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Investor Presentation
May 29, 2018
Krumovgrad Gold Project
April 2018
DPM – AN INNOVATIVE, GROWING GOLD PRODUCER
TSX:DPM
2
Forward Looking Statements
Certain statements and other information included in this presentation and our other disclosure documents constitute “forward looking information” or “forward
looking statements” within the meaning of applicable securities legislation, which we refer to collectively hereinafter as “Forward Looking Statements”.
Statements that constitute Forward Looking Statements include, but are not limited to, certain statements with respect to the estimated capital costs, operating
costs, key project operating costs and financial metrics and other project economics with respect to Krumovgrad; the timing of development, permitting,
construction, commissioning activities and commencement of production in respect of Krumovgrad; timing of further optimization work at Tsumeb and potential
benefits of rotary furnace installation; price of gold, copper, silver and acid; toll rates; metals exposure and stockpile interest deductions; the estimation of Mineral
Reserves and Mineral Resources and the realization of such mineral estimates; the timing and amount of estimated future production and output, life of mine,
costs of production, cash costs and other cost measures, capital expenditures, rates of return at Krumovgrad and other deposits and timing of the development
of new deposits; results of economic studies; success of exploration activities; success of permitting activities; permitting time lines; currency fluctuations;
requirements for additional capital; government regulation of mining and smelting operations; success of permitting activities; environmental risks; reclamation
expenses; potential or anticipated outcome of title disputes or claims; and timing and possible outcome of pending litigation. Forward Looking Statements are
statements that are not historical facts and are generally, but not always, identified by the use of forward looking terminology such as “plans”, “expects”, or “does
not expect”, “is expected”, “budget”, scheduled”, “estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations of
such words and phrases or that 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 certain key assumptions and on the opinions and estimates of management and Qualified Persons (in the case of
technical and scientific information) 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. In addition to factors already discussed in this presentation, such factors include,
among others: the uncertainties with respect to actual results of current exploration activities, actual results of current reclamation activities, conclusions of
economic evaluations and economic studies; changes in project parameters as plans continue to be refined; 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; uncertainties and risks inherent to developing and
commissioning new mines into production, such as the Krumovgrad project, which may be subject to unforeseen delays, costs or other issues; uncertainties
inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the
Company’s activities; social and non-governmental organizations (“NGO”) opposition to mining projects and smelting operations; fluctuations in metal and acid
prices, toll rates and foreign exchange rates; unanticipated title disputes; claims or litigation; limitation on insurance coverage; cyber attacks; failure to realize
projected financial results from MineRP; risks related to operating a technology business reliant on the ownership, protection and ongoing development of key
intellectual properties; as well as those risk factors discussed or referred to in any other documents (including without limitation the Company’s most recent AIF)
filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available on SEDAR 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.
Unless required by securities laws, the Company undertakes no obligation to update forward looking statements if circumstances or management’s estimates or
opinion should change. Accordingly, readers are cautioned not to place undue reliance on forward looking statements.
TSX:DPM
3
Investment Highlights
Operating in mining friendly jurisdictions
Strong resource and reserve base
High quality, low cost, flagship asset
Near term, low cost growth in gold production
Growing exploration pipeline
Strong balance sheet
Strong management team
Attractive valuation
Strong Asset Base, Near Term Growth & Attractive Valuation
TSX:DPM
4
Metal Prices and DPM Share Price
Gold and Copper Price Trend
2010 to Present
$1.80
$2.10
$2.40
$2.70
$3.00
$3.30
$3.60
$3.90
$4.20
$4.50
$4.80
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
$1,900
$2,000
Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18
Gold Price Trend(US$/oz)Copper Price Trend(US$/lb)
Historical Relative Trading
January 2017 – April 2018
(20%)
0%
20%
40%
60%
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18
C$DPM US$GDX US$GDXJ
26%
4%
(1%)
DPM has outperformed benchmarks but still trades at discounted valuation multiples
TSX:DPM
5
Company Overview
Share Price / 52 week low-high (C$ per share) $3.37 / $2.13 - $3.60
Shares Outstanding – Current 178,492,566
Market Capitalization – Current $464 M
P/NAV (23) 0.51x (consensus)
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 $15 M
Investment portfolio (21) $36.8 M
Undrawn RCF $242 M
Debt $33 M
2017 Quick Glance Production & Financial Metrics
Dundee Corporation 20.38%
GMT Capital Corporation 12.47%
EBRD 9.9%
USAA Asset Mgmt. 3.18%
Kopernik Global Advisors 2.91%
Low cost
production
with 50%
growth starting
in Q4 2018
Strong
liquidity
position
Long term
shareholders
Attractive
Valuation
1, 2, 21 See footnotes contained in Appendix on slide 48
Share Capital (@ May 25, 2018)
Liquidity Position (@ March 31, 2018)
Top Five Shareholders (@ May 25, 2018)
TSX:DPM
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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
Malartic JV
Quebec, Canada
Chelopech
• Location: Chelopech, Bulgaria
• Ownership: 100%
• 2017 Production: 197,684 oz Au;
35.8 Mlbs Cu
• Mine Life: 8.5 years
• Operation: Underground
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
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: Pre-construction
• Production: 240,000 Au (yrs 1-8) (18)
• Operation: Open pit/underground
• DPM’s equity stake: $36.8 M
Corporate Head Office
Toronto, Canada
18 See footnotes contained in Appendix on slide 48
TSX:DPM
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Bulgaria… • Overview:
• Uninterrupted operations since 2003
• Member of the EU since 2007
• 4th largest gold producer in Europe
• Stable regulatory environment & government
• Corporate Tax Rate: 10%
• Chelopech Royalty Rate: 1.5% of gross Cu, Au and Ag
• Krumovgrad Royalty Rate: 1% - 4% of gross value
• GDP Forecast: +2.8% in 2017 (IMF)
• Mining industry forms 5% of the GDP (2016)
Namibia…• Overview:
• Political party stability
• 5th largest producer of uranium and 9th largest producer of
diamonds
• Ranked in top 10 as Africa’s most attractive countries over last
5 years according to the Fraser Institute
• Glencore, Rio Tinto, Anglo American, Paladin Energy, etc.
