SHAPING THE FUTURE OF MINING
November, 20181
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Timok Gold Project
Serbia
Tsumeb Smelter
Namibia
Chelopech Mine
Bulgaria
Sabina Gold & Silver Corp.
Nunavut, Canada
Krumovgrad Gold Project
Bulgaria
DPM’s Global Portfolio of Assets
Operating assets
Development asset
Late stage exploration assets
Early stage exploration assets
Exploration JV
ArmeniaKhalkos JV
Val D’or,
Quebec
Chelopech
• Location: Chelopech, Bulgaria
• Ownership: 100%
• 2017 Production: 197,700 oz Au;
35.8 Mlbs Cu
• Mine Life: 9+ years
• Operation: Underground
Krumovgrad
• Location: Southern Bulgaria
• Ownership: 100%
• Stage: Construction
• Production: 103,000 oz (yrs 1-5)
• Mine life: 8 years
• Operation: Open pit
• Commissioning: Q4 2018
Tsumeb
• Location: Tsumeb, Namibia
• Ownership: 100%
• 2017 Concentrate Smelted: 219,000 tonnes
• Operation: Specialty smelter
• Location: Serbia
• Ownership: 100%
• Stage: Advanced exploration
• Resource: 1.72 Moz
Timok Sabina Gold & Silver
• Location: Nunavut, Canada
• Ownership: 10%
• Stage: Permitting
• Production: 240,000 Au (yrs 1-8) (19)
• Operation: Open pit/underground
• DPM’s equity stake: $53 M
Corporate Head Office
Toronto, Canada
19 See footnotes contained in Appendix on slide 38
Sofia
Krumovgrad
Chelopech
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Business Strategy
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Company Overview
Share Price / 52 week low-high (C$ per share) $3.06 / $2.13 - $3.38
Shares Outstanding – Current 178,492,566
Market Capitalization – Current $427 M
P/NAV 0.70x
Metals contained in concentrate produced
Gold
Copper
197,684 oz
35.8 Mlbs
AISC/oz Au (1,2) $729
Adjusted EBITDA $92 M
+ Krumovgrad starting in Q4 2018 + 85,700 oz/yr
Cash $28.8 M
Investment portfolio (@ Feb. 21, 2018) (21) $40 M
Undrawn RCF $252 M
Debt $23 M
2017 Quick Glance Production & Financial Metrics
Dundee Corporation 20.38%
GMT Capital Corporation 11.15%
EBRD 9.9%
Kopernik Global Advisors 3.46%
USAA Asset Mgmt. 3.18%
Low cost
production
with 50%
growth starting
in Q4 2018
Strong
liquidity
position
Long term
shareholders
Deeply
undervalued
1, 2, 21 See footnotes contained in Appendix on slide 38
Share Capital (@ February 28, 2018)
Liquidity Position (@ December 31, 2017)
Top Five Shareholders (@ February 28, 2018)
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Highlights
Strong resource and reserve base
Strong management team
Experienced & motivated workforce, open to change
Compliant with relevant national & international legislation
Pursuing sustainability in all phases of operation
Engaging communities and securing social license to operate
Building on experience, we shape the future of mining
Two companies – one approach
Building on experience and pioneering in innovation Based on values: Dignity and Respect; Transparency,
Continuous Improvement, Environmental responsibility, Safety, Community Investment;
Adhering to law and the requirements of funding institutions throughout all project phases;
Engaging with stakeholders and developing relationships of trust;
Pursuing sustainable development through:
- Care to people and the environment;
- Responsibility and dialogue;
- Partnerships;
Chelopech: Chelopech mine
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Krumovgrad: Ada tepe mine
Two regions – one goal Sustainable SUCCESS
Dundee Precious Metals Chelopech EAD – Chelopech deposit
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A region of developed mining and metallurgy industry;
Well-developed logistics close to administrative centers;
Low unemployment rate and industry skills.
Dundee Precious Metals Krumovgrad EAD – Ada tepe deposit
A region without industry and developed infrastructure;
Project area in Natura 2000 zone;
An area rich in archeology;
High unemployment rates and low industry skills.
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FLAGSHIP ASSET
Chelopech
Location: Chelopech, Bulgaria
Ownership: 100%
2017 Production: 197,700 oz Au; 35.8 Mlbs Cu
Mine Life: 9 + years
Operation: Underground
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Chelopech mine – a century of mining
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Chelopech – Next Phase of Optimization Underway
Change in mining method
0.5 mtpy 1.0 mtpy
Underground crushing and conveying;
“Taking the lid off the mine”
1.0 mtpy 2.0 mtpy
Digital transformation
Phase 1
2003-2008
Phase 2
2009-2014
Phase 3
2015+
- Dynamic mine planning
- Intelligent use of data
- Digital collaboration
- Smart centre
- Automating mining process
2018
2020
2019
Key benefits:
Recovery improvement in 2017
Deep understanding of Reserve base
Optimization of material & asset flow
Improved anticipation of failures
Increase automation
Real time monitoring of performance vs. plan
A show-case of a mine
Invested over 800 mln BGN
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Taking the Lid Off – mine innovation;
Significant mine and mill upgrades;
TMF facility modernization;
Robust employee training programme.
