CORPORATE PRESENTATION PDAC, March 4, 2013s21.q4cdn.com › ...presentations ›...
39
CORPORATE PRESENTATION PDAC, March 4, 2013
Transcript of CORPORATE PRESENTATION PDAC, March 4, 2013s21.q4cdn.com › ...presentations ›...
CORPORATE PRESENTATIONPDAC, March 4, 2013
2
Forward Looking Statements
This presentation contains “forward-looking information” or "forward-looking statements" that involve a number of risks anduncertainties. Forward-looking information and forward-looking statements include, but are not limited to, statements with respect tothe future prices of gold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, thetiming and amount of estimated future production and output, costs of production, capital expenditures, costs and timing of thedevelopment of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additionalcapital, 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-lookingstatements 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 statethat certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-lookingstatements are based on the opinions and estimates of management as of the date such statements are made, and they involveknown and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of theCompany 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 currentreclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; futureprices 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 thecompletion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred toin this news release under and in the Company’s annual information form under the heading "Risk Factors" and other documents filedfrom time to time with the securities regulatory authorities in all provinces and territories of Canada and available atwww.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or resultsto differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or resultsnot to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, asactual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are cautionednot to place undue reliance on forward-looking statements.
TSX:DPM
3
Dundee Precious Metals Highlights
TSX:DPM
$1B gold producer
2 operating mines in Bulgaria & Armenia
Strategic complex concentrate smelter in Namibia
2013E gold production of 150,000 to 173,000 oz
Low cash cost/ounce gold produced
Growing pipeline of growth opportunities
Experienced management team
Attractive value proposition Operating assetsDevelopment assetsExploration assets
Canada
Namibia Custom Smelter
Deno Gold
Chelopech
Krumovgrad
Avala 53%
Dunav 47%
Sabina 11%
4
Strong Balance Sheet
Cash on Hand@ Dec. 31, 2012
(excluding AVZ & DNV)
Significant 2012 Operating Cash Flow
TSX:DPM
Debt @ Dec. 31, 2012
Total Debt:Total Capital = 10%
Capital Structure @ March 1, 2013
Share Price C$7.50
Shares Outstanding 125M
Fully diluted sharesAdditional cash on dilution
147MC$66M
52 week high - low $10.72 - $5.82
$122M
$82M
$121M Top shareholders
Gross Revenue by Metals Sold
6% 5%
41% 48% 36%
5% 4%
55% 64% 24%
6% 6%
2011A 2012A 2016EGoldCopperSilverZinc
Dundee Corporation 22.6%
Equinox Partners 10.3%
5
Corporate Strategy
TSX:DPM
Build DPM into an intermediate, low-cost gold producer:
Optimize value of existing operating assets
Grow business beyond existing operating assets
Sustain low quartile operating cost position
Chelopech – production expansion and pyrite recovery projectSmelter – complete dust emission upgrades & expansionDeno Gold Mine - open pit evaluation and underground extension
Maintain a solid financial position
Develop Krumovgrad Gold ProjectEstablish deep pipeline of greenfield exploration opportunitiesComplete acquisitions that offer accretive growth, diversity and gold exposure
