MAY 9, 2013
DUNDEE PRECIOUS METALS
WELCOME TO THE 2013
ANNUAL & SPECIAL
MEETING
CHAIRMAN’S AGENDA
2Dundee Precious Metals
JONATHAN GOODMAN,
EXECUTIVE CHAIRMAN OF THE BOARD
• Opening Remarks
 Introducti...
DUNDEE PRECIOUS METALS
BOARD OF DIRECTORS
3Dundee Precious Metals
Jonathan Goodman
Executive Chairman
Derek Buntain Peter ...
BUSINESS OF THE MEETING
4Dundee Precious Metals
• Presentation of Financial Statements and Auditor’s Report
• Nomination a...
MESSAGE FROM CEO
RICK HOWES
5
DUNDEE PRECIOUS METALS
MANAGEMENT TEAM
6Dundee Precious Metals
Rick Howes
President & Chief Executive Officer
David Rae
Se...
7
FORWARD-LOOKING
STATEMENTS
This presentation contains “forward-looking information” or "forward-looking statements" that...
FORMAT FOR TODAY’S MEETING
8Dundee Precious Metals
• Rick Howes – Introduction and Opening Remarks
• Hume Kyle – Financial...
DPM’S GLOBAL PORTFOLIO OF ASSETS
9Dundee Precious Metals
Avala 53%
Krumovgrad 100%
Chelopech 100%
Dunav 47%
Tsumeb Smelter...
TRANSFORMING OUR BRAND IDENTITY
10Dundee Precious Metals
• VISION
Precious Metals Focused
Company that Grows Through
Respo...
THE INDUSTRY CHALLENGE
11Dundee Precious Metals
• 13 consecutive years of gold price increases – what next?
• Costs escala...
WHAT WE ARE FOCUSED ON
12Dundee Precious Metals
Operations
Projects
Managing the Business
• Optimizing the value potential...
OUR ACCOMPLISHMENTS IN 2012
13Dundee Precious Metals
Tailings Management Facility
Innovation and Responsible Mining
Chelop...
14Dundee Precious Metals
Gold (oz) Adjusted EBITDA (1) ($mm)
VALUE FOCUSED GROWTH
(1) This is a non-GAAP measure. See 2012...
15
Source: Scotia Capital (April 2, 2013), DPM 2013 Guidance
Note: All-in Sustaining Cash Cost = Total cash costs (by prod...
CREATING VALUE - 2013 AND BEYOND
16Dundee Precious Metals
Focus on Organic/Internal Value Creation
First
Wholly Owned or P...
FINANCIAL SUMMARY
HUME KYLE
EXECUTIVE VICE PRESIDENT
& CHIEF FINANCIAL OFFICER
17
18Dundee Precious Metals
2012 FINANCIAL HIGHLIGHTS
Revenue ($mm) Adjusted EBITDA (1) ($mm)
(1) This is a non-GAAP measure....
19Dundee Precious Metals
Q1 2013 FINANCIAL HIGHLIGHTS
Revenue ($mm) Adjusted EBITDA (1) ($mm)
Adjusted Earnings Per Share ...
20Dundee Precious Metals
GOLD & COPPER MARKET PRICES
Gold (US$/oz) Copper (US$/lb)
(1) 2013 forecast prices are based on Q...
21Dundee Precious Metals
GOLD & COPPER PRODUCTION
Gold (oz) Copper (M/lbs)
Four year track record of delivering production...
22Dundee Precious Metals
Cash Cost/Tonne of Ore Processed (1) ($/T)
MINE CASH COSTS
All-in Cash Cost Per Oz of Gold, Net o...
23Dundee Precious Metals
Smelter Concentrate Production
(tonnes)
SMELTER PRODUCTION & CASH COSTS
Smelter Cash Cost (1)
(US...
24Dundee Precious Metals
Growth Capital
2013-2017
($mm)
IDENTIFIED INVESTMENT OPPORTUNITIES
Growth Capital by Business
201...
25Dundee Precious Metals
TARGETED PRODUCTION GROWTH
Gold (oz) Copper (M/lbs)
Smelter Complex Concentrate Production (tonne...
