Scotiabank Global Banking and Markets Mining Conference November 2012
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, 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 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. 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 2
Canada Dundee Precious Metals Highlights Sabina 11% $1.2B gold producer 2 operating mines in Bulgaria & Armenia Avala 51% Chelopech Strategic complex concentrate smelter in Namibia Dunav 47% Krumovgrad Deno Gold 2012 gold production of 132,000 to 145,000 oz Low cash cost/ounce gold produced Growing pipeline of growth opportunities Experienced management team Namibia Custom Smelter Attractive value proposition Operating assets Development assets Exploration assets TSX:DPM 3
Strong Balance Sheet Capital Structure @ November 27, 2012 $121M Share Price C$8.34 Shares Outstanding 125M Cash on Hand Fully diluted shares 147M @ Sept. 30, 2012 Additional cash on dilution C$66M (excluding AVZ & DNV) 52 week high - low $10.72 - $5.82 $120M Top shareholders Significant Operating Cash Flow Dundee Corporation 22.6% Annualized 9 months 2012 Equinox Partners 10.3% $82M Gross Revenue by Metals Sold 2016E 2012E 2011A Debt Gold 5% 4% 6% 6% 5% 6% @ Sept. 30, 2012 Copper 24% 48% 36% 55% 41% 64% Silver Total Debt:Total Capital = 10% Zinc TSX:DPM 4
Corporate Strategy Build DPM into an intermediate, low-cost gold producer: Optimize value of existing operating assets Chelopech – production expansion and pyrite recovery project Smelter – complete dust emission upgrades & expansion Deno Gold Mine - open pit evaluation and underground extension Grow business beyond existing operating assets Develop Krumovgrad Gold Project Establish deep pipeline of greenfield exploration opportunities Complete acquisitions that offer accretive growth, diversity and gold exposure Sustain low quartile operating cost position Maintain a solid financial position TSX:DPM 5
Consolidated Production and Financial Highlights Gold Production (000s ounces) Copper Production (pounds in millions) 132- 145 42- 46 121 40 103 95 30 84 84 28 25 22 2007 2008 2009 2010 2011 2012E 2007 2008 2009 2010 2011 2012E Silver Production (000s ounces) EBITDA (US$MM) 640- 715 671 640 $118 $87 408 399 333 $ 45 $ 32 ($2) 2011 2010 9 mos 2012 ($40) 2009 2007 2008 2009 2010 2011 2012E 2007* 2008* * In CDN dollars TSX:DPM 6
Chelopech Mine • Low Cost, Long Life Producer Strategy DPM Ownership 100% Location Bulgaria Complete expansion to 2 mtpy Q4 2012 – Acquired Sept. 2003 commissioning underway Resources Continue to replace Gold (oz) (4.09 g/t) 3,930,000 Measured & depletion and increase Indicated Mineral Resources and Copper (lbs) (1.31% Cu) 862,840,000 (at Oct. 31, 2011) Mineral Reserves through exploration Gold (oz) (3.66 g/t) 2,660,000 Reserves Complete feasibility study (@ Jan. 1, 2012) on the pyrite gold recovery Copper (lbs) (1.15% Cu) 572,600,000 project Mine Type Underground High sulphidation Deposit Type epithermal deposit Estimated Mine Life @ expanded rate 10 + yrs TSX:DPM 7
Chelopech Mine • Reducing Costs & Increasing Throughput Gold Production & Cost/Ounce Copper Production (pounds in millions) 110- 40 - 43 120 $369 120 $400 37 Cash Cost * (Gold $US/oz) $309 Ounces (000‟s) 27 94 26 88 80 $210 19 71 $200 65 40 ($112) 0 $0 2008 2009 2010 2011 2012E 2008 2009 2010 2011 2012E * Cash cost of sales/oz gold (net of by product credits). Reconciliation included in Appendices EBITDA (US$MM) Ore Processed & Cost/Tonne 146 1,700 – Tonnes ore processed per year (000‟s) 133 Cost/tonne ($US) (Excluding royalties) 1,850 2,000 $60 1,359 $40 1,001 981 57 900 51 1,000 27 $20 2008 2009 2010 2011 9 mos 2012 0 $0 2008 2010 2011 2012E 2009 TSX:DPM 8
Chelopech Mine • Pyrite Project to Increase Gold Recoveries to 90% @ 2 mtpy ore mined 400,000 T pyrite concentrate produced (E) Metals Grades Estimated Production Result Gold 6-7 g/t 75,000 - 90,000 oz Project will Silver 10-15 g/t 130,000 - 190,000 oz economically recover 4.5 million – 6.0 million pounds Copper 0.5%-0.7% most of the contained Pyrite Project Stages gold, silver & copper Stage 1 – concentrator upgrade – start production mid 2013 $22M associated with rejected pyrite minerals Stage 2 – POX Facility Phase 1 – Start production 2016 $93M POX process can be Phase 2 – Start production 2017 $87M used to produce a low Pyrite Project Highlights mass residue resulting in a metal rich product Cash cost per tonne of pyrite $156 for sale Cash cost per oz of gold (net of by-product credits) $615 Project capital costs $202M Average annual EBITDA (1) $49M NPV (5% discount rate) after tax (1) $141M IRR after tax (1) 24% Timeline: concentrator upgrade - POX facility production 2013 - 2017 (1) Assuming $1,250/oz gold, $25/oz silver and $2.75/lb copper after 2016. TSX:DPM 9
Chelopech Mine • Successful Low Cost Exploration Program Strategy Near Mine T181 & 182 • +500,000 T high grade deposits 147 Greenfields 19 149 18 • +5MT low grade deposits 145 16 • Chelopech SW 150 151 Consistently replacing depletion 103 Spend $3-$4 M/yr on exploration Plan view of ore bodies and structure TSX:DPM 10
Namibia Custom Smelter • A Unique Strategic Asset Strategy DPM Ownership 100 % Build a one of a kind asset to treat DPM and third party complex concentrate Location Namibia Upgrade operation to meet global standards Acquisition March 2010 $50M Increase capacity and lower costs Capital expenditures to date $75M Contract other third party sources of complex concentrate to optimize throughput Project 2012 Costs $75M 250 Smelter Capacity Technology Ausmelt 200 Product Copper blister bars 150 Tonnes (000s) 2011 concentrate throughput 180,403 tonnes 100 240k – 310k tpy Expanding smelter capacity 50 Sulphuric acid capture plant FS Complete 0 2009 2010 2011 H1 2012 2012E 2013E: +O 2 Chelopech con Third party con TSX:DPM 11
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