BUILDING A PREMIER, LOW-COST GOLD PRODUCER€¦ · building a premier, low-cost gold producer 2014...

BUILDING

A PREMIER,

LOW-COST

GOLD

PRODUCER

2014 RBC CAPITAL MARKETS’ GLOBAL MINING & MATERIALS CONFERENCE

JUNE 17-18

TSX:DPM 2

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 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 forwardn looking statements.

TSX:DPM 3

DPM’S GLOBAL PORTFOLIO OF ASSETS

Krumovgrad 100%

Chelopech 100%

Kapan 100%

Sabina 12%

Avala 53%

Dunav 46%

Tsumeb Smelter 100%

Operating assets

Development assets

Exploration assets

Chelopech Mine, Bulgaria

• Ownership: 100%

• Stage: Producing

• Mine Life: 12 + years

• 2013 Production: 132 koz Au;

46 Mlbs Cu

Kapan Mine, Armenia

• Ownership: 100%

• Stage: Producing

• Mine Life: 10 + years

• 2013 Production: 24 koz Au;

2.3 Mlbs Cu

Tsumeb Smelter, Namibia

• Ownership: 100%

• Technology: Ausmelt

• 2013 Concentrate Smelted:

152,457 tonnes

Krumovgrad Project, Bulgaria

• Ownership: 100%

• Stage: Feasibility

• Mine Life: 8 years

• Startup: Q1 2017

• Avg. Production: 85.7 koz Au/yr

TSX:DPM 4

COMMITTED TO MAINTAINING A SOLID

FINANCIAL POSITION

$140M Available Liquidity 1

$115M Total Debt 1

1. As at March 31, 2014. Liquidity includes cash and undrawn amount under revolving credit facility

2. Debt/EBITDA and Debt to Total Capitalization are based on total debt, net cash

(0.74)

(0.13)

0.49

-1

-0.5

0

0.5

1

1.5

2

2011 2012 2013

Net Debt / EBITDA (x) (2) Net Debt / Capitalization (%) (2)

(15)

(6)

4

-20

-15

-10

-5

0

5

10

15

20

2011 2012 2013

Share Price (Cdn $ per share) $4.48

52 week low – high (Cdn $ per share) $2.50 - $7.00

Market Capitalization – Curr / Incl warrants C$623M / $648M

Shares Outstanding – Curr / Incl warrants 139M / 147M

Share Capital @ June 13, 2014

Dundee Corporation 25.42%

Van Eck 7.22%

Norges Bank 4.14%

USAA 3.86%

TD Asset Management 2.86%

Major Shareholders

TSX:DPM 5

FOCUS ON BECOMING A PREMIER,

LOW-COST GOLD PRODUCER

Optimize our Existing Operations

Execute New Growth Projects

Establish Growth Pipeline Through Exploration

and M&A

• Construct Krumovgrad Gold Project

Maintain a Solid Balance Sheet and Low-Cost

Position

Conceptual

Illustration of

Krumovgrad

Gold Project

Second Oxygen

Plant at Tsumeb

Kapan

Underground

• Avala and Dunav - advanced exploration

• Generate brownfield and greenfield exploration

opportunities

• Lower costs and increase production

• Extend life of existing mines

• Assess Kapan underground expansion

• Upgrade Tsumeb and secure long term contracts

TSX:DPM 6

DIVERSE PORTFOLIO OF ASSETS IN

PRO MINING JURISDICTIONS

• Operations in Bulgaria, Armenia and Namibia, which are politically stable and mining

friendly jurisdictions

• Diversification across multiple commodities

Geographic Diversification

(revenue at year ended Dec 31, 2013)

Revenue Diversification

(year ended Dec 31, 2013)

Revenue Diversification

(2018E)

TSX:DPM 7

95

121

142 156

30 40 45 48

2010 2011 2012 2013

Au Cu

HISTORICAL ANNUAL FINANCIAL

PERFORMANCE

Au (koz) and Cu (Mlbs) production Revenue (US$M)

Cash Cost, net of by-product credit ($/oz)2

1. Adjusted EBITDA represents earnings before income tax plus D&A, 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 and minus interest income.