26Dundee Precious Metals
Adjusted EBITDA ($mm)
EBITDA GROWTH POTENTIAL
2017F based on completion of identified investment ...
27Dundee Precious Metals
FINANCIAL POSITION
Funds from Operations
(2013F-2017F Ann. Avg)
Publicly traded
investments
Corpo...
MINING OPERATIONS
DAVID RAE
SENIOR VICE PRESIDENT,
OPERATIONS
28
HEALTH AND SAFETY PERFORMANCE
AT DPM OPERATIONS
29Dundee Precious Metals
Chelopech Kapan
Q1 2013 2012 2011 Q1 2013 2012 20...
CHELOPECH MINE
REDUCING COSTS & INCREASING THROUGHPUT
30Dundee Precious Metals
Ounces(000’s)
CashCost*(Gold$US/oz)
71
88
6...
CHELOPECH UNDERGROUND
EXPANSION PROJECT COMPLETED
31Dundee Precious Metals
Underground
crusher
installation
commissioned
O...
CHELOPECH SURFACE
EXPANSION CHANGES
SAG mill and upgraded flotation
Cash cost per tonne ore processed excl. royalty
* Base...
• Gold and copper recoveries have
exceeded budget in Q1 2013
• Gold recoveries show a 3%
improvement and copper 1%, in par...
CHELOPECH GOLD IN PYRITE
RECOVERY & TREATMENT PROJECTS
• Pyrite Recovery Project being
constructed in 2013 with capacity
t...
KAPAN MINE
OPERATING AND FINANCIAL HIGHLIGHTS
35Dundee Precious Metals * Kapan operations were on care and maintenance as ...
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
2,000
orehauledtosurface(t)/day
period Jan 01 - Apr 23
Kapan M...
KAPAN EXPLORATION
• Open pit resource activity is continuing
• An external consultant is generating pit shells from which
...
38
TSUMEB SMELTER
ADRIAN GOLDSTONE
EXECUTIVE VICE PRESIDENT,
SUSTAINABLE BUSINESS
DEVELOPMENT
OUR PURPOSE
39Dundee Precious Metals
• Urgently address capital needs at the smelter
• Reverse the legacy of poor environm...
DELIVERING SOLUTIONS IN 2012
40Dundee Precious Metals
Project 2012 Dust and Emissions Controls
• New off-gas and emissions...
DELIVERING SOLUTIONS IN 2012
41Dundee Precious Metals
Environment, Occupational Health & Safety and
Responsibility
• Parti...
TOWARD THE COMMERCIAL VISION
42Dundee Precious Metals
Electric Holding and Slag Cleaning Furnace
• Feasibility study compl...
2013 KEY EXPECTATIONS
43Dundee Precious Metals
• Project 2012
 Hygiene and environmental components commissioned Q1
 Pro...
THE BIGGER PICTURE:
2014 AND BEYOND
44Dundee Precious Metals
• Acid plant and new converters Q3 2014
• Holding and slag cl...
45
KRUMOVGRAD GOLD
PROJECT
ADRIAN GOLDSTONE
EXECUTIVE VICE PRESIDENT,
SUSTAINABLE BUSINESS
DEVELOPMENT
THE HISTORY
46Dundee Precious Metals
First Project: 2005
• Environmental, social and political
issues
• Could not clear th...
THE PROJECT
47Dundee Precious Metals
Krumovgrad Mineral Reserves – December 31, 2011
Category
Tonnes
(M)
Gold Silver
Grade...
THE PROJECT
48Dundee Precious Metals
Project Highlights 2015 – 2024 (1)
Average annual mine production 850,000 tonnes
Aver...
DELIVERING ON OUR PROGRAM
IN 2012
49Dundee Precious Metals
• Mining concession
• Appeals to concession
• Environmental Imp...
FORWARD MOMENTUM AND
MANAGING OUTCOMES
50Dundee Precious Metals
Balancing Risk Mitigation and Forward Momentum
• Political...
STATUS AND GOING FORWARD
51Dundee Precious Metals
What Has Been Delivered
• Permits are secured
• Engineering well advance...
