Dpm Metals Inc. · TSX:DPM
Dpm Metals — Shareholder Meeting (May 2020)
29 slides from Dpm Metals's shareholder meeting presentation, May 7, 2020
Slide 1: Delivering on our Strategy
Delivering on our Strategy Virtual Annual General Meeting May 7, 2020
Slide 2: Jonathan Goodman, Chair of the Board of Directors
JONATHAN GOODMAN Chair of the Board of Directors
Slide 3: Welcome to our Virtual Annual General Meeting
Welcome to our Virtual Annual General Meeting Adopted a virtual format for this year’s annual meeting in response to the COVID-19 global pandemic ▪ Questions may be submitted using the instant messaging service of the virtual interface Asking ▪ Please indicate your name and which entity you represen
Slide 4: Meeting Agenda
Meeting Agenda Appointment of the Secretary and Scrutineer Constitution of the Meeting Presentation of Financial Statements and Auditor’s Report Nomination and Election of Directors Appointment of the Auditor Advisory “Say on Pay” Resolution Voting on the Items of Business Termination of the Meeting
Slide 5: Nomination and Election of Directors
Nomination and Election of Directors Jonathan Goodman Peter Gillin Jeremy Kinsman Juanita Montalvo David Rae Chair Lead Director President & CEO Peter Nixon Marie-Anne Tawill Anthony Walsh Donald Young 5 TMX:DPM
Slide 6: Recognizing Achievements of Departing CEO Rick Howes
Recognizing Achievements of Departing CEO Rick Howes Instrumental in leading DPM through a transformational period of the Company’s history ▪ Joined DPM in 2009 as General Manager for Chelopech ▪ Became Chief Operating Officer in 2010 ▪ Led Chelopech expansion to 2 Mtpa and transformation into world
Slide 7: Rick Howes, Retiring President & CEO
RICK HOWES Retiring President & CEO 7
Slide 8: Forward Looking Statements
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 herein
Slide 9: 2019: A Pivotal Year for DPM
2019: A Pivotal Year for DPM Significant achievements in 2019 laid a strong foundation for the future Delivering Operational Excellence Growing Financial Strength ➢ Impressive safety performance: achieved 2.5 ➢ Strengthened balance sheet: growing cash million hours without an LTI position and reduce
Slide 10: 2019: A Pivotal Year for DPM
2019: A Pivotal Year for DPM Significant achievements in 2019 laid a strong foundation for the future Focused on Disciplined Growth Building Shareholder Value ➢ Initiated quarterly dividend of US$0.02/sh ➢ Completed PEA on the Timok Project in Serbia ➢ DPM shares outperformed indices and metal price
Slide 11: David Rae, President & CEO
DAVID RAE President & CEO 11
Slide 12: Transitioning to a Mid Tier Producer
Transitioning to a Mid Tier Producer Growing average annual production to ~275,000 oz. Au from high grade assets(3) Targeting lowest quartile costs with AISC of US$680-US$760/oz.(3,4) Free cash flow expected to average ~US$140 – US$180MM/yr over next 3 years(1,2) Strong balance sheet with growing ca
Slide 13: Proactive COVID-19 Response Measures
Proactive COVID-19 Response Measures ➢ Prioritizing the health and safety of our workforce and local communities ➢ All sites continue to operate in line with 2020 guidance ➢ Given financial and operating strength, DPM is well positioned to navigate the evolving situation WORKFORCE AND LOCAL OPERATIO
Slide 14: Supporting Local Communities Impacted by COVID-19
Supporting Local Communities Impacted by COVID-19 Our priority focus continues to be the health and safety of our employees and local communities Collectively, DPM has donated over US$750,000 to support numerous COVID-19 initiatives to benefit our local communities ▪ Providing financial support to l
Slide 15: Q1 Results: Strong Performance at Each Operations
Q1 Results: Strong Performance at Each Operations All 3 operations delivered strong production and are on track to meet 2020 guidance OPERATION Q1 HIGHLIGHTS PRODUCTION RESULTS Ada Tepe, Bulgaria Gold contained in concentrate produced (K oz.) ➢ Achieved highest quarterly 94-115 production to date ➢
