Dpm Metals Inc. · TSX:DPM
Dpm Metals — Dundee Precious Metals — Investor Presentation (January 2024)
41 slides from Dpm Metals's investor presentation, January 2024
Slide 1: Unlocking Resources and Generating Value to Thrive and Grow Together
Unlocking Resources and Generating Value TO THRIVE AND GROW TOGETHER January 2024 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”) within the meaning of applicable Canadian secu
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 International Financial Reporting Standards (“IFRS”) and are referred to as Non-GAAP financial measures or ratios. These measures have no standardized meanings under IFRS and may no
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 & AISC Building our growth pipeline profile • Acquiring advanced-stage Twin Hills project in Namibia • 258,000 Au oz. average annual production4 • Advancing high-grade Č
Slide 5: Growth Pipeline Supported by Two High-Quality Gold Discoveries
Growth Pipeline Supported by Two High-Quality Gold Discoveries Recent newsflow strengthen DPM’s future production profile Čoka Rakita project, Serbia Twin Hills project, Namibia Strong 1.8Moz. Au maiden Inferred Resource estimate8 Advanced stage, multi-million ounce open-pit gold project within one
Slide 6: Our Global Portfolio
Our Global Portfolio High-margin production base with attractive growth profile supported by two high-quality gold discoveries CHELOPECH | UG gold-copper mine CANADA Location Chelopech, Bulgaria Ownership 100% CORPORATE HEAD OFFICE Stage Producing SERBIA ČOKA RAKITA | gold project BULGARIA Location
Slide 7: Solid Three-Year Outlook
Solid Three-Year Outlook Strong production profile and low all-in sustaining costs driving significant free cash flow generation Strong Production Profile Gold contained in concentrate produced Copper contained in concentrate produced 30- 35 29 - 34 29 - 34 270 - 315 31 273 245 - 285 230 -270 4 4 4
Slide 8: Fourth Quarter 2023 Production Results
Fourth Quarter 2023 Production Results Mining operations continue to deliver strong results & achieved 2023 production guidance CHELOPECH, BULGARIA ADA TEPE, BULGARIA TSUMEB, NAMIBIA Metals contained in concentrate produced Gold contained in concentrate produced (K oz.) Complex concentrate smelted (
Slide 9: High-Margin Production Base with Strong Free Cash Flow & Attractive Growth Profile
High-Margin Production Base with Strong Free Cash Flow & Attractive Growth Profile Twin Hills and Čoka Rakita provide foundation for DPM’s long-term future production profile Strong high-margin Strong production profile Among lowest-cost producers Generating robust free cash flow production base fro
Slide 10: Estimated Gold Production Outlook
High-Margin Production Base with Strong Free Cash Flow & Attractive Growth Profile Twin Hills and Čoka Rakita provide foundation for DPM’s long-term future production profile 600 500 Estimated Gold production (Koz.) 400 300 200 100 0 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E Existing DPM opera
Slide 11: Twin Hills: Near-Term Production with a Long Mine Life & Exploration Upside
Twin Hills: Near-Term Production with a Long Mine Life & Exploration Upside Multi-million ounce deposit progressing to production in 20269 Large Mineral Reserve Near-Term Production Stable Mining Jurisdiction 2.2 Moz. of Proven & Probable Expected to commence in 2026 Long history of gold mining, exc
Slide 12: Twin Hills: Well-Advanced Project with Additional Optimization & Exploration Opportunities
Twin Hills: Well-Advanced Project with Additional Optimization & Exploration Opportunities Project is substantially permitted with engineering well-advanced Planned Next Steps to Advance Project Pursue Exploration Upside Development timeline • Explore near-mine potential at Twin Hills along strike a
Slide 13: Regional Potential for Additional Discoveries
Regional Potential for Additional Discoveries EUREKA GOLD DISCOVERY Area remains underexplored • Recent grassroots discovery • 47 m @ 5.92 g/t12 Largest land-holder and most ONDUNDU GOLD DEPOSIT active explorer in Namibia • Inferred Resource of 0.9Moz @ 1.1 g/t13 • High-grade, nuggety deposit 8,000
