forward looking statements

FORWARD LOOKING STATEMENTS This presentation contains forward - PDF document

2/11/2016 Can we put picture of the Ausmelt! TSUMEB SMELTER SITE VISIT February 10, 2016 FORWARD LOOKING STATEMENTS This presentation contains forward looking information or "forward looking statements" that involve a number of

  1. 2/11/2016 Can we put picture of the Ausmelt! TSUMEB SMELTER SITE VISIT February 10, 2016 FORWARD LOOKING STATEMENTS This presentation contains “forward looking information” or "forward looking statements" that involve a number of risks and uncertainties. Forward looking information and forward looking statements include, but are not limited to, statements with respect to the future prices of gold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production and output, costs of production, capital expenditures (including sustaining capex, non-discretionary capex and discretionary capex), costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation. Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others: the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in this presentation under and in the Company’s annual information form under the heading "Risk Factors" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. TSX:DPM 2 1

  2. 2/11/2016 SAFETY DPM – Frequency Rate Results 3.50 3.14 3.07 3.00 2.50 2.49 2.34 2.16 AIFR 2.00 LTIFR 1.52 RWDIFR 1.50 1.37 MTIFR 1.15 1.00 0.80 0.69 0.66 0.52 0.65 0.50 0.45 0.43 0.27 0.20 0.12 0.05 0.00 0.00 2011 2012 2013 2014 2015 • Best Smelter safety record ever achieved in 2015 (AIFR & LTIFR). • Good trend on safety performance for all sites comparing well to North American metrics. • The next Phase is to focus more specifically on behavioral safety to prevent the performance from flattening out. TSX:DPM 3 DPM’S GLOBAL PORTFOLIO OF ASSETS Chelopech Mine, Bulgaria Kapan Mine, Armenia Tsumeb Smelter, Namibia • Ownership: 100% • Ownership: 100% • Ownership: 100% • Stage: Producing • Stage: Expanding • Stage: Producing • Mine Life: 10 + years • Mine Life: 9 + years • Technology: Ausmelt • 2015 Production: 153 koz Au; • 2015 Production: 25 koz Au; • 2015 Concentrate Smelted: 39.7 Mlbs Cu 2.7 Mlbs Cu 196,107 tonnes Krumovgrad Project, Bulgaria • Ownership: 100% • Stage: Detailed Design Chelopech 100% • Mine Life: 8 years • Production: H2 2018 Krumovgrad 100% Avala 50.14% • Avg. Production: 85.7 koz Au/yr Kapan 100% Sabina 12% Tsumeb Smelter 100% Operating assets Development assets Exploration assets TSX:DPM 4 2

  3. 2/11/2016 DIVERSE PORTFOLIO OF ASSETS IN PRO MINING JURISDICTIONS 2015F Revenue Diversification Sept 2015 Asset Diversification • Credit Rating: Baa2 (Moody’s), BBB- (Fitch), BB+ (S&P) (as of 2015.Q3) • Corporate Tax Rate: 10% • GDP Forecast: +2.0% in 2015, +2.5% in 2016 (IMF) • Overview: − Bulgaria is a member of the European Union (since Smelter 2007) 21% Silver − Mining industry has grown significantly since 1998 and Gold and currently employs ~120,000 Bulgarians in the country 48% Bulgaria is the 4 th largest gold producer and 6 th largest Zinc − coal producer in Europe 6% Copper 25% • Credit Rating: Baa3 (Moody’s), BBB- (Fitch), NR (S&P) • Corporate Tax Rate: 0% as Tsumeb has been granted Export Processing Zone status • GDP Forecast: +4.5% in 2015, +4.6% in 2016 (IMF) 2015 EBITDA Generation • Overview: Bulgaria Namibia − Ranked as Africa’s most attractive country on Fraser 44% 45% Institute’s Investment Attractiveness Index (ranked #10 globally) Tsumeb World’s 5 th largest producer of uranium and 9 th largest − 8% producer of diamonds Armenia − Mining companies in the country include Glencore, Rio Kapan 12% Tinto, Anglo American, Paladin Energy, etc. 4% Chelopech • Credit Rating: Ba3 (Moody’s), B+ (Fitch), NR (S&P) 88% • Corporate Tax Rate: 20% • GDP Forecast: +3.5% in 2015, +3.7% in 2016 (IMF) TSX:DPM 5 FOCUS ON BECOMING A MID TIER GOLD PRODUCER Optimize Existing Operations • Mining operations • Pursue margin/cost improvement opportunities Kapan Underground • Extend life of existing mines through exploration • Deliver sustained operating improvements at Kapan to support underground expansion • Tsumeb smelter • Robust Cash flow through the price cycles. • Increase margins through higher throughput and Newly commissioned cost improvements acid plant at Tsumeb Execute New Growth Projects • Build Krumovgrad Gold Project Establish Growth Pipeline Through Exploration and M&A Conceptual • Generate brownfield and greenfield exploration opportunities Illustration of Krumovgrad Gold Project Maintain a Solid Balance Sheet and Low-Cost Position TSX:DPM 6 3

  4. 2/11/2016 CHELOPECH MINE PRODUCTION PROFILE AT LOW COST Outlook Production and Cost Profile Payable Au in pyrite sold (Koz) • Maintain low cost operations Au (Koz) • Perform targeted exploration to replace depletion Cu (Mlbs) 314 293 and maintain mineral reserves $ cost/oz Au sold $cost/T ore processed • Continue to implement cost/margin 230 improvements 151 153 • Increase ore throughput 137 Asset Overview 39.90 40.08 36.46 Location Grade 46 44 40 Gold (3.14 g/t) 2.3 Reserves (Moz) 2013 2014 2015 (at Dec Copper 31, 2014) (0.93%) 467 (Mlbs) Value Mine Type Underground • Quadrupled ore production to 2 mtpa and High achieved one of the lowest cost underground Au Deposit Type sulphidation and Cu mines, globally epithermal • Pyrite gold project has improved Au recoveries by Estimated Mine Life 10+ years 25-35% increasing overall gold recoveries to concentrates to between 70 and 80% 2015 Adjusted EBITDA (US$) 101 M • Continually extending LOM by replacing mined reserves through exploration programs TSX:DPM 7 KAPAN MINE: OPTIMIZING THE ASSET Outlook Production and Cost Profile Au (Koz) • Continued improvements to ground control practices Cu (Mlbs) 964 $ cost/oz Au sold • Progress improvements in mine and mill production 863 709 • Changes in mine and maintenance management • Focus on operational improvements and cost reductions 25 24 21 • Favourable PEA adds to organic growth potential for 2.7 2 underground expansion to 1 Mtpa of run of mine material 2013 2014 2015 Asset Overview Kapan Expansion PEA Project Summary Location Grade Metal content Tonnes mined 7.6 Mt Gold 2.44 g/t Gold 2.90g/t 0.418 Moz Resources Silver 37.60 g/t Indicated Copper 0.49% 49 Mlbs (at Dec. 31, 2014) Copper 0.33% Zinc 1.00% Resources Gold 2.55 g/t 0.934 Moz Inferred Cash cost per oz of Au sold, net of by- Copper 0.50% 137 Mlbs US$336/oz (at Dec. 31, 2014) product credits Mine Type Underground Total Net Revenue US$874.7M Polymetallic vein Site EBITDA US$417.1M Deposit Type (Au, Cu, Ag, Zn) Average Annual EBITDA US$52.1M Estimated Mine Life 9+ years NPV @ 5% Discount US$141.7M 2015 Adjusted EBITDA (US$) 4.9 M Total Expansion Capital US$30.1M TSX:DPM 8 4


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