WEL WELCO COME T ME TO O THE THE 20 2016 16 AN ANNU NUAL AL GENERA GENERAL L MEE MEETING TING MA MAY Y 5, 2 5, 201 016 Chelopech Mine, Bulgaria
CHAIRMAN’S AGENDA JONATHAN GOODMAN EXECUTIVE CHAIRMAN OF THE BOARD Opening Remarks and Introduction of the Board of Directors Jonathan Goodman, Executive Chairman Peter Gillin Rick Howes Murray John Jeremy Kinsman Anthony Walsh Donald Young Garth MacRae Peter Nixon Marie-Anne Tawil TSX:DPM 2
BUSINESS OF THE MEETING • Appointment of Secretary and Scrutineer • Constitution of the Meeting • Presentation of Financial Statements and Auditor’s Report • Nomination and Election of Directors Jonathan Goodman Garth MacRae Peter Gillin Peter Nixon Rick Howes Marie-Anne Tawil Murray John Anthony Walsh Donald Young Jeremy Kinsman • Appointment of the Auditor • Advisory Resolution regarding Executive Compensation • Termination of the Meeting TSX:DPM 3
PRES PRESIDENT IDENT & C & CEO EO RIC RICK K HO HOWES WES Chelopech Mine, Bulgaria Chelopech Mine, Bulgaria
DPM SENIOR MANAGEMENT TEAM Rick Howes Hume Kyle David Rae Executive Vice President & Chief Financial Officer Executive Vice President & Chief Operating Officer President & Chief Executive Officer Lori Beak Michael Dorfman Richard Gosse Senior Vice President, Governance, and Senior Vice President, Corporate Development Senior Vice President, Exploration Corporate Secretary Nikolay Hristov John Lindsay Paul Proulx Senior Vice President, Sustainable Business Senior Vice President, Projects Senior Vice President, Corporate Services Development TSX:DPM 5
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 6
DPM’S GLOBAL PORTFOLIO OF ASSETS Unique Assets With Commodity & Geographic Diversity TSX:DPM 7
Au & Cu PRICE TREND: 2010 TO PRESENT Gold and Copper Price Trend, 2010 to Present Historical Relative Trading, Year-to-Date (1) 150% 109.8% Tier I 97.2% 100% 94.5% GDXJ 83.3% GDX Tier III 74.6% 65.1% Tier II 50% 0% (50%) Jan-16 Feb-16 Mar-16 Apr-16 1 See footnotes contained in Appendix on slide 28 TSX:DPM 8
2015 KEY ACHIEVEMENTS 1. Achieved our best safety performance 2. Achieved Record Gold Production (2) 138- 195 182 172 159 2013 2014 2015 2016F 3. Built and commissioned new acid plant in Namibia 4. Advanced Krumovgrad permitting 2 See footnotes contained in Appendix on slide 28 TSX:DPM 9
OUR STRATEGY TSX:DPM 10
2015 ACCOMPLISHMENTS MINE PRODUCTION AND COST REDUCTIONS Achieved record production of gold Remained a low AISC per ounce of gold producer (4,5) contained in all concentrates (000’s oz) (2) $690 195 $626 $620 182 159 2013 2014 2015 2013 2014 2015 Reduction in G&A expenses of Reduced Cash Cost / tonne of US$10.7M ore processed (US$/t) (3) $28.5M $24.8M 60 58 53 47 47 43 $17.8M 2010 2011 2012 2013 2014 2015 2013 2014 2015 2,3,4,5 See footnotes contained in Appendix on slide 28 TSX:DPM 11
2015 ACCOMPLISHMENTS - SMELTER Reduction in total smelter capital Smelter Production (000’s tonnes) expenditures (US$M) 215-250 140 130 196 198 180 159 152 63 44 26 24-28 (6) (6) 2011 2012 2013 2014 2015 2016F 2011 2012 2013 2014 2015 2016F 6 See footnotes contained in Appendix on slide 28 TSX:DPM 12
2015 ACCOMPLISHMENTS GROWTH PROGRESS – SMELTER EXPANSION Potential expansion of smelter throughput up to 370,000 tpy 320- 370 370 265- 320 215- 220- 250 250 198 196 152 (6) (6) (6) (6) (6) 2013 2014 2015 2016F 2017F 2018F 2019F 2020F Holding Furnace 6 See footnotes contained in Appendix on slide 28 TSX:DPM 13
2015 ACCOMPLISHMENTS GROWTH PROGRESS - KRUMOVGRAD • Main Detailed Development Plan (DDP) & Land Use • Final DDP approved and in force - November • Land redesignation approved and in force (2) • Next step is land purchase – in progress • 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 (3),(4) • Discharge water pipeline – municipal and Federal land use approvals received • Powerline (Power distribution company) – in progress • 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 in December • Final archaeology report approved by the expert committee • Final archaeological protocols signed by the Ministry of Culture in December • Construction Permit TSX:DPM 14
2015 ACCOMPLISHMENTS GROWTH PROGRESS - EXPLORATION In-mine exploration programs continue to replace the reserves mined each year at Chelopech Regional brownfields exploration programs around existing mines and our planned Krumovgrad mine have identified promising new targets that will be further tested in 2016 Ore Mined / Reserves (mt) 21.5 21.5 14.1 Total ore mined to date Ore Reserve 2006 2015 TSX:DPM 15
2016 YTD ACCOMPLISHMENTS SALE OF KAPAN MINE 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 TSX:DPM 16
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