• Corporate Tax Rate: 0% (Export Processing Zone status)
• GDP Forecast: +5.3% in 2017 (IMF)
• Mining industry forms 11.5% of the GDP (Jan. 2017)
Serbia…• Overview:
• EU candidate since 2012
• 3rd largest copper producer in Europe
• Industry benefits from high level government support
• Corporate Tax Rate: 15%
• GDP Forecast: +3.0% in 2017 (IMF)
• Mining industry forms 2% of the GDP (2013)
Operating in Mining Friendly Jurisdictions
TSX:DPM
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Strong Mineral Resource and Reserve Base
1.9 Moz
0.8 Moz
Proven and probable
Total Gold Ounces
Proven and Probable
Total Copper
1.4 Moz 0.01 Moz
1.7 Moz
3.8 Moz
Measured & Indicated Inferred
Total Gold Ounces
2.7 Moz
376 Mlbs
Measured & Indicated Inferred
Total Copper
2.8 Bnlbs
311 Mlbs
Krumovgrad
ChelopechChelopech
TimokKrumovgrad
Chelopech
Chelopech
3.1 Moz
0.12 Moz
Chelopech
Tulare
Tulare
2.8 Bnlbs
29 Mlbs
3.9 Moz
3, 4, 5, A, B. See footnotes contained in Appendix on slides 48 & 49
TOTAL MINERAL RESERVES (3,5,A)
TOTAL MINERAL RESOURCES (4,5,A)
Exclusive of Reserves
As of December 31, 2017 As of December 31, 2017
TSX:DPM8
HIGH QUALITY, LOW COST, FLAGSHIP ASSET
Chelopech
Location: Chelopech, Bulgaria
Ownership: 100%
2017 Production: 197,684 oz Au; 35.8 Mlbs Cu
Mine Life: 8.5 years
Operation: Underground
TSX:DPM
10
57
133
196
153
118
9987
108
0
300
600
900
1200
1500
1800
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016 2017
Cash Cost / tonne of ore processed (US$/t) (6) Ore Mined (Mt)
1.09
1.31
1.812.03 2.05 2.04
2.21 2.22
2010 2011 2012 2013 2014 2015 2016 2017 Q12018
2018E
56 55
4640 40
3733 34
37
2010 2011 2012 2013 2014 2015 2016 2017 Q12018
2018E
Adjusted EBITDA (US$M) (7)
2006 2015 2016 2017
21.5 21.5
14.1 Total ore
mined
since 2006 (Mt)
Ore Reserve (Mt)
16.3
19.8
Gold price trend
Growing throughput in recent years with
opportunity to optimize further
Continuing to optimize through innovation
2018E slightly higher due to FX
Stronger EBITDA due to grades & metal prices Exploration successful in replacing reserves
6, 7, 9 See footnotes contained in Appendix on slide 48
Copper price trend (AuEq)
Chelopech – Continually Improving
2.1-2.2
37-40
9 9
18.818.5
0.558
TSX:DPM
11
139
172 140-170
2016 2017 Q1 2018 2018E
Chelopech Highlights
Payable gold in concentrate sold (000s oz) (8)Metals contained in concentrate produced (8)
166
198 165-195
38.5 35.8
33.7-40.4
2016 2017 Q1 2018 2018E
Gold (000s oz) Copper (Mlbs)
Record gold production in 2017
Guidance for another strong year in 2018
Focused on mine and process plant optimization
8, 9 See footnotes contained in Appendix on slide 48
All in sustaining cost (US$/oz gold sold)
9
9 9
57.3
9.3
35.2
747 729
2016 2017 Q1 2018 2018E
640-855
696
TSX:DPM
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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
TSX:DPM
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Chelopech – Near Mine Exploration
Drilling demonstrates excellent potential for hosting additional resources:
New zone of breccia pipes
Found over 1500 m & is open to the east
Large areas remain between drilled sections
Similar geology to Central and Western orebodies
Opens up whole new area
10,000 m infill drill program proposed for at SEBP zone initiated in January. Results from the first drill
hole in Q1 include: • 25 m averaging 4.53 g/t AuEq from start of the hole followed by 132 m averaging 0.49 g/t AuEq
5,000 m of drilling planned for Krasta target
TSX:DPM13
TRANSITIONING TO FREE CASH FLOW
Tsumeb
Location: Tsumeb, Namibia
Ownership: 100%
2017 concentrate smelted: 219,000 tonnes
Operation: Specialty smelter
TSX:DPM
15
2012 2013 2014 2015 2016 2017 2018E 2019F 2020F 2021F 2022F
(2)
Tsumeb – Increased Stability with Growth Potential
Total Capital Expenditures (US$M)
