6 See footnotes contained in Appendix on slide 41
Chelopech Mine, Bulgaria
TSX:DPM 22
BUSINESS OUTLOOK - KRUMOVGRAD
5,7 See footnotes contained in Appendix on slide 38
Production and Operating Costs
Annual gold production (7) 85,700 oz
Annual silver production (7) 38,700 oz
First concentrate production H2 2018
LOM (7) 8 years
Total Annual Operating Costs / T ore processed (7)
Mining costs
Processing costs
Tailings treatment & IMWF costs
General & administration
Royalty
$45.41
$15.03
$19.39
$1.88
$5.33
$3.78
Capital Costs
Construction capital to complete (7)
Direct Costs
Indirect Costs
Contingency P50 (7.5% of direct + indirect costs)
$178.2 million
$117.1 million
$48.7 million
$12.4 million
Sustaining Capital $6.2 million
Closure and Rehabilitation Costs $6.0 million
Total cash cost per oz AuEq (7) $403
Average Annual EBITDA (5,7) $66 million
Project Economics Remain Robust with a 25% after-tax IRR
TSX:DPM 23
FINAL CONSTRUCTION PERMIT RECEIVED
(2)
(3),(4)
• Main Detailed Development Plan (DDP) & Land Use
• Final DDP approved and in force
• Land redesignation approved and in force
• Land purchased
• Other DDPs / Approvals
• New Access Road – Draft DDP announced, KMC approved routing
• Water Well – DDP approved and in force, construction permit issued
• Off site offices and admin complex – DDP approved and in force
• Discharge water pipeline – municipal and Federal land use approvals received
• Powerline – approvals by power distribution company
• Existing Road Upgrade
• Scope defined, KMC to tender and award
• Social Benefit Negotiation
• Executed 2015 donation contract
• Main road upgrade; Medical centre study; Water supply study
• Archaeological Work
• All field work completed
• Final archaeology report approved by the expert committee
• Final archaeological protocols signed by the Ministry of Culture in 2015
• Construction Permit
• Received August 2016
TSX:DPM 24
Milestone Actual / Expected Completion (4)
Completion of the detailed project execution plan Q1 2016 (complete)
Complete detailed engineering Q1 2016 (complete)
Updated capital cost estimate and baseline project schedule Q1 2016 (complete)
Land re-designation and purchase Q1/2 2016 (both complete)
Approval of technical packages Q2 2016 (complete)
Construction permit RECEIVED AUGUST 9, 2016
Mobilize earthworks contractor to site Q3 2016
Commence main civil/mechanical/electrical construction Q2 2017
Commissioning and start up Q3 2018
First concentrate production Q4 2018
KRUMOVGRAD – 2016 – 2018 PROJECT MILESTONES
4 See footnotes contained in Appendix on slide 41
TSX:DPM 25
KRUMOVGRAD PROCESS PLANT AND SCOPE OF WORK
TSX:DPM 26
KRUMOVGRAD OPEN PIT DESIGN AND PHASES
TSX:DPM 27
KRUMOVGRAD MINE PLAN SUMMARY
TSX:DPM 28
KRUMOVGRAD IMWF GENERAL OVERVIEW
TSX:DPM 29
KRUMOVGRAD IMWF CONSTRUCTION
TSX:DPM 30
KRUMOVGRAD – REGIONAL EXPLORATION UPSIDE
(2)
(3),(4)
• 2015 drilling – 3,500m
• Hole KPDD-009
intersected 8m at
12.81 g/t Au, 4.95
g/t Ag from 277m
• Follow up drilling on 3
holes completed at
Kupel North prospect
• Two other high priority
targets are nearby
HIGHLIGHTS
Chelopech Mine, Bulgaria
TSX:DPM 32
KEY MILESTONES
2016 2017 2018Q4 expansion study to
370,000 tpy concentrate
smelted
Smelter
KrumovgradQ3 Commence construction
H2 First concentrate production
Chelopech Expansion study to 2.5 mtpy
ore production
Q3 Financing plan in place
Q2 Expansion study Detailed
Engineering
Q3 Ausmelt Cooling Upgrade
Expansion Implementation
Construction
Production ramp to 2.2 mtpy
Evaluation of mining and
milling intensity constraints
Resource development above
390 level targeted at
increasing reserves
Expansion Implementation
TSX:DPM 33
WELL POSITIONED TO ADVANCE EXISTING PROJECTS
At current commodity price levels existing cash flows and undrawn revolver capable of
funding growth projects
Recent actions taken to increase financial flexibility
• Amended revolving credit facility
• Increased Cu and Au hedge positions to the following levels
Cu – Hedged 73% and 38% of BOY2016 and 2017 production at an average price of $2.24 per
pound
Au – Hedged 16% and 30% of BOY2016 and 2017 payable gold production using collars with
an average floor/cap of $1,200/$1,495
• Sold Kapan for US$25 million plus working capital adjustment and 2% NSR on future
production
• Completed C$57 million equity offering
Other initiatives being considered include:
• Additional by-product commodity price hedging
• Sale of partial interest in Tsumeb
• Prepaid forward sales / processing arrangement
TSX:DPM 34
SUMMARY- DEEP VALUE INVESTMENT OPPORTUNITY
Near term growth of low cost gold production
from Krumovgrad ready to start construction
execution phase.
