Dpm Metals Inc. · TSX:DPM
Dpm Metals — Dundee Precious Metals — Investor Presentation (January 2023)
31 slides from Dpm Metals's investor presentation, January 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 January 2023 TSX:DPM 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”). 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) $750 - $890 310 265 - 310 $690 - $800 273 $657 $590 -
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 Outlook for gold production is Čoka Rakita & Timok gold project (Serbia) expected to improve as
Slide 9: Loma Larga, Ecuador
Loma Larga, Ecuador Potential to add low-cost production growth to our portfolio Revised feasibility study on track for Q1 2023 Awaiting clarity on consultation process 31% $520M ~200koz Continue to receive strong support from the government IRR NPV5% Average annual gold production & work proactivel
Slide 10: High-Grade Discovery at Čoka Rakita in Serbia
High-Grade Discovery at Čoka Rakita in 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 TSX: DPM 10
Slide 11: 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 2021: increased mineral reserves and extended mine life to 2030 2023 ACTIVITIES
Slide 12: 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 12
Slide 13: 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 5 million hours without a lost-time Zero discharge of indus
Slide 14: 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 15: 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 $420M growing net cash position Cash position ($M) Added Loma Larga project and advancing permitting $420 $150M undrawn c
Slide 16: Attractive Valuation
Attractive Valuation DPM offers a compelling value opportunity Strong production Strong free cash flow Returning capital and profile and balance sheet to shareholders Building our pipeline Unique capabilities Attractive valuation Price to 2023 Cash Flow Dividend Yield P/NAV 11.0 4.1% 1.8 10.2 1.7 3.
Slide 17: Key Value Generating Catalysts
Key Value Generating Catalysts Strong production Strong free cash flow Returning capital and 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 ✓ Op
Slide 18: Appendix
APPENDIX APPENDIX TSX DPM 18
Slide 19: 2022 Guidance
2022 Guidance US millions, unless otherwise indicated Chelopech Ada Tepe Tsumeb Consolidated Ore processed (’000s tonnes) 2,138.8 853.0 - 2,991.8 Cash cost per tonne of ore processed1 48 - 53 54 - 60 - - Metals contained in concentrate produced2,3 Gold (‘000s ounces) 179.1 94.0 - 273.1 Copper (milli
Slide 20: Three-Year Outlook
Three-Year Outlook Strong production profile, attractive all-in sustaining cost & significant free cash flow generation • Reviewing all-in sustaining cost outlook for 2023 and 2024 to reflect potentially lower by-product credits, local inflation and FX rates US millions, unless otherwise indicated 2
Slide 21: 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 22: 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 23: 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) $15 - 18 $15 - $18 $15 - $18 210 - 240 220 - 250 $13 190 174 4 4 4 4 4 2021A 2022A 2023E 2024E 2021A 2022E
Slide 24: Loma Larga Project: 2020 Feasibility Study Results
Loma Larga Project: 2020 Feasibility Study Results Advancing a revised feasibility study; expected to release results in Q1 2023 2020 Feasibility Study Summary Metrics Significant Scale Initial mine life 12 years Average annual production 1,2 Average annual production (first 5 of +170k oz. Au LOM1 ~
Slide 25: Timok Gold Project: Pre-Feasibility Study Results
Timok Gold Project: Pre-Feasibility Study Results Pre-feasibility Study Highlights9 Given the potential Čoka Rakita Total ore mined (Mt) 19.2 on the advancement of the Average grade (g/t) 1.07 overall Timok property package, DPM plans to focus on further Strip ratio (waste:feed) 2.5:1 exploration at
Slide 26: 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 5.8 0.507 109 2.72 0.85 M&I 13.8 1.258 270 2.84 0.89 Prob
Slide 27: 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 28: Top Shareholders and Analyst Coverage
Top Shareholders and Analyst Coverage Dundee Precious Metals has 190M shares outstanding (as of September 30, 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 Fi
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
Slide 31: 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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