CLOSING REMARKS
RICK HOWES
PRESIDENT &
CHIEF EXECUTIVE OFFICER
52
53
QUESTION AND ANSWER PERIOD
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2013 Annual Shareholders' Meeting

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2013 Annual Shareholders' Meeting

  1. 1. MAY 9, 2013 DUNDEE PRECIOUS METALS WELCOME TO THE 2013 ANNUAL & SPECIAL MEETING
  2. 2. CHAIRMAN’S AGENDA 2Dundee Precious Metals JONATHAN GOODMAN, EXECUTIVE CHAIRMAN OF THE BOARD • Opening Remarks  Introduction of Head Table  Introduction of Board of Directors • Appointment of Secretary and Scrutineer • Constitution of the Meeting
  3. 3. DUNDEE PRECIOUS METALS BOARD OF DIRECTORS 3Dundee Precious Metals Jonathan Goodman Executive Chairman Derek Buntain Peter Gillin Rick Howes Murray John Jeremy Kinsman Garth MacRae Peter Nixon Ronald Singer Eira Thomas Anthony Walsh William Wilson Donald Young
  4. 4. BUSINESS OF THE MEETING 4Dundee Precious Metals • Presentation of Financial Statements and Auditor’s Report • Nomination and Election of Directors (ballot) • Resolution to Approve a Reduction of the Exercise Price of the Listed Common Share Purchase Warrants (ballot) • Amendment to Section 4.3 of the By-Laws • Appointment of the Auditor • Termination of the Meeting  Jonathan Goodman  Derek Buntain  Peter Gillin  Rick Howes  Murray John  Jeremy Kinsman  Garth MacRae  Peter Nixon  Ronald Singer  Eira Thomas  Anthony Walsh  William Wilson  Donald Young
  5. 5. MESSAGE FROM CEO RICK HOWES 5
  6. 6. DUNDEE PRECIOUS METALS MANAGEMENT TEAM 6Dundee Precious Metals Rick Howes President & Chief Executive Officer David Rae Senior Vice President, Operations Adrian Goldstone Executive Vice President, Sustainable Business Development Michael Dorfman Senior Vice President, Corporate Development Hume Kyle Executive Vice President & Chief Financial Officer Lori Beak Senior Vice President, Investor & Regulatory Affairs & Corporate Secretary Michael Frilegh Vice-President & Treasurer Hans Nolte Vice President & General Manager, Namibia Custom Smelters Reuben Mills Vice President, Safety & Asset Risk Management Rob Taylor Vice President Projects Jeremy Cooper Vice President, Commercial Affairs Simon Meik Vice President, Processing Hratch Jabrayan Vice President & General Manager, Kapan Mine Nikolay Hristov Vice President & General Manager, Chelopech Mine Iliya Garkov Vice President & General Manager, Krumovgrad Gold Project Richard Gosse Senior Vice President, Exploration Jonathan Goodman Executive Chairman Paul Proulx Senior Vice President, Corporate Services
  7. 7. 7 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, 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.
  8. 8. FORMAT FOR TODAY’S MEETING 8Dundee Precious Metals • Rick Howes – Introduction and Opening Remarks • Hume Kyle – Financial Summary • David Rae – Mining Operations • Adrian Goldstone – Tsumeb Smelter and Krumovgrad Gold Project • Rick Howes – Closing Remarks • Question and Answer Period
  9. 9. DPM’S GLOBAL PORTFOLIO OF ASSETS 9Dundee Precious Metals Avala 53% Krumovgrad 100% Chelopech 100% Dunav 47% Tsumeb Smelter 100% Operating assets Development assets Exploration assets Canada Sabina 11%
  10. 10. TRANSFORMING OUR BRAND IDENTITY 10Dundee Precious Metals • VISION Precious Metals Focused Company that Grows Through Responsibly Developing Great Assets and People • MISSION Our Commitment is to Deliver Excellence in Sustainability and Creating Value for all Stakeholders • VALUES Dignity & Respect Transparency Safety Continuous Improvement Environmental Responsibility Community Investment We Succeed Because We Care Chevrons suggest forward movement, community and collaboration with all stakeholders Globe position highlights key continents and areas within which development and exploration occurs Integration of globe icon and wordmark showing unity and cohesion
  11. 11. THE INDUSTRY CHALLENGE 11Dundee Precious Metals • 13 consecutive years of gold price increases – what next? • Costs escalating / margins declining • Low investor interest in gold stocks • Gold equities trading at very low multiples to earnings or NAV Recent Trends What Must Gold Companies do to Turn This Situation Around? • Make a compelling case to investors for investing in gold stocks again © 2013 Kitco Metals Inc.