63
140
130
44
19
8.6
2012 2013 2014 2015 2016 2017 2018E
219
240-
265
196198
152159
265-
300
200
300-
370
Production (‘000s tonnes)Cash cost/t of
con smelted
(net of by
product credits)
Third Party
con supplied
to smelter
(000s)
Chelopech
concentrate
supplied to
smelter (000s)
Potential future
capacity
$440-$500
240-
265
Growth Capital
Sustaining Capital
Secured processing outlet for Chelopech
Growing cash flow generating custom toll business
Focused on stable operations at current throughput
Option to expand to 370k tpa in the future
Will evaluate strategic partnership alternatives
6, 9 See footnotes contained in Appendix on slide 48
99 99
(6)
Major investment phase complete Major investment phase complete
220-
250
12-18
99
TSX:DPM
16
200219
2016 2017 Q1 2018 2018E
Tsumeb Smelter Highlights
Complex Concentrate Smelted
(‘000s t)
Adjusted EBITDA (US$M) (7) Sustaining Capital (US$M) (6)
Stable performance in 2017
Continued optimization of facility
Focused on improving availability of oxygen plant and unit cost reductions
Generated free cash flow of US$7 million in 2017
6, 7, 9 See footnotes contained in Appendix on slide 48
9
9
54
220 – 250
10
14
2
2016 2017 Q1 2018
11
7
12-18
2016 2017 Q1 2018 2018E
4
NEAR TERM, LOW COST GROWTH
TSX:DPM16
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 2018April 2018
TSX:DPM
18
Krumovgrad – Robust Economics
Project
Economics
Robust with a
28% After-Tax
IRR *
Production and Operating Costs (10, B)
Annual tons processed 775,000 t
Gold grade 4.04 g/t
Strip ratio 2.6:1 waste:ore (t:t)
Annual gold production 85,700 oz
Year 1 to 5 average 103,020 oz
Annual silver production 38,700 oz
Total cash cost per oz AuEq $403
Average Annual EBITDA (7) $66 million
Year 1 to 5 average $85 million
Construction capital $164 - $168 million
NPV (5%) (@ April 30, 2018) $318 million (adjusted for capital spent)
First concentrate production Q4 2018
LOM 8 years
High grade low strip ratio open pit gold mine
Operating synergies with Chelopech
Fully funded with near term production in Q4 2018
• @ US$1,250/oz Au
• Based on midpoint of updated construction capital
7, 10, B See footnotes contained in Appendix on slides 48 & 49
TSX:DPM
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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
Commenced main civil/mechanical/electrical construction Q3 2017
Commissioning and start up Q3 2018
First concentrate production Q4 2018
Construction capital spent (@ Apr. 30, 2018) / remainder to be spent in 2018 $101 million / $63-$67 million
Percent complete (@ April 30, 2018) 65%
Vertimills for fine grinding – April 2018Krumovgrad site – April 2018
Project Progress
Krumovgrad Project Facility
TSX:DPM
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Krumovgrad – Construction Progress
TSX:DPM
21
Krumovgrad – Exploration (22)
Surnak Exploration Target
22 See footnotes contained in Appendix on slides 38 & 39
Previous exploration work at the Surnak Prospect, which includes over
10,800 metres of trenching and drilling, has been used to outline an
exploration target of 80,000 to 160,000 oz Au contained within 1.8 to 2.4 Mt
grading 1.5 to 2 g/t Au. The exploration target potential was derived upon
review of historic Mineral Resource estimates at Surnak, in combination with
ongoing development of the 3D geologic model at Surnak. The potential
ranges of tonnes and grade are conceptual in nature are based on previous
drill results that defined the approximate length, thickness, depth and grade
of the portion of the historic Mineral Resource estimate. There has been
insufficient exploration to define a current Mineral Resource and the company
cautions that there is a risk further exploration will not result in the delineation
of a current Mineral Resource.