Slide 16: Q1 Results: Demonstrating our Portfolio's Full Potential
Q1 Results: Demonstrating our Portfolio’s Full Potential DPM generated significant free cash flow in Q1/20 as a result of strong production and cost performance Growing Gold Production; Declining All-in Record Free Cash Flow Stable Copper Production Sustaining Cost Generation Metals Contained in Con
Slide 17: Providing Additional Visibility with Solid Three-Year Outlook
Providing Additional Visibility with Solid Three-Year Outlook Highlights strong production profile, declining AISC and potential to generate significant free cash flow STRONG GOLD PRODUCTION PROFILE STABLE COPPER PRODUCTION Gold contained in concentrate produced (K oz.)(5) Copper contained in concen
Slide 18: Strong Balance Sheet with Growing Net Cash Position
Strong Balance Sheet with Growing Net Cash Position DPM is in a solid financial position, with a growing cash balance, no debt and a liquid investment portfolio Focused on maintaining a strong balance sheet First Quarter Highlights ▪ Managing within prudent financial metrics ▪ Ended the quarter with
Slide 19: Adding Value Through Innovation
Adding Value Through Innovation 19
Slide 20: A Leader in Mining Innovation
A Leader in Mining Innovation Exploring advanced technologies to drive value in our business Targeting technologies with potential to: A&O ▪ Increase safety Automation & Digitalization ▪ Lower mining costs ▪ Improve operating performance Foundational Processes & Technology ▪ Reduce environmental imp
Slide 21: An Industry-Leader in ESG
An Industry-Leader in ESG 21
Slide 22: An Industry Leader in ESG: Highlights
An Industry Leader in ESG: Highlights We believe our economic and financial viability is dependent on delivering prosperity to all of our stakeholders ESG is a part of DPM’s DNA Completed Ada Tepe Impressive Safety Performance ▪ Values aligned with Sustainable ✓ First new mine in Bulgaria in over 40
Slide 23: Recognition of Our Efforts
Recognition of Our Efforts Our environmental and social performance is visible and well-recognized ▪ Annual Grand Award for Investor of the Year, ▪ Environmental Investments Award, Bulgarian Forum Bulgaria Agency of Investment For Business Leaders ▪ Nominated by the local municipality, a testament t
Slide 24: DPM Well-Positioned to Deliver Shareholder Value
DPM Well-Positioned to Deliver Shareholder Value 24
Slide 25: DPM: Well-Positioned for Significant Growth in Free Cash Flow
DPM: Well-Positioned for Significant Growth in Free Cash Flow Growing Gold Production Attractive All-in Sustaining Cost Gold Equivalent Production (K oz.)(3,5) All-In Sustaining Cost ($/oz.)(3,4) (based on metals contained in concentrate produced) Au Cu Ag 680-760 725 252-296 231 2019 2020-2022 Outl
Slide 26: Disciplined Capital Allocation Framework With Inaugural Dividend Declared
Disciplined Capital Allocation Framework With Inaugural Dividend Declared ➢ Established to manage substantial free cash flow generation ➢ Balances financial strength, reinvestment and return of capital ➢ Reduce or eliminate debt Maintain Balance ➢ Build strong cash position Sheet Strength ➢ Quarterl
Slide 27: Transitioning to a Mid Tier Producer
Transitioning to a Mid Tier Producer Growing average annual production to ~275,000 oz. Au from high grade assets(3) Targeting lowest quartile costs with AISC of US$680-US$760/oz.(3,4) Free cash flow expected to average ~US$140 – US$180MM/yr over next 3 years(1,2) Strong balance sheet with growing ca
Slide 28: Delivering on our Strategy: Q&A Session
Delivering on our Strategy Q&A Session
Slide 29: Endnotes
Endnotes 1. Free cash flow has no standardized meaning under IFRS. For all non-GAAP measures discussed in this presentation, refer to the “Non-GAAP Financial Measures” section of the Company’s Management’s Discussion & Analysis (“MD&A”) for the period ended March 31, 2020, available on our website a