DPM CORPORATE PRESENTATION - August 2016
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DPM CORPORATE PRESENTATION
Chelopech Mine, Bulgaria
August 2016
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 2
DPM’S GLOBAL PORTFOLIO OF ASSETS
Unique Assets With Commodity & Geographic Diversity
Sabina
Canada
11% Chelopech Mine
Bulgaria
100%
Avala
Serbia
100%
Krumovgrad Gold Project
Operating assets Bulgaria
Development asset 100%
Exploration assets Tsumeb Smelter
Namibia
100%
2016 Adjusted EBITDA
2016 Asset Diversification(2) 2016 Revenue Diversification (1)
Generation (3)(5)
Tsumeb Smelter Gold
25% 35% 45%
Bulgaria Namibia
50% 45% Chelopech
75%
Ag 1%
Copper
Canada 19%
5%
1,2,3,5 See footnotes contained in Appendix on slide 32
TSX:DPM 3
DPM’S VISION AND STRATEGY
A progressive gold mining company that unlocks and delivers superior value
through innovation and strong partnerships with stakeholders
Optimize Portfolio Growth Innovation
Grow production and Build a pipeline of future Wi-Fi enabled UG mine
margins through operational growth opportunities Real-time operational
excellence and high return, Acquire undervalued management
modest capital investments assets and leverage Big data analytics to
Maintain / extend life of expertise to unlock value optimize performance and
mines through near mine allow for faster better
exploration programs decision making
Maintain Financial Strength and Flexibility
TSX:DPM 4
Chelopech Mine, Bulgaria
CHELOPECH – A WORLD CLASS, LOW COST MINE
Ore Mined (mt) 2.0-2.25
Recent Achievements
2.03 2.05 2.04
1.81
• Achieved capacity increase to 2M tpy in 2012
1.31
• Underpinned by underground wireless 1.09
technology & partnerships with key vendors
• DPM operating practices to take advantage of
near real-time information
(4)
2010 2011 2012 2013 2014 2015 2016F
• Consistent and reliable performer
Ore Mined / Reserves (mt)
Building on that Success 21.5 21.5
• Increasing Mineral Reserves and Resources, 14.1
including recently announced increase in Resources
(15% including Reserves and 25% excluding Total ore
mined to date
Reserves) Ore Reserve
• Moving to 2.2M tpy for 2016 after debottlenecking of
2006 2015
mining and milling activities
• Working on Step-Change projects to evaluate mining Cash Cost / tonne of ore processed (US$/t)(3)
at 2.5M tpy 56 55
• Assessing the options to release mill bottlenecks to 46
40 40
achieve 2.5M tpy 36 32-36
• Aggressively exploring mine upper levels to bring
resource increases into mine plans and allow an
increase in mined tonnage while maintaining mine life
3,4 See footnotes contained in Appendix on slide 32 2010 2011
2010 2011 2012
2012 2013 2014 2015
2013 2014 2016F(4)
20152016F
TSX:DPM 6
MINERAL RESOURCES AND RESERVES UPDATE
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
Grades % Difference
Resource 2015 2014 2014 2015 Tonnes % Cu Au
2015 Cu 2014 Au
Category MTonnes MTonnes Cu Au diff % diff % diff
(%) (%) (g/t) (g/t)
Total M+I 14.2 11.3 1.06 1.13 3.37 3.58 25.34% -6.44% -5.90%
Inferred 2.8 8.3 0.82 0.91 2.44 2.66 -66.41% -10.07% -8.10%
The Mineral Resource update was dominated by the reclassification of 4.2 Mt of resources above 410 level from
inferred to indicated. This increase was 15% of resources inclusive of reserves and 25% excluding reserves.
Chelopech Ore Reserves as at December 31, 2015
Grades
Gold Silver Copper
Classification MTonnes
(g/t) (g/t) (%)
Proven 11.88 3.06 7.89 1.02
Probable 9.64 3.29 6.08 0.84
Total Proven and Probable 21.51 3.16 7.08 0.94
The Mineral Reserve update is largely in line with depletion, partially offset by increases in Mineral Reserves
for blocks 19, 103, 151, 149 and 149 South as a result of infill drilling in 2015.