2. Represents cash cost of sales per ounce of gold sold, net of by-product credits .

202

338 385

345

2010 2011 2012 2013

45

118 124

103

2010 2011 2012 2013

238

(63)

117

329

2010 2011 2012 2013

Adjusted EBITDA (US$M)1

TSX:DPM 8

LOW-COST GOLD PRODUCER WITH PROVEN

OPERATING TRACK RECORD

Gold Production Profile and Cash Costs, Net of By-Products ($/oz)

2014E Au All-In-Sustaining Costs ($/oz)2

1. This is a non-GAAP measure. See Q1 2014 MDA. See Appendix for reconciliation to cost of sales.

2. Source: Scotia Capital (May 2014)

Cash Cost/Tonne of Ore Processed 1 ($/T)

$0

$250

$500

$750

$1,000

$1,250

$1,500

NGD CG AGI TMM AR ANV BTO SMF DGC P AUQ GSS

Average = $1045/oz

DPM AISC

2014E =

$710 -

$815/oz

Ko

z

95 121

142 156

155- 174

238

(63)

117 329

335 - 505

-1500

0

1500

0

300

2010 2011 2012 2013 2014E

60 59 52

47 51-56

2010 2011 2012 2013 2014E

TSX:DPM 9

CHELOPECH MINE: SIGNIFICANT

PRODUCTION PROFILE AT LOW COST

Outlook

• Mine output of 496,066 tonnes of ore

• Produced 22,026 oz Au and 8.9 Mlbs Cu

• Au head grade of 3.3 g/mt; Cu head grade of 1.07%

• Cash cost/oz Au sold net of by-product credits: $475

• Payable Au in pyrite concentrate sold: 2,878 oz

• Cash cost/oz Au sold in pyrite concentrate: $901

Q1 2014 Accomplishments

132

126 - 138

46 43 - 46

226

285 - 430

2013 2014E

Au (Koz)

Cu (Mlbs)

$ cost/oz Au sold

Production and Cost Profile1 Asset Overview

• Maintain low cost operations

• Perform targeted exploration to replace depletion

and increase mineral resources through reserves

• Continue to implement cost/margin

improvements

Location Bulgaria

Reserves

(at Dec

31, 2013)

Gold

(Moz) (3.26 g/t) 2.5

Copper

(Mlbs) (0.99%) 524

Mine Type Underground

Deposit Type

High

sulphidation

epithermal

Estimated Mine Life @ expanded

rate 12+ years

2013 Adjusted EBITDA (US$) 153 M 1. Cast cost per ounce of gold sold is net of by-product credits, gold production and estimates excludes pyrite production

TSX:DPM 10

CHELOPECH MINE: WORLD CLASS ASSET

Chelopech Pyrite Recovery Project

Completed

• Flotation of pyrite concentrate recovers

previously unrecovered gold

• Contracts in place with Third Parties

Creating Competitive Advantage

Through Innovation

• “Taking the lid off the mine” - Real time

data available from Chelopech

underground operations

TSX:DPM 11

KAPAN MINE: EXPANSION OPPORTUNITY

• Mine output of 97,155 tonnes of ore

• Produced 4,581 oz Au

• Gold head grade of 1.79 g/mt

• Cash cost per oz Au sold, net of by-product

credits: $1,018

• Rebuild development inventory and return to

normal sustainable operating levels

• Complete internal study on expanded

underground mine based on new Mineral

Resource estimate

• Focus on operational improvements and cost

reductions

Outlook Q1 2014 Results

Production and Cost Profile1

1. Cast cost per ounce of gold sold is net of by-product credits

24

29 - 36

2 3 - 4

964

485 - 855

2013 2014E

Au (Koz)

Cu (Mlbs)

$ cost/oz Au sold

Asset Overview

Location Armenia

Resources

M&I (at Jan.31, 2013)

Gold (Koz) (2.63g/t) 238

Copper

(Mlbs) (0.39%) 24

Resources

Inferred (at Jan.31, 2013)

Gold (Koz) (2.32 g/t) 791

Copper

(Mlbs) (0.42%) 98

Mine Type Underground

Deposit Type Polymetallic vein

(Au, Cu, Ag, Zn)