KUPEL NORTHDiscovery Hole
KPDD0098m at 12.81 ppm Au &
4.95 ppm Ag
SKALAK
SYNAP
KUKLITSA
KUPEL
SURNAK
SURNAK EXPLORATION TARGET
Exploration target potential of 80,000 to
160,000 oz Au contained within 1.8 to 2.4 Mt
grading 1.5 to 2 g/t Au
ADA TEPEProven and Probable
Reserves Au: 806 Koz at 4.05 g/tAg: 443 Koz at 2.2g/t
Surnak is one of six registered Commercial Discoveries within the mine concession
Located 3 km west of Ada Tepe
Sediment-hosted low sulphidation epithermal gold veins like Ada Tepe
Last explored by DPM in 2004-5
6,000 m diamond drill program planned for 2018. Results from first holes include:• SUDD028: 13m at 1.29 g/t gold from 106m
• SUDD029: 15m at 1.22 g/t gold from 130m
Additional 1,600 m drilling on regional licences
Chelopech Mine, Bulgaria
FUTURE GROWTH PIPELINE
TSX:DPM
ADVANCED EXPLORATION
20
Location: Serbia
Ownership: 100%
Stage: Advanced exploration
Resource: 1.72 million ounces (19)
Timok
19. See footnotes contained in Appendix on slide 48
TSX:DPM
23
Serbia Advanced ExplorationTimok Gold Project
Total Indicated Mineral Resources
1.72 Moz Au @ 1.54 g/t
contained within 34.7 MT
Inferred Mineral Resources
0.02 Moz Au @ 1.4 g/t
contained within 0.4 MT
Indicated Mineral Resource for Bigar Hill (19)
1.16 Moz Au @ 1.57 g/t
contained within 22.97 MT
Indicated Mineral Resource for Korkan (19)
0.33 Moz Au @ 1.55 g/t
Contained within 6.71 MT
Indicated Mineral Resource for Pester (19)
0.23 Moz Au @ 1.40 g/t
contained within 5.06 MT
19. See footnotes contained in Appendix on slide 48
Previously assumed sulphide resource
Potential for oxides within previous resource
Initial bottle roll tests indicate recoveries of:
90-95% for Korkan and Bigar Hill oxides
75% for Korkan West oxides
50-55% for Korkan transitional zone
Potential to improve economics
TSX:DPM
24
Serbia Exploration (22)
Timok Gold Project: Korkan West Discovery
Near resource target drilled Nov. 2016
KW016: 105m at 1.21 g/t gold from
surface
Two phases of drilling at KW during
2017
41 holes for 6,770 m
Gold mineralization found over a
strike length of 220 m
Almost all reported intervals are oxide
11,500 m drilling program at Korkan
West and other targets started in April
If successful proceed to updated
resource and scoping study
KORKAN
BIGAR HILL
KW Zone
KO Zone
46
37
33
47
41
45
42
35
39
166
168
173
Timok Gold ProjectIndicated Mineral
Resources1.72 Moz Au at 1.54 g/t
Inferred Mineral Resources
0.02 Moz Au at 1.4 g/t
KORKAN WESTDISCOVERY
167
169171
38170
172
40
36
43
44
22. See footnotes contained in Appendix on slide 48
KWDD016
TSX:DPM
25
Additional Upside Potential Through Equity Interests
35km2 of prospective Abitibi geology located 25 km west of
Val-d’Or
$2.5 M within first 3 yrs to earn 51% with option to increase
to 71% following an additional $3.5 M expenditure in the
following 3 yrs
Winter scout drilling program completed. Results of first three
holes included 2m of 5.53 g/t gold within a 10m wide vein
zone
Value of DPM stake May 14, 2018 = ~$36.8M (incl. warrants)
M&I resource – 5.3M oz Au
Inferred resource – 1.85M oz Au
Targeting Au production Q1 2021
Production of ~240k oz Au/year (yrs 1 through 8)
Success at Umwelt Vault Zone and Llama extension provides
upside potential to mine life
Proceeding with pre-construction activities for 2018
Sabina Gold and Silver Corp.