TSX:DPM 7
CHELOPECH – HOW CROWN PILLAR MINING
OPENED FORMERLY UNMINEABLE RESOURCES
Ore t Cu, % Au, g/t Cu , t Au, Oz
531 671 2.36 4.44 12 526 75 897
Cave
Cave rock
Old Mining
zone
Method
Transition Zone
(Crown Pillar) Crown Pillar
New Mining
Method
Backfilled
Open Stopes
• The 150 orebody crown pillar was successfully first mined in 2013 following extraction
design with risk mitigation
• To date 5 panels have been successfully removed with refinements based on experience
• Mining is set to continue until 2020 on block 150 crown pillar
• Additional opportunity exists at the 103 and 19 blocks and the methodology will be
developed to stabilize old cave zones to extract associated satellite resources
TSX:DPM 8
CHELOPECH – CROWN PILLAR EXTRACTION
CAVE ROCK GROUTING AND REINFORCEMENT LONG HOLE DRILLING
Typical Performance
• Ore 27,810t
• Cu 2.12 %
• Au 3.41 g/t
• Losses 6 %
• Dilution 4.8 %
OPEN STOPE BACK FILL
TSX:DPM 9
CHELOPECH – MOVING CAVE ZONE RESOURCES
INTO MINE PLANS
2015 Drilling
• A total of 11,720m was drilled in 2015 in Blocks 19 and
103
2016 Plans
• A total of 28,000m is planned to be drilled in 2016
Key targets:
• 7,000m in Block 19
• 7,000m in Block 150
• 4,000m adjacent to Block 150
• 5,000m between Blocks 8 and 10
• Target: start to move these resources into mine plans
in early 2017
• The total resource development drilling planned for
2016 is 44,000m
TSX:DPM 10CHELOPECH – MORE OPPORTUNITIES TO ADD VALUE
Step-Change activity to evaluate increasing mine production to 2.5 mtpy
utilizing debottlenecked existing infrastructure
• Increase mining intensity from 1050t/d/stope, targeting 3,000t/d/stope with revised
stope designs and primary mover tests in 2016
• Release SAG mill critical size to reduce power draw or increase capacity Häggloader 10 HR-B
Further progress being made on cost savings and productivity improvements
(1)
TSX:DPM 11CHELOPECH – BROWNFIELDS EXPLORATION UPSIDE
HIGHLIGHTS
• New geological model – orebodies are hosted in a diatreme that is part of a multi-phase
intrusive complex (2)
• 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 expected to be granted this year, followed by 3,500m drill program
(3),(4)
TSX:DPM 12Chelopech Mine, Bulgaria
TSUMEB: SMELTING PERFORMANCE
Chelopech Third Party Cash cost per Anticipated
Key Transformative Achievements concentrate con supplied tonne of future capacity
supplied to to smelter concentrate
• Completed major capex program to upgrade facility smelter (000s) smelted (net of by
to global environmental standards and invested to (000s) product credits)(3)
debottleneck facility to support increased production
of 240K-265K tpy
• Moved from two primary furnaces to one in 320-
479
370 370
Q3 2013, largely to manage occupational
exposure 380-
420 409 265-
394 425
• Decommissioning of reverb furnace 320
380
significantly curbed emissions but
exacerbated in-process inventories 341
220-
• Construction nearing completion after 4 312
250 310
years where some process interference was 200-
220 275
experienced 265
198 196
• Acid plant successfully commissioned and 180
reached commercial production in October
159
2015 152
• Completion of the copper converters is 120
expected to debottleneck production, reduce
inventories and improve EBITDA
• EBITDA of $8.7M in 2015 came largely from Q4
2015 confirming the smelter potential to be a major
contributor to DPM
• Secured supply of third party feed to fill added
capacity and entered LT sales contracts for all acid
2010 2011 2012 2013 2014 2015 2016F(4) 2017F(4) 2018F(4) 2019F(4) 2020F(4)
produced
3,4 See footnotes contained in Appendix on slide 32
TSX:DPM 14TSUMEB – POISED TO GENERATE SIGNIFICANT EBITDA
Near Term Priorities
• The two new larger copper converters, together with their associated off-gas system and tie-ins to the acid
