Dpm Metals Inc. · TSX:DPM
Dpm Metals — Dundee Precious Metals — RBC Capital Markets Global Mining & Materials Conference 2022
33 slides from Dpm Metals's conference presentation, Jun 9, 2022
Slide 1: Unlocking resources and generating value to thrive and grow together
RBC Capital Markets Global Mining & Materials Conference June 9-10, 2022 Unlocking resources and generating value to thrive and grow together
Slide 2: Forward Looking Statements
Forward 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 that a
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 Deliver Value to Shareholders
Well-Positioned to Deliver Value to Shareholders DPM’s strong fundamentals represent an attractive value opportunity Strong Production & Cost Profile Strong Free Cash Flow & Balance Sheet Returning Capital to Shareholders ▪ 270,000 Au oz. ▪ Generated $252M of free cash flow in ▪ Extended normal cour
Slide 5: 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 6: An Industry Leader in ESG
An Industry Leader in ESG Strong track record of ESG performance Sustainability Highlights ▪ Targeting Net Positive Impact from our operations Reduced Total Reportable Injury Frequency Rate by 33% ▪ “A” rating by MSCI, an independent ESG rating agency Reduced SO2 by 95% ▪ 91st percentile in 2021 S&P
Slide 7: GHG Emissions Reduction Targets
GHG Emissions Reduction Targets The next step for our objective of generating a net positive impact ▪ 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 Agreement ▪ Identified several br
Slide 8: Adding Value Through Innovation
Adding Value Through Innovation Leveraging innovative technology to optimize performance and mitigate cost pressures Increasing safety Lowering mining Advanced process control technology Integrated machine vision technology costs Improved recovery and greater efficiency Improved safety and efficienc
Slide 9: Track Record of Disciplined Capital Allocation
Track Record of Disciplined Capital Allocation Balancing financial strength, reinvestment and return of capital to shareholders BALANCE SHEET RETURNING CAPITAL TO INVESTING IN OUR STRENGTH SHAREHOLDERS FUTURE ▪ $382M growing net cash position ▪ 13% of 2021 free cash flow ▪ Added Loma Larga project a
Slide 10: Our Global Portfolio
Our Global Portfolio 1 Chelopech (100%) Location Stage 2022 Guidance(4) Chelopech, Bulgaria Producing 169 – 191koz Au 32 – 37Mlbs Cu 6 2 Ada Tepe (100%) Location Stage 2022 Guidance(4) Southern Bulgaria Producing 81 – 99koz Au 3 Loma Larga (100%) Corporate head office, 41 7 Location Stage Production
Slide 11: Solid Three-Year Outlook
Solid Three-Year Outlook Highlights strong production profile, attractive AISC and potential to generate significant free cash flow STRONG PRODUCTION PROFILE ATTRACTIVE ALL-IN SUSTAINING COST Metals contained in concentrate produced All-in sustaining cost ($/oz Au)(1) Gold (K oz.) Copper (M lbs.) $7
Slide 12: Q1 2022 Results Highlights
Q1 2022 Results Highlights Solid gold production and excellent cost performance driving significant free cash flow STRONG METALS PRODUCTION EXCELLENT ALL-IN SUSTAINING COST Metals Contained in Concentrate Produced All-in sustaining cost(1) ($/oz.) Gold (K oz.) Copper (M lbs) $750 - $890 250 – 290 $6
Slide 13: Attractive Development Projects Driving Future Production
Attractive Development Projects Driving Future Production Adds production growth and maintains peer-leading low AISC profile Operating Assets Development projects 500 Gold contained in concentrate produced (000’s ounces) 450 Timok +80koz.(7) 400 350 265 - 310 Loma 300 250 - 290 Larga 230 - 265 +200k
Slide 14: Advancing our Development Projects
Advancing our Development Projects Potential to add low-cost production growth Loma Larga Timok Ecuador Serbia 31% $520M ~200koz. 21% $135M ~80koz. IRR NPV5% Average annual gold IRR NPV5% Average annual gold production production Upcoming project milestones Upcoming project milestones • Issuance of
Slide 15: Chelopech Near Mine Exploration to Add Resources
Chelopech Near Mine Exploration to Add Resources Focused on extending mine-life through in-mine & brownfields exploration 2021 Brownfields Exploration ▪ Increased mineral reserves and extended mine life to 2030 Vozdol Krasta Brevene EL ▪ Advanced Sveta Petka to Commercial Discovery Phase Plans for 2
Slide 16: Ada Tepe Brownfields Exploration to Add Resources
Ada Tepe Brownfields Exploration to Add Resources Near-mine target delineation and drilling 2021 Brownfields Exploration ▪ Drilling focused on infill and target delineation on Surnak, Synap and Kuklitsa prospects Plans for 2022 ▪ 20,000 m of drilling ▪ Near-mine target delineation within mining conc
Slide 17: Additional Upside through Equity Interests
