Dpm Metals Inc. · TSX:DPM
Dpm Metals — Dundee Precious Metals — Investor Presentation (November 2022)
29 slides from Dpm Metals's investor presentation, November 2022
Slide 1: Unlocking Resources and Generating Value to Thrive and Grow Together
Unlocking Resources and Generating Value Unlocking Resources and Generating Value TO THRIVE TO THRIVE AND GROW TOGETHER AND GROW TOGETHER November 2022 TSX:DPM TSX:DPM
Slide 2: Forwarding Looking Statements
Forwarding Looking Statements Certain statements and other information included in this presentation and our other disclosure documents constitute “forward looking statements” or “forward looking information” (collectively, “Forward Looking Statements”). Forward Looking Statements are statements tha
Slide 3: Use of Non-GAAP Measures
Use of Non-GAAP Measures Certain financial measures referred to in this presentation are not measures recognized under IFRS and are referred to as Non-GAAP financial measures or ratios. These measures have no standardized meanings under IFRS and may not be comparable to similar measures presented by
Slide 4: Well-Positioned to Continue Delivering Value
Well-Positioned to Continue Delivering Value DPM’s strong fundamentals represent an attractive value opportunity Strong Production Profile Building Our Pipeline • 270,000 Au oz. average annual • Advancing permitting for Loma Larga production4 • Advancing Timok feasibility study • High-quality operat
Slide 5: Track Record of Disciplined Capital Allocation
Track Record of Disciplined Capital Allocation Balancing financial strength, reinvestment and return of capital to shareholders Growing Financial Strength Investing in our Future $420M growing net cash position Cash position ($M) Added Loma Larga project and advancing permitting $420 $150M undrawn c
Slide 6: An Industry Leader in ESG
An Industry Leader in ESG Sustainability highlights demonstrate our strong performance track record Reduced Total Reportable Reduced SO2 at Tsumeb by 95%, Injury Frequency Rate by 33% compared with peak in 2014 STRONG RATINGS by independent 5 million hours without a lost-time Zero discharge of indus
Slide 7: Adding Value through Innovation
Adding Value through Innovation Leveraging innovative technology to optimize performance and mitigate cost pressures Increasing Lowering Improving Reducing safety mining costs operating performance environmental impact Integrated machine vision Mechanized emulsion charging Advanced process control A
Slide 8: Our Global Portfolio
Our Global Portfolio Proven track record of transforming assets into highly-efficient operations CHELOPECH | gold-copper mine CANADA Location Chelopech, Bulgaria Ownership 100% CORPORATE HEAD OFFICE Stage Producing Location Toronto, Canada 2022E production4 169 – 191k oz. Au 32 – 37 M lbs. Cu SERBIA
Slide 9: Solid Three-Year Outlook
Solid Three-Year Outlook Strong production profile, attractive AISC and significant free cash flow generation Strong Production Profile Attractive All-in Sustaining Cost Metals contained in concentrate produced All-in sustaining cost ($/oz. Au)(1) Gold (K oz.) Copper (M lbs) 310 250 - 290 265 - 310
Slide 10: Q3 2022 Results Highlights
Q3 2022 Results Highlights Solid gold production and cost performance driving significant free cash flow Metals Production All-in Sustaining Cost1 Metals contained in concentrate produced ($ per gold ounce sold)(1) Gold (K oz.) Copper (M lbs) 250 - 290 $991 $750 - $890 $839 200 $750-890 64 23 32 - 3
Slide 11: Attractive Development Projects Driving Future Production
Attractive Development Projects Driving Future Production Adds production growth and maintains peer-leading low all-in sustaining cost profile Loma Larga OPERATING ASSETS DEVELOPMENT PROJECTS Ecuador Timok +80 koz9 500 Loma Larga 450 +200 koz8 Gold contained in concentrate produced (k oz. Au) 400 Ti
Slide 12: Advancing our Development Projects
Advancing our Development Projects Potential to add low-cost production growth to our portfolio Loma Larga, Ecuador Timok, Serbia 31% $520M ~200koz 21% $135M ~80koz IRR NPV5% Average annual IRR NPV5% Average annual gold production gold production Upcoming project milestones Upcoming project mileston
Slide 13: Chelopech: Near Mine Exploration to Add Resources
Chelopech: Near Mine Exploration to Add Resources Focused on extending mine-life through in-mine and brownfields exploration ADDING MINE LIFE Strong track record of adding incremental mineral reserves to offset depletion 2021: increased mineral reserves and extended mine life to 2030 2022 PRIORITIES
Slide 14: Ada Tepe: Brownfields Exploration
Ada Tepe: Brownfields Exploration Focused on targets within mine concession and regional licences PRIORITIES FOR 2022 20,000 m of drilling Near-mine target delineation within mining concession & surrounding Krumovitsa licence Scout and target delineation on regional licences, focus on Chiirite and D