Slide 14: Čoka Rakita, Serbia
Čoka Rakita, Serbia High-grade gold discovery with initial 1.8Moz. Inferred Mineral Resource & additional upside • New high-grade discovery with exceptional drill results • Advancing to a preliminary economic assessment, expected in Q2 2024 • Continuing to aggressive drilling program on Čoka Rakita
Slide 15: Čoka Rakita Highlights & Next Steps
Čoka Rakita Highlights & Next Steps PEA targeted for Q2 2024 Next steps • PEA targeting throughput of 850,000 tonnes per annum • Stakeholder engagement and permitting activities • Additional metallurgical testwork • Aggressive exploration program planned for 2024: • 30,000 m of infill, hydrological
Slide 16: High-Quality Growth Project: Loma Larga (Ecuador)
High-Quality Growth Project: Loma Larga (Ecuador) Potential to add low-cost production growth to our portfolio Feasibility study optimization • Underground gold-copper development project with potential to produce approximately 200,000 gold ounces annually14 • Continuing with optimization phase beyo
Slide 17: Encouraging Exploration Results at Tierras Coloradas (Ecuador)
Encouraging Exploration Results at Tierras Coloradas (Ecuador) Drilling confirms presence of well-mineralized low-sulphidation epithermal vein system Located in the Loja province of Ecuador Low sulphidation epithermal vein system mapped over a 3 x 3.5 km area ▪ Over 8 km of vein strike length deline
Slide 18: 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 2023: extended mine life to 2032 2023 Activities 50,000 m of brownfield drillin
Slide 19: Ada Tepe: Brownfields Exploration
Ada Tepe: Brownfields Exploration Focused on targets within mine concession and regional licences Priorities for 2023 11,000 m of drilling on the Chiirite licence 15,000 m of drilling at Krumovitsa commenced in August 2023 TSX: DPM 19
Slide 20: Proven Sustainability and Community Relations Track Record
Proven Sustainability and Community Relations Track Record Commitment to strong ESG practices enabled DPM’s successful development of Bulgaria’s first new mine in over 40 years • Sustainability highlights demonstrate DPM’s strong performance track record • Strong ratings by independent third parties
Slide 21: 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 22: Track Record of Disciplined Capital Allocation
Track Record of Disciplined Capital Allocation Balancing financial strength, reinvestment and return of capital to shareholders Returning Capital to Shareholders Investing in our Future • 42% of free cash flow 2 returned to shareholders in • Adding Twin Hills project in Namibia the first nine months
Slide 23: Attractive Valuation
Attractive Valuation DPM offers a compelling value opportunity Strong production Robust free cash flow Returning capital and AISC profile & financial strength to shareholders Building our Unique capabilities Attractive valuation growth pipeline Price to 2024 Cash Flow Dividend Yield P/NAV 10.0 5.1%
Slide 24: Key Value Generating Catalysts
Key Value Generating Catalysts Strong production Robust free cash flow Returning capital and cost profile and balance sheet to shareholders Building our pipeline Unique capabilities Attractive valuation CHELOPECH MINE ADA TEPE MINE TWIN HILLS ČOKA RAKITA LOMA LARGA TSUMEB SMELTER • Optimized recover
Slide 25: Appendix
APPENDIX APPENDIX TSX DPM 25
Slide 26: Business Strategy
Business Strategy Unlocking resources and generating value to thrive and grow together ▪ Supported by foundation of core values that guide how DPM conducts its business & informs a set of complementary strategic pillars ▪ Resources allocated in-line with strategy to ensure DPM delivers value for all
Slide 27: Detailed 2023 Guidance
Detailed 2023 Guidance US millions, unless otherwise indicated Chelopech Ada Tepe Tsumeb Corporate and Other Consolidated Ore processed (’000s tonnes) 2,090 – 2,200 730 – 810 - - 2,820 – 3,010 Cash cost per tonne of ore processed1 53 – 58 73 – 79 - - - Metals contained in concentrate produced2,3 - G