Back River Project, Nunavut
DPM Ownership – 10.2% (18)
Malartic Property, Quebec
Joint Venture
18. See footnotes contained in Appendix on slide 48
SUMMARY
TSX:DPM
GROWTH OPTIMIZATION INNOVATION
24
TSX:DPM
27
Chelopech Record gold
production
Digital transformation
15,000 m regional drilling
30,000 m resource
drilling
Digital
transformation
Digital
transformation
Tsumeb Stable production
Transition to free
cash flow
Further optimize
EIA approval
Commercial
agreements for
expansion
Decision on
expansion
Commence
expansion
construction
Krumovgrad Construction 50%
complete
Construction completion
and commissioning (Q3)
First concentrate
production (Q4)
6,000 m drilling on
satellite deposits
Ramp-up (Q1)
Commercial
production
Timok Drilling of Korkan
West targets
11,500 m Korkan West
drilling
Resource update (Q3)
Metallurgical testwork
Scoping study
PEA or
Prefeasibility
study
2017 2018 2019 2020
Key Value Generating Catalysts
TSX:DPM
28
US$95MUS$95M
DPM Outlook – A Growing Low Cost Producer
AuEq Production
Growing to
>350,000 oz
at $600/oz
2016 2017 2018 Guidance 2018F + Krumovgrad
747
640-855
607
All-in Sustaining Cost (US$/oz) (1, 17)
Krumovgrad gold production
commences Q4 2018
2016 2017 2018 Guidance midpoint 2018F + Krumovgrad
Au Cu Ag
Gold Equivalent Production (000s oz) (15)
(based on metals contained in concentrate produced)
254
369
264280
1, 9, 15, 17, 20, See footnotes contained in Appendix on slide 48
(9) (9, 20)
(9, 20)(9)
(15)
(15)
Annual EBITDA Less: Sustaining Capex
From Operating AssetsTotal ~$183M
~ US$81M
Chelopech(FYE Dec 31, 2017)
Krumovgrad (20)
(years 1 to 5)
Tsumeb(FYE Dec 31, 2017)
~ US$7M
Total ~$102M
Tsumeb(FYE Dec 31, 2017)
Chelopech(FYE Dec 31, 2017)
US$7M
2017 With Krumovgrad
(years 1 to 5)
(years 1 to 5)
729
TSX:DPM
29
845
560
844 845 848900
959 964 980 991 998 1,011
1,121
1,292
DPM +Krum
DPM Saracen Premier Guyana Roxgold Ramelius Argonaut Alacer TMAC Resolute Teranga Alio Asanko
640
$3,2
12
$2,0
69
$5,6
67
$4,0
93
$3,8
60
$3,2
46
$2,9
45
$2,8
61
$2,8
33
$2,0
00
$1,9
59
$1,8
26
$1,4
61
$1,4
26
Alacer TMAC Premier Guyana DPM Saracen Roxgold Resolute DPM +Krum
Teranga Argonaut Asanko Ramelius Alio
Attractive Valuation
2018E All In Sustaining Costs (US$/oz) 6,12
EV/Reserves ($/oz) 12
(11)(13)
EV/2018E Gold Production ($/oz)
Undervalued on Mineral Reserves…
… and Cash Flow
… and Production
… with AISC in lowest quartile
6, 11,12, 13 See footnotes contained in Appendix on slide 48
(11)
(13)
EV/2018E AdjCF 12
(12)(13)
$161
$440 $429
$339
$180 $171 $165 $153$128 $119
$89$74
$51
Roxgold Saracen Ramelius Alacer TMAC Resolute DPM Guyana Premier Teranga Alio Argonaut Asanko
10.0x
4.3x
45.7x
31.9x
20.0x
15.0x 14.1x 14.0x
7.5x 7.1x 7.0x 6.3x 6.0x3.9x
Premier Alacer Resolute TMAC Asanko Teranga DPM Saracen Alio Guyana Argonaut Roxgold DPM +Krum
Ramelius
TSX:DPM
30
Attractive Valuation
Leverage Ratio 12
Debt to Capital
2018E P/NAV 12
Stability in operating jurisdictions
Tsumeb capital program complete & transitioning to FCF
Balance sheet deleveraged
Krumovgrad permitting & near term growth
DPM valuation
With a strong balance sheet… … and undervalued on P/NAV
Historical concerns have been addressed:
12 See footnotes contained in Appendix on slide 48
Klondex Roxgold Asanko Guyana Teranga Argonaut Premier Resolute Alacer DPM
1.22x
1.09x
0.80x
0.91x
0.67x
0.80x0.74x
0.51x
0.63x
25% 25%
13%
11%
6% 6%5%
2%1%
Asanko Roxgold Alacer Guyana Klondex Premier DPM Resolute Teranga Argonaut
27%
0.63x
consensus
23
TSX:DPM
31
Investment Highlights
Operating in mining friendly jurisdictions
Strong resource and reserve base
High quality, low cost, flagship asset
Near term, low cost growth in gold production
Growing exploration pipeline
Strong balance sheet
Strong management team
Attractive valuation
Strong Asset Base, Near Term Growth & Attractive Valuation
THANK YOU
TSX:DPM
Corporate Head Office:
One Adelaide Street East, Suite 500
Toronto, Ontario, M5C 2V9
T: 416 365-5191
Investor Relations
T: 416 365-2549
TSX:DPM
www.dundeeprecious.com
30
APPENDICES
