Investor Presentation February 2010 February 2010 - PowerPoint PPT Presentation

Investor Presentation February 2010 February 2010 www.dundeeprecious.com

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 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, costs of production, capital expenditures, 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”, i i ” “b li ” i i f h d d h h i i l “ ” “ ld” “ ld” “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 ; ; ; g p j p p 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 news release 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 www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ 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. 1

STRONG FINANCIAL POSITION Sept. 30, 2009 Cash and Short-Term Investments: C$74M Analyst Coverage BMO John Hayes Working Capital (incl. Cash & ST Invts): C$113M Cormark Securities Mike Kozak Plus Restricted Cash: C$10M Dundee Securities Paul Burchell Plus Marketable Securities: Plus Marketable Securities: C$26M C$26M Union Securities Union Securities Brian Mok Brian Mok Coverage temporarily Total Debt: C$21M GMP Securities suspended Debt to Total Capitalization: 4.3% Institutional Shareholders: ~55% C$3.53 DPM – TSX (Feb. 3, 2010) C$344M Market Cap (Feb. 3, 2010) 97 5M 97.5M Shares Outstanding Shares Outstanding 2

INVEST IN DPM… Strong Balance Sheet Strong Balance Sheet Valuable Assets Committed Management Team Hi hl Highly Undervalued U d l d 3

CORPORATE STRATEGY Increase metal production  With mine/mill expansion, targeting 2 mtpy p g g py  With acquisition of Tsumeb smelter, targeting expansion to 240,000 tpy  Excellent exploration potential at Chelopech Grow gold resources Grow gold resources  Krumovgrad 5 million tonnes M&I at 5g/t  Excellent exploration potential Maintain low cost operations  Mine/mill expansion and purchase of  Mi / ill i d h f Tsumeb smelter Add strategic value  Tsumeb broadens scope for future acquisitions of challenging ore bodies i iti f h ll i b di Maintain a solid financial profile Broaden Shareholder Base 4

CORPORATE SOCIAL RESPONSIBILITY AND HSE STANDARDS AT WORK AND HSE STANDARDS AT WORK  Bulgarian and European environmental award winner  Community initiatives support English language school, hospitals, technical schools and universities and many other local community projects  Environmental standards meet or exceed EU standards  Safety statistics comparable to N. America/ Australia 5

DPM PROPERTIES  Chelopech gold/copper underground mine, Bulgaria  K  Krumovgrad feasibility stage gold project, Bulgaria d f ibilit t ld j t B l i  Deno copper/gold/zinc underground mine, Kapan, Armenia  Serbian exploration properties (gold, copper, molybdenum, rhenium) 6

CHELOPECH DPM Ownership 100 % Location Bulgaria g Gold (oz) 2,700,000 Reserves 640,000,000 (as at Oct. 09) Copper (lbs) Gold (oz) 4,230,000 , , ( ) R Resources 971,500,000 (as at Sept. 08) Copper (lbs) Gold (oz) 71,500 2008 Copper (lbs) pp 19,216,492 , , ( ) Production Gold (oz) 74,000 9 mos 2009 Copper (lbs) 19,911,553 Gold ($US/oz) 2008 $309 Cash Cost $378 9 mos 2009 Gold ($US/oz) Mine Type Underground 7 Estimated Mine Life 10 + yrs

CHELOPECH Proven Execution Current Enhancements Future Upside  SAG mill and  SAG mill and  Expansion to 2  Expansion to 2  Largest underground Au/Cu mine in Europe  Largest underground Au/Cu mine in Europe concentrator expansion mtpy by June 2011  Concentrate sales & processing secured for LOM in progress (approx. US$83M) through smelter acquisition  MPF on care & maintenance  Exploration to expand  Reduce cost /tonne  12% increase in ore processed over 9 mos 2008 % p resource underway resource underway from US$57 56 to from US$57.56 to  41% increase in concentrate production over 9 US$34.00  Design of underground mos 2008  Long life cash flow crusher and conveyer  25% - 43% increase in metals contained in system commenced producer concentrate over 9 mos 2008 8

CHELOPECH - MINE AND MILL OPERATIONS Ore Processed Gold Production (000’ tonnes per year) (000’ oz) 75 74 953 71 71 913 901 852 741 57 2005 2006 2007 2008 Sept. YTD 2009 2005 2006 2007 2008 Sept. YTD 2009 2009 Copper Production EBITDA (lbs in millions) (in US$ millions) 57.8 57.7 43 9 43.9 25.4 24.6 23.6 19.9 20.5 28.8 19.6 2005 2005 2006 2006 2007 2007 2008 2008 Sept. YTD Sept. YTD 2005 2005 2006 2006 2007 2007 2008 2008 Sept YTD Sept. YTD 2009 2009 9

ACQUISITION OF TSUMEB SMELTER, NAMIBIA  Purchase Price:  US$18M in cash  US$15M in DPM shares @ C$3.50 per share AFRICA  Assumption of US$17M in third party obligations  Assumption of US$17M in third party obligations  US$11.4M settled with US$2M cash and US$9.4M in DPM shares @ C$3.50/share  Capacity:  Currently – 120,000 tonnes/year Tsumeb Smelter, Namibia  Expansion underway to 240,000 tonnes/year  E i d t 240 000 t /  Oxygen plant to be commissioned Feb 2010  Further low cost expansion potential 10

OUR STRATEGY – TSUMEB SMELTER  Enables DPM to control its own destiny  Increase profitability through cost savings initiatives and improved efficiencies  Adds strategic value through processing of complex concentrates  Long term upside development  Long term upside development potential:  Further expand smelter capacity (70% fixed costs)  Add sulphuric acid plant to supply uranium  Add sulphuric acid plant to supply uranium industry  Broadens scope for future acquisitions of challenging ore bodies o c a e g g o e bod es 11

KRUMOVGRAD GOLD PROJECT, BULGARIA  Potential low cost gold producer From July 2005 DFS. To be updated once permit granted DPM Ownership 100 %  Excellent economics (based on 2005 DFS) Location Bulgaria  5 million tonnes Measured & Indicated M&I Resources (oz Au) 835,000 Resource at 5 g/t gold (as at July 2005) Inferred Resources (oz Au) 11,000  Future production rate est. at 150,000 oz/y (as at July 2005) gold for first four yrs (4:1 strip ratio) Est. Annual Au Production 150,000 oz  Good exploration potential  Good exploration potential Est. Cash Cost per oz Au US$116 Est. Capital Cost US$75 M What has changed? Proposed Mine Type Open Pit Higher costs Estimated Mine Life 6+ yrs Higher prices Better economics 12