6
Consolidated Production and Financial Highlights
TSX:DPM
2007 2008 2009 2010 2011 2012 2013E
1
2007 2008 2009 2010 2011 2012 2013E
Gold Production (000s ounces) Copper Production (pounds in millions)
2007 2008 2009 2010 2011 2012 2013E
Silver Production (000s ounces)
84 8495
103
25 2228 30
40121
408399
($40)
ADJUSTED EBITDA (US$MM)
$32 $45333
640 671
($2)
$118
* In CDN dollars2007*
2008*
2009 2010 2011 2012
$125
142 45
666
620-723
150-173
45.5-49
7
Chelopech Mine• Low Cost, Long Life Producer
TSX:DPM
DPM Ownership 100%
Location Bulgaria
Acquired Sept. 2003
Resources Measured &Indicated (at Oct. 31, 2011)
Gold (oz) (4.09 g/t) 3,930,000
Copper (lbs) (1.31% Cu) 862,840,000
Reserves (@ Jan. 1, 2012)
Gold (oz) (3.66 g/t) 2,660,000
Copper (lbs) (1.15% Cu) 572,600,000
Mine Type Underground
Deposit Type High sulphidation epithermal deposit
Estimated Mine Life @ expanded rate 10 + yrs
Expansion to 2 mtpy Q4 2012 – completed –currently operating at design throughput rate of 250 tonnes per hour
Continue to replace depletion and increase Mineral Resources and Mineral Reserves through exploration
Complete feasibility study on the pyrite gold recovery project
Strategy
8
Chelopech Mine• Reducing Costs & Increasing Throughput
TSX:DPM
* Cash cost of sales/oz gold (net of by product credits). Reconciliation included in Appendices
$0
$200
$400
0
40
80
120
2008 2009 2010 2011 2012 2013E
Oun
ces
(000
’s)
Cash C
ost * (Gold $U
S/oz)
71
88
65
2008 2009 2010 2011 2012 2013E
Gold Production & Cost/Ounce Copper Production (pounds in millions)
19
2726
$309
$369
94 37
$210
900 981 1,001
1,359
$0
$20
$40
$60
0
1,000
2,000
Tonn
es o
re p
roce
ssed
per
yea
r (00
0’s)
Ore Processed & Cost/Tonne
Cost/tonne
($US
) (Excluding royalties)
2008 2009 2010
1,819
2011
2008 2009 2010 2011 2012
ADJUSTED EBITDA (US$MM)
51
27
57
133
125-143
43 - 46
2012
($112)
196
121
$9
43
1,900-2,050
2013E
9
Chelopech Mine• Pyrite Project to Increase Gold Recoveries to 90%
TSX:DPM
@ 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
Silver 10 - 15 g/t 130,000 - 190,000 oz
Copper 0.5% - 0.7% 4.5 million - 6.0 million pounds
Pyrite Project HighlightsCash cost per tonne of pyrite $156
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
Project will economically recover most of the contained gold, silver & copper associated with rejected pyrite minerals
POX process can be used to produce a low mass residue resulting in a metal rich product for sale
Up to 200,000 tpy of pyrite concentrate, containing 28,000 to 30,000 oz of payable gold, will be sold to Xiangguang Copper Co. from 2014 to 2016
(1)Assuming $1,250/oz gold, $25/oz silver and $2.75/lb copper after 2016.
Pyrite Project StagesStage 1 – concentrator upgrade – start production Q4 2013 $23M
Stage 2 – POX Facility
Phase 1 – Start production 2016 $93MPhase 2 – Start production 2017 $87M
10
Chelopech Mine – Expansion Completion
TSX:DPM
SAG Mill – operational in 2011
Underground crusher
Underground Conveying system Conveying system
Underground crushing system Conveying system
2012 underground exploration drilling focused on replacing and increasing the Mineral Resources and Reserves
Spend $3-$4 M/year on exploration to continue to consistently replace depletion
11
Chelopech Mine• Successful Low Cost Exploration Program
TSX:DPM
150
149
147
145
151
19
Plan view of ore bodies and structure
T181 & 182
1816
103
Near Mine
• +500,000 T high grade deposits
Greenfields
• +5MT low grade deposits
• Chelopech SW
Strategy
12
Namibia Custom Smelter• A Unique Strategic Asset
TSX:DPM
DPM Ownership 100%
Location Namibia
Acquisition March 2010 $50M
