Dpm Metals Inc. · TSX:DPM
Dpm Metals — Investor Presentation (August 2024)
32 slides from Dpm Metals's investor presentation, August 2024
Slide 1: Unlocking Resources and Generating Value to Thrive and Grow Together
Unlocking Resources and Generating Value TO THRIVE AND GROW TOGETHER August 2024 TSX:DPM
Slide 2: Forward Looking Statements
Forwarding Looking Statements Certain statements and other information included in this presentation and our other disclosure documents constitute “forward converted to reserves; risks associated with the fact that certain of the Company's initiatives are still in the early stages and may looking st
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 Strong production & AISC Building our growth pipeline profile • Advancing high-margin Čoka Rakita project • 240,000 Au oz. average annual • Progressing stakeholder relations & permitting for production5 Loma Larga • Among the lowest cost gold producers •
Slide 5: 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 • NCIB renewed March 2024 Demonstrated • 23% of free cash flow2 returned to shareholders in H1 2024 track record of disciplined capital al
Slide 6: Our Global Portfolio
Our Global Portfolio High-margin production base with attractive organic growth projects CHELOPECH | gold-copper mine CANADA Location Chelopech, Bulgaria Ownership 100% CORPORATE HEAD OFFICE Stage Producing SERBIA ČOKA RAKITA | gold project BULGARIA Location Serbia ADA TEPE | gold mine Ownership 100
Slide 7: Three-Year Outlook
Three-Year Outlook 10-year track record of meeting or outperforming gold production & all-in sustaining cost guidance Strong Production Profile Gold contained in concentrate produced Copper contained in concentrate produced 29 - 34 31 - 36 30 - 35 296 245 - 285 31 230 - 270 190 - 220 5 5 5 5 5 5 202
Slide 8: Q2 2024 Results Highlights
Q2 2024 Results Highlights High-margin production driving significant free cash flow generation Metals Production All-in Sustaining Cost1 Metals contained in concentrate produced ($ per ounce of gold sold) Gold (K oz.) 245 - 285 Copper (M lbs) $793 $790 - $930 $710 130 68 29 - 34 8 15 5 5 Q2 2024 H1
Slide 9: Advancing the Čoka Rakita Project
Advancing the Čoka Rakita Project High-margin growth project with first gold production targeted for 2028 PEA Highlights10 • Pre-feasibility study on track for completion in Q1 2025 • Stakeholder engagement and permitting activities ongoing 164koz. annual gold production • 2024 exploration program w
Slide 10: Tierras Coloradas Exploration Prospect
Tierras Coloradas Exploration Prospect 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 delineated, largely accounted
Slide 11: Loma Larga Project Update
Loma Larga Project Update Disciplined approach to project development; advancing permitting & stakeholder engagement activities Permitting activities • Working with Ministry of Energy and Mines to initiate the free, prior and informed consultation process • Baseline ecosystem and water studies in pr
Slide 12: Chelopech: Near Mine Exploration to Add Resources
Chelopech: Near Mine Exploration to Add Resources Track record of adding incremental mineral reserves to offset depletion Highlights • Current Mineral Reserve mine life extends to 2032 • Strong Mineral Resource base • Compelling exploration prospects Sharlo Dere • Located within mine concession and
Slide 13: Ada Tepe: Brownfields Exploration
Ada Tepe: Brownfields Exploration Focused on targets within mine concession and regional licences Priorities for 2024 Scout drilling of epithermal sediment hosted targets at new Krumovitsa licence Drilling at Kara Tepe expected to commence in Q3 2024 TSX: DPM 13
Slide 14: Attractive Valuation
Attractive Valuation Strong production Robust free cash flow Returning capital and low AISC profile & financial strength to shareholders Building our Unique capabilities Attractive valuation growth pipeline Price to 2024 Cash Flow Dividend Yield P/NAV 5.7% 13.1 1.2 1.0 1.0 0.9 0.9 0.8 3.0% 0.7 0.7 0
Slide 15: 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 ČOKA RAKITA LOMA LARGA PROJECT TSUMEB SMELTER ✓ Optimized recoveries
Slide 16: Appendix
APPENDIX APPENDIX TSX DPM 16
Slide 17: Corporate Snapshot
