SCOTIABANK MINING CONFERENCE DPM CORPORATE …s21.q4cdn.com/.../doc_presentations/2016/SCOTIABANK.pdf · 2016-12-08 · Chelopech Mine, Bulgaria SCOTIABANK MINING CONFERENCE DPM CORPORATE

Chelopech Mine, Bulgaria

SCOTIABANK MINING CONFERENCE

DPM CORPORATE PRESENTATION

December 7, 2016

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 (including sustaining capex, non-discretionary capex

and discretionary capex), costs and timing of the development of new deposits, success of exploration activities, permitting time lines,

currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated

reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation.

Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, or “does not expect”,

“is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations

of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be

achieved. Forward looking statements are based on the opinions and estimates of management as of the date such statements are

made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or

achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied

by the forward looking statements. Such factors include, among others: the actual results of current exploration activities; actual results of

current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future

prices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated;

accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the

completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in

this presentation under and in the Company’s annual information form under the heading "Risk Factors" and other documents filed from

time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. Although

the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those

described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated

or intended. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events

could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on

forward looking statements.

TSX:DPM 3

AN INNOVATIVE GROWTH ORIENTED GOLD PRODUCER

Offer Investors a deep value investment opportunity

Low cost gold production growth of over 60% by 2019 with the permitted

Krumovgrad Gold Project

Solid EBITDA growth with growing free cash flow

Strong balance sheet with financial flexibility

Strong reserve base with exploration upside potential around existing

assets and regionally

Recognized as a leading innovator in the mining industry

TSX:DPM 4

DPM’S GLOBAL PORTFOLIO OF ASSETS

Unique Assets With Commodity & Geographic Diversity

Avala

Serbia

100%

Tsumeb Smelter

Namibia

100%

Chelopech Mine

Bulgaria

100%

Sabina

Canada

11%

Krumovgrad Gold Project

Bulgaria

100%

Operating assets

Development asset

Exploration assets

TSX:DPM 5

DPM’S VISION AND STRATEGY

Optimize Portfolio Growth Innovation

Increased profitability by

driving operational

excellence, underpinned by

effective leadership and

systems

A progressive gold mining company that unlocks and delivers superior value

through innovation and strong partnerships with stakeholders

Grow the business by

realizing the value of our

pipeline of assets

enhanced by M&A,

exploration and rapid

deployment

Create value through

deployment of technology

and innovation underpinned

by internal capability and

strategic partnerships

Maintain Financial Strength and Flexibility

TSX:DPM 6

ATTRACTIVE VALUE INVESTMENT OPPORTUNITY

Hard Hit Sector Valuations Creating

A Rare Investment Opportunity

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$0

$500

$1,000

$1,500

$2,000

2013 2014 2015

Cu price

2012

Au price

2016

$500

$800

$1,100

Dundee Alacer New Gold Alamos Primero

Average = $890/oz

$750-850/oz

Below Average 2016F All-In-Sustaining Mine Cost (3)(4)(10)(11)(12)(14)

3,4,10,11,12,14 See footnotes contained in Appendix on slide 43

Attractive Valuation Metrics

EV/2016F EBITDA (Cons. Est.)

P/NAV (Cons. Est.)(12)

New Gold Alamos Argonaut Alacer DPM Primero

0.56x

0.92x

0.65x0.70x

0.39x0.37x

Avg. 0.60x

2016: $1,275 Au

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

20132012 2014

DPM share priceGDXJ performance

2015 2016

Alamos New Gold Alacer Primero Argonaut DPM

8.2x

10.2x

7.2x

6.0x 5.8x5.1x

Avg. 7.1x

TSX:DPM 7

CONSOLIDATED RESULTS AND OUTLOOK

626690

890

725

640

510

2013 2014 2015 2016F 2017F 2018F 2019F 2020F

687

750-

850

153 161 169132-155 143

166

217

270

2013 2014 2015 2016F 2017F 2018F 2019F 2020F

198

195-205

220-250

265-320

370

2013 2014 2015 2016F 2017F 2018F 2019F 2020F

196

46 4340

35.7-39.7

34 36 36 37

2013 2014 2015 2016F 2017F 2018F 2019F 2020F

Payable Copper (Mlbs)Payable Gold (Koz) Smelter Production (Kt)