Estimated Mine Life 10+ years

2013 Adjusted EBITDA (US$) 3 M

TSX:DPM 12

UNIQUE SMELTER EQUIPPED TO TREAT

COMPLEX CONCENTRATES

• Toll rates for complex concentrate command a premium

• Most recent 3rd party contracts at higher rates than pre-existing

arrangements prior to DPM ownership

Acid Plant 3D Schematic

One of a few smelters with ability to process large

volumes of complex concentrate

Project 2012 dust and emissions upgrades complete

Production curtailment has been lifted

Additional upgrades reduce SO2 emissions, increase

capacity and lower costs

• Ramping up to 100% capacity

• New sulphuric acid plant subject to lump sum turnkey contract

• Long-term acid off-take agreement with Rössing and Weatherly

• Initial scoping study underway on possible capacity expansion and

holding furnace

Ausmelt Offgas Bag-House

TSX:DPM 13

SECURES CHELOPECH PROCESSING AND TREATS

THIRD PARTY CONCENTRATES

190-220

240 240

320

120

180

159 152

268

295

374

433

280 - 350

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014E 2015E 2016E 2017E

Third Party Chelopech $/tonne

Co

mp

lex C

on

Sm

elte

r P

rod

uctio

n/C

ap

acity (

00

0’s

)

• Ramp up throughput to 100% of installed capacity

• Complete acid plant commissioning in early 2015

• Position smelter as a sustainable, cost-competitive niche

processor of complex concentrate

Q1 2014 Q1 2013

Total Concentrate Smelted 49,150 34,493

Cash Cost/tonne of concentrate

smelted $307 $486

EBITDA1 $10 M ($7 M)

1. Refers to non-GAAP measure. See Q1 2014 MDA.

Ca

sh

Co

st p

er to

nn

e o

f co

nce

ntra

te s

me

lted

Q1 2014 Accomplishments

Outlook

• Achieved positive EBITDA

• Toll treatment charges on Third Party contracts improved

• Increased volumes smelted resulted in decreased cash

cost per tonne of concentrate smelted

Anticipated Future Capacity

Additional Capacity from installation of Holding Furnace (discretionary)

TSX:DPM 14

KRUMOVGRAD GOLD PROJECT: DESIRABLE IRR

AT CURRENT GOLD PRICES

• Successfully completed the EIA permitting process

• Obtained a 30-year concession to develop deposit

• Finalized archaeological work to support clearing of

project site

• Completed basic engineering and initiated detailed

engineering of process plant and integrated mine

waste facility

Deposit Type Low sulphidation

epithermal Au

Proposed Mine Type Open Pit

Gold Recoveries 85%

Gold Grade 4.04 g/t

Annual ore tonnage

production 775,500 tpy

Annual gold production 85,700 ounces

Mine Life 8 years

Capital Costs to complete ~US$164mm1

Total cash cost per oz Au Eq $389

Construction / Production 2015 / 2017

Average Annual EBITDA 2 $64.9 mm

After-Tax NPV @ 7.5%2 $143.9 mm

IRR 2 26%

• Secure final local approvals required to proceed with ordering long lead items/construction

• Complete detailed engineering that optimizes value of project

• Start construction in 2015

• Achieve 85,700 oz average annual gold production

1. As per Krumovgrad Dec. 31, 2013 Technical Report

2. Assuming gold and silver prices of $1,250/oz and $23.00/oz, respectively

Conceptual Illustration of Krumovgrad Gold Project

Updated Project Economics1

Recent Accomplishments

Outlook

• Improved mine plan increases metals

production at lower throughput rate

TSX:DPM 15

DPM EXPLORATION STRATEGY

• Identify and evaluate new exploration projects, globally, with potential for >1m oz Au