Capital expenditures as at Dec. 31, 2012 on Project 2012 $67M
Technology Ausmelt
Product Copper blister bars
2012 concentrate throughput 159,356 tonnes
Expanding smelter capacity >300,000 tpy
Sulphuric acid capture plant FS Complete
Build a one of a kind asset to treat DPM and third party complex concentrates
Upgrade off-gas capture and workplace conditions to better comply with global standards
Increase capacity and lower costs
Contract other third party sources of complex concentrates to optimize throughput
Strategy
0
50
100
150
200
250
Tonn
es(0
00s)
Smelter Capacity
2009 20112010
Chelopech con Third party con2013E2012
195-215
13
Namibia Custom Smelter• Environmental & Production Upgrades
TSX:DPM
Upgrade Initiatives Status CostsEmissions control
Fugitive emissions (arsenic) Commissioning Q1 2013 $84M
Sulphur emissions (acid plant) Completion Q3 2014 $204M
Electric Arc holding furnace Completion early 2015 $66M
Further Production Facility Optimization Initiatives
Additional oxygen for Ausmelt furnace Commissioning Q2 2013
3 blocks of dust-capturing chambers installed in the new baghouse
New vehicle designed to vacuum dust off the ground for disposal
New dust disposal siteNew oxygen plant
14
Deno Gold Mine• Potential to Increase Size and Life of Mine
TSX:DPM
DPM Ownership 100%
Location Armenia
Acquired August 2006
Mine Type Underground
Product Au/Cu & Zn concentrates
Deposit Type Polymetallic vein deposit (swarms)
Open Pit Resource Underway
Underground Resource Underway
Strategy
Define the potential open pit and underground resource for the Shahumyan deposit
Complete open pit and underground studies based on the new resources
Explore regional license to define additional Mineral Resources
Continue operational improvements & cost reductions
15
Deno Gold Mine• Operating & Financial Highlights
TSX:DPM
2008* 2009* 2010 2011 2012 2013E
438-528
2008* 2009* 2010 2011 2012 2013E2008* 2009* 2010 2011 2012 2013E2008* 2009* 2010 2011 2012 2013E
* Deno Gold operations were on care and maintenance as of November 2008; operations restarted April 2009.
296
527
290
519
12
29
15
27
1.9
2.9
1.5
3.0 19.1
9.18.8
19.6
Gold Production (000s ounces)
Copper Production (pounds in millions)
Zinc Production(pounds in millions)
EBITDA (US$MM)Silver Production (000s ounces)
($17.1)
$1.9
$16.7
$32.5
2008*2009* 2010 2011
22 2.5–3.0
12-14.5
Cash Cost(per tonne ore produced)
(excl. royalties)
2008 2009 2010 2011 2012
$109
$72 $66 $63
2008*
2012
$12.5
25-30
2.5 15.4
449
$69
16
Deno Gold Mine • Underground & Open Pit Potential
TSX:DPM
Complete drill hole plan outlining Shahumyan East (yellow) and significant intercepts. Intervals are shown with the hole number followed by the interval in meters and gold equivalence in gram per tonnes.
Determine expansion potential of underground mine and open pit
Determine expansion potential of underground – newly defined Shahumyan East mineralized zone
285,000 m of historic Soviet drilling plus 110,000 m of DPM drilling completed
Define 43-101 compliant resource estimate
Study to determine optimum pit size and production rate
17
Deno Gold• Regional Exploration Opportunities
TSX:DPM
ShahumyanPolymetallicDeposit
Kapan Exploration License (Black/White Outline)
Conductive anomaly
Central Deposit+25Mt HG Cu
Regional target generation continued
Highlighted several strong conductive units for follow-up investigation
Identified several strong conductors in poorly explored areas
Several conductors are spatially related to alteration and known copper occurrences
Exploration License – 350 km2
18
Krumovgrad Gold Project• Low Cost, High Return Project
TSX:DPM
Location Bulgaria; 100% DPM ownership