All-in Sustaining Cost (US$/oz)Capital Expenditures (US$M) Smelter Cash cost (US$/t)

152

2013 2014 2015 2016F 2017F 2018F 2019F 2020F

216 Sustaining CAPEX

Non-discretionary Growth CAPEX

Discretionary Growth CAPEX

184

87

54-65

99

24

380

310275 265

2013 2014 2015 2016F 2017F 2018F 2019F 2020F

27

173

(4) (4) (4)

(3)(4) (3)(4)

(13)(13)

430-

450

409394

479

320-

370

3,4,13,15 See footnotes contained in Appendix on slide 43

(3) (4)

(15) (15)

TSX:DPM 8

STRONG FINANCIAL POSITION

• Net debt at end of Q3 - $32M

• Sale of Kapan - $25M plus working capital adjustment and 2% NSR on future production

• Completion of C$57M equity offering

• Increased Cu and Au hedge positions to the following levels

• Cu hedged 75% and 38% of BOY2016 and 2017 production at avg. price of $2.24/lb

• Au hedged 15% and 30% of BOY2016 and 2017 payable gold production using

collars with avg. floor/cap of $1,200/$1,495 per ounce

• Prepaid forward gold sale – sale of 9% of forecast 2019 & 2020 Au production for upfront

cash prepayment of $50M

Cash &

cash equivalents

$62MUndrawn RCF

$205M

Available liquidity @ September 30, 2016

TSX:DPM 9

STRONG RESOURCES & RESERVES BASE

Mineral Resources Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%)

Chelopech

M&I

Inferred

14.2

2.8

1.533

0.82

329

51

3.37

2.48

1.06

0.82

Krumovgrad

Inferred (upper) 0.3 0.013 1.31

Timok 1

Indicated

Inferred

67.42

4.3

2.48

0.2

1.14

1.0

Tulare 2

Inferred 547 3.8 2.8 billion 0.22 0.23

Total Mineral Resources

Indicated

Inferred

81.62

554.4

4.013

4.833

329

2.8 billion

Mineral Reserves Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%)

Chelopech

Proven

Probable

11.88

9.64

1.167

1.020

266

178

3.06

3.29

1.02

0.84

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

0.02

3.46

6.83

3.00

5.54

Total Mineral Reserves 27.72 2.993 444

1. NI 43-101

Technical

Report

dated May

1, 2014

2. Dunav

Press

Release

dated June

23, 2014

TSX:DPM 10

9 MONTHS 2016 OPERATING RESULTS

Bulgaria

50%Namibia

45%

Canada

5%

2016 Asset

Diversification(2)

Tsumeb

25%

Chelopech

75%

2016 Adjusted EBITDA

Generation (3)(5)

2016 Revenue

Diversification (1)

Smelter

35%Gold

45%

Copper

19%

Ag 1%

1,2,3,5 See footnotes contained in Appendix on slide 43

* From continuing operations

Nine Months 2016

Consolidated Mines

Gold production (incl. pyrite) 128,018 oz

All in sustaining costs $788/oz Au

Tsumeb Smelter

Concentrate smelted 139,002 T

Cash cost/T con smelted $471

Consolidated Adjusted EBITDA* $42.8M


TSX:DPM 12

CHELOPECH 9 MONTH RESULTS

Highlights:

• Copper production – 29.6 million pounds

• Gold production (incl. pyrite) – 121,701 ounces

• Cash cost/ounce Au in Cu Con produced - $376

• Adjusted EBITDA – $58.7 million

Chelopech 9 month results in line with full year guidance

SAG Mill Underground crushing & conveying systems

TSX:DPM 13

CHELOPECH – A WORLD CLASS, LOW COST MINE

Recent Achievements

• Continuing to ramp up production beyond

2M tpy

• Real time operations with underground

wireless technology to optimize

operating performance

• Step change improvements in stope

mucking rates

• Successful reserves replacement

Building on that Success

• Aggressively drilling upper levels around old

cave zones to add additional resources

• Developing mining plans for cave zone

areas to begin mining in 2017

• Regional exploration program for potential

southeast extensions of existing orebodies

on newly acquired Brevene License

1.09

1.31

1.812.03 2.05 2.04

2.0-2.25

2010 2011 2012 2013 2014 2015 2016F

Ore Mined (mt)