  12. 12. WHAT WE ARE FOCUSED ON 12Dundee Precious Metals Operations Projects Managing the Business • Optimizing the value potential of each asset • Delivering predictable results • Industry innovation • Responsible mining practices • Delivering projects that meet expectations • Taking out as much uncertainty as possible • Disciplined capital allocation • Managing and mitigating risks • Maintaining a strong balance sheet Staged Flotation Reactor at Chelopech Operations Control room at Chelopech Mine allows for real time process monitoring and control
  13. 13. OUR ACCOMPLISHMENTS IN 2012 13Dundee Precious Metals Tailings Management Facility Innovation and Responsible Mining Chelopech Expansion Completed On Time and On Budget Underground Crushing System Chelopech Conveyor & Crusher Expansion Chelopech Simulator Development and Technology Centre
  14. 14. 14Dundee Precious Metals Gold (oz) Adjusted EBITDA (1) ($mm) VALUE FOCUSED GROWTH (1) This is a non-GAAP measure. See 2012 Annual Report for further details..
  15. 15. 15 Source: Scotia Capital (April 2, 2013), DPM 2013 Guidance Note: All-in Sustaining Cash Cost = Total cash costs (by product basis) + sustaining capital + corporate G&A LOW COST PRODUCER Cash Cost/Tonne of Ore Processed (1) ($/T) (1) This is a non-GAAP measure. See 2012 Annual Report for further details. (2) All-in cost is comprised of cash delivered cost which includes mine cash costs, TC’s, RC’s and freight; net of by product credits, sustaining capital; and G&A costs (allocated based on revenue of operation). All-in costs exclude Avala and Dunav and growth capital expenditures. See Appendix for reconciliation to cost of sales.Dundee Precious Metals $665 $714 $782 $838 $842 $875 $884 $1,005 $1,155 $1,178 $1,212 $1,325 $1,362 2013E All-In Sustaining Cash Cost (US$/oz) Average: $987
  16. 16. CREATING VALUE - 2013 AND BEYOND 16Dundee Precious Metals Focus on Organic/Internal Value Creation First Wholly Owned or Partially Owned Greenfield Projects Greenfield & Brownfield Exploration • Existing Assets  Chelopech – Pyrites  Kapan Expansion  Tsumeb – Upgrade & Capacity Expansion • Krumovgrad Gold Project • Avala Resources – advanced exploration • Dunav Resources – advanced exploration • Sabina Gold & Silver – advanced exploration Value Creation Through Acquisitions Conceptual Illustration of Krumovgrad Gold Project 3 blocks of dust- capturing chambers installed in the new baghouse at Tsumeb Exploration at Kapan Mine Autoclave fabricated for the MPF to be used for Pyrite Project at Chelopech • New Senior Vice President of Exploration targeting and developing a strategy • Acquisition strategy
  17. 17. FINANCIAL SUMMARY HUME KYLE EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER 17
  18. 18. 18Dundee Precious Metals 2012 FINANCIAL HIGHLIGHTS Revenue ($mm) Adjusted EBITDA (1) ($mm) (1) This is a non-GAAP measure. See 2012 Annual Report for further details. (2) Calculated as FFO less sustaining capex, lease payments, interest payments and mandatory debt repayment. Free Cash Flow (2) ($mm)Adjusted Earnings Per Share (1) ($/share) 2009-’12 179%
  19. 19. 19Dundee Precious Metals Q1 2013 FINANCIAL HIGHLIGHTS Revenue ($mm) Adjusted EBITDA (1) ($mm) Adjusted Earnings Per Share (1) ($/share) Free Cash Flow (2) ($mm) (1) This is a non-GAAP measure. See Q1 2013 MD&A for further details. (2) Calculated as FFO less sustaining capex, lease payments, interest payments and mandatory debt repayment.