plant were commissioned in the first quarter of 2016 and performed as expected during Q2 2016
• The acid plant operated as planned in the first six months of 2016
Copper Converter Offgas Scrubbing Systems Converter installation
• Optimize existing infrastructure and processes and reduce secondary material to normalized levels
• Advance assessment, permitting and commercial arrangements to support 370,000 tpy opportunity
(5)
Total Capital Expenditures (US$M) Smelter Adjusted EBITDA (US$M)
140
130 18.5
63 8.6
44
26 24-28 3
(2.5) (7)
(4) 2013
2011 2012 2013 2014 2015 2016F 2011 2014 2015
2012
4,5 See footnotes contained in Appendix on slide 32
TSX:DPM 15OUTLOOK 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 32
TSX:DPM 16Chelopech Mine, Bulgaria
BUSINESS OUTLOOK - KRUMOVGRAD
Project Economics Remain Robust with a 25% after-tax IRR
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) $45.41
Mining costs $15.03
Processing costs $19.39
Tailings treatment & IMWF costs $1.88
General & administration $5.33
Royalty $3.78
Capital Costs
Construction capital to complete (7) $178.2 million
Direct Costs $117.1 million
Indirect Costs $48.7 million
Contingency P50 (7.5% of direct + indirect costs) $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
5,7 See footnotes contained in Appendix on slide 32
TSX:DPM 18FINAL CONSTRUCTION PERMIT RECEIVED
• Main Detailed Development Plan (DDP) & Land Use
• Final DDP approved and in force - November
• Land redesignation approved
(2)
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
(3),(4)
– 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 in 2015
• Final archaeology report approved by the expert committee
• Final archaeological protocols signed by the Ministry of Culture in 2015
• Construction Permit – expected mid-2016
TSX:DPM 19KRUMOVGRAD – PROJECT MILESTONES
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
DPM board approval for full release Q3 2016
Mobilize earthworks contractor to site Q3 2016
Commence construction on site Q3 2016
Commence main civil/mechanical/electrical construction Q2 2017
Commissioning and start up Q2/Q3 2018
First concentrate production H2 2018
4 See footnotes contained in Appendix on slide 32
TSX:DPM 20KRUMOVGRAD – REGIONAL EXPLORATION UPSIDE
(2)
HIGHLIGHTS
• 2015 drilling – 3,500m
• Hole KPDD-009
intersected 8m at (3),(4)
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
TSX:DPM 21KEY MILESTONES
2016 2017 2018
Smelter Q4 Expansion study to Q2 Expansion study Detailed Expansion Implementation
370,000 tpy concentrate Engineering
smelted
Q3 Ausmelt Cooling Upgrade
Krumovgrad Q3 Financing plan Construction H2 First concentrate production
Q3 BOD approval
Q3 Project start
Chelopech Production Ramp to 2.2 mtpy Expansion study to 2.5 mtpy Expansion Implementation
Evaluation of Mining and ore production
Milling intensity constraints
Resource Development above
390 level targeted at
increasing reserves
TSX:DPM 22Chelopech Mine, Bulgaria
COMMITTED TO MAINTAINING A STRONG BALANCE SHEET
(8) (8)
Net Debt / EBITDA (x) Net Debt (US$M)
3.5 150
3.0 121 120
2.5
2.0 100
1.67
1.5
0.94 1.12
1.0
50 35
0.5
0.0
2013 2014 2015 0
2013 2014 2015
Net Debt / Capitalization (% at end of period) Total Available Liquidity (US$M at end of period)(9)
20.0 300
16 250
15
15.0 180 201
200 187
10.0 150
100
5.0 4
50
0.0 0
2013 2014 2015 2013 2014 2015
8,9 See footnotes contained in Appendix on slide 32
TSX:DPM 24FINANCING OF EXISTING GROWTH PROJECTS
At current commodity price levels, existing cash flows and undrawn revolver capable of fully
funding growth projects
Moving forward with both projects requires taking additional steps to mitigate the risk of
future price declines or operating shortfalls