Proposed Mine Type Open Pit; low-sulphidation epithermal Au deposit
Gold Recoveries & Grade 85%; 3.4 g/t
Annual ore production 850,000 tpy
Annual gold production 74,000 ounces
Mine Life 9 years
Capital Cost to complete US$127M*
Total cash cost per oz AuEq $404*
Waste Small integrated tailings and mine waste facility
Recovery process Conventional crushing, grinding & flotation
Advance project to a 2014/2015 production date – subject to appeals
Achieve 74,000 ounces of annual gold production
Seek opportunities to further increase recoveries
Evaluate other exploration opportunities within existing licenses
Strategy
Achievements Status
30 year mining concession
Feasibility Study & NI 43-101
Final EIA approval obtained
Detailed engineering schedule Q2 2012 – Q4 2013
Estimated construction timeline 2013 - 2014
Estimated production timeline 2014/2015
* As per NI 43-101 technical report filed on SEDAR January 13, 2012
19
Partially Owned Exploration Investments• Source of Additional Value & Growth
TSX:DPM
SECURITIES HOLDINGS % HELD VALUE @ Mar. 1, 2013
Sabina Gold & Silver Corp. (TSX: SBB) 18.5M 10.7% $35M
Special Warrants 10M 19MWarrants (strike C$1.07) 5M 4MTotal SBB $58M
Avala Resources Ltd. (TSX-V: AVZ) 135M 53.1% $15MSpecial Rights 50M 6MWarrants (strike C$0.30) 25M 0Total AVZ* $21M
Dunav Resources Ltd. (TSX-V: DNV) 56M 47.3% $17MWarrants (strike C$0.42) 27.5M 0Total DNV* $17M
Total shares and other securities ~$96M*AVZ and DNV are consolidated
20
DPM Value Proposition
TSX:DPM
2017Market Capitalization (FD) $1.0B
Debt $82MCorporate Cash (1) ($188M)
Strategic Investments ($96M)Enterprise Value $798M
2017 @ $1,600 Au; $3.50 CuChelopech $230M
Deno (excluding open pit) $22Krumovgrad $65
NCS $75G & A ($35)
Average EBITDA $357(2)
EV/EBITDA 2.2xEstimated Capital expenditure to 2017 $720M
Estimated Cash Flow to 2017 $1.35B
(1) At Sept 30, 2012; AVZ and DNV are assumed at $0; Fully Diluted; includes cash on dilution
(2) Assumes avgLOM EBITDA for Chelopech, Deno(assuming Denocan be extended & operated at current rates), Krumovgrad and estimate for NCS at 310,000 tpa
21
Compelling Investment Opportunity
TSX:DPM
Solid operating assets with overall cost profile
Significant cash flow and capital available to fund growth
Strong balance sheet
Proven Management and Board
Attractive Value Proposition
Underground at Chelopech Namibia Custom Smelter Entrance to Deno Gold Mine Krumovgrad
Growing pipeline of development/investment opportunities
22
Dundee Precious Metals1 Adelaide St. East
Suite 500Toronto, ON, M5C 2V9
T: 410 365-5191www.dundeeprecious.com
Investor RelationsT: 416 365 2549
TSX:DPM – Common Shares
DPM.WT.A – 2015 Warrants
THANK YOU
23
Appendices
24
Portfolio of Assets
TSX:DPM
Avala 53%
Krumovgrad 100%
Chelopech 100%
Dunav 47%
Kapan 100%
Tsumeb Smelter 100%
Operating assets
Development assets
Exploration assets
Canada
Sabina 10.7%
25
Analyst Coverage
TSX:DPM
BMO John Hayes
CIBC World Markets Leon Esterhuizen
Cormark Securities Mike Kozak
Dundee Securities Josh Wolfson
GMP Securities George Albino
Paradigm Capital Don MacLean
RBC Capital Markets Sam Crittenden
Scotia Capital Leily Omoumi
Stifel, Nicolaus & Co. Michael Scoon
26
Q4 and Full Year 2012 Summary
TSX:DPM
Q4 2012 Q4 2011 Full Year 2012 Full Year 2011Adjusted Net Earnings $21.5 million $31.9 million $80.9 million $80.1 million
Adjusted basic EPS $0.17 $0.25 $0.65 $0.64
Gross profit (loss)
Chelopech $38.3 million $39.5 million $165 million $110.6 million
Deno $2 million ($0.5 million) $3.4 million $25.7 million
NCS ($1.0 million) $0.12 million ($11.7 million) ($5.0 million)
Total Gross profit $39.2 million $39.1 million $157 million $132 million
Chelopech Production