  20. 20. 20Dundee Precious Metals GOLD & COPPER MARKET PRICES Gold (US$/oz) Copper (US$/lb) (1) 2013 forecast prices are based on Q1 actual average prices and current prices for balance of year. Favourable price environment contributed to significant cash flow generation
  21. 21. 21Dundee Precious Metals GOLD & COPPER PRODUCTION Gold (oz) Copper (M/lbs) Four year track record of delivering production growth
  22. 22. 22Dundee Precious Metals Cash Cost/Tonne of Ore Processed (1) ($/T) MINE CASH COSTS All-in Cash Cost Per Oz of Gold, Net of By-products (1,2) ($/oz) Comparatively low with further opportunities to reduce (1) This is a non-GAAP measure. See 2012 Annual Report for further details. (2) All-in cost is comprised of cash delivered cost which includes mine cash costs, TC’s, RC’s and freight; net of by product credits, sustaining capital; and G&A costs (allocated based on revenue of operation). All-in costs exclude Avala and Dunav and growth capital expenditures. See Appendix for reconciliation to cost of sales. Delivered Cash Cost Sustaining Capital G&A
  23. 23. 23Dundee Precious Metals Smelter Concentrate Production (tonnes) SMELTER PRODUCTION & CASH COSTS Smelter Cash Cost (1) (US$/tonne) * DPM acquired Tsumeb on March 24, 2010 Cap-x program expected to deliver increased throughput & lower cash costs (1) This is a non-GAAP measure. See 2012 Annual Report for further details.
  24. 24. 24Dundee Precious Metals Growth Capital 2013-2017 ($mm) IDENTIFIED INVESTMENT OPPORTUNITIES Growth Capital by Business 2013-2017 (Midpoint of Range - %) Represents preliminary estimates, with most projects subject to detailed engineering. Excludes potential investments related to Dunav and Avala projects. Accretive investments with potential to add significant value Chelopech 32% Krumovgrad 19% Tsumeb 43% Kapan 6%
  25. 25. 25Dundee Precious Metals TARGETED PRODUCTION GROWTH Gold (oz) Copper (M/lbs) Smelter Complex Concentrate Production (tonnes) 2017F based on completion of identified investment opportunities and estimated production levels. 107% 22% 101%
  26. 26. 26Dundee Precious Metals Adjusted EBITDA ($mm) EBITDA GROWTH POTENTIAL 2017F based on completion of identified investment opportunities, current and LT metal prices and tolling rates in line with most recent contract. Assumed LT prices - Gold $1,250 / oz; Copper $2.75 / lb; Silver - $23 / oz; Zinc - $0.85 / lb. Capital investments expected to deliver additional value - Implied current share price / 2017F EBITDA ~ 2-3 x At Assumed LT Prices At Current Prices - May 3, 2013 Incremental EBITDA $165mm - $245mm 196%
  27. 27. 27Dundee Precious Metals FINANCIAL POSITION Funds from Operations (2013F-2017F Ann. Avg) Publicly traded investments Corporate Cash 53 105 Sources of Liquidity ($mm) Solid Balance Sheet ($mm) As at March 31, 2013 Discretionary cap-x provides flexibility to prudently pace spend Capital commitments fully funded 180- 220 Undrawn credit lines150 2013F - 2017F based on completion of identified investment opportunities, current metal prices and tolling rates in line with most recent contract. Debt/Cap 10% Warrants58
  28. 28. MINING OPERATIONS DAVID RAE SENIOR VICE PRESIDENT, OPERATIONS 28
  29. 29. HEALTH AND SAFETY PERFORMANCE AT DPM OPERATIONS 29Dundee Precious Metals Chelopech Kapan Q1 2013 2012 2011 Q1 2013 2012 2011 Number of Lost Time Injuries 2 11 7 1 8 9 Number of Medical Treatment Injuries 8 25 29 1 12 16 Lost Time Injuries Frequency Rates(1) 0.63 0.76 0.52 0.37 0.77(2) 0.84 Number of Fatalities 0 0 0 0 0 1 1. LTIFR = Number of occurrences/man hours worked x 200,000. The factor of 200,000 is derived from 50 working weeks at 40 hours per 100 employees. 2. Does not include contractor hours. Workers at Chelopech Underground Operations Benchmark Lost Time Injury Frequency Rates: Canada per 200,000 man hours, Ontario all mines 0.9