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Business Strategy …………………………………………………………… 34
Mineral Resource and Reserve Base…………………………………….... 35
2018 Guidance……………………………………………………………….. 36
Krumovgrad
Open pit design and phases………………………………….37
Mine plan summary……………………………………………38
Process plant flowsheet……………………………………….39
Plant area……………………………………………………….40
Integrated mine waste facility…………………………………41
CSR……………………………………………………………...45
Hedge Position…………………………………………………………...........47
Mine RP…………………………………………………………………………48
Summary………………………………………………………………………..49Footnotes and Disclaimers……………………………………………….......50
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Business Strategy
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Mineral Resources (4,14,A,B) Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%)
Chelopech
M&I
Inferred
12.9
1.4
1.400
0.121
311
29
3.39
2.7
1.10
0.93
Krumovgrad
Inferred (Upper Zone) 0.3 0.013 1.3
Timok
Indicated
Inferred
34.7
0.4
1.720
0.000
1.54
1.4
Tulare
Inferred (Kiseljak)
Inferred (Yellow Creek)
459.0
88.0
3.000
0.800
2,200
600
0.2
0.3
0.22
0.3
Total Mineral Resources
Measured & Indicated
Inferred
47.6
549.1
3.120
3.934
311
2,829
Mineral Reserves (4,14,A,B) Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%)
Chelopech
Proven
Probable
10.5
8.3
0.965
0.921
216
160
2.86
3.46
0.93
0.88
Krumovgrad
Proven (Upper Zone)
Proven (Wall)
Probable (Upper Zone)
Probable (Wall)
1.1
1.5
3.5
0.1
0.124
0.325
0.337
0.020
3.46
6.83
3.00
5.54
Total P&P Mineral Reserves 25.00 2.692 376 3.36
Strong Mineral Resource and Reserve Base
4, 14, A, B See footnotes contained in Appendix on slides 48 & 49
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2018 Guidance
US millions, unless otherwise indicated Chelopech Tsumeb Consolidated (5)
Ore mined/milled (‘000s tonnes) 2,100-2,200 - 2,100-2,200
Complex concentrate smelted (‘000s tonnes) - 220-250 220-250
Metals contained in concentrates produced (1)(2)
Gold (‘000s ounces) 165-195 - 165-195
Copper (million pounds) 33.7-40.4 - 33.7-40.4
Payable metals in concentrate sold (1)
Gold (‘000s) 140-170 - 140-170
Copper (million pounds) 31.0-37.0 - 31.0-37.0
Cash cost per tonne of ore processed ($) (3)(4) 37-40 - 37-40
All-in sustaining cost per ounce of gold ($) (3)(4)(5) - - 640-855
Cash cost per tonne of complex concentrate smelted, net of by-product credits ($) (3)(4) - 440-500 440-500
General & administrative expenses (3)(6) - - 20-24
Exploration expenses (3) - - 10-15
Sustaining capital expenditures (3)(4) 17-21 12-18 29-39
1) Gold produced includes gold in pyrite concentrate produced of 47,000 to 55,000 ounces and payable gold sold includes payable gold in pyrite concentrate sold of 30,000 to 35,000 ounces.
2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.
3) Based on foreign exchange rates and, where applicable, metal prices that approximate current rates and prices after reflecting existing 2018 copper and ZAR hedges. In particular, 56% of 2018 payable copper
production has been hedged at a fixed price of $2.62 per pound and 28% of ZAR denominated operating expenses have been hedged at a fixed rate of 13.59.
4) Cash cost per tonne of ore processed, all-in sustaining cost per ounce of gold and cash cost per tonne of complex concentrate smelted, net of by-product credits, and sustaining capital expenditures have no
standardized meaning under GAAP. Refer to the “Non-GAAP Financial Measures” section of the MD&A for reconciliations to IFRS.
5) Includes the treatment charges, transportation and other selling costs related to the sale of pyrite concentrate, and payable gold in pyrite concentrate sold. Cash cost per ounce of gold sold, net of by-product
credits, excluding payable gold in pyrite concentrate sold and related costs, is expected to be between $550 and $600 in 2017. All-in sustaining cost per ounce of gold, excluding payable gold in pyrite
concentrate sold and related costs, is expected to be between $630 and $855 in 2018.
6) Excludes mark-to-market adjustments on share-based compensation and MineRPs’ general and administrative expenses.