Gold (ounces) 27,503 34,993 120,631 93,881
Copper (lbs) 10,266,739 13,185,889 42,714,127 36,801,944
Silver (ounces) 44,406 54,573 216,765 151,715
Cash cost/T ore processed (incl. royalties) $44.75 $51.35 $45.77 $54.81
Cash cost/T ore processed (excl. royalties) $40.41 $46.59 $41.16 $49.99
Deno Gold Production
Gold (ounces) 5,164 6,051 21,843 26,876
Copper (lbs) 616,812 741,907 2,456,555 2,992,158
Zinc (lbs) 2,880,095 5,129,841 15,425,329 19,584,954
Silver (ounces) 99,095 123,297 449,092 519,104
Cash cost/T ore processed (incl. royalties) $84.22 $60.38 $76.45 $66.26
Cash cost/T ore processed (excl. royalties) $70.11 $58.47 $69.10 $62.57
27
2013 Guidance
TSX:DPM
Metals Contained in Concentrate Produced Chelopech Deno Gold Total
Gold (ounces) 125,000 – 143,000 25,000 – 30,000 150,000 – 173,000
Copper (million pounds) 43.0 – 46.0 2.5 – 3.0 45.5 – 49.0
Zinc (million pounds) - 12.0 – 14.5 12.0 – 14.5
Silver (ounces) 182,000 – 195,000 438,000 – 528,000 620,000 – 723,000
Sustaining Capital expenditures $14 - $17 million $8 - $12 million $35 - $45 million
Total growth capital expenditures $240 - $300 million
Construction of acid plant and electric furnace at NCS
Pyrite Project at Chelopech
Krumovgrad development and construction work
Deno Gold exploration and/or development work
Mine output at Chelopech (tonnes of ore) 1.9 – 2.05 million
Mine out put at Deno (tonnes of ore) 550,000 – 600,000
Concentrate smelted at NCS (tonnes) 195,000 – 215,000
Sustaining capital expenditures at NCS $13 - $16 million
28
Copper Hedge Position
TSX:DPM
As at December 31, 2012, the Company had outstanding derivative contracts to swap futurecontracted monthly average metal prices for fixed metal prices to mitigate a portion of the metal priceexposure associate with the time lag between the provisional and final determination of concentratesales. These are summarized below:
Year of projected payable copper production Volume Hedged (lbs) * Average fixed price ($/lb)
2013 6,693,226 $3.94
2014 7,195,880 $3.73
Total 13,889,106 $3.83
Commodity Hedged Volume Hedged Average fixed price
Payable copper 20,500,761 pounds $3.54/pound
Payable zinc 1,047,195 pounds $0.93/pound
Payable gold 4,270 ounces $1,638/ounce
Payable silver 80,410 ounces $29.65/ounce
As at December 31, 2012, the Company had outstanding derivative contracts to mitigate a portion ofits price exposure related to its by-products. These are summarized below:
29
Senior Management
TSX:DPM
P.Eng., MBA and CFA with over 25 yrs in the resource sector as a geologist, senior analyst, portfolio manager and senior executive. Joined BGR in 1990, DPM 2003.
P.Eng. with over 30 yrs in the mining sector, previously with Vale-Inco. Joined DPM in 2009.
M.Sc. with >20 yrs in the minerals sector. Recognized internationally as a water management and cyanide use expert. Joined DPM in 2006.
C.A. & C.F.A with >25 yrs in strategic planning, M&A, financial planning & reporting, taxation, treasury & risk mgmt. Joined DPM in 2011.
Ph.D. Mining of Minerals with over 17 yrs experience with Chelopech Mining EAD. Joined DPM in 2003.
Ph.D. with >30 yrs in many aspects of the mineral processing industry, in both project engineering and operations. Joined DPM in 2003.
Ph.D. mineral processing with extensive experience in research and development. Joined Chelopech Mining EAD in 2004.
Chemical engineer with over 25 yrs in the mining sector, specifically as a metallurgist in the smelting industry. Joined DPM in 2010.
Geologist with over 28 years of mineral exploration experience across Europe and Asia. Joined DPM in 2013.
Investment banker with over 10 yrs experience in the mining sector. Joined DPM in 2011.