Strong balance sheet with financing and risk
strategy for growth projects in place
Poised for significant earnings and free cash
flow growth from Tsumeb and Krumovgrad
Strong Resource base and active exploration
team for future organic growth possibilities.
Strong Board, management team to
successfully execute the company strategy
153 161 169132-155 143
166
217
270
2013 2014 2015 2016F 2017F 2018F 2019F 2020F
Payable Gold (Koz)
626690
890
725
640
510
2013 2014 2015 2016F 2017F 2018F 2019F 2020F
687
750-
850
All-in Sustaining Cost (US$/oz)
Chelopech Mine, Bulgaria
Corporate Head Office:
One Adelaide Street East, Suite 500
Toronto, Ontario
M5C 2V9
T: 416 365-5191
Investor Relations
T: 416 365-2549
TSX:
DPM – Common Shares
www.dundeeprecious.com
Thank You
TSX:DPM
APPENDICES
TSX:DPM 37
APPENDIX CONTENTS
Footnotes and Disclaimers…………………………………………………………………. 38
Market Cap., Major Shareholders, Analyst Coverage…………………………………… 39
2016 Guidance………………………………………………………………………………. 40
Hedge Positions at June 30, 2016….……………………………………………………. 41
Exploration – Avala Properties in Serbia….………………………………………………. 42
Exploration – Partially Owned Exploration Assets……………………………………….. 43
Details Regarding Sale of Kapan Mine……………………………………………………. 44
Chelopech Mine – Updated Mineral Reserves and Resources………………………… 45
TSX:DPM 38
FOOTNOTES AND DISCLAIMERS
1. From continuing operations
2. Estimated to end of 2016
3. A non-GAAP measure. Refer to the “non-GAAP Financial Measures” section of the Full Year 2015 MD&A for reconciliations to IFRS
4. Forecast/guidance information is subject to a number of risks. 2016F is based on guidance issued February 9, 2016 and 2017 to 2020 forecast data is based on the completion of several growth
projects within currently contemplated time frames. See “Forward Looking Statements” on slide 2
5. Adjusted EBITDA represents earnings before income tax plus depreciation and amortization, finance costs, losses/gains on impairment provisions and reversals, unrealized losses/gains on
derivative contracts and investments at fair value, realized and unrealized losses/gains on equity settled warrants, minus interest income
6. Additional penalty income available from other deleterious elements
7. Based on 2014 Krumovgrad Technical Report; Project economics based on June 6, 2016 Krumovgrad Update; All costs expressed as Q4 2015 US$ based on a US4 / Euro exchange rate of 1.14
8. Net Debt represents term debt and amount drawn under revolving credit facility, less cash
9. Undrawn portion of RCF and cash
10. Source: company midpoints of AISC per ounce of gold guidance provided in Q4 2015
11. AISC per ounce of gold represents cost of sales at Chelopech less depreciation, amortization and other non-cash items plus treatment charges, penalties, transportation and other selling costs,
sustaining capital expenditures, rehabilitation related to accretion expenses and an allocated portion of the Company’s G&A expenses less by-product revenues in respect of copper and silver
including realized gains on copper derivative contracts divided by the payable gold in copper concentrate sold
12. Source: RBC as at August 18, 2016
13. Reflects payable production and, in the case of gold, includes estimated payable gold in pyrite concentrate sold
14. Excludes metals in pyrite concentrate and where applicable, the treatment charges, transportation and other selling costs related to the sale of pyrite concentrate which is reported separately
15. Excludes Kapan
Without limitation to the foregoing, the following outlines certain specific forward looking statements contained in this presentation and provides certain material assumptions used to develop such forward looking
statements and material risk factors that could cause actual results to differ materially from the forward looking statements (which are provided without limitation to the additional general risk factors discussed
herein and in the Full Year 2015 MD&A).