• Discover a deposit through brownfields exploration around existing assets

• Chelopech – focus on existing concession and surrounding Sveta Petka license

• Kapan - focus on mapping and sampling around concession

• Improved understanding of the Chelopech deposit

− Relogging of 16,000m of historical core

− Integration of new and historical geophysical data

− Fact mapping of surface geology and alteration

• Define first phase drill targets

• Application for new exploration license in progress

Chelopech – Sveta Petka

Kapan – Near mine and regional

• Systematic geological mapping and follow-up sampling of regional soil geochemistry anomalies that

were identified in 2013

2014 Key Objectives and Initiatives

Brownfields Exploration Highlights

Krumovgrad

• Maintenance of key licenses

TSX:DPM 16

Sabina Gold & Silver Corp. (TSX:SBB), Nunavut

• Canadian-based, precious metals company with assets in Nunavut

• Assets include:

• High Grade Back River Gold Project:

PFS indicates avg. annual Au production of 287K oz @ $685/oz

cash cost and $831M LOM capex; post-tax NPV 5%, 1,350/oz Au

of 290M and IRR of 16.5%

• Hackett River payable silver royalty from Xstrata Zinc:

22.5% of first 190M oz Ag, 12.5% thereafter

• Other gold claims

Avala Resources Ltd. (TSX-V:AVZ), Serbia

• Serbian-based exploration company; holds the Timok Gold Project with

2.7M oz of gold resources

• Proceeding toward PEA, targeted for completion in Q2 2014

• Reported Resources include:

• Bigar Hill Indicated Resource of 25.5 MT @ 1.6 g/t for 1.3 Moz

• Korkan Indicated Resource of 14.5 MT @ 1.5 g/t for 0.7 Moz

• Kraku Pester Indicated Resource of 6.3 MT @ 1.3 g/t Au for 0.27 Moz

Dunav Resources Ltd. (TSX-V:DNV), Serbia

• Serbian-based exploration company holding the Kiseljak and

Yellow Creek copper/gold porphyry project

• Reported Inferred Resources include:

• Kiseljak Mineral Resource initial estimate 300 MT grading

0.27% Cu and 0.26 g/t Au for 1.8B lbs Cu and 2.5M oz Au

DPM EXPLORATION ASSETS; PARTIALLY-OWNED ENTITIES

Equity Portfolio Holdings Overview (C$M)1

Securities Shares

(m) % Held

Value

($M)

Sabina Gold & Silver

Special Warrants

Warrants (strike at C$1.07)

Total

23.6

5.0

5.0

2.5

12%

17.7

-

-

$17.7

Avala Resources

Special Warrants


Total

135.0

50.0

25.0

53%

8.1

-

-

$8.1

Dunav Resources


Total

56.0

23.0

46%

2.5

-

$2.5

Total shares and securities $28.3 1 Based on intrinsic value as at May 9, 2014

Avala

Dunav

Sabina 12%

1. As at June 13, 2014

TSX:DPM 17

DPM CATALYSTS

Tsumeb Achieves

100% Capacity Rate

Tsumeb Acid Plant

Commissioned

Krumovgrad

Construction Begins

Krumovgrad Begins

Production

Chelopech Mine

Internal Conceptual

Study on Expanded

Kapan Underground

Mine Completed

2014 2015 2016 2017

TSX:DPM 18

2014 - LAST YEAR OF HIGH NON-DISCRETIONARY CAPEX

0

50

100

150

200

250

2014E 2015E 2016E 2017E 2018E

Sustaining CAPEX Non-Discretionary CAPEX Discretionary CAPEX

($M

)

• Krumovgrad Gold Project

• Kapan UG Mine Expansion

• Tsumeb Holding Furnace

Discretionary Projects

TSX:DPM 19

CAPITAL INVESTMENT EXPECTED TO DRIVE

INCREASED PRODUCTION

Gold

(koz)

Copper

(Mlbs)

Smelted

Con. (kt)

1. Includes gold in pyrite concentrate

156

3551

2013 2018E

152

320

2013 2018E

48 48

2013 2018E

128%

111%

consistent

Targeted Production Growth

TSX:DPM 20

EBITDA GROWTH POTENTIAL

121

260

2013 2018E

1. 2013 EBITDA exclusive of Avala and Dunav.

2. 2018E EBITDA based on completion of identified investment opportunities, current metal prices and tolling rates in line with most recent contract.