Corporate Snapshot Share Price (C$/sh) and Volume (M) Top Shareholders $12 7.0 Blackrock Victory Capital 6.0 $10 Van Eck Quantex AG 5.0 Share Price (C$) $8 First Eagle RBC Global Volume (M) 4.0 $6 GMT Capital Ninety One UK 3.0 $4 2.0 Dimensional Funds Ruffer $2 1.0 Market Stats $0 0.0 52-week price
Slide 18: Business Strategy
Business Strategy Unlocking resources and generating value to thrive and grow together ▪ Strategic focus on organic development pipeline & exploration ▪ Supported by foundation of core values that guide how DPM conducts its business & informs strategic pillars ▪ Resources allocated in-line with stra
Slide 19: Leadership
Leadership Management and Board of Directors Executive Team David Rae John DeCooman President & Chief Executive Officer EVP, Corporate Development Navin Dyal Nikolay Hristov EVP and Chief Financial Officer SVP, Sustainable Business Development Iliya Garkov EVP & Chief Operating Officer Kelly Stark-A
Slide 20: 2024 Guidance Update
2024 Guidance Update • Revised guidance for evaluation expenses as a result of advancing Čoka Rakita to a PFS US millions, unless otherwise indicated Chelopech Ada Tepe Tsumeb Corporate and Other Consolidated Ore processed (’000s tonnes) 2,090 – 2,200 710 – 800 – – 2,800 – 3,000 Cash cost per tonne
Slide 21: Three-Year Outlook
Three-Year Outlook US millions, unless otherwise indicated 2023 RESULTS 2024 GUIDANCE5 2025 OUTLOOK5 2026 OUTLOOK5 Gold contained in concentrate produced (‘000s oz) Chelopech 162 155 – 175 160 – 185 140 – 155 Ada Tepe 134 90 – 110 70 – 85 50 – 65 Total 296 245 – 285 230 – 270 190 – 220 Copper contai
Slide 22: Čoka Rakita: High-margin Production, Robust Economics
Čoka Rakita: High-margin Production, Robust Economics PEA Summary Metric Unit Assumption / Result Gold Price $/oz. $1,700 Mineable Mineral Resource Mt 7.9 Average grade mined (LOM) g/t 5.7 Average metallurgical recovery % 89% Mine life years 10 Total gold produced (LOM) Moz. 1.3 Average annual gold
Slide 23: Chelopech, Bulgaria
Chelopech, Bulgaria Chelopech, • Strong, reliable producer with a track record of extending mine life Bulgaria • Mining now expected to extend to 2032, underpinned by strong Mineral Reserve base and increased in-mine & brownfield drilling • Continued focus on innovation, mine and process plant optim
Slide 24: Track Record of Extending Mine Life
Track Record of Extending Mine Life 2023 Strong potential for this trend to continue: 2022 • Mining now expected to extend to 2032 • Strong Mineral Reserve base 2021 • Increased in mine and brownfield drilling 2019 2017 2013 2010 2005 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ’12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘
Slide 25: Chelopech Key Results and Trends
Chelopech Key Results and Trends Ore Mined (K tonnes) Cash cost per tonne processed ($/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 2,030 $55 1,814 $50 $47 $47 Change in mining method $46 $40 $40 $40 $39 1,310 $37 $36 $36 $
Slide 26: Ada Tepe, Bulgaria
Ada Tepe, Bulgaria 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) increased LOM recovered gold ounces by 22% • High-margin ounces:
Slide 27: Tsumeb Smelter Sale Update
Tsumeb Smelter Sale Update Sale of the smelter simplifies portfolio going forward • All Chinese regulatory approvals received; Namibian Competition Act only approval outstanding • On track to close sale in Q3 2024 IXM Tolling Agreement • As a result of IXM's decision to end current tolling agreement
Slide 28: 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 15.4 1.185 265 2.39 0.78 Probable 11.2 0.998 188.4 2.77 0.7
Slide 29: Our GHG Emissions Reduction Targets
Our GHG Emissions Reduction Targets • 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 of remaining within a well-below 2⁰ threshold as defined by the Paris Agreem
Slide 30: 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 31: Technical and Regulatory Information
Technical and Regulatory Information Qualified Person Disclosure A. Chelopech: Technical report entitled “NI 43-101 Technical Report – Mineral Resource and Mineral Reserve Update, Chelopech Mine, Chelopech, Bulgaria” dated effective March 31, 2023, and filed on SEDAR+, prepared by Galen White, BSc (
Slide 32: 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 Visit our LinkedIn page linkedin.com/company/dundee-precious-metals-inc/ TSX:DPM