Sustaining CAPEX, Non-Discretionary CAPEX and Discretionary CAPEX: assumes foreign exchange rates remain at or around current levels, and all capital projects proceed as planned and at a cost that is
consistent with the budget established for each project. Subject to a number of risks, the more significant of which are: technical challenges; delays related to securing necessary approvals, equipment deliveries,
equipment performance, and the speed with which work is performed; availability of qualified labour; and changes in project parameters, timing and decision to proceed with projects and/or any components there
of and estimated costs, including foreign exchange impacts.
Gold and Copper Production: projected levels of metal production assumes grades and recoveries are consistent with current estimates of Mineral Resources and Mineral Reserves and DPM’s current
expectations and construction start-up of Krumovgrad project and decision to proceed with projects and/or any components there of; and ore mined/milled is consistent with planned levels. Subject to a number of
risks, the more significant of which are: lower than anticipated ore grades, recovery rates and ore mined/milled.
Smelted Concentrate: assumes no significant disruption in equipment availability or concentrate supply. Subject to a number of risks, the more significant of which are: unanticipated operational issues; timing and
decision to proceed with expansion projects, including the holding furnace, and/or any components there of; unanticipated issues related to the commissioning and operation of the acid plant and converters and
any further expansion components including a holding furnace; lower than anticipated equipment availability; and disruptions to or changes in the supply of concentrate.
Technical Information related to slide 18 – Krumovgrad Project Economics
The Mineral Resource and Mineral Reserve estimates and other scientific and technical information which supports this presentation was prepared by CSA Global (UK) Ltd. (“CSA”), in accordance with Canadian
regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects, and were reviewed and approved by, as relates to Mineral Resources, Galen White, BSc (Hons)
FAusIMM FGS, Director and Principal Consultant of CSA, and Julian Bennett, BSc ARSM FIMMM CEng, as relates to Mineral Reserves. Both Galen White and Julian Bennett are independent Qualified Persons
(“QP”), as defined under NI 43-101. The NI 43-101 technical report (the “Krumovgrad Technical Report”) entitled “NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” dated March 21,
2014, in respect of the study for the construction and operation of its Krumovgrad gold project disclosed herein, was filed March 31, 2014 on SEDAR at www.sedar.com. Simon Meik, Processing, and Edgar
Urbaez, formerly Corporate Director, Technical Services, both of DPM, who are QPs and not independent of the Company, have reviewed and approved the contents of this presentation. The Mineral Resource
and Mineral Reserve estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect the potential development of such Mineral Resources. See the
Krumovgrad Technical Report for more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing Mineral Resource estimates.
Cautionary note to U.S. Investors concerning estimates of Mineral Resources. These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. The
terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in NI 43-101 and recognized by Canadian securities laws but are not defined terms under the U.S. Securities and
Exchange Commission (“SEC”) Guide 7 (“SEC Guide 7”) or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves.
“Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever by upgraded
to a higher category. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral
resource exists or is economically or legally mineable. Accordingly, these mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure
requirements under the U.S. federal securities laws and the rules and regulations thereunder, including SEC Guide 7.
TSX:DPM 39
MKT CAP, MAJOR SHAREHOLDERS, ANALYST COVERAGE
Share Price (C$ per share) $3.48
Shares Outstanding – Current 161M
Market Capitalization – Current C$560 M
52 week low – high (C$ per share) $0.84 – $4.14
Share Capital @ September 15, 2016 Analyst Coverage
Firm Analyst
BMO **In transition**
CIBC Capital Markets Jeff Killeen
Dundee Securities Josh Wolfson
GMP Securities Oliver Turner
Paradigm Capital Don MacLean
Raymond James **In transition**
RBC Capital Markets Sam Crittenden
Scotia Capital Trevor Turnbull
Dundee Corporation 22.66%
GMT Capital 12.17%
Van Eck Associates 8.55%
USAA Asset Mgmt. 3.54%
J.P. Morgan Asset Mgmt. (UK) 3.38%
Major Shareholders
TSX:DPM 40
2016 GUIDANCE @ JUNE 30, 2016
US millions, unless otherwise indicated Chelopech Kapan (5) Tsumeb Consolidated (6)
Ore mined/milled (‘000s tonnes) 2,030-2,250 131 - 2,161-2,381
Complex concentrate smelted (‘000s tonnes) - - 200-220 200-220
Metals contained in copper and zinc concentrates produced (1)(2)
Gold (‘000s ounces) 108-118 6 - 114-124
Copper (million pounds) 35.0-39.0 0.7 - 35.7-39.7
Zinc (million pounds) - 2.8 - 2.8
Silver (‘000s ounces) 204-234 111 - 315-345
Payable gold in pyrite concentrate sold (‘000s ounces) 26-40 - - 26-40
Cash cost per tonne of ore processed ($) (3)(4) 32-36 81 - 32-36
Cash cost per ounce of gold sold, net of by-product credits ($) (1)(3)(4) 550-650 1,136 - 550-650
All-in sustaining cost per ounce of gold ($) (1)(3)(4) - - - 750-850
Cash cost per tonne of complex concentrate smelted, net of by-product credits ($) (3)(4) - - 380-425 380-425
Cash cost per ounce of gold sold in pyrite concentrate ($) (4) 750-850 - - 750-850
General & administrative expenses (3) - - - 17-21
Exploration expenses (3) - - - 5-6
Sustaining capital expenditures (3) 10-12 3 12-16 22-28
1) Excludes metals in pyrite concentrate and, where applicable, the treatment charges, transportation and other selling costs related to the sale of
pyrite concentrate, which is reported separately.