At Current Prices

115%

1 2

Ad

juste

d E

BIT

DA

($

M)

Optimizing existing operations and executing new growth projects expected

to have a significant positive impact on EBITDA

TSX:DPM 21

COMPELLING INVESTMENT OPPORTUNITY

Solid

Financial Position

Commodity and

Geographic

Diversification

High Quality

Assets

with Further

Potential

Experienced

Management Team

and Board with

Strong Track

Record

Pipeline of Organic

Growth

Opportunites

TSX:DPM 22

DUNDEE PRECIOUS METALS MANAGEMENT TEAM

Rick Howes

President & Chief Executive Officer

Hume Kyle Executive Vice President &

Chief Financial Officer

David Rae Executive Vice President & Chief

Operating Officer

Adrian Goldstone Executive Vice President, Sustainable

Business Development

John Lindsay Senior Vice President,

Projects

Paul Proulx Senior Vice President,

Corporate Services

Michael Dorfman Senior Vice President,

Corporate Development

Richard Gosse Senior Vice President,

Exploration

Lori Beak Senior Vice President, Investor &

Regulatory Affairs & Corporate

Secretary

TSX:DPM

Corporate Head Office:

One Adelaide Street East, Suite 500

Toronto, Ontario M5C 2V9

Tel: 416-365-5191

Investor Relations:

Tel: 416-365-2549 / 416-365-2851

Email: [email protected] / [email protected]

TSX:

DPM – common shares

DPM.WT.A – 2015 Warrants

www.dundeeprecious.com

TSX:DPM

APPENDICES

TSX:DPM 25

ANALYST COVERAGE

BMO **In transition**

CIBC World Markets Leon Esterhuizen

Cormark Securities Mike Kozak

Dundee Securities Josh Wolfson

GMP Securities Oliver Turner

Paradigm Capital Don MacLean

RBC Capital Markets Sam Crittenden

Scotia Capital **In transition**

TSX:DPM 26

2014 GUIDANCE

Metals Contained in

Concentrate Produced Chelopech Kapan Total

Gold (ounces) 126,000 – 138,000 29,000 – 36,000 155,000 – 174,000

Copper (million pounds) 42.7 – 46.2 2.8 – 3.8 45.5 – 50.0

Zinc (million pounds) - 11.6 – 15.9 11.6 – 15.9

Silver (ounces) 210,000 – 230,000 468,000 – 640,000 678,000 – 870,000

Sustaining Capital expenditures $10 - $12 million $15 - $18 million $25 - $30 million

Total growth capital expenditures $160 - $175 million

Construction of acid plant at Tsumeb

Phase I Pyrite Project at Chelopech

Krumovgrad development and construction work

Kapan exploration and/or development work

Mine output at Chelopech (tonnes of ore) 1.9 – 2.05 million

Mine out put at Kapan (tonnes of ore) 475,000 – 525,000

Concentrate smelted at Tsumeb (tonnes) 190,000 – 220,000

Sustaining capital expenditures at Tsumeb $12 - $15 million

TSX:DPM 27

HEDGE POSITION AS AT MARCH 31, 2014

Year of projected payable copper

production Volume Hedged (lbs) Average fixed price ($/lb)

2014 32,629,477 3.31

2015 40,035,811 3.21

Total 72,665,288 3.25

QP Hedged Volume Hedged Average fixed price

Payable gold 19,385 oz $1,280.94/oz

Payable copper 10,273,529 lbs $3.17/lb

Payable silver 88,260 oz $20.41/oz

Payable zinc 1,003,102 lbs $0.90/lb

Year of projected payable

gold production Volume Hedged (oz) Average fixed price ($/oz)

2014 28,000 1,249.21

2015 30,000 1,233.70

Total 58,000 1,241.19

TSX:DPM 28

CONSOLIDATED ADJISTED EBITDA RECONCILIATION

US$ thousands

For the periods indicated Year 2013

Actual

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Earnings before income taxes 26,859 49,564 88,605 10,433

Add (deduct):

Depreciation and amortization 53,594 40,208 31,438 26,762

Finance Cost 10,323 5,703 5,451 5,807

Interest Income (492) (1,048) (1,411) (1,667)

Unrealized losses (gains on

Sabina warrants and special

warrants

19,175 9,803 22,771 (49,732)