Jonathan Goodman, President & CEO
Hume Kyle, EVP & CFO
Rick Howes, EVP & COO
Adrian Goldstone, EVP, Sustainable Business Development
Richard Gosse, VP Exploration
Nikolay Hristov, VP & GM, Chelopech Mine
Michael Dorfman, SVP, Corporate Development
Iliya Garkov, VP & GM Deno Gold
Hans Nolte, VP & GM Namibia Custom Smelter
Simon Meik, VP Processing
International mining and smelting executive with extensive experience in Africa, Europe and Canada. Joined DPM in 2012. David Rae, SVP, Operations
30
Chelopech MineUpdated Mineral Reserves and Resources
TSX:DPM
Chelopech Mineral Reserves – January 1, 2012
CategoryTonnes
(M)
Gold Copper SilverGrade (g/t)
Ounces (M)
Grade (%)
Pounds (M)
Grade (g/t)
Ounces (M)
Proven 14.29 3.54 1.63 1.30 408.93 9.39 4.32Probable 8.33 3.86 1.04 0.89 163.67 5.93 1.59Total 22.62 3.66 2.66 1.15 572.60 8.12 5.91
Chelopech Mineral Resources – October 31, 2011
CategoryTonnes
(M)
Gold Copper Silver Grade (g/t)
Ounces (M)
Grade (%)
Pounds (M)
Grade (g/t)
Ounces (M)
Measured 16.38 4.10 2.16 1.49 538.00 11.06 5.82Indicated 13.49 4.09 1.77 1.09 324.36 7.79 3.38M&I 29.87 4.09 3.93 1.31 862.84 9.58 9.20Inferred 9.59 2.53 0.78 0.82 173.31 10.09 3.11
1. Rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals.2. All Mineral Resource Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM.3. Chelopech Mineral Reserves are based on a cut-off of $10 profit/tonne using NSR analysis as of January 1, 2012. This information has been prepared by
Gordon Fellows and reviewed by Julian Barnes, both of whom are QPs, as defined in NI 43-101 and not independent of the Company.4. Chelopech Mineral Resource cut-off grade @3.0 g/t Gold Equivalent is based on the following formula: (Au g/t + 2.25xCu%). The Mineral Resource has
been depleted as of October 31, 2011. This information has been prepared by Craig Barker and reviewed by Julian Barnes, both of whom are QPs, as defined in NI 43-101 and not independent of the Company.
5. All Mineral Reserves and Resources are based on long term metals prices of $1,250 Au, $3/lb Cu, $25/oz Ag and $1/lb Zn.6. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Reserves.
31
Chelopech – Cash Cost Reconciliation
TSX:DPM
US$ thousands, unless otherwise indicatedYear 2012
ActualYear 2011
ActualYear 2010
ActualYear 2009
ActualYear 2008
ActualCost of Sales: 98,298 88,838 $ 72,707 $74,499 $ 67,245
Less amortization & other (19,542) (15,499) (14,425) (14,242) (11,966)
Plus other charges, including freight 86,228 65,125 41,234 38,317 26,006
Less by-product credits (163,940) (147,812) (87,320) (64,198) (59,376)
Cash cost of sales after by-product credits 1,044 (9,348) $ 12,196 $34,376 $ 21,909
Gold oz (payable metal) 116,644 83,796 58,065 93,081 70,878
Cash cost of sales/oz gold, (net of by-product credits) $ 91 $ (112)2 $ 2103 $ 3694 $ 3095
4Based on US$2.34/lb copper5Based on US$3.16/lb copper
3Based on US$3.42/lb copper
2Based on US$4.27/lb copper
1Based on US$3.95/lb copper
32
Chelopech – Cash cost/tonne Ore Processed Reconciliation
TSX:DPM
US$ thousands, unless otherwise indicatedFor the periods indicated
Year 2012 Actual
Year 2011 Actual
Year 2010 Actual
Year 2009 Actual
Year 2008 Actual