(4)

2006 2015

Ore Mined / Reserves (mt)

21.5 21.5

14.1

56 55

46

40 4036 32-36

2010 2011 2012 2013 2014 2015 2016F

Cash Cost / tonne of ore processed (US$/t)(3)

2010 2011 2012 2013 2014 2016F(4)2015

Total ore

mined to date

Ore Reserve

3,4 See footnotes contained in Appendix on slide 43

TSX:DPM 14

Chelopech Real Time Operations

Mining

Planning & Scheduling

Maintenance


Supply chain / Logistics


Fe

ed

ba

ck

Info

rma

tionP

lanning

Info

rma

tio

n

Mining Execution Business Processes

Drilling Loading Transportation Crushing Conveying

Support & Maintenance Processes

Real time Process

Monitoring and Control

Mining Operations Management System

Tight Feedback Loop to Minimize Variation and Monitor Schedule Compliance

TSX:DPM 15

CHELOPECH – MOVING CAVE ZONE RESOURCES

INTO MINE PLANS

• Mineral Resource update reclassified 4.2 MT of

resources from inferred to indicated

• Target: start to move these resources into mine

plans in early 2017

Comparison of MRE as at December 31, 2015 with MRE as at December 31, 2014

Mineral Resources exclude all blocks already classified as Mineral Reserves

Resource

Category

2015

MTonnes

2014

MTonnes

Grades

2015 Cu2014

Cu

2015

Au2014 Au

(%) (%) (g/t) (g/t)

Total M+I 14.2 11.3 1.06 1.13 3.37 3.58

Inferred 2.8 8.3 0.82 0.91 2.44 2.66

Chelopech Ore Reserves as at December 31, 2015

Grades

Classification MTonnesGold

(g/t)

Silver

(g/t)

Copper

(%)

Total Proven and Probable 21.51 3.16 7.08 0.94


TSX:DPM 17

TSUMEB 9 MONTHS OPERATING RESULTS

3

18.5

8.6

2011 2014 2015

26

63

140130

44

24-28

2011 2012 2013 2014 2015 2016F

Total Capital Expenditures (US$M)

2012

2013(4)

Smelter Adjusted EBITDA (US$M)(5)

(2.5) (7)

Highlights:

• Total concentrate smelted – 139,002 tonnes

• Cash cost/T complex con smelted, net of by product credits – $471

• Adjusted EBITDA – $3.1 million

• Acid production – 130 MT


TSX:DPM 18

TSUMEB - CURRENT SCENARIO

(2)

152,457

198,346 199,000 195k – 205k

240,000

24,825 36,877

45,221 46,000 63,000

0

50,000

100,000

150,000

200,000

250,000

300,000

2013 2014 2015 2016 NormalOperation

Concentrate Smelted and Blister Production

Conc Blister

• New converters were commissioned in Q1 2016

• In Q2 and Q3 we resolved converter blower control constraints

• Q3 was dominated by two Ausmelt outages

• In Q4 we continue to debottleneck the converters

• Introduction of matte storage is planned for mid-year 2017 and this will

provide significant additional process stability

• Approximately 35,000t of smelter operation was lost in 2016 due to

additional Ausmelt outage, new converter optimization and high

pressure oxygen plant constraints. Of these, only converter optimization

is carried into 2017

Matte Holding Furnace

C:/Users/h.friedrich/NCS/Ausmelt/Presentation/Outotec%C2%AE Ausmelt TSL Furnace Technology.MP4

C:/Users/h.friedrich/NCS/Ausmelt/Presentation/Outotec%C2%AE Ausmelt TSL Furnace Technology.MP4

TSX:DPM 19

TSUMEB: SMELTING PERFORMANCE


(4) (4) (4)(4)(4)

(2)

(3),(4)

198 196

195-205

320-370

120

180

159152

370

312

341

420

479

394409

430-450

380

310

275265

2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F

Recent Achievements

• Major 5 year capex program now

completed

• Acid plant now capturing all of the

convertor and furnace SO2 offgasses

Building on that success

• Completing Expansion Feasibility Study

to 370,000tpa in Q4

• Negotiating contracts for third party

concentrate feeds

• Completing Environmental Impact

Assessment for submission in Q1 2017

• Exploring partnership options for

expansion funding

Third Party

con supplied

to smelter

(000s)