Unrealized losses (gains) on

derivative commodity contracts 5,639 20,155 (23,174) 124

Net gains on equity settled

warrants (22,383) - - -

Impairment loss on property,

plant & equipment and other 10,076 85 - 52,896

Other - - (6,149) 687

Adjusted EBITDA 102,791 124,560 117,531 45,310

TSX:DPM 29

CHELOPECH MINE: UPDATED MINERAL RESERVES AND RESOURCES

Chelopech Mineral Reserves – December 31, 2013

Category

Tonnes

(M)

Gold Copper Silver

Grade

(g/t)

Ounces

(M)

Grade

(%)

Pounds

(M)

Grade

(g/t) Ounces (M)

Proven 10.6 3.30 1.128 1.21 284 9.93 3.395

Probable 13.3 3.24 1.384 0.82 240 5.33 2.279

Total 23.9 3.26 2.512 0.99 524 7.37 5.674

Chelopech Mineral Resources – December 31, 2013

Category

Tonnes

(M)

Gold Copper Silver

Grade (g/t)

Ounces

(M)

Grade

(%)

Pounds

(M)

Grade

(g/t) Ounces (M)

Measured 18.6 4.07 2.431 1.35 553 9.72 5.808

Indicated 10.2 3.95 1.293 1.06 237 8.39 2.742

M&I 28.7 4.03 3.724 1.25 791 9.25 8.550

Inferred 8.2 2.71 0.712 0.92 166 11.22 2.952

1. The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals;

2. All Mineral Resources and Mineral Reserves estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM;

3. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Mineral Reserves;

4. Mineral Resources and Mineral Reserves may be subject to legal, political, environmental and other risks and uncertainties. See ”Operating Mines”, “Development Projects” and “Risk Factors – Mineral Resources and Mineral Reserves” of the 2013 AIF

filed on www.sedar.com on March 31, 2014;

5. Mineral Resources and Mineral Reserves 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 Resources and Mineral Reserves estimates are based on long term metals prices of USD 1,250/oz Au, USD 23/oz Ag, and USD 2.75/lb Cu as of 31 December 2013;

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.

http://www.sedar.com/





TSX:DPM 30

CHELOPECH MINE: CASH COST RECONCILIATION

US$ thousands,

unless otherwise indicated

Q1 2014 Year 2013

Actual

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Cost of Sales:

29,712 120,480 98,298 88,838 $72,707

Less amortization & other

(7,902) (32,905) (19,542) (15,499) (14,425)

Plus other charges, including

freight 19,381 94,421 86,228 65,125 41,234

Less by-product credits

(30,338) (152,148) (163,940) (147,812) (87,320)

Cash cost of sales after by-

product credits 10,853 29,848 1,044 (9,348) 12,196

Gold oz (payable metal)

22,869 131,923 116,644 83,796 58,065

Cash cost of sales/oz gold, (net of

by-product credits) $4751 $2262 $93 $(112)4 $2105

1. Based on $3.25/lb copper





TSX:DPM 31

CHELOPECH MINE: CASH COST PER OUNCE OF GOLD SOLD IN PYRITE

US$ thousands, unless otherwise indicated

For the periods indicated Q1 2014

Treatment charges and refining costs 1,386

Transportation costs 1,207

Cash cost of sales related to pyrite concentrate sold 2,593

Payable gold in pyrite concentrate sold (ounces) 2,878

Cash cost of sales per ounce of gold sold in pyrite concentrate $901

TSX:DPM 32

CHELOPECH MINE: CASH COST PER TONNE OF ORE RECONCILIATION

1. Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue.