Ore processed (mt) 1,819,687 1,353,733 1,000,781 980,928 900,563
Cost of sales 98,298 $ 88,838 $ 72,707 75,647 67,423
Add (deduct):Depreciation, amortization & other non-cash costs (19,542) (15,499) (14,425) (15,390) (11,966)Change in concentrate inventory 4,535 862 (2,018) (419) (178)
Total cash cost of production 83,291 $ 74,201 $ 56,264 59,838 55,279
Cash cost per tonne of ore processed, including royalties $ 45.77 $ 54.81 $ 56.22 $ 61.00 $ 61.38Cash cost per tonne of ore processed, excluding royalties $ 41.16 $ 49.99 $ 51.54 $ 55.23 $ 57.87
33
Chelopech Exploration Results – Q4 2012
TSX:DPM
Significant Intercept Results (cut-off grade 3 g/t AuEq)
Hole_ID From (m) To (m) Interval (m) Cu (%) Au (g/t)
EXT19_260_06 153.0 160.50 7.5 1.90 4.26
EXT19_260_08 0.0 22.60 22.6 0.23 5.89
EXT19W_320_05 30.0 63.0 33.0 0.76 2.47
EXT19W_320_12 117.0 136.50 19.5 0.44 3.53
EXT150_135_06 52.50 92.50 40.0 1.14 4.96
EXT150_135_08 43.50 91.40 47.9 0.51 4.36
G103_225_01 106.50 115.50 9.0 0.76 2.02
1. Significant intercepts are located within the Chelopech Mine concession and proximal to the mine workings.2. Gold Equivalent calculation is based on the following formula: (Au g/t + 2.25xCu%).3. Minimum down hole width reported is 1.5 m with a maximum internal dilution of 4.5 m.4. True widths are approximately 90% of the intersection width.5. Drill holes with prefix G indicate grade control drilling which is performed using BQ diamond drill core. All other holes are drilled with NQ diamond core.6. Coordinates are in mine-grid.7. No factors of material effect have hindered the accuracy and reliability of the data presented above.8. No upper cuts applied.9. For detailed information on drilling, sampling, analytical methodologies refer to the NI 43-101 “Preliminary Economic Assessment Report for the Chelopech Pyrite
Recovery Project: filed on Sedar at www.sedar.com on Sept. 10, 2012.
34
Deno Gold Mineral Resource Estimate
TSX:DPM
Cut off(AuEq - g/t)
Tonnage(Mt)
Gold Equiv.(g/t)
Copper (%)
Gold (g/t)
Silver (g/t)
Zinc(%)
0.50 335.8 1.19 0.11 0.48 8.39 0.41
0.75 226.5 1.47 0.13 0.61 10.32 0.49
1.00 147.1 1.80 0.15 0.79 12.62 0.57
1.25 98.3 2.14 0.17 0.99 14.99 0.65
1.50 69.8 2.45 0.18 1.19 17.00 0.72
1.75 49.2 2.80 0.19 1.43 19.14 0.78
2.00 36.3 3.13 0.19 1.68 20.87 0.83
Shahumyan Deposit – September 2008Inferred Mineral Resource – Ordinary Kriging Estimate
10mE x 10mN x 10mRL Block Size – 5m Capped Input Composite Data
AuEq US$ price assumptions: Cu $2.50/lb, Au $850/oz, Ag $16/oz and Zn $1.00/lb
35
Deno Exploration Results – Q4 2012
TSX:DPM
Significant Intercept Results (SHDDR and SHRCR holes, cut-off grade 0.5 g/t AuEq) and underground significant intercepts (E holes, cut-off grade 1.0 g/t AuEq) received during Q4 2012
Hole_ID From (m) To (m) Interval (m) & AuEq Cu (%) Au (g/t) Zn (%) Ag (g/t)E712DE008 449.0 451.0 2m @ 15.84 0.62 12.11 0.51 121.5
E712DE010 169.0 172.0 3m @ 11.03 0.79 4.93 0.24 233.6
E712DE019 62.0 68.0 6m @ 12.11 2.28 5.16 2.87 81.3
E712DW001 59.0 61.0 2m @ 12.36 3.07 2.82 6.44 47.8
E712DW003 54.6 58.0 3.4m @ 9.49 1.25 6.69 0.25 30.8
SHDDR0459 73.0 81.0 8m @ 6.25 0.25 4.35 1.14 43.1
SHDDR0477 103.0 116.0 13m @ 3.09 0.04 2.62 0.08 17.8