Chelopech

concentrate

supplied to

smelter

(000s)

Cash cost per

tonne of

concentrate

smelted (net of by

product credits)(3)

220-

250

265-

320

Anticipated

future capacity

(4) (4) (4)(4)(4)

TSX:DPM 20

OUTLOOK FOR COMPLEX CONCENTRATES

Mines In Operation Annual Tonnage As (%)

Chelopech 100,000 5.5%

South America(6) 150,000 – 250,000 4.0% - 8.0%

Blend 30,000 – 50,000 5.5% - 7.0%

TOTAL 280,000-400,000

Not in Production Annual Tonnage As (%)

South America(6) 80,000 6.0+%

Rest of the world 100,000 – 150,000 5.0% - 10%

TOTAL 180,000-230,000

6 See footnotes contained in Appendix on slide 43


TSX:DPM 22

KRUMOVGRAD BUSINESS OUTLOOK


Production and Operating Costs

Annual gold production (7) 85,700 oz

Annual silver production (7) 38,700 oz

First concentrate production H2 2018

LOM (7) 8 years

Total Annual Operating Costs / T ore processed (7)

Mining costs

Processing costs

Tailings treatment & IMWF costs

General & administration

Royalty

$45.41

$15.03

$19.39

$1.88

$5.33

$3.78

Capital Costs

Construction capital to complete (7)

Direct Costs

Indirect Costs

Contingency P50 (7.5% of direct + indirect costs)

$178.2 million

$117.1 million

$48.7 million

$12.4 million

Sustaining Capital $6.2 million

Closure and Rehabilitation Costs $6.0 million

Total cash cost per oz AuEq (7) $403

Average Annual EBITDA (5,7) $66 million

Project

economics remain

robust with a 25%

after-tax IRR

5, 7 See footnotes contained in Appendix on slide 43

TSX:DPM 23

KRUMOVGRAD – 2016-2018 PROJECT MILESTONES

Milestone Actual / Expected Completion (4)

Completion of the detailed project execution plan Q1 2016 (complete)

Complete detailed engineering Q1 2016 (complete)

Updated capital cost estimate and baseline project schedule Q1 2016 (complete)

Land re-designation and purchase Q1/2 2016 (both complete)

Approval of technical packages Q2 2016 (complete)

Construction permit RECEIVED AUGUST 9, 2016

Mobilize earthworks contractor to site Q4 2016

Commence main civil/mechanical/electrical construction Q2 2017

Commissioning and start up Q3 2018

First concentrate production Q4 2018

TSX:DPM 24

KRUMOVGRAD – Q4 2016 ACTIVITIES

• Completion of the early works program

• Complete mobilization and set up of the project team

• Complete outstanding geotech drilling (seven holes)

• Complete mobilization and set up of the earth works

contractor at the site

• Complete tree clearing

• Complete temporary access road to the site

• Commence earthworks activity at the site

TSX:DPM 25

KRUMOVGRAD SITE PHOTOS


Top of the hill

Temporary access road

Foot of the hillEquipment arriving at site

Top of the hill

Temporary access road

TSX:DPM 26

KRUMOVGRAD PROCESS PLANT AND SCOPE OF WORK

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)

TSX:DPM 27

KRUMOVGRAD MINE PLAN SUMMARY

TSX:DPM 28

KRUMOVGRAD IMWF GENERAL OVERVIEW

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

TSX:DPM 29

KRUMOVGRAD IMWF CONSTRUCTION

Grout Curtain

SumpFirst ‘Lifts’


TSX:DPM 31

EXPLORATION – BROWNFIELDS - CHELOPECH


Drilling commenced at SE Breccia pipe zone

TSX:DPM 32

EXPLORATION – BROWNFIELDS - CHELOPECH

Hole No. 555-01 Section

SE Breccia Pipe Zone

Diorite

Diorite

silic

a+d

icki

tep

yro

ph

yllit

e

Cu

-po

or

Cu

-be

arin

g

AAA: kaolinite

AAA: pyrophyllite

AAA: silica-dickite

Orebody #10

Intervals with observedCu-bearing minerals

Southeast Breccia Pipe • First of 7 UG holes commenced in

September.