US$ thousands, unless

otherwise indicated


Year 2013

Actual

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Ore processed (mt) 471,614 2,032,002 1,819,687 1,353,733 1,000,781

Cost of sales 29,712 120,480 98,298 88,838 72,707

Add (deduct):

Depreciation, amortization

& other non-cash costs (7,902) (32,905) (19,542) (15,499) (14,425)

Change in concentrate

inventory (1,701) (6,135) 4,535 862 (2,018)

Total cash cost of production 20,109 81,440 83,291 74,201 56,264

Cash cost per tonne of ore

processed, including royalties $42.64 $40.08 $45.77 $54.81 $56.22


processed, excluding royalties $39.23 $36.26 $41.16 $49.99 $51.54

TSX:DPM 33

KAPAN MINE: UNDERGROUND MINERAL RESOURCE ESTIMATE

Kapan Mineral Resources – January 31, 2013

Category

Tonnes

(M)

Gold Copper Silver Zinc

Grade

(g/t)

Ounces

(M)

Grade

(%)

Pounds

(M)

Grade

(g/t)

Ounces

(M) Grade (%)

Pounds

(M)

M&I 2.8 2.63 0.238 0.39 24 49.82 4.506 2.06 128

Inferred 10.6 2.32 0.791 0.42 98 41.18 14.041 1.66 388





5. Mineral Resources and Mineral Reserves estimates are based on long term metals prices of USD 1,250/oz Au, USD 25/oz Ag, USD 2.75/lb Cu and USD 0.85/lb Zn, and as of 31 January 2013;

6. Kapan Mineral Resources are based on a gold equivalent cut-off of 2.24 g/t (Au + Cu*1.34 + Ag*0.023 + Zn*0.42) and a greater than USD 0 profit/tonne test using NSR analysis.

TSX:DPM 34

KAPAN MINE: CASH COST RECONCILIATION

US$ thousands, unless otherwise

indicated

Q1 2014

Year 2013

Actual

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Cost of Sales: 11,310 46,823 50,547 47,276 33,637

Less amortization & other (3,099) (7,459) (9,989) (9,140) (7,056)

Plus other charges, including

freight 1,150 9,268 6,218 11,893 8,912

Less by-product credits (4,827) (28,046) (32,075) (47,588) (28,562)

Cash cost of sales after by-

product credits 4,534 20,586 14,701 2,441 6,931

Gold oz (payable metal) 4.456 21,351 18,204 26,230 22,287

Cash cost of sales/oz gold,

(net of by-product credits) $1,0181 $9642 $8083 $934 $3115






TSX:DPM 35

KAPAN MINE: CASH COST PER TONNE OF ORE RECONCILIATION

1. Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue.

US$ thousands, unless otherwise

indicated


Year Actual

2013

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Ore processed (mt) 96,978 465,894 509,419 581,852 428,865

Cost of sales 11,310 46,823 50,547 47,276 33,637

Add (deduct):

Depreciation, amortization & other

non-cash costs (3,099) (7,459) (10,883) (9,140) (7,056)

Change in concentrate inventory 733 (2,407) (718) 416 3,572

Total cash cost of production 8,944 36,957 38,946 38,552 30,153

Cash cost per tonne of ore processed

(royalties not applicable in 2009) $92.22 $79.32 $76.45 $66.26 $70.31


processed,

excluding royalties $86.39 $72.32 $69.10 $62.57 $66.33

TSX:DPM 36

KRUMOVGRAD GOLD PROJECT: UPPER ZONE MINERAL RESERVE AND RESOURCE ESTIMATES

Krumovgrad Mineral Reserves – December 31, 2013

Category

Tonnes

(M)

Gold Silver

Grade (g/t) Ounces (M) Grade (g/t) Ounces (M)

Proven 1.1 3.46 0.124 1.91 0.068

Probable 3.5 3.00 0.337 1.75 0.197

Total 4.6 3.11 0.461 1.79 2.66

Krumovgrad Mineral Resources – December 31, 2013

Category

Tonnes

(M)

Gold Silver


Measured 1.1 3.46 0.125 1.91 0.069

Indicated 3.9 2.86 0.357 1.7 0.212

M&I 5.0 2.99 0.482 1.75 0.281

Inferred 0.3 1.31 0.013 1.06 0.011




4. Mineral Resources and Mineral Reserves may be subject to legal, political, environmental and other risks and uncertainties. See ”Operating Mines”, “Development Projects” and “Risk Factors – Mineral Resources and

Mineral Reserves” of the 2013 AIF filed on www.sedar.com on March 31, 2014;


6. Mineral Resources and Mineral Reserves estimates are based on long term metals prices of USD 1,250/oz Au and USD 23/oz Ag as of 31 December 2013,:

7. Krumovgrad Mineral Resources and Mineral Reserves are based on a gold cut-off grade of 0.6 g/t for the Upper Zone and Overburden and of 0.8 g/t for the Wall.