July 11, 2016 completion of C$54.65 million bought deal financing
Additional by-product commodity price hedging
Alternatives being considered include:
• Prepaid forward sales arrangement or stream
• Sale of partial interest in Tsumeb or other non-core assets
TSX:DPM 25CLOSURE OF BOUGHT DEAL FINANCING
Closed July 11, 2016
Aggregate gross proceeds of C$54.65 million
Issued 18,216,000 common shares at C$3.00 per share
Initial agreement to acquire 15,840,000 shares and an over-allotment option for
an additional 2,376,000 shares
In addition, a non-brokered private placement of 840,000 shares at C$3.00
for additional gross proceeds of C$2.5 million sold to Dundee Corporation
Use of proceeds:
Reduce drawdowns under its revolver credit facility
Support advancing growth initiatives
General corporate purposes
TSX:DPM 26RARE DEEP-VALUE INVESTMENT OPPORTUNITY
Below Average 2016F All-In-Sustaining Mine Cost (3)(4)(10)(11)(12)(14)
Attractive Valuation Metrics
$1,100 EV/2016F EBITDA (Cons. Est.) (4)(12)
18.5x
Average = $890/oz
$750-850/oz
$800 10.8x Average: 9.4x
8.7x
6.7x 6.5x 5.2x
$500
Dundee Alacer New Gold Alamos Primero Alamos New Gold Argonaut Alacer DPM Primero
Hard Hit Sector Valuations Creating
A Rare Investment Opportunity
$12.00 $140.00
P/NAV (Cons. Est.)(12)
$10.00 DPM share price $120.00 1.4x
GDXJ performance $100.00
$8.00
$80.00
$6.00
$60.00 1.0x 1.0x
$4.00 $40.00 0.8x Average 0.9x
$2.00 $20.00
0.7x
$0.00 $0.00
2012 2013 2014 2015 2016 0.5x
$2,000 $5.00
$1,500 $4.00
$3.00
$1,000
$2.00 New Gold Argonaut Alamos Alacer DPM Primero
Au price
$500 $1.00
Cu price
$0 $0.00
2012 2013 2014 2015 2016
3,4,10,11,12,14 See footnotes contained in Appendix on slide 32
TSX:DPM 27CONSOLIDATED RESULTS AND OUTLOOK
(4) (13) (4) (13) (4)
Payable Gold (Koz) Payable Copper (Mlbs) Smelter Production (Kt)
46 43 35.7- 320-
270
40 39.7 265- 370 370
217 34 36 36 37
132- 220- 320
169 166 200- 250
153 161 155 143
198 220
196
152
2013 2014 2015 2016F 2017F 2018F 2019F 2020F 2013 2014 2015 2016F 2017F 2018F 2019F 2020F 2013 2014 2015 2016F 2017F 2018F 2019F 2020F
(3)(4) (3) (4)
Capital Expenditures (US$M) (3)(4) All-in Sustaining Cost (US$/oz) Smelter Cash cost (US$/t)
Discretionary Growth CAPEX
Non-discretionary Growth CAPEX 750-
890
850 380-
216 Sustaining CAPEX
479 425
725
184 690
173 626 687 640 394 409 380
510 310
121 275 265
87
49-59
27 24
(15) (15)
2013 2014 2015 2016F 2017F 2018F 2019F 2020F 2013 2014 2015 2016F 2017F 2018F 2019F 2020F 2013 2014 2015 2016F 2017F 2018F 2019F 2020F
3,4,13,15 See footnotes contained in Appendix on slide 32
TSX:DPM 28Thank You
Corporate Head Office:
One Adelaide Street East, Suite 500
Toronto, Ontario
M5C 2V9
T: 416 365-5191
Investor Relations
T: 416 365-2549
jreid@dundeeprecious.com
TSX:
DPM – Common Shares
www.dundeeprecious.com
Chelopech Mine, BulgariaAPPENDICES TSX:DPM
APPENDIX CONTENTS
Footnotes and Disclaimers…………………………………………………………………. 32
Market Cap., Major Shareholders, Analyst Coverage…………………………………… 33
2016 Guidance………………………………………………………………………………. 34
Hedge Positions at June 30, 2016….……………………………………………………. 35
Exploration – Avala Properties in Serbia….………………………………………………. 36
Exploration – Partially Owned Exploration Assets……………………………………….. 37
Details Regarding Sale of Kapan Mine……………………………………………………. 38
Chelopech Mine – Updated Mineral Reserves and Resources………………………… 39
Krumovgrad Project – Mine, Plant and IMWF details……………………………………. 40
TSX:DPM 31FOOTNOTES 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 32MKT CAP, MAJOR SHAREHOLDERS, ANALYST COVERAGE
Share Capital @ August 18, 2016 Analyst Coverage
Share Price (C$ per share) $3.77 Firm Analyst
Shares Outstanding – Current 161M BMO **In transition**
CIBC Capital Markets Jeff Killeen