• 555-01 intersected weak

mineralization hosted by phreato-

magmatic breccia with zones of

advanced argillic alteration (assays

pending).

• Confirms HSE system is open to

southeast beneath the Chelopech

Thrust Fault.

• 555-02 testing eastern extension of

the SE Breccia Pipe on the Brevene

Exploration Licence.

Brevene Exploration License• Granted on September 1

• Comprehensive work program

approved by MOE.

TSX:DPM 33

EXPLORATION – BROWNFIELDS - KRUMOVGRAD


Kupel North Drill Program

TSX:DPM 34

EXPLORATION – BROWNFIELDS – TIMOK, SERBIA



Korkan resource

Bigar Hill resource

BIDD056

Target area 1

BIDD060

Target area 2

Target area 3

2km

• 3000m drill program to find additional

near-surface resources in proximity to

existing resources at Bigar Hill and

Korkan.

• Three near-resource target areas are

being tested during 2016. Results to date

from Target area 1 include:• BIDD056: 5m @ 0.52g/t Au, 0.51% Pb & 0.20% Zn.

• BIDD060: 6m @ 0.64g/t Au, 1.56% Pb & 0.70% Zn.

• Dundee Sustainable Technologies

• Chlorination of ore after oxidation and

acid leaching gave 84% Au recovery.

• CSA resource update in progress.

• Pit-constrained

• Re-reported resource with updated

assumptions

• Updated 43:101 technical report &

statement in time for 2017 AIF.

Near Resource Drill Program

TSX:DPM 35

EXPLORATION – GREENFIELDS – TIMOK & UMKA

Korkan North

Bigar South

Umka license

Bigar Istok

Coka Rakita

Umka“porphyry”

Bkgrd: Au in soils

IP & resistivity surveys (lines)

Infill soil surveys (points)

5km

• Soil survey sampling commenced in August

• Results received for Bigar and Pester areas;

compilation with geophysics planned for Q4.

• IP & resistivity geophysics commenced in August

• Completed over Bigar South, Pester, and Umka

North areas.

• Pending completion over Korkan North.

• Coka Rakita (Au-porphyry target) – trench program

completed; drill targeting underway to expand target

volume.• RATR043: 8m @ 2.61g/t Au, inc. 2m @ 4.53g/t Au.

• RATR045: 10m @ 1.14g/t Au

• Umka license under evaluation, infill soils collected

on western sediment units and along monzonite

contact.

• Technical Review in October – generating drill

targets for 2017.

IP, Soil Geochemistry and Trenching

35


TSX:DPM 37

SOLID FINANCIAL POSITION HEADING INTO

KRUMOVGRAD CONSTRUCTION



• Forecast cash flows and available capital resources support growth projects

• Actions taken in 2016 that have increased financial flexibility

• Amended $275mm RCF to align with Krumovgrad project schedule

• Sale of Kapan - US$25mm plus working capital adjustment and 2% NSR

• Equity offering - C$57mm

• Prepaid forward gold sales - $50mm or ~9% of forecast 2019 & 2020 Au production $50mm

• Increased Cu and Au hedge positions

• Cu – Hedged 75%, 74% and 30% of BOY2016, 2017 and 2018 production at an average price of $2.32,

$2.35 and $2.62 per pound, respectively

• Au – Hedged 15% and 30% of BOY2016 and 2017 payable gold production using collars with an

average floor/cap of $1,200/$1,495

5

0.0

5.0

10.0

15.0

20.0

25.0

Sept. 30, 2016

0.80

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Sept. 30, 2016

267

0

50

100

150

200

250

300

Sept. 30, 2016

RCFThreshold

32

0

50

100

Sept. 30, 2016

Reported Net Debt ($mm) Net Debt / Capitalization (%) Available Liquidity ($mm) Net Debt / EBITDA (x)


