Dpm Metals Inc. · TSX:DPM
Dpm Metals — Dundee Precious Metals — Investor Presentation (April 2022)
32 slides from Dpm Metals's investor presentation, April 2022
Slide 1: Unlocking resources and generating value to thrive and grow together
April 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, including the oral discussion associated therewith, and our other disclosure documents constitute “forward looking information” or “forward looking statements” within the meaning of applicable securiti
Slide 3: Reported GAAP Measures
Reported GAAP Measures Certain financial measures referred to in this presentation are not measures recognized by IFRS and referred to as Non-GAAP measures or ratios, including all-in sustaining cost per gold ounce, free cash flow and cash cost per tonne of complex concentrate smelted. This slide pr
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 ▪ Increased quarterly dividend
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 Highest average salary in Bulgaria ▪ “A” rating by MSCI, an independent ESG rating agency Chelopech Municipality Highest population & income growth rates ▪ 9
Slide 7: Adding Value Through Innovation
Adding Value Through Innovation Leveraging innovative technology to optimize performance and mitigate cost pressures Increasing safety Lowering mining Integrated Mine Waste Facility Aerial autonomous drone costs First of its kind in Europe Increasing safety and efficiency Improving operating perform
Slide 8: 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 Returning Capital to Shareholders Investing in our Future ▪ $334M growing net cash position ▪ 13% of 2021 free cash flow(3) ▪ Added Loma Larga pr
Slide 9: Our Global Portfolio
Our Global Portfolio 1 Chelopech (100%) Location Stage 2022 Guidance(1) Chelopech, Bulgaria Producing 169 – 191koz Au 32 – 37Mlbs Cu 6 2 Ada Tepe (100%) Location Stage 2022 Guidance(1) Southern Bulgaria Producing 81 – 99koz Au 3 Loma Larga (100%) Corporate head office, 41 7 Location Stage Production
Slide 10: Solid Three-Year Outlook
Solid Three-Year Outlook Highlights strong production profile, attractive AISC and potential to generate significant free cash flow Strong Production Profile Attractive All-In Sustaining Cost(2) Metals Gold contained in concentrate produced All-in sustaining cost ($/oz Au) Gold (000's ounces) Copper
Slide 11: First Quarter 2022 Production Results
First Quarter 2022 Production Results Solid start to the year, with all operations on track to achieve annual guidance Chelopech Ada Tepe Tsumeb Metals contained in concentrate produced Metals contained in concentrate produced Complex concentrate smelted 169 – 191 (000s oz) (000s tonnes) Gold (000s
Slide 12: 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.(6) 400 350 265 - 310 Loma 300 250 - 290 Larga 230 - 265 +200k
Slide 13: Advancing our Development Projects
Advancing our Development Projects Potential to add low-cost production growth Loma Larga Timok Ecuador Serbia 31% $520M ~200koz. $564/oz. 21% $135M ~80koz. $693/oz. IRR NPV5% Average annual gold AISC IRR NPV5% Average annual gold AISC production production Upcoming project milestones Upcoming proje
Slide 14: 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 2029 Vozdol Krasta Brevene EL ▪ Advanced Sveta Petka to Commercial Discovery Phase Plans for 2
Slide 15: 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 16: 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: 8.9% Ownership: 8.5% Rationale: Originally a DPM project, supportive Rationale: DPM’s strong presence and capab
Slide 17: 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 9.2 8.6 3.5%
Slide 18: Key Value Generating Catalysts
Key Value Generating Catalysts ▪ Life of mine update (March 2022) Strong production ▪ Optimized recoveries and offtakes profile ▪ 35,000 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 19: Appendix
Appendix Unlocking resources and generating value to thrive and grow together
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 C
Slide 25: Loma Larga Project: Feasibility Study Results
Loma Larga Project: Feasibility Study Results Feasibility Study Summary Metrics Significant Scale Initial mine life 12 years Average annual production of +170k oz. Au LOM (1) Average annual production(1,2) ~200k oz. Au (first 5 years) Average annual production(2) (LOM) 172k oz. Au Low Cost Average a
Slide 26: 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 (6) Total ore mined (Mt) 19.2 ▪ Contractor mining, optimizing design of haul roads and reducing requirement for
Slide 27: Strong Mineral Resource and Reserve Base
Strong Mineral Resource and Reserve Base Mineral Reserves (13, A, B) Million Au Cu Au Cu (%) Mineral Resources (13, 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 28: Hedge Position as at December 31, 2021
Hedge Position as at December 31, 2021 QP Hedges Volume Hedged Weighted Average Fixed Price Payable gold 18,040 ounces $1,803.46/oz. Payable copper 6,194,982 pounds $4.16/pound Call options sold Put options purchased Percentage of Forecast Year of projected Amount Hedged Operating Cost FX Hedges Avg
Slide 29: Top Shareholders & Analyst Coverage
Top Shareholders & Analyst Coverage ▪ Dundee Precious Metals has 190M shares outstanding (as of February 17, 2022) Top Shareholders Analyst Coverage Blackrock Inc. 10.9% Beacon Securities Bereket Berhe Van Eck Associates Corporate 10.0% CIBC World Markets Cosmos Chiu First Eagle Investment Managemen
Slide 30: 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 December 31, 20
Slide 31: 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 32: Corporate Head Office Investor Relations
Corporate Head Office 1 Adelaide Street East, Suite 500 Toronto, Ontario M5C 2V9 T: 416 365-5191 Investor Relations 1 Adelaide Street East, Suite 500 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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