2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.
3) Based on foreign exchange rates and metal prices that approximate current rates and prices. The assumed copper price reflects the impact of 67%
of 2016 copper production being hedged at $2.32 per pound.
4) Cash cost per tonne of ore processed, cash cost per ounce of gold sold, net of by-product credits, all-in sustaining cost per ounce of gold, cash cost
per tonne of complex concentrate smelted, net of by-product credits and cash cost per ounce of gold sold in pyrite concentrate have no standardized meaning under GAAP. Refer to the “Non-
GAAP Financial Measures” section of the Q2 2016 MD&A for reconciliations to IFRS.
5) As a result of the Kapan Disposition, which closed on April 28, 2016, Kapan’s operating results have been treated as a discontinued operation and its production and cost guidance reflects
actual performance for the period January 1 – April 28, 2016.
6) Consolidated guidance for ore mined/milled and metals production includes results from the discontinued Kapan operation. Consolidated guidance for cash cost per tonne of ore processed,
cash cost per oucne of gold sold, net of by-product credits, all-in sustaining cost per ounce of gold and capital expenditures pertains to continuing operations.
TSX:DPM 41
HEDGE POSITIONS AT JUNE 30, 2016
Year of projected payable copper production Volume Hedged (lbs) % Hedged Average fixed price ($/lb)
Balance of 2016 12,632,473 73% $2.32
2017 14,550,492 38% $2.17
QP Commodity Hedged Volume Hedged % Hedged Average fixed price
Payable gold 34,525 oz 100% $1,254/oz
Payable copper 15,101,647 lbs 100% $2.17/lb
Payable silver 67,480 oz 100% $15.91/oz
Year of projected payable
gold in pyrite con productionVolume Hedged (oz)
% Hedged(payable gold in pyrite
con production)
Average fixed price of Pyrite Production
Hedges ($/oz)
Balance of 2016 4,020 27% 1,150.00
Year of projected operating
expensesForeign currency hedged
Amount hedged in
foreign currency% Hedged
Average exchange rate
Foreign currency/US$
Balance of 2016Euro
South African rand
5,850,000
378,000,000
22%
65%
1.1146
13.2279
2017Euro
South African rand
10,800,000
720,000,000
21%
62%
1.1287
13.8699
TotalEuro
South African rand
16,650,000
1,098,000,000
1.1237
13.6420
Year of projected payable gold production Volume Hedged (oz) Average ceiling
price ($/oz)Floor Price ($/oz)
Balance of 2016 6,600 1,484 1,200
2017 45,000 1,497 1,200
TSX:DPM 42
EXPLORATION – AVALA PROPERTIES IN SERBIA
(2)
(3),(4)
• Closing occurred April 8, 2016
• Timok Gold Project
• 2.5 million oz in resource categories: 920,000 oz mineable
2014 PEA (using $1,300 gold price and 5% discount rate)
• Plan to explore for additional mineable ounces
• DPM received approval for the renewal of its exploration
tenure over the southern extent of the Timok area and
expanded coverage to include additional ground east of the
sediment packages in an area recently made available
within the Timok magmatic complex
HIGHLIGHTS
Lenovac
Timok Gold Project
Kiseljak Cu Au Porphry
• Kiseljak Copper Gold Porphyry Project
• 547 million tonne resource at 0.22 g/t gold and 0.23% copper
• Assess potential for higher grades close to surface
• Lenovac option agreement with Rio Tinto
• 132km2 licence south of the Freeport-Reservoir discovery at Cekaru Peki
• If Rio Tinto incurs expenditures of US$3 million by December 31, 2017, it will earn a 51% interest
project (C$1 million first year commitment)
• Rio Tinto can incur additional expenditures of US$5 million by end of 2019, for 65% interest in the
project and US$32 million by end of 2023 for 75% interest in the project
TSX:DPM 43
Sabina Gold & Silver Corp. (TSX:SBB), Nunavut
• Canadian-based, precious metals company with assets in Nunavut
• DPM holds 11.8%
• Assets include:
• High Grade Back River Gold Project:
• September 2015 updated feasibility study*:
o Mill throughput of 3,000 tpd
o Avg. annual gold production of 198,100 oz @ $US534/oz cash cost
o LOM 11.8 years
o Pre-production capital C$415M; Sustaining capital C$185M; Closure capital C$64M
o Post-tax IRR of 24.2% and NPV of C$480.3M
• Hackett River payable silver royalty from Glencore Zinc:
22.5% of first 190M oz Ag, 12.5% thereafter
PARTIALLY OWNED EXPLORATION / DEVELOPMENT ASSETS
*Calculated using US$1,150/oz Au price
TSX:DPM 44
Transaction Highlights
Announced March 1, 2016
Proceeds: US$25 million - US$10 million in
cash + US$15 million in Polymetal common
shares - Subject to normal course working
capital adjustments; 2% net smelter return
royalty on future production
Completed on April 28, 2016
Exclusions - Certain joint venture
arrangements and related exploration assets
and licenses in the central part of the country
Implications - Strengthens balance sheet and
reduces future capital requirements;
Increases focus on core portfolio of assets
2016 YTD ACCOMPLISHMENTS
SALE OF KAPAN MINE
TSX:DPM 45
CHELOPECH MINE: UPDATED MINERAL RESERVES AND RESOURCES
Chelopech Mineral Reserves – December 31, 2015
Category
Tonnes
(M)
Gold Copper Silver
Grade
(g/t)
Grade
(%)
Grade
(g/t)
Proven 11.88 3.06 1.02 7.89
Probable 9.64 3.29 0.84 6.08
Total 21.51 3.16 0.94 7.08
Chelopech Mineral Resources – December 31, 2015
Category
Tonnes
(M)
Gold Copper Silver
Grade (g/t)
Ounces
(M)
Grade
(%)
Pounds
(M)
Grade
(g/t) Ounces (M)
Measured 8.4 3.51 0.942 1.15 211 9.91 2.66.
Indicated 5.8 3.17 0.591 0.93 118 9.78 1.823
M&I 14.2 3.37 1.533 1.06 329 9.86 4.486
Inferred 2.8 2.48 0.220 0.82 51 9.08 0.817
1. The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals;
2. Mineral Reserves, Measured, Indicated and Inferred Mineral Resources have been reported in accordance with NI 43-101 and the classification adopted by the CIM;
3. Measured and Indicated Mineral Resources are additional to the Mineral Reserves
4. Mineral Resources and Reserves may be subject to legal, political, environmental and other risks and uncertainties. Refer to the most recent annual information form of the Company filed on the SEDAR website at www.sedar.com and the Company's
Technical Reports for more information with respect to key assumptions, parameters and risks relating to the above estimates.
5. Mineral Reserves and Resources estimates have been reviewed and prepared by CSA, that provides multi-disciplinary services to the global resources industry and is independent of the Company;
6. Mineral Reserves and Resources estimates are based on long term metals prices of USD 1,250/oz Au, USD 23/oz Ag, and USD 2.75/lb Cu and USD 0.85/lb Zn, and as of December 31, 2015;
7. Chelopech Mineral Resources are based on a gold equivalent cut-off 3.0 g/t (Au + Cu*2.06) and a greater than USD 0 profit/tonne test using NSR analysis;
8. Chelopech Mineral Reserves are based on a gold equivalent cut-off of 3.0 g/t (Au + Cu*2.06) and a cut-off of USD 10 profit/tonne using NSR analysis.
9. A Mineral Resource is an inventory of mineralization that under realistically assumed and justifiable technical and economic conditions might become economically extractable, while a Mineral Reserve includes diluting materials and allowances for losses
that are expected to occur when the material is mined. Under the previous method, when Minerals Reserves are reported as part of Measured and Indicated Resources, these diluting materials and allowances are excluded from the estimate of
Resources.
Chelopech Mine, Bulgaria
Corporate Head Office:
One Adelaide Street East, Suite 500
Toronto, Ontario
M5C 2V9
T: 416 365-5191
Investor Relations
T: 416 365-2549
TSX:
DPM – Common Shares
www.dundeeprecious.com