TSX:DPM 39

KEY MILESTONES

2016 2017 2018Q4 expansion study to

370,000 tpy concentrate

smelted

Smelter

KrumovgradQ4 Commence Earthworks

H2 First concentrate production

Chelopech Expansion study to 2.5 mtpy

ore production

Q4 Financing plan in place

Q2 Expansion study Detailed

Engineering

Q3 Ausmelt Cooling Upgrade

Expansion Implementation

Construction

Production ramp to 2.2 mtpy

Evaluation of mining and

milling intensity constraints

Resource development above

390 level targeted at

increasing reserves

Expansion Implementation


Corporate Head Office:

One Adelaide Street East, Suite 500

Toronto, Ontario

M5C 2V9

T: 416 365-5191

Investor Relations

T: 416 365-2549

[email protected]

TSX:

DPM – Common Shares

www.dundeeprecious.com

Thank You

TSX:DPM

APPENDICES

TSX:DPM 42

APPENDIX CONTENTS

Footnotes and Disclaimers…………………………………………………………………. 43

Market Cap., Major Shareholders, Analyst Coverage…………………………………… 44

2016 Guidance………………………………………………………………………………. 45

Hedge Positions at June 30, 2016….……………………………………………………. 46

Exploration – Partially Owned Exploration Assets……………………………………….. 47

TSX:DPM 43

FOOTNOTES AND DISCLAIMERS

1. From continuing operations

2. Estimated to end of 2016

3. A non-GAAP measure. Refer to the “non-GAAP Financial Measures” section of the Full Year 2015 MD&A for reconciliations to IFRS

4. Forecast/guidance information is subject to a number of risks. 2016F is based on guidance issued November 9, 2016 and 2017 to 2020 forecast data is based on the completion of several growth

projects within currently contemplated time frames. See “Forward Looking Statements” on slide 2

5. Adjusted EBITDA represents earnings before income tax plus depreciation and amortization, finance costs, losses/gains on impairment provisions and reversals, unrealized losses/gains on

derivative contracts and investments at fair value, realized and unrealized losses/gains on equity settled warrants, minus interest income

6. Additional penalty income available from other deleterious elements

7. Based on 2014 Krumovgrad Technical Report; Project economics based on June 6, 2016 Krumovgrad Update; All costs expressed as Q4 2015 US$ based on a US$ / Euro exchange rate of 1.14

8. Net Debt represents term debt and amount drawn under revolving credit facility, less cash

9. Undrawn portion of RCF and cash

10. Source: company midpoints of AISC per ounce of gold guidance provided in Q4 2015

11. AISC per ounce of gold represents cost of sales at Chelopech less depreciation, amortization and other non-cash items plus treatment charges, penalties, transportation and other selling costs,

sustaining capital expenditures, rehabilitation related to accretion expenses and an allocated portion of the Company’s G&A expenses less by-product revenues in respect of copper and silver

including realized gains on copper derivative contracts divided by the payable gold in copper concentrate sold

12. Source: RBC as at November 24, 2016

13. Reflects payable production and, in the case of gold, includes estimated payable gold in pyrite concentrate sold

14. Excludes metals in pyrite concentrate and where applicable, the treatment charges, transportation and other selling costs related to the sale of pyrite concentrate which is reported separately

15. Excludes Kapan

Without limitation to the foregoing, the following outlines certain specific forward looking statements contained in this presentation and provides certain material assumptions used to develop such forward looking

statements and material risk factors that could cause actual results to differ materially from the forward looking statements (which are provided without limitation to the additional general risk factors discussed

herein and in the Full Year 2015 MD&A).

Sustaining CAPEX, Non-Discretionary CAPEX and Discretionary CAPEX: assumes foreign exchange rates remain at or around current levels, and all capital projects proceed as planned and at a cost that is

consistent with the budget established for each project. Subject to a number of risks, the more significant of which are: technical challenges; delays related to securing necessary approvals, equipment deliveries,

equipment performance, and the speed with which work is performed; availability of qualified labour; and changes in project parameters, timing and decision to proceed with projects and/or any components there

of and estimated costs, including foreign exchange impacts.

Gold and Copper Production: projected levels of metal production assumes grades and recoveries are consistent with current estimates of Mineral Resources and Mineral Reserves and DPM’s current

expectations and construction start-up of Krumovgrad project and decision to proceed with projects and/or any components there of; and ore mined/milled is consistent with planned levels. Subject to a number of

risks, the more significant of which are: lower than anticipated ore grades, recovery rates and ore mined/milled.