Slide 15: Attractive Valuation
Attractive Valuation DPM offers a compelling value opportunity Strong production Strong free cash flow Returning capital and profile and balance sheet to shareholders Building our pipeline Unique capabilities Attractive valuation Price to 2022 Cash Flow Dividend Yield P/NAV 0.9 10.0 5.1% 0.8 0.8 0.8
Slide 16: Key Value Generating Catalysts
Key Value Generating Catalysts Strong production Strong free cash flow Returning capital and profile and balance sheet to shareholders Building our pipeline Unique capabilities Attractive valuation CHELOPECH MINE ADA TEPE MINE TSUMEB SMELTER LOMA LARGA PROJECT TIMOK PROJECT • Optimized recoveries •
Slide 17: Appendix
APPENDIX APPENDIX TSX DPM 17
Slide 18: 2022 Guidance
2022 Guidance US millions, unless otherwise indicated Chelopech Ada Tepe Tsumeb Consolidated Ore processed (’000s tonnes) 2,090 - 2,200 810 - 890 - 2,900 - 3,100 Cash cost per tonne of ore processed1 48 - 53 54 - 60 - - Metals contained in concentrate produced2,3 Gold (‘000s ounces) 169 - 191 81 - 9
Slide 19: Three-Year Outlook
Three-Year Outlook Strong production profile, attractive all-in sustaining cost & significant free cash flow generation • Reviewing all-in sustaining cost outlook for 2023 and 2024 to reflect potentially lower by-product credits, local inflation and FX rates US millions, unless otherwise indicated 2
Slide 20: Chelopech, Bulgaria
Chelopech, Bulgaria High-quality, low-cost flagship operation Chelopech, Bulgaria • Strong, reliable producer with a track record of extending mine life • Focused on mine and process plant optimization • Leader in digital innovation, achieving significant improvements in efficiencies, environmental
Slide 21: Ada Tepe, Bulgaria
Ada Tepe, Bulgaria Low-cost open pit operation generating significant free cash flow Ada Tepe, Bulgaria • One of the highest grade open pit mines in the world(i) with a LOM gold grade of 4.8 g/t • Contributing significant free cash flow generation to DPM’s portfolio Gold Contained in Concentrate Pro
Slide 22: Tsumeb, Namibia
Tsumeb, Namibia Specialty smelter Tsumeb, Namibia • Focused on operational stability, efficiencies and cost reduction Complex Concentrate Smelted (k tonnes) Sustaining Capital Expenditures ($M) $15 - 18 $15 - $18 $15 - $18 210 - 240 220 - 250 185 - 200 $13 190 4 4 4 4 4 4 2021A 2022E 2023E 2024E 202
Slide 23: Loma Larga Project: 2020 Feasibility Study Results
Loma Larga Project: 2020 Feasibility Study Results Advancing a revised feasibility study; expected to release results in Q1 2023 2020 Feasibility Study Summary Metrics Significant Scale Initial mine life 12 years Average annual production 1,2 Average annual production (first 5 of +170k oz. Au LOM1 ~
Slide 24: Timok Gold Project: Pre-Feasibility Study Results
Timok Gold Project: Pre-Feasibility Study Results Several optimization initiatives to optimize capital expenditures and mine plane underway as part of the feasibility study Pre-feasibility Study Highlights9 Optimization opportunities Total ore mined (Mt) 19.2 Contractor mining, optimizing design of
Slide 25: Strong Mineral Resource and Mineral Reserve Base
Strong Mineral Resource and Mineral Reserve Base Mineral Reserves 11, A, B, C Mineral Resources 11, A, B, C Million Au Cu Million Au Cu Au (g/t) Cu (%) Au (g/t) Cu (%) Tonnes (Moz) (Mlbs) Tonnes (Moz) (Mlbs) Chelopech Chelopech Proven 5.8 0.507 109 2.72 0.85 M&I 13.8 1.258 270 2.84 0.89 Probable 13.
Slide 26: Top Shareholders and Analyst Coverage
Top Shareholders and Analyst Coverage Dundee Precious Metals has 190M shares outstanding (as of September 30, 2022) TOP SHAREHOLDERS ANALYST COVERAGE Beacon Securities Bereket Berhe Blackrock Inc. 12.7% BMO Capital Markets Raj Ray Van Eck Associates Corporation 9.2% CIBC World Markets Cosmos Chiu Fi
Slide 27: Footnotes
Footnotes 1. Cost of sales per ounce of gold sold represents cost of sales for Chelopech and Ada Tepe, divided by payable gold in concentrate sold. This measure is before by-product credits. All-in sustaining cost per ounce of gold is a non-GAAP ratio which represents cost of sales less depreciation
Slide 28: Footnotes and Disclaimers
Footnotes and Disclaimers Qualified Person Disclosure A. The Mineral Resource and Mineral Reserve estimates for Chelopech and other scientific and technical information which supports this press release was prepared by Petya Kuzmanova, MIMMM, CSci, Senior Resource Geologist, of the Company, under th
Slide 29: TSX:DPM
Corporate Head Office 150 King Street West, Suite 902 Toronto, Ontario M5H 1J9 T: 416 365-5191 Investor Relations jcameron@dundeeprecious.com T: 416 219-6177 www.dundeeprecious.com Follow us on Twitter @DundeePrecious TSX:DPM Visit our LinkedIn page linkedin.com/company/dundee-precious-metals-inc/
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