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Krumovgrad – Open Pit Design and Phases
Open Pit Design
Y1
Y2 Long Section Showing the Four Mining Phases
Y1 Y2
PhaseMaximum Elevation
(mRL)
Minimum Elevation
(mRL)
1 480 405
2 470 370
3 460 360
4 455 340
Minimum and Maximum Elevations of Each Mining Phase
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Krumovgrad – Mine Plan Summary
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Krumovgrad – Process Plant Flowsheet
KRUMOVGRAD PROCESS FLOWSHEET
OreRun of
mine pad
Primary
crushingSAG mill
Primary
regrind
Pebble
crusher
Roughers ScavengersThickened
tailings plantIMWF
Tailings
deposition
Ultra-fine
grinding
Process water
tank
RPWR /
SWOR
Water
Treatment
Environ-
ment
Cleaner 1Concentrate
thickener
Filter
press
Final
concentrate
Cleaner
scavengerCleaner 2
Crusher Thickener
Mill Filter
Flotation Water
Legend:
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Krumovgrad – Plant Area
Crushing (0100)
Coarse ore
Storage (0100)
and Pebble
Crushing (0200)
Flotation (0300)
Conc Thickening
and Filtration
(0400)
Grinding (0200)
Tailings Thickening
Plant (1400) and HV
Area (0900/1050)
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Krumovgrad – Integrated Mine Waste Facility (IMWF)Integrated Mine Waste
Facility (IMWF)
Open Pit
IMWF Haul Roads
and sump access
road
Raw and Process Water
Reservoir / Storm water
Overflow Reservoir
Grout Curtain
Pump
station
General Overview
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Krumovgrad – IMWF
South Valley
Starter Berm
North Valley
Starter Berm
First ‘Lifts’
First ‘Lifts’
Sumps
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Krumovgrad – IMWF
Design is compliant with BGN, EU, and international standards
High level of confidence in structural stability
Contingency measures and safety features built into design
Meets all EIA commitments
Key Outcomes:
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Krumovgrad – CSR – Community Relations
Memorandum of Understanding with Municipality of Krumovgrad signed
Stakeholders Engagement Plan
Social Management Plan
Proactive Company Actions
Company information center
Local Consultative Forums - operating at 8 settlements
Grievance Mechanisms
Training of local business is part of project development
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Hedge Position at March 31, 2018
Production Hedges - Swaps YearVolume Hedged
(lbs) % Hedged Average fixed price ($/lb)
Payable copper Balance of 2018 14,375,225 53% $2.62
QP Hedges Year Volume Hedged % Hedged Average fixed price
Payable gold Balance of 2018 5,995 oz 100% $1,343.07/oz
Operating Cost FX Hedges YearForeign Currency
Amount Hedged% Hedged Average exchange rate
ZAR Balance of 2018 359,075,750 33% 13.6791
Production Hedges - Options Year Volume Hedged % HedgedAvg Ceiling
PriceFloor Price
Payable copper Balance of 2018 9,523,958 lbs 35% $3.32/lb $2.80/lb
Capital Expenditure FX Hedges YearForeign Currency
Amount Hedged% Hedged
Average exchange rate
(Foreign currency/US$)
Euro Balance of 2018 36,151,000 100% 1.1467
Production Hedges - Prepaid Forward Gold Sale Year Volume Hedged (oz) % Hedged Avg Forward Price
Payable Gold
Payable Gold
2019
2020
18,013
27,969
9%
11%
$1,390
$1,425
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Creating a Leading Technology Provider
MineRP
Faster deployment of Terrative
Complementary technologies
Establishes DPM at the forefront of digital
innovation
Unique opportunity for DPM shareholders
Positions DPM to remain focussed on its core
mining operations
DPM acquired a 78% interest (70% fully
diluted) for an investment of ~US$20 million
in cash and Terrative assets
22% held by MineRP management
US$5 million of additional financing to
support working capital and growth
initiatives
MineRP Holdings Inc.+ =
Strategic HighlightsTransaction Overview
Independent software vendor ("ISV") for
the mining industry
Industry leading platform
Improves productivity in planning and
operations by integrating applications
Headquartered in South Africa
Wireless underground
communications technology
developed at Chelopech
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DPM Summary
Chelopech
Krumovgrad
Subtotal
~$95 MM EBITDA Less: Sustaining (1) / yr
$81 MM first 5 yrs EBITDA Less: Sustaining (2) / yr(~$61 MM LOM)
~US$176 MM EBITDA Less: Sustaining (1)(2) / yr
• Exploration / mine life extension• Consistent track record of reserve
replacement
Sabina Equity(Incl. warrants)
$36.8 M equity value (stock price at May 14, 2018, warrants at Mar. 31, 2018)
Tsumeb
Timok
Other Assets
Debt
Market Cap: $464 MShare Price: C$3.37
• Transitioning to FCF positive• $7 MM in EBITDA Less: Sustaining (1)
• 370 Ktpa potential capacity with significant operating leverage and modest capital
1.7 MM oz resource in Serbia• Exploration• Oxide potential
Marlartic JV, Tulare and other Serbian licenses, Armenian JV, Kapan NSR, MineRP (78%)
$33M (as at March 31, 2018)
• Exploration on original license
1 Based on FYE Dec. 31, 2017 audited annual financial statements.
2 Based on NI 43-101 technical report entitled “Revised NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” dated November 7, 2017
Cash $15M (as at March 31, 2018)
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Footnotes and Disclaimers
1. 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 and pyrite concentrates sold. Based on metals prices that approximate current rates.
