TSX - DPM Investor Presentation July 2010 www.dundeeprecious.com
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, costs of production, capital expenditures, 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 news release 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 www.sedar.com. 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. 2
STRONG FINANCIAL POSITION At March 31, 2010, USD Analyst Coverage BMO John Hayes Cash and Short-Term Investments: $111M Cormark Securities Mike Kozak Net Working Capital (incl. Cash & ST Invts): $119M Dundee Securities Paul Burchell Plus Restricted Cash: $10M Union Securities Brian Mok Plus Marketable Securities: $38M Total Debt: $22M Debt to Total Capitalization: 4.0% Institutional Shareholders: ~55% DPM – TSX @ July 9, 2010 C$4.53 Shares Issued @ June 30, 2010 124M Fully Diluted/Cash on Dilution 145M/C$66M Market Cap @ July 9, 2010 C$562M 3
CHELOPECH MINE “Good to Great” 4
CHELOPECH MINING DPM Ownership 100 % Location Bulgaria Resources Gold (oz) (3.8 g/t) 4,230,000 M&I 971,500,000 Copper (lbs) (1.3% Cu) (as at Sept. 08) Gold (oz) 2,700,000 Reserves 640,000,000 (as at Oct. 09) Copper (lbs) Gold (oz) 71,472 2008 Copper (lbs) 19,909,524 Production Gold (oz) 88,433 2009 Copper (lbs) 26,155,662 2008 Gold ($US/oz) $309 Cash Cost * $369 2009 Gold ($US/oz) Mine Type Underground Estimated Mine Life 10 + yrs * Cash cost of sales/oz gold (net of by product credits). Reconciliation included in Appendices 5
CHELOPECH – Mine & Mill Operations Gold Production (000’ oz) 88 Ore Processed 75 (000’ tonnes per year) 71 71 57 953 981 913 901 852 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Gross Profit (in US$ millions) Copper Production 52.7 (lbs in millions) 50.9 42.7 26.1 25.4 24.6 23.6 19.9 18.2 15.0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 6
CHELOPECH – Steps to Mine & Mill Expansion The expansion of mine production capacity to 2.0 million tonnes of ore per year includes: 1. Construction of a paste fill plant 2. Installation of new SAG mill & modernization & upgrade of the existing concentrator 3. Installation of an underground crushing and conveying system SAG mill installation Construction of paste fill plant Underground crushing and conveying system 7
CHELOPECH – Mine/Mill Expansion 2009 2012 Mine/Mill Expansion Total ore processed 980,928 tonnes 2 million tonnes per year Capital cost to complete ~$90M (at March 31, 2010) Cash cost/tonne (excl. royalties) $55.23 $29.40 Concentrate production 71,657 tonnes 150,000 tonnes Gold production 88,433 oz 140,000 oz Copper production 26 million lbs 50 million lbs Completion date Q3 2011 8
EXPLORATION STRATEGY Near Mine Exploration Strategy +500kt discoveries close to infrastructure to replace annual Sever fan production Deeps Exploration Strategy Zapad Shaft Nadezhda decline Iztok fan Extend known mineralization at depth Kapitalna Shaft Greenfields Exploration Strategy +5Mt discoveries based on geological model 4 Diamond Drill Rigs Progress Central Deeps program complete in 2010 Commence Western Deeps program in 2010 DHEM programs Leapfrog Modeling 3D structural- geological model Terraspec Analysis Multi-element Geochemistry 9
EXPLORATION RESULTS Chelopech Mine - New Discoveries Block/Target Hole_ID From To Interval (m) Cu (%) Au (g/t) 149_225_52 260.8 267 6.2 1.65 12.64 181 149_225_52 339 346.5 7.5 0.34 7.65 182 145 EXT149_225_07 46.42 81 34.58 0.94 3.61 EXT149_225_02 40.4 70.5 30.1 1.57 9.77 EXT149_225_03 55.5 94.5 40.5 0.8 1.1 147 149_225_52 183 189.3 6.3 1.07 5.8 149_225_54 206 216.2 10.2 0.64 8.45 149_225_55 220.4 232.5 12.1 0.19 14.05 149_225_56 198 201 3 2.9 8.23 149_225_59 196.5 200.2 3.7 0.56 6.39 149_225_60 220.5 223.5 3 1.44 24.45 149_225_61 235.5 249 13.5 0.17 32.89 149_225_63 219 228.4 9.4 3.21 17.17 DUNDEE 10 PRECIOUS METALS INC .
EXPLORATION RESULTS DUNDEE 11 PRECIOUS METALS INC .
CHELOPECH DELIVERABLES Completion of the paste fill plant by Q3 2010 Completion of the SAG mill and mill expansion by Q4 2010 Exploration results – new zones Mine expansion on schedule and on budget for completion H2 2011 12
TSUMEB SMELTER, NAMIBIA – Oxygen Plant Purchase Price US$18M in cash and US$15M in DPM shares Assumption of US$17M in third party obligations Acquired March 24, 2010 Capacity of smelter Previously 120,000 tonnes/year Expansion to 240,000 tonnes per year completed Commissioning underway April 2010 processed over 16,000 tonnes = over 190,000 tonnes per year 13
TSUMEB SMELTER – Our Strategy 2010 DELIVERABLES STRATEGY Enables DPM to control Improved recoveries & costs its own destiny Complete commissioning O 2 plant Increase profitability Assess long term development Adds strategic value potential: Further expansion of smelter Broadens scope for future acquisitions capacity (70% fixed costs) Sulphuric acid plant to supply uranium industry 14
Driving Chelopech Mine/Mill Expansion Forward Permits Funded Smelter Build it Underway In 2012 @ 2 mtpy Chelopech will produce: 140,000 oz of gold 50 million lbs of copper @ $1,000 gold and $3.00 copper Result = EBITDA of approx. $150 million 15
OUR FIELD OF DREAMS Gold stocks trade at 11x EBITDA DPM trades at 2.7x 2012 Chelopech EBITDA* only This excludes: Value of Krumovgrad Value of Deno Gold Assets Value of Portfolio (Sabina/Serbia assets) Any potential EBITDA from the smelter * 2010 BMO Report 16
KRUMOVGRAD GOLD PROJECT - 2005 Resource at 1 g/t COG; 5 million tonnes Measured & Indicated Resource at 5 g/t gold; 835k oz Open pit; 4:1 strip ratio 7 year life; 2 year pay back Large project footprint (300 ha) CIL process plant (Cyanide) with 93% recoveries DPM Ownership 100 % Large tailings facility Location Bulgaria Future production rate est. at M&I Resources (oz Au) 835,000 (as at July 2005) 150,000 oz/yr gold for first four years Inferred Resources (oz Au) 11,000 Good exploration potential (as at July 2005) Proposed Mine Type Open Pit Very attractive, however – political delays & community concerns – Estimated Mine Life 6+ yrs project stalled Calculated at US$430/oz Au 17
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