Dpm Metals Inc. · TSX:DPM
Dpm Metals — Investor Presentation (April 2023)
30 slides from Dpm Metals's investor presentation, April 2023
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 April 2023 TSX:DPM 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 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 & AISC Building Our Pipeline Profile • Advancing permitting for Loma Larga • 270,000 Au oz. average annual • New high-grade discovery at Čoka Rakita in production4 Serbi
Slide 5: Delivering Value-Generating Catalysts
Delivering Value-Generating Catalysts Recent newsflow highlights positive developments in DPM’s portfolio Ada Tepe life of mine plan with additional production New high-grade discovery in Serbia 22% increase to LOM recovered gold ounces Exceptional new drill results from Čoka Rakita High margin ounc
Slide 6: 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 SERBIA TIMOK | gold project BULGARIA ADA TEPE | gold mine Lo
Slide 7: 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 Gold contained in concentrate produced All-in sustaining cost ($/oz. Au)(1) Improved compared to Improved compared to previous out
Slide 8: Attractive Development & Exploration Projects Driving Future Growth
Attractive Development & Exploration Projects Driving Future Growth Portfolio offers strong production & FCF, and significant organic growth potential OPERATING ASSETS LOMA LARGA EXPLORATION PROJECTS 500 +200 koz8 Čoka Rakita & Timok gold project (Serbia) 450 Improved versus previous outlook as Tier
Slide 9: Loma Larga, Ecuador
Loma Larga, Ecuador Potential to add low-cost production growth to our portfolio Revised feasibility study expected to be complete in H2 2023 ▪ Evaluating additional opportunities to leverage DPM’s operating experience with similar deposits Awaiting clarity on consultation process to proceed with ne
Slide 10: 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 delinea
Slide 11: High-Grade Discovery at Čoka Rakita (Serbia)
High-Grade Discovery at Čoka Rakita (Serbia) Large defined footprint; remains open in multiple directions 2023 ACTIVITIES ~40,000 m of infill, extensional and target delineation drilling Focus on further evaluating deposit geometry, grade continuity and mineral resource potential Actively exploring
Slide 12: 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 2022: extended mine life to 2031 2023 ACTIVITIES 50,000 m of brownfield drillin
Slide 13: 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 Permitting for exploration drilling at Krumovitsa Drilling could increase to 26,000 m subject to the timing of permits TSX: DPM 13
Slide 14: 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 6 million hours without a lost-time Zero discharge of indus
Slide 15: 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 16: 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 $433M growing net cash position Cash position ($M) Added Loma Larga project and $433 advancing permitting $150M undrawn c
Slide 17: Attractive Valuation
Attractive Valuation DPM offers a compelling value opportunity Strong production Robust free cash flow Returning capital and cost profile and balance sheet to shareholders Building our pipeline Unique capabilities Attractive valuation Price to 2023 Cash Flow Dividend Yield P/NAV 10.7 4.8% 2.0 7.9 1.
Slide 18: 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 TSUMEB SMELTER LOMA LARGA PROJECT ČOKA RAKITA • Optimized recoveries
Slide 19: Appendix
APPENDIX APPENDIX TSX DPM 19
Slide 20: 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 21: 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 22: 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 23: 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/t • Contributing significant free cash flow generation to DPM’s portfolio Gold Contained in Concentrate Produc
Slide 24: 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) 230 230 230 19 14 - 17 14 - 17 174 10 - 13 4 4 4 4 4 2022A 2023E 2024E 2025 2022A 2023E 2024E 2025E 4. Ref
Slide 25: Strong Mineral Resource and Mineral Reserve Base
Strong Mineral Resource and Mineral Reserve Base Mineral Reserves 11, 12, A, B, C Mineral Resources 11, 12, 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 8.1 0.647 140 2.47 0.78 M&I 16.4 1.303 281 2.47 0.78 Prob
Slide 26: 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 27: Top Shareholders and Analyst Coverage
Top Shareholders and Analyst Coverage Dundee Precious Metals has 190M shares outstanding (as of December 31, 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 Fir
Slide 28: 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 29: 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 30: 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