Smelted Concentrate: assumes no significant disruption in equipment availability or concentrate supply. Subject to a number of risks, the more significant of which are: unanticipated operational issues; timing and

decision to proceed with expansion projects, including the holding furnace, and/or any components there of; unanticipated issues related to the commissioning and operation of the acid plant and converters and

any further expansion components including a holding furnace; lower than anticipated equipment availability; and disruptions to or changes in the supply of concentrate.

Technical Information related to slide 23 – Krumovgrad Project Economics

The Mineral Resource and Mineral Reserve estimates and other scientific and technical information which supports this presentation was prepared by CSA Global (UK) Ltd. (“CSA”), in accordance with Canadian

regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects, and were reviewed and approved by, as relates to Mineral Resources, Galen White, BSc (Hons)

FAusIMM FGS, Director and Principal Consultant of CSA, and Julian Bennett, BSc ARSM FIMMM CEng, as relates to Mineral Reserves. Both Galen White and Julian Bennett are independent Qualified Persons

(“QP”), as defined under NI 43-101. The NI 43-101 technical report (the “Krumovgrad Technical Report”) entitled “NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” dated March 21,

2014, in respect of the study for the construction and operation of its Krumovgrad gold project disclosed herein, was filed March 31, 2014 on SEDAR at www.sedar.com. Simon Meik, Processing, and Edgar

Urbaez, formerly Corporate Director, Technical Services, both of DPM, who are QPs and not independent of the Company, have reviewed and approved the contents of this presentation. The Mineral Resource

and Mineral Reserve estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect the potential development of such Mineral Resources. See the

Krumovgrad Technical Report for more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing Mineral Resource estimates.

Cautionary note to U.S. Investors concerning estimates of Mineral Resources. These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. The

terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in NI 43-101 and recognized by Canadian securities laws but are not defined terms under the U.S. Securities and

Exchange Commission (“SEC”) Guide 7 (“SEC Guide 7”) or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves.

“Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever by upgraded

to a higher category. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral

resource exists or is economically or legally mineable. Accordingly, these mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure

requirements under the U.S. federal securities laws and the rules and regulations thereunder, including SEC Guide 7.

http://www.sedar.com/

TSX:DPM 44

MKT CAP, MAJOR SHAREHOLDERS, ANALYST COVERAGE

Share Price (C$ per share) $2.37

Shares Outstanding – Current 161M

Market Capitalization – Current C$382 M

52 week low – high (C$ per share) $0.84 – $4.14

Share Capital @ December 7, 2016 Analyst Coverage

Firm Analyst

BMO **In transition**

CIBC Capital Markets Jeff Killeen

Dundee Capital Partners Josh Wolfson

GMP Securities Oliver Turner

Paradigm Capital Don MacLean

Raymond James **In transition**

RBC Capital Markets Sam Crittenden

Scotia Capital Trevor Turnbull

Dundee Corporation 22.66%

GMT Capital 12.55%

Van Eck Associates 9.70%

USAA Asset Mgmt. 3.53%

Kopernik Global Investors 3.49%

Major Shareholders

TSX:DPM 45

2016 GUIDANCE @ SEPTEMBER 30, 2016

US millions, unless otherwise indicated Chelopech Kapan (5) Tsumeb Consolidated (6)

Ore mined/milled (‘000s tonnes) 2,030-2,250 131 - 2,161-2,381

Complex concentrate smelted (‘000s tonnes) - - 195-205 195-205

Metals contained in copper and zinc concentrates produced (1)(2)

Gold (‘000s ounces) 108-118 6 - 114-124

Copper (million pounds) 35.0-39.0 0.7 - 35.7-39.7

Zinc (million pounds) - 2.8 - 2.8

Silver (‘000s ounces) 204-234 111 - 315-345

Payable gold in pyrite concentrate sold (‘000s ounces) 26-40 - - 26-40

Cash cost per tonne of ore processed ($) (3)(4) 32-36 81 - 32-36

Cash cost per ounce of gold sold, net of by-product credits ($) (1)(3)(4) 550-650 1,136 - 550-650