2016 Technology award of Mining Magazine;
Mine of the month – November 2017;
Employers Association Quality award – 2017
Oxford, European Business Association Socrates Best Manager and Best Enterprise award.
Received international recognition
Investing in a better environment for us and the community
Successful reduction of electricity & water use, noise, dust, diesel, etc.
Rehabilitation of over 223 000 м2 on site and surroundings;
TMF field tests – shaping the future of the area;
General site improvements.
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Building on Experience
Investing in mine improvements – investing in community
Create shared benefits by working closely with local government;
Over 23 mln BGN invested in CSR projects in Chelopech, Chavdar and Zlatitsa;
Advance community self-independence – sustainable development projects;
Develop partnerships with NGOs in education, sports, the academia and local business.
Working in a community with long mining history - Chelopech
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NEAR TERM, LOW COST GROWTH
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Krumovgrad
Location: Southern Bulgaria
Ownership: 100%
Stage: Construction
Production: 103,000 oz (yrs 1-5 avg)
Mine life: 8 years
Operation: Open pit
Commissioning: Q4 2018
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Krumovgrad – Project Progress
Milestone Actual/Expected Completion
Construction permit RECEIVED AUGUST 9, 2016
Mobilize earthworks contractor to site and commence earthworks Q4 2016
Commence main civil/mechanical/electrical construction Q3 2017
Commissioning and start up Q3 2018
First concentrate production Q4 2018
Construction capital spent (@ December 31, 2017) $79 million
Percent complete (@ December 31, 2017) 51%
First piece of steel erected onsite
Oct 25Earthworks in the process plant area
Earthworks Progress
Krumovgrad Project FacilityKrumovgrad - Before
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Krumovgrad – Project Progress
Constructing Bulgaria’s
modern open pit mine
- to produce gold/silver
concentrate;
- with modern integrated
mine waste management
facility;
- with care for local
history, archeology and
environment;
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Krumovgrad – Project Progress
201 people employed;
- 90 % of Krumovgrad;
- interest of emigrants to
return;
Krumovgrad - Pioneering in Innovation
Faced us with a number of challenges:
Protected site for habitats - Natura 2000 area Archeological site – Old Thracian Mine Proximity to underground protected water body for drinking water supply Proximity to Greece – transboundary effect NGOs opposition
Developing the first mine in 40 years in an agricultural region
Resulted in a number of innovations: Significantly reduced project area;
Designed Integrated mine waste facility;
EU case study for permit procedure under the Habitat directive;
Memorandum of Understanding, incl. SMEs;
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Building Experience
Investing in stakeholder relations – investing in community
Signed Memorandum of Understanding with Krumovgrad municipality to invest in projects with impact for community;
Launched a training program in May 2017 – “Basics of Mechanical Maintenance”:
Summer internship programme – a channel of recruitment;
Actively inviting and encouraging women to apply for jobs and experience;
Further partnerships with local civil groups and businesses.
Working in a community with no mining history - Krumovgrad
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Investing and promoting local archeology
The most expensive scientific project focused on a single archeological site
"Gold and bronze: metals, technologies and contacts in the Eastern Balkans during the Bronze Age" exhibition 2017 at the National Museum of Archeology;
Natural and extended follow-up of earlier exhibition in Vienna - "The First Gold. Ada Tepe: Europe's Oldest Gold Mine“;
Over 100 000 people visited the exhibition in Vienna;
A successful cooperation between mining business and scientific institutions in the EU.
Ada tepe in the center of a big exhibition
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Our experience and strengths overview
Partnership and understanding
Community Awareness Company/community interests balance
Strong leadership Community Engagement
- Develop a relationship of trust and understanding;
- Attending meetings of the local municipal councils –presenting and discussing with community representatives;
- Working for the interest of community;
- Established 8 Public Consultative Committees
- Respect community concerns and act on them;
- Provide alternatives to local people;
- Ensure training and skills upgrade opportunities;
- Provide opportunities for economic incentives for locals.
• Information centers open to community;
• Dialogue and personal contact;
• Provide information as best convenient to people;
• Exchange visits between sites;
• Rooted in values;
• Abiding by principles;
• Visionary;
• Ensuring working together
- Involve stakeholders at the earliest stage;
- Engage in a meaningful way and show care;
- Develop and grow together;
- Empower community to cater for itself;
TRUST KNOWLEDGE EQUAL OPPORTUNITY VISION TOGETHERNESS
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THANK YOU
TSX:DPM
Iliya Garkov:
Vice President Dundee Precious Metals
General ManagerDundee Precious Metals Chelopech
Dundee Precious Metals Krumovgrad
TSX:DPM
www.dundeeprecious.com
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