Investor Presentation May 2013
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Investor Presentation May 2013 Investor Presentation May 2013 Presentation Transcript

  • MAY 2013 DUNDEE PRECIOUS METALS BUILDING A MID TIER, LOW-COST PRECIOUS METALS PRODUCER
  • 2 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.
  • DPM’S GLOBAL PORTFOLIO OF ASSETS 3Dundee Precious Metals Avala 53% Krumovgrad 100% Chelopech 100% Dunav 46% Tsumeb Smelter 100% Operating assets Development assets Exploration assets Canada Sabina 11% Kapan 100%
  • 2012: RECORD PRODUCTION AT DECREASING CASH COSTS 4Dundee Precious Metals Chelopech expansion completed on time and under budget Secured new revolving credit facility of US$150 million - undrawn Contracted additional third-party concentrate for Tsumeb Smelter Broadened senior management team; strengthened operations and exploration Chelopech Adjusted EBITDA increased to $196 million, up 47% from 2011 Lowered cash cost per ounce of gold produced Maintained growing pipeline of growth opportunities Continue to be an attractive value proposition * In CDN dollars Consolidated Gold Production and Cash Cost Decreases Consolidated Adjusted EBITDA (US$MM) Ounces(000’s) CashCost*(Gold$US/oz) -$40 $32 $45 $118 $125 2008 2009 2010 2011 2012 84 103 95 121 142 150 - 173 $543 $425 $238 -$63 $117 -$100 $0 $100 $200 $300 $400 $500 $600 0 50 100 150 200 2008 2009 2010 2011 2012 2013F
  • 5 Source: Scotia Capital (April 2, 2013), DPM 2013 Guidance Note: All-in Sustaining Cash Cost = Total cash costs (by product basis) + sustaining capital + corporate G&A LOW COST PRODUCER Cash Cost/Tonne of Ore Processed (1) ($/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
  • CREATING VALUE - 2013 AND BEYOND 6Dundee Precious Metals Focus on Organic/Internal Value Creation First Wholly Owned or Partially Owned Greenfield Projects Greenfield & Brownfield Exploration • Existing Assets  Chelopech – Pyrite Project  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 Stage 2 Pyrite Project at Chelopech • New Senior Vice President of Exploration targeting and developing corporate strategy • Acquisition strategy
  • MAINTAINING A SOLID FINANCIAL POSITION 7Dundee Precious Metals Capital Structure @ May 30, 2013 Share Price C$5.02 Shares Outstanding 125M Fully diluted shares Additional cash on dilution 147M C$46M 52 week high - low $4.20 - $9.93 Top shareholders Gross Revenue by Metals Sold 2011A 2012A 2016E Gold Copper Silver Zinc Dundee Corporation 24% Equinox Partners <10% Cash on Hand @ Mar. 31, 2013 (excluding AVZ & DNV) Significant 2012 Operating Cash Flow Debt @ Mar. 31, 2013 Total Debt : Total Capital = 10% $79M $80.5M $121M 48% 41% 6% 5%
  • CHELOPECH MINE BULGARIA 8
  • CHELOPECH MINE: LOW COST, LONG LIFE PRODUCER 9Dundee Precious Metals DPM Ownership 100% Location Bulgaria Acquired Sept. 2003 Resources Measured & Indicated (@ Dec. 31, 2012) Gold (oz) (4.0 g/t) 3,800,000 Copper (lbs) (1.3% Cu) 825,000,000 Reserves (@ Dec. 31, 2012) Gold (oz) (3.6 g/t) 2,500,000 Copper (lbs) (1.1% Cu) 519,000,000 Mine Type Underground Deposit Type High sulphidation epithermal deposit Estimated Mine Life @ expanded rate 10 yrs • Continue to drive costs down through numerous reduction efforts  Completed “Taking the Lid off the Mine”  Implemented Staged Flotation Reactor • Continue to replace depletion and increase Mineral Resources and Mineral Reserves through exploration • Complete feasibility study on the pyrite gold recovery project Strategy
  • CHELOPECH MINE REDUCING COSTS & INCREASING THROUGHPUT 10Dundee Precious Metals Ounces(000’s) CashCost*(Gold$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
  • CHELOPECH UNDERGROUND EXPANSION PROJECT COMPLETED 11Dundee Precious Metals Underground crusher installation commissioned October 2012 Underground Crusher Chamber Commissioned June 2