Market Capitalization – Current C$532 M Dundee Securities Josh Wolfson
GMP Securities Oliver Turner
52 week low – high (C$ per share) $0.84 – $4.14
Paradigm Capital Don MacLean
Raymond James **In transition**
RBC Capital Markets Sam Crittenden
Major Shareholders Scotia Capital Trevor Turnbull
Dundee Corporation 22.66%
GMT Capital 11.97%
Van Eck Associates 8.00%
USAA Asset Mgmt. 3.54%
J.P. Morgan Asset Mgmt. (UK) 3.39%
TSX:DPM 332016 GUIDANCE @ JUNE 30, 2016 US millions, unless otherwise indicated Chelopech Kapan (5) Tsumeb Consolidated (6) Ore mined/milled (‘000s tonnes) 2,030-2,250 131 - 2,161-2,381 Complex concentrate smelted (‘000s tonnes) - - 200-220 200-220 Metals contained in copper and zinc concentrates produced (1)(2) Gold (‘000s ounces) 108-118 6 - 114-124 Copper (million pounds) 35.0-39.0 0.7 - 35.7-39.7 Zinc (million pounds) - 2.8 - 2.8 Silver (‘000s ounces) 204-234 111 - 315-345 Payable gold in pyrite concentrate sold (‘000s ounces) 26-40 - - 26-40 Cash cost per tonne of ore processed ($) (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 34
HEDGE POSITIONS AT JUNE 30, 2016
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% $15.91/oz
Year of projected payable copper production Volume Hedged (lbs) % Hedged Average fixed price ($/lb)
Balance of 2016 12,632,473 73% $2.32
2017 14,550,492 38% $2.17
Year of projected payable % Hedged Average fixed price of Pyrite Production
Volume Hedged (oz) (payable gold in pyrite
gold in pyrite con production con production)
Hedges ($/oz)
Balance of 2016 4,020 27% 1,150.00
Average ceiling
Year of projected payable gold production Volume Hedged (oz) Floor Price ($/oz)
price ($/oz)
Balance of 2016 6,600 1,484 1,200
2017 45,000 1,497 1,200
Year of projected operating Amount hedged in Average exchange rate
Foreign currency hedged % Hedged
expenses foreign currency Foreign currency/US$
Euro 5,850,000 22% 1.1146
Balance of 2016
South African rand 378,000,000 65% 13.2279
Euro 10,800,000 21% 1.1287
2017
South African rand 720,000,000 62% 13.8699
Euro 16,650,000 1.1237
Total
South African rand 1,098,000,000 13.6420
TSX:DPM 35EXPLORATION – AVALA PROPERTIES IN SERBIA
HIGHLIGHTS
• Closing occurred April 8, 2016 (2)
• Timok Gold Project Timok Gold Project
• 2.5 million oz in resource category: 920,000 mineable oz
• 2014 PEA (using $1300 gold price and 5% discount rate) Lenovac
• DPM plans to explore for additional (3),(4)
mineable ounces
• DPM received approval for the renewal of its exploration
Kiseljak Cu Au Porphry
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
• 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 36PARTIALLY OWNED EXPLORATION / DEVELOPMENT ASSETS
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
*Calculated using US$1,150/oz Au price
TSX:DPM 372016 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 38CHELOPECH MINE:
UPDATED MINERAL RESERVES AND RESOURCES
Chelopech Mineral Reserves – December 31, 2015
Gold Copper Silver
Tonnes Grade Grade Grade
Category (M) (g/t) (%) (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
Gold Copper Silver
Tonnes Ounces Grade Pounds Grade
Category (M) Grade (g/t) (M) (%) (M) (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.
TSX:DPM 39KRUMOVGRAD OPEN PIT DESIGN AND PHASES TSX:DPM 40
KRUMOVGRAD MINE PLAN SUMMARY TSX:DPM 41
KRUMOVGRAD PROCESS PLANT AND SCOPE OF WORK TSX:DPM 42
KRUMOVGRAD IMWF GENERAL OVERVIEW TSX:DPM 43
KRUMOVGRAD IMWF CONSTRUCTION TSX:DPM 44
KRUMOVGRAD IMWF CONSTRUCTION TSX:DPM 45
KRUMOVGRAD HIGH LEVEL SCHEDULE TSX:DPM 46
Corporate Head Office:
One Adelaide Street East, Suite 500
Toronto, Ontario
M5C 2V9
T: 416 365-5191
Investor Relations
T: 416 365-2549
jreid@dundeeprecious.com
TSX:
DPM – Common Shares
www.dundeeprecious.com
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