2. Chelopech figures as per 2017 public filings; AISC includes gold production in pyrites
3. Effective dates for Reserves – contained in the 2017 Annual Information form dated March 28, 2018 for the year ended December 31, 2017, filed on SEDAR at www.SEDAR.com and available on our website at
www.dundeeprecious.com
4. Measured and Indicated Mineral Resources are in addition to Mineral Reserves
5. See slide 35 in Appendix for detailed Mineral Reserve and Mineral Resource Estimates
6. A non-GAAP measure. Refer to the “non-GAAP Financial Measures” section of the Q4 2017 MD&A for reconciliations to IFRS
7. Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for impairment charges, unrealized losses/gains on derivative contracts and investments at fair value, minus interest income
8. Includes gold in pyrite concentrate produced
9. Forecast/guidance information is subject to a number of risks. 2018E is based on guidance issued February 15, 2018. See “Forward Looking Statements” on slide 2
10. Krumovgrad figures as per June 6, 2016 press release.
11. Source DPM Guidance issued February 15, 2018
12. Source RBC Capital Markets, May 8, 2018 - Au US$1,307/oz, Ag US$17.32/oz, Cu US$3.24/lb; DPM balance sheet as at March 31, 2018; Adjusted cash flow defined as cash flow from operations before sustaining capital
expenditures. Analysts consensus for DPM NAV (RBC for peers) with P/NAV range of 0.4x-0.73x
13. Includes DPM 2018E plus Krumovgrad LOM average as per June 6, 2016 press release using RBC Capital Markets’ metal prices
14. Contained in the 2017 Annual Information Form dated March 28, 2018, filed on sedar at www.SEDAR.com and available on our website at www.dundeeprecious.com
15. Based on Au of $1,250/oz, Cu of $2.75/lb, Euro/US$ = 1.15
16. Calculated using Au production
17. AISC based on 2018 guidance for concentrate smelted
18. Source: Technical report for the Initial project Feasibility Study on the Back River Gold Property, Nunavut, Canada, Dated October 28, 2015, filed on sedar at www.SEDAR.com
19. Source: Timok Gold Project, Serbia – Updated Mineral Resource contained in the 2016 Annual Information Form, Dated March 28, 2017, filed on sedar at www.SEDAR.com
20. Based on NI 43-101 technical report entitled “Revised NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” dated November 7, 2017, filed on sedar at www.SEDAR.com; Using gold price $1,250/oz
21. Includes 5 million warrants valued at US$3.4M as at March 31, 2018
22. For more information regarding the company’s current Mineral Resource and Mineral Reserve estimates, please refer to Dundee Precious Metals Annual Mineral Reserve and Mineral Resource Statement as at December 31,
2017 contained in our Annual Information Form, dated March 28, 2018, which is available on our website at http://www.dundeeprecious.com and on sedar at www.SEDAR.com
23. P/NAV consensus based on most recent analyst reports (April and/or May 2018): CIBC 0.4x (5%), RBC 0.75x (8%), Paradigm 0.45x (5%), GMP 0.35 (5%), Scotiabank 0.6x (5%)
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Footnotes and Disclaimers Cont’d
A. The Mineral Resource and Mineral Reserve estimates for Chelopech and other scientific and technical information which supports this presentation was prepared by Petya Kuzmanova, MIMMM, CSci, Senior Resource
Geologist, of the Company, under the guidance of 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, Maria O’Connor, BSc, MAusIMM, MAIG, Principal Resource Geologist of CSA, Ross Overall, Senior Corporate Resource Geologist, of the Company, and as
relates to Mineral Reserves, Karl van Olden, BSc (Eng), GDE, MBA, FAusIMM, Mining Manager of CSA. Maria O’Connor, Ross Overall and Karl van Olden are Qualified Persons (“QP”), as defined under NI 43-101 and are
independent of the company, with the exception of Mr. Overall who is not independent of the company. Ross Overall, Senior Corporate Resource Geologist, of the company, who is a QP, as defined under NI 43-101, has
reviewed and approved the contents of this presentation.
B. The Mineral Resource and Mineral Reserve estimates for the Krumovgrad project 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 “Revised NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” dated November 7, 2017, in
respect of the study for the construction and operation of its Krumovgrad gold project disclosed herein, was filed November 7, 2017 on SEDAR at www.sedar.com. Simon Meik, former Corporate Director Processing of the
Company, 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.
Qualified Person Disclosure
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.