Slide 28: Three-Year Outlook
Three-Year Outlook Strong production profile, attractive all-in sustaining cost & significant free cash flow generation • Gold production increased in 2023 and 2024, compared with previous outlook US millions, unless otherwise indicated 2022 RESULTS 2023 GUIDANCE 2024 OUTLOOK 2025 OUTLOOK Gold conta
Slide 29: Chelopech, Bulgaria
Chelopech, Bulgaria High-quality, low-cost flagship operation Chelopech, Bulgaria • Strong, reliable producer with a track record of extending mine life • Mining now expected to extend to 2031, underpinned by strong Mineral Reserve base and increased in-mine & brownfield drilling • Continued focus o
Slide 30: Track Record of Extending Mine Life
Track Record of Extending Mine Life Consistently replacing Mineral Reserves at Chelopech 2022 Strong potential for this trend to continue: • Mining now expected to extend to 2031 2021 • Strong Mineral Reserve base • Increased in mine and brownfield drilling 2019 2017 2013 2010 2005 ‘05 ‘06 ‘07 ‘08 ‘
Slide 31: Chelopech Key Results and Trends
Chelopech Key Results and Trends Optimization efforts resulted in doubling of production & reduction in costs per tonne Ore Mined (K tonnes) Cash cost per tonne processed ($/t) Underground crushing & conveying Higher energy costs 2,233 $62 2,212 2,212 2,211 2,207 2,183 $61 2,131 2,054 2,040 $57 2,03
Slide 32: 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 with a LOM gold grade of 5.2 g/t11 • Contributing significant free cash flow generation to DPM’s portfolio • Updated mine plan (January 2023)
Slide 33: Tsumeb, Namibia
Tsumeb, Namibia Specialty smelter Tsumeb, Namibia • Unique specialty smelter capable of processing complex concentrates and has a strategically significant germanium stockpile • Originally acquired to process complex concentrate from DPM’s Chelopech mine; changes in Chelopech concentrate specificati
Slide 34: Twin Hills FS Highlights: Near-Term Production Scale
Twin Hills FS Highlights: Near-Term Production Scale Project Highlights 2023 DFS Summary9 175 Koz. Unit Total / average per year Meaningful production profile Gold Price $ / oz $1,750 Mill Throughput Mtpa 5.0 Mtpa US$1,011 Strip Ratio W:O 4.64 per ounce 2nd quartile AISC1 Avg. Processed Grade g/t Au
Slide 35: Twin Hills Mineral Resource Base
Twin Hills Mineral Resource Base Mineral Reserve for the Twin Hills Gold Project (as at May 31, 2023)9 Classification Tonnes Grade Contained Metal (Mt) (g/t) (Moz.) Proven 0.87 1.19 0.03 Probable 63.64 1.03 2.12 Total ore reserve 64.51 1.04 2.15 Mineral Resource for the Twin Hills Gold Project (as a
Slide 36: Strong Mineral Resource and Mineral Reserve Base
Strong Mineral Resource and Mineral Reserve Base Mineral Reserves Mineral Resources Million Au Cu Million Au Cu Au (g/t) Cu (%) Au (g/t) Cu (%) Tonnes (Moz) (Mlbs) Tonnes (Moz) (Mlbs) Chelopech Chelopech Proven 6.4 0.575 116.9 2.79 0.83 M&I 16.4 1.303 281 2.47 0.78 Probable 11.2 0.998 188.4 2.77 0.7
Slide 37: Our GHG Emissions Reduction Targets
Our GHG Emissions Reduction Targets The next step in realizing our objective of generating a net positive impact • Result of a global team effort, with representation from all our operations and projects • Targets are aligned with latest Intergovernmental Panel on Climate Change & reflect aspiration
Slide 38: Top Shareholders and Analyst Coverage
Top Shareholders and Analyst Coverage Dundee Precious Metals has 181M shares outstanding (as of September 30, 2023) TOP SHAREHOLDERS ANALYST COVERAGE Beacon Securities Bereket Berhe Blackrock Inc. 12.6% BMO Capital Markets Raj Ray Van Eck Associates Corporation 9.2% CIBC World Markets Cosmos Chiu Fi
Slide 39: 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 40: Technical and Regulatory Information
Technical and Regulatory Information DPM Qualified Person All scientific and technical information in this presentation with respect to DPM and its assets were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Sta
Slide 41: 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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