  30. 30. CHELOPECH MINE REDUCING COSTS & INCREASING THROUGHPUT 30Dundee Precious Metals Ounces(000’s) CashCost*(Gold$US/oz) 71 88 65 Gold Production & Cost/Ounce Copper Production (pounds in millions) 19 27 26 $309 $369 94 37 $210 Tonnesoreprocessedperyear(000’s) Ore Processed & Cost/Tonne Cost/tonne($US)(Excludingroyalties) 2008 2009 2010 1,819 2011 Adjusted EBITDA (US$MM) 51 27 57 133 125- 143 43 - 46 2012 ($112) 196 121 $9 43 1,900- 2,050 2013E 39 $185 12 Q1 2013
  31. 31. CHELOPECH UNDERGROUND EXPANSION PROJECT COMPLETED 31Dundee Precious Metals Underground crusher installation commissioned October 2012 Underground Crusher Chamber Commissioned June 2012 Crusher Excavation Design
  32. 32. CHELOPECH SURFACE EXPANSION CHANGES SAG mill and upgraded flotation Cash cost per tonne ore processed excl. royalty * Based on March 24, 2011 Technical report for the Chelopech Project. Exchange rate of US$1.35/Euro, US$900/oz Au, US$2.50/lb Cu and US$17/oz Ag. 32Dundee Precious Metals Surface Stockpile Commissioned November 2012 Technical Report Target
  33. 33. • Gold and copper recoveries have exceeded budget in Q1 2013 • Gold recoveries show a 3% improvement and copper 1%, in part because of this technology • SFR technology is being installed in 2013 for the pyrite recovery project and additional main plant cell replacements 33Dundee Precious Metals CHELOPECH INNOVATION – STAGED FLOTATION REACTOR
  34. 34. CHELOPECH GOLD IN PYRITE RECOVERY & TREATMENT PROJECTS • Pyrite Recovery Project being constructed in 2013 with capacity to produce 380,000 to 420,000 tonnes of concentrate per annum containing:  75,000 - 90,000 ounces gold  130,000 - 190,000 ounces silver  4.5 - 6 million pounds copper • Pilot Scale POX test work completed to treat 50% of this concentrate • Feasibility study ongoing for completion in Q3 2013 Autoclave test facility at SGS Lakefield 34Dundee Precious Metals
  35. 35. KAPAN MINE OPERATING AND FINANCIAL HIGHLIGHTS 35Dundee Precious Metals * Kapan operations were on care and maintenance as of November 2008; operations restarted April 2009. 296 12 29 15 27 1.9 2.9 1.5 3.0 Gold Production (000s ounces) Copper Production (pounds in millions) EBITDA (US$MM) ($17.1) $1.9 $16.7 $32.5 2009* 2010 2011 22 2.5–3.0 Cash Cost (per tonne ore produced) (excl. royalties) $109 $72 $66 $63 2008* 2012 $12.5 25-30 2.5 $69 5 0.6 $72 ($0.7) Q1 2013
  36. 36. 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 orehauledtosurface(t)/day period Jan 01 - Apr 23 Kapan Mine Production Track 7-day rolling production Weekly Average Mined Tons Target KAPAN OPERATION IMPROVEMENTS Change of Shift Cycle Changes to North section • Fleet rebuilds largely completed in Q1 2013 • Activities on training, manuals, facilities for engine and transmission re-builds • Workshops completed: tires, hydraulic pumps and components in Q1 2013 • Plant maintenance and production management Equipment back in production 36Dundee Precious Metals
  37. 37. KAPAN EXPLORATION • Open pit resource activity is continuing • An external consultant is generating pit shells from which the mineral resources will be defined 37Dundee Precious Metals Open Pit Underground • Current activity is on wire-framing additional vein intersections
  38. 38. 38 TSUMEB SMELTER ADRIAN GOLDSTONE EXECUTIVE VICE PRESIDENT, SUSTAINABLE BUSINESS DEVELOPMENT
  39. 39. OUR PURPOSE 39Dundee Precious Metals • Urgently address capital needs at the smelter • Reverse the legacy of poor environmental and health performance • Move toward international best practice in every field in the smelter business • Improve our stakeholder and government relations • Address the issues raised by government mandated audit and return to full production • Manage long term risk and protect Chelopech • Long range move to successful stand alone business model and realize the latent value
  40. 40. DELIVERING SOLUTIONS IN 2012 40Dundee Precious Metals Project 2012 Dust and Emissions Controls • New off-gas and emissions management • New dust management systems • Smelter hygiene improvements Addressing the Audit and Production Cut • Temporary hygiene management and fugitive controls • Production cut to 50% Increased to 75% Acid Plant and SO2 Emissions Control • Feasibility study • Lump sum turn key contract • Memorandum of Understanding for acid off take with Rossing Ausmelt Offgas Bag-House Acid Plant 3D Schematic
