Namibia Custom Smelters www.dundeeprecious.com The Transaction - - PowerPoint PPT Presentation

Namibia Custom Smelters

DU DUNDEE DEE

PRECIOUS METALS INC.. TSX - DPM www.dundeeprecious.com

The Transaction

DUNDEE

PRECIOUS METALS INC.

• Chelopech concentrate to NCS since

2007

• Smelter uniquely positioned and

engineered to accept chelo con

• Recognised potential risks to Chelopech

while smelter not in DPM ownership

• Smelter acquired March 24, 2010
• $33M cash and shares and settled $17M

in third party obligations

• Secures Chelopech future with respect to

concentrate processing

The Operation

DUNDEE

PRECIOUS METALS INC.

• Combined Ausmelt and Reverb furnace technology
• 3 Pierce Smith Convertors
• Supplementary oxygen added to Ausmelt
• Significant potential capacity in Ausmelt with more
• xygen
• Off-gas cooling and capture of dust and particulate

metals

• Blister copper product shipped to European refineries
• Arsenic trioxide by-product manufacturing plant
• As2O3 shipped to SA and SE Asia

The Operation

DUNDEE

PRECIOUS METALS INC.

• 190 tpd oxygen plant
• Waste heat power generation plus connection to national

grid

• Slag mill for slag recovery of metal in slag
• Licensed best practice hazardous waste disposal facility
• Ownership of historic tailings and smelter wastes

– Govt. granted legal limitation of historic liability – Rehabilitation work started – Some potential opportunity in residual metal values?

• Namibian infrastructure generally good

Production and Capex

DUNDEE

PRECIOUS METALS INC.

• 36,000 tonnes primary concentrate processed Q3 2010

(inc. 17k Chelo)

• Capex YTD USD 5M
• Expected 2010 Capex USD 8M
• Expected Capex 2011 USD 20M

2010 Focus

DUNDEE

PRECIOUS METALS INC.

• Under previous ownership

– Facility undercapitalized – Deferred maintenance and environmental controls upgrade – Social license to operate somewhat neglected

• 2010 activity since DPM acquisition

– Improved community and government relationships – Increased focus on safety, health, environment – Capital into maintenance and urgent environmental improvements

• materials handling
• gas cooling (additional gas coolers)
• dust capture (ongoing bag house upgrades)
• Haz waste site

– Additional resources applied in operations management and projects – ESIA in preparation – Develop future strategy and project plan

Future Focus 2011/2012

DUNDEE

PRECIOUS METALS INC.

• Secure the future
• Implement “project” strategy to meet production and HSE

targets

• Best Practice controls on particulate emissions
• Reduced fugitive emissions
• Increased environmental surveillance and management
• Take commercial opportunities and address any risks
• Reduce costs and incrementally improve availability and

reliability

• Increase reliance on Ausmelt technology
• Complete sulfur capture and acid production study
• Further improvements in community engagement