SHDDR0478 87.0 100.0 13m @ 2.22 0.15 0.39 2.37 14.1
SHDDR0478 226.0 234.0 8m @ 3.12 0.13 1.85 0.13 49.3
SHDDR0483 229.0 235.0 6m @ 14.86 0.01 12.25 0.11 126.9
SHRCR0049 80.0 86.0 6m @ 4.38 0.04 3.07 0.08 60.1
SHRCR0055 34.0 48.0 14m @ 14.28 0.36 9.19 1.48 184.1
SHRCR0063 55.0 64.0 9m @ 4.41 0.97 1.08 1.34 50.1
SHRCR0081 18.0 27.0 9m @ 3.49 0.06 1.95 0.64 54.1
1. In situ gold equivalent (AuEq) grade based on the following long-term metal prices $1,250/oz Au, $25/oz Ag, $3.00/lb Cu, $1.00/lb Zn.2. Holes with prefix SHDDR and SHRCR are surface HQ diamond and RC open pit drilling, respectively, while E holes are underground BQ drilling.3. Significant intercepts for surface holes are located within the Central and Southern zones while underground drilling is located in the Central zone of Shahumyan Deposit.4. True widths are approximately 90% of the intersection width.5. Minimum width reported is 2m and a maximum internal dilution of 4m.6. All survey coordinates are transformed to AUSPOS.7. No factors of material effect have hindered the accuracy and reliability of the data presented above.8. No upper cuts have been applied.
36
Deno Gold – Cash Cost Reconciliation
TSX:DPM
US$ thousands, unless otherwise indicatedFor the periods indicated
Year 2012 Actual
Year 2011 Actual
Year 2010 Actual
Year 2009 Actual
Year 2008 Actual
Ore processed (mt) 509,419 581,852 428,865 218,235 269,033
Cost of sales 50,547 $ 47,276 $ 33,637 $ 21,197 $ 36,319
Add (deduct):Depreciation, amortization & other non-cash costs (10,883) (9,140) (7,056) (4,047) (3,668)Care and maintenance costs - - - (3,074) (1,732)
Change in concentrate inventory (718) 416 3,572 1,696 (1,485)
Total cash cost of production 38,946 $ 38,552 $ 30,153 $ 15,772 $ 29,434
Cash cost per tonne of ore processed (royalties not applicable in 2009) $ 76.45 $ 66.26 $ 70.31 $ 72.27 $ 109.40
Cash cost per tonne of ore processed, excluding royalties $ 69.10 $ 62.57 $ 66.33 $ - $ -
37
Krumovgrad Gold Project
TSX:DPM
38
Krumovgrad Gold ProjectUpdated Mineral Reserves & Resources
TSX:DPM
Krumovgrad Mineral Reserves – December 31, 2011
CategoryTonnes
(M)
Gold SilverGrade (g/t)
Ounces (M)
Grade (g/t)
Ounces (M)
Proven 2.94 4.70 0.44 2.54 0.24Probable 4.30 2.44 0.34 1.52 0.21Total 7.24 3.36 0.78 1.92 0.45
Krumovgrad Mineral Resources – December 31, 2011
CategoryTonnes
(M)
Gold Silver Grade (g/t)
Ounces (M)
Grade (g/t)
Ounces (M)
Measured 3.30 4.90 0.52 3.00 0.28Indicated 4.69 2.50 0.38 2.00 0.24M&I 7.99 3.50 0.90 2.00 0.51Inferred 0.40 1.20 0.02 1.00 0.01
1. Rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals.2. All Mineral Resource Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM.3. Krumovgrad Mineral Reserves and Resources are based on the Krumovgrad 2012 Technical Report using a variable economic cut-off grade and 0.5 g/t Au
respectively. 4. All Mineral Reserves and Resources are based on long term metals prices of $1,250 Au, $3/lb Cu, $25/oz Ag and $1/lb Zn.5. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Reserves.
39
Dundee Precious Metals1 Adelaide St. East
Suite 500Toronto, ON, M5C 2V9
T: 410 365-5191www.dundeeprecious.com
Investor RelationsT: 416 365 2549
TSX:DPM – Common Shares
DPM.WT.A – 2015 Warrants