TSX:DPM 37

KRUMOVGRAD GOLD PROJECT: WALL MINERAL RESERVE AND RESOURCE ESTIMATES

Krumovgrad Mineral Reserves – December 31, 2013

Category

Tonnes

(M)

Gold Silver


Proven 1.5 6.83 0.325 3.50 0.166

Probable 0.1 5.54 0.020 2.93 0.011

Total 1.6 6.74 0.345 3.46 0.177

Krumovgrad Mineral Resources – December 31, 2013

Category

Tonnes

(M)

Gold Silver


Measured 1.7 6.32 0.353 3.27 0.183

Indicated 0.2 4.28 0.024 2.38 0.014

M&I 1.9 6.13 0.377 3.19 0.196

Inferred 0.0 0.87 0.00 0.88 0.000




4. Mineral Resources and Mineral Reserves may be subject to legal, political, environmental and other risks and uncertainties. See ”Operating Mines”, “Development Projects” and “Risk Factors – Mineral Resources and

Mineral Reserves” of the 2013 AIF filed on www.sedar.com on March 31, 2014;


6. Mineral Resources and Mineral Reserves estimates are based on long term metals prices of USD 1,250/oz Au and USD 23/oz Ag as of 31 December 2013,:

7. Krumovgrad Mineral Resources and Mineral Reserves are based on a gold cut-off grade of 0.6 g/t for the Upper Zone and Overburden and of 0.8 g/t for the Wall.






TSX:DPM 38

SUSTAINABLE DEVELOPMENT

• 2,803 full-time and 1,579 sub-

contracted employees worldwide

− 99% of employees and 86% at

the manager level (or above) are

local nationals

• Local hiring, ongoing safety

improvements, employee training and

fair compensation assist in maintaining

healthy labour relations

• Corporate, regional and human

resource policies and programs reflect

local needs to attract, retain and

motivate employees

• 2013 focused on reducing Lost Time

Injuries (LTI) and Lost Time Injury

Frequency Rate (LTIFR) and achieving

zero fatalities at all sites

• Ongoing investment in plant upgrades

and modernization at all sites has

resulted in significant energy

efficiency and GHG emissions

improvements

• Award-winning environmental

conservation at Chelopech

− Chelopech tailings and waste

management policies compliant

with international best practices

• Emissions control project (Project

2012) completed

− Continued environmental

improvements at Tsumeb in

2013 and beyond

− A sulphuric acid plant is being

installed to capture sulphur

dioxide emissions. Physical

completion expected in late

2014. Outotec is builder and

total cost is approximately

$240mm

• Appoint corporate and local

operational executives to manage

political relationships and corporate

social responsibility (CSR)

• Award-winning CSR initiatives at

Chelopech

− Established the Dundee

Foundation in Bulgaria in 2012,

to separate our national and site-

specific CSR spending

• Foster stakeholder engagement with

public information centers at all sites

(two in Chelopech)

Develop and operate sustainable

businesses where the health and

safety of our employees is

paramount

Promote sustainable growth and

responsibility through pragmatic

environmental solutions and

practices across the business

Provide economic benefits and

participate in community

development in meaningful and

innovative ways

People, Health and Safety Local Communities Environment

38

TSX:DPM

Corporate Head Office:

One Adelaide Street East, Suite 500

Toronto, Ontario M5C 2V9

Tel: 416-365-5191

Investor Relations:

Tel: 416-365-2549 / 416-365-2851

Email: [email protected] / [email protected]

TSX:

DPM – common shares

DPM.WT.A – 2015 Warrants

www.dundeeprecious.com

BUILDING A PREMIER, LOW-COST GOLD PRODUCER€¦ · building a premier, low-cost gold producer 2014...

Documents

Transcript of BUILDING A PREMIER, LOW-COST GOLD PRODUCER€¦ · building a premier, low-cost gold producer 2014...