All-in sustaining cost per ounce of gold ($) (1)(3)(4) - - - 750-850

Cash cost per tonne of complex concentrate smelted, net of by-product credits ($) (3)(4) - - 430-450 430-450

Cash cost per ounce of gold sold in pyrite concentrate ($) (4) 750-850 - - 750-850

General & administrative expenses (3) - - - 17-21

Exploration expenses (3) - - - 5-6

Sustaining capital expenditures (3) 10-12 3 12-16 22-28

1) Excludes metals in pyrite concentrate and, where applicable, the treatment charges, transportation and other selling costs related to the sale of

pyrite concentrate, which is reported separately.

2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.

3) Based on foreign exchange rates and metal prices that approximate current rates and prices. The assumed copper price reflects the impact of 67%

of 2016 copper production being hedged at $2.32 per pound.

4) Cash cost per tonne of ore processed, cash cost per ounce of gold sold, net of by-product credits, all-in sustaining cost per ounce of gold, cash cost

per tonne of complex concentrate smelted, net of by-product credits and cash cost per ounce of gold sold in pyrite concentrate have no standardized meaning under GAAP. Refer to the “Non-

GAAP Financial Measures” section of the Q2 2016 MD&A for reconciliations to IFRS.

5) As a result of the Kapan Disposition, which closed on April 28, 2016, Kapan’s operating results have been treated as a discontinued operation and its production and cost guidance reflects

actual performance for the period January 1 – April 28, 2016.

6) Consolidated guidance for ore mined/milled and metals production includes results from the discontinued Kapan operation. Consolidated guidance for cash cost per tonne of ore processed,

cash cost per oucne of gold sold, net of by-product credits, all-in sustaining cost per ounce of gold and capital expenditures pertains to continuing operations.

TSX:DPM 46

HEDGE POSITIONS AT SEPTEMBER 30, 2016

Year of projected payable copper production Volume Hedged (lbs) % Hedged Average fixed price ($/lb)

Balance of 2016 6,316,236 75% $2.32

2017 14,550,492 38% $2.17

QP Commodity Hedged Volume Hedged % Hedged Average fixed price

Payable gold 31,490 oz 100% $1,327.17/oz

Payable copper 9,479,866 lbs 100% $2.20/lb

Payable silver 24,850 oz 100% $18.76/oz

Year of projected payable

gold in pyrite con productionVolume Hedged (oz)

% Hedged(payable gold in pyrite

con production)

Average fixed price of Pyrite Production

Hedges ($/oz)

Balance of 2016 2,010 29% 1,150.00

Year of projected operating

expensesForeign currency hedged

Amount hedged in

foreign currency% Hedged

Average exchange rate

Foreign currency/US$

Balance of 2016Euro

South African rand

2,925,000

189,000,000

23%

62%

1.1166

13.3230

2017Euro

South African rand

10,800,000

720,000,000

23%

63%

1.1287

13.8699

TotalEuro

South African rand

13,725,000

909,000,000

1.1261

13.7525

Year of projected payable gold production Volume Hedged (oz) Average ceiling

price ($/oz)Floor Price ($/oz)

Balance of 2016 3,300 1,484 1,200

2017 45,000 1,497 1,200

TSX:DPM 47

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

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

• DPM holds 11.8%

• Assets include:

• High Grade Back River Gold Project:

• September 2015 updated feasibility study*:

o Mill throughput of 3,000 tpd

o Avg. annual gold production of 198,100 oz @ $US534/oz cash cost

o LOM 11.8 years

o Pre-production capital C$415M; Sustaining capital C$185M; Closure capital C$64M

o Post-tax IRR of 24.2% and NPV of C$480.3M

• Hackett River payable silver royalty from Glencore Zinc:

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

PARTIALLY OWNED EXPLORATION / DEVELOPMENT ASSETS

*Calculated using US$1,150/oz Au price

Documents

SCOTIABANK MINING CONFERENCE DPM CORPORATE …s21.q4cdn.com/.../doc_presentations/2016/SCOTIABANK.pdf · 2016-12-08 · Chelopech Mine, Bulgaria SCOTIABANK MINING CONFERENCE DPM CORPORATE