  41. 41. DELIVERING SOLUTIONS IN 2012 41Dundee Precious Metals Environment, Occupational Health & Safety and Responsibility • Particulate and arsenic emissions at smelter boundary • Community exposure risk • Trends in employee exposures • Arsenic life-cycle audit and stewardship program • 2 million man-hours lost time injury free Stakeholders • Prominent Namibians appointed to Smelter Advisory Council • Black Economic Empowerment (BEE) program outlined • Government relations significantly improved • Local community relations very strong Oxygen Plant at Tsumeb Smelter Funding Education
  42. 42. TOWARD THE COMMERCIAL VISION 42Dundee Precious Metals Electric Holding and Slag Cleaning Furnace • Feasibility study completed • Positive impact on costs and recoveries • Strong Financials Negotiation of improved smelting terms on 3rd party concentrate completed Materials handling upgrade 80% complete New oxygen plant • 80% complete • Commissioning expected July 2013 • Will significantly increase smelting performance and throughput in H2 New Oxygen Plant
  43. 43. 2013 KEY EXPECTATIONS 43Dundee Precious Metals • Project 2012  Hygiene and environmental components commissioned Q1  Production increase components delivered Q2  H2 Throughput 22,000 tonnes per month • Decommission old reverb furnace • Continuous improvement in operating and health, safety and environment performance and costs • AP project award and progress to Q3 2014 commissioning • Meet government directive • Maintain and improve all stakeholder relationships • Advance 10% BEE ownership to cross section of Namibian society • Advance other BEE elements in management and governance • ON TRACK FOR 2013
  44. 44. THE BIGGER PICTURE: 2014 AND BEYOND 44Dundee Precious Metals • Acid plant and new converters Q3 2014 • Holding and slag cleaning furnace 2015  Improved metallurgical recoveries  Increased throughput and lower unit costs • World class environmental and occupational health and safety performance • Full stakeholder “buy-in" to the business case for custom smelting • Targeting costs below $200 per tonne • Throughput of 320,000+ tonnes per annum for complex concentrate • EBITDA between $50 - $100 million • World class asset securing Chelopech and also delivering as a stand alone commercial enterprise
  45. 45. 45 KRUMOVGRAD GOLD PROJECT ADRIAN GOLDSTONE EXECUTIVE VICE PRESIDENT, SUSTAINABLE BUSINESS DEVELOPMENT
  46. 46. THE HISTORY 46Dundee Precious Metals First Project: 2005 • Environmental, social and political issues • Could not clear the hurdles New Project Feasibility Study: 2011 • Resolved the issues • Reduced footprint • Removed cyanide • New approach to tailings • Social contract with community • Water supply guarantees Exploration at Krumovgrad Gold Project
  47. 47. THE PROJECT 47Dundee Precious Metals Krumovgrad Mineral Reserves – December 31, 2011 Category Tonnes (M) Gold Silver Grade (g/t) Ounces (M) Grade (g/t) Ounces (M) Proven 2.94 4.70 0.44 2.54 0.24 Probable 4.30 2.44 0.34 1.52 0.21 Total 7.24 3.36 0.78 1.92 0.45 Krumovgrad Mineral Resources – December 31, 2011 Category Tonnes (M) Gold Silver Grade (g/t) Ounces (M) Grade (g/t) Ounces (M) Measured 3.30 4.90 0.52 3.00 0.28 Indicated 4.69 2.50 0.38 2.00 0.24 M&I 7.99 3.50 0.90 2.00 0.51 Inferred 0.40 1.20 0.02 1.00 0.01 1. Rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals. 2. All Mineral Resource Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM. 3. Krumovgrad Mineral Reserves and Resources are based on the Krumovgrad 2012 Technical Report using a variable economic cut-off grade and 0.5 g/t Au respectively. 4. All Mineral Reserves and Resources are based on long term metals prices of $1,250 Au, $3/lb Cu, $25/oz Ag and $1/lb Zn. 5. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Reserves.
  48. 48. THE PROJECT 48Dundee Precious Metals Project Highlights 2015 – 2024 (1) Average annual mine production 850,000 tonnes Average annual concentrate production 11,500 tonnes Average annual gold production 74,000 oz Average annual silver production 35,000 oz Total cash cost/tonne ore processed $38.11 Total cash cost per oz gold equivalent (2)(3) $404 Initial capital costs (4) $127.4 million Sustaining capital $12.5 million Closure and rehabilitation costs $13.5 million Average annual EBITDA (3) $52.6 million Item Life of Mine Total gold production 663,641 oz Total silver production 314,939 oz NPV at a discount rate of 7.5%, after tax (3)(4) $165.3 million Internal Rate of Return, after tax (IRR) (4) 31.0% Payback Period, after tax 3.3 years Mine Life 9 years 1. Representative period. Based on current Mineral Reserves, the Project has a mine life of 9 years assuming an annual operating rate of 850,000 tonnes ore. 2. Gold equivalent ounces includes silver ounces produced and sold converted to a gold equivalent based on the ratio of the average metal prices for the commodities. 3. Assuming gold and silver prices of $1,250/oz and $25.00/oz, respectively. 4. Excludes sunk capital.
  49. 49. DELIVERING ON OUR PROGRAM IN 2012 49Dundee Precious Metals • Mining concession • Appeals to concession • Environmental Impact Assessment approval • All appeals resolved • Water permit granted • Basic Engineering • Project team in place and resourced • Engineering contracts awarded • Hybrid self-perform engineering, procurement and construction management • Operating group established
  50. 50. FORWARD MOMENTUM AND MANAGING OUTCOMES 50Dundee Precious Metals Balancing Risk Mitigation and Forward Momentum • Political situation and elections cause slow progress • Keep capital spend controlled and slowed, and minimize capital at risk while; • Keeping project moving and not creating additional schedule risk Balanced and Constructive Political and Stakeholder Dialogue • Non-partisan • Constructive • Negotiate social contract with community • Business as usual with caretaker government Use Scheduled Hiatus to Review and Optimize the Project • Refine engineering and optimize costs • Trade off studies to generate best return • Testing of SFR floatation technology and taking gold recovery upside • Optimized mine plan; bring ounces forward and improve financials Visible Gold in Krumovgrad Sample
  51. 51. STATUS AND GOING FORWARD 51Dundee Precious Metals What Has Been Delivered • Permits are secured • Engineering well advanced • Current hiatus expected to clear mid year What We Expect • Some cost escalation expected but not undue; under review • Construction now expected 2014/15 • Commissioning now expected 2016 Project Outcome • New capital, schedule and mine plan scenarios modeled • No change expected to economics; project still very attractive • + 30% internal rate of return Conceptual Illustration of Krumovgrad Gold Project
  52. 52. CLOSING REMARKS RICK HOWES PRESIDENT & CHIEF EXECUTIVE OFFICER 52
  53. 53. 53 QUESTION AND ANSWER PERIOD

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