Additional Upside through Equity Interests Liquid investment portfolio provides upside exposure to high-quality gold projects Sabina Gold and Silver Corp. Velocity Minerals Ltd. Ownership: 6.7% Ownership: 8.4% Rationale: Originally a DPM project, supportive Rationale: DPM’s strong presence and capab
Slide 18: Attractive Valuation
Attractive Valuation DPM offers a compelling value opportunity ▪ Strong production & ▪ Strong free cash flow & ▪ Returning capital to AISC profile balance sheet shareholders ▪ Building our pipeline ▪ Unique capabilities ▪ Attractive valuation Price to 2022 Cash Flow Dividend Yield P/NAV 1.1 1.0 7.9
Slide 19: Key Value Generating Catalysts
Key Value Generating Catalysts ▪ Life of mine update (March 2022) Strong production ▪ Optimized recoveries and offtakes profile ▪ 50,000 m of drilling at Sveta Petka Chelopech Peer-leading ▪ Optimized mine plan and updated reserve and resource estimate (Q3 2022) all-in sustaining costs ▪ Drilling 20
Slide 20: Appendix
Appendix Unlocking resources and generating value to thrive and grow together
Slide 21: 2022 Guidance
2022 Guidance Consolidated US millions, unless otherwise indicated Chelopech Ada Tepe Tsumeb Guidance Ore processed (’000s tonnes) 2,090 – 2,200 810 – 890 - 2,900 – 3,100 Cash cost per tonne of ore processed 48 – 53 54 – 60 - - Metals contained in concentrate produced(1)(2) Gold (‘000s ounces) 169 –
Slide 22: Three-Year Outlook (2022-2024)
Three-Year Outlook (2022-2024) US millions, unless otherwise indicated 2021 Results 2022 Guidance 2023 Outlook 2024 Outlook Gold contained in concentrate produced (‘000s oz) (1)(2) Chelopech 177 169 – 191 150 – 170 161 – 182 Ada Tepe 133 81 – 89 115 – 140 69 – 83 Total 310 250 – 290 265 – 310 230 –
Slide 23: Chelopech, Bulgaria: High-quality, low-cost flagship asset
Chelopech, Bulgaria: High-quality, low-cost flagship asset A strong, reliable performer ▪ Strong performance in 2021 with continued mine and mill optimization ▪ Focused on mine and process plant optimization Metals contained in concentrate produced (‘000s oz) Sustaining capital expenditures Gold ('0
Slide 24: Ada Tepe, Bulgaria
Ada Tepe, Bulgaria Driving growth in production and cash flow ▪ 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 produced (‘000s oz) Sustaining capital expend
Slide 25: Tsumeb, Namibia: Operating Consistency with Growth Potential
Tsumeb, Namibia: Operating Consistency with Growth Potential A secure processing outlet for Chelopech ▪ Growing cash flow generating custom toll business (2) ▪ Focused on operational stability, efficiencies and cost reduction ▪ Option to expand to 370k tpa in the future Complex concentrate smelted S
Slide 26: Loma Larga Project: Feasibility Study Results
Loma Larga Project: Feasibility Study Results Feasibility Study Summary Metrics Initial mine life 12 years Average annual production(1,2) ~200k oz. Au (first 5 years) Average annual production(2) 172k oz. Au (LOM) Initial capital $316M Significant Scale Sustaining capital $71M Average annual product
Slide 27: Timok Project: PFS Results Highlights
Timok Project: PFS Results Highlights Several optimization initiatives to reduce initial capital and improve economics underway Optimization opportunities Pre-feasibility Study Highlights (7) Total ore mined (Mt) 19.2 ▪ Contractor mining, optimizing design of haul roads and reducing requirement for
Slide 28: Strong Mineral Resource and Reserve Base
Strong Mineral Resource and Reserve Base Mineral Reserves (12, A, B) Million Au Cu Au Cu (%) Mineral Resources (12, A, B) Million Au Cu Au Cu (%) Tonnes (Moz) (Mlbs) (g/t) Tonnes (Moz) (Mlbs) (g/t) Chelopech Chelopech Proven 5.8 0.507 109 2.72 0.85 M&I 13.8 1.258 270 2.84 0.89 Probable 13.6 1.190 23
Slide 29: Hedge Position as at March 31, 2021
Hedge Position as at March 31, 2021 QP Hedges Volume Hedged Weighted Average Fixed Price Payable gold 19,300 ounces $1,932.53/oz. Payable copper 15,619,733 pounds $4.37/pound Call options sold Put options purchased Percentage of Forecast Year of projected Amount Hedged Operating Cost FX Hedges Avg.
Slide 30: Top Shareholders & Analyst Coverage
Top Shareholders & Analyst Coverage ▪ Dundee Precious Metals has 191M shares outstanding (as of May 4, 2022) Top Shareholders Analyst Coverage Blackrock Inc. 10.3% Beacon Securities Bereket Berhe Van Eck Associates Corporate 9.4% BMO Capital Markets Raj Ray First Eagle Investment Management 7.0% CIB
Slide 31: Footnotes and Disclaimers
Footnotes and Disclaimers 1. Forecast/guidance information is subject to a number of key assumptions, risks and uncertainties. Details of the Company’s detailed 2022 guidance and three-year outlook can be found in the Management’s Discussion and Analysis (“MD&A”) for the period ended March 31, 2022,
Slide 32: 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 33: Corporate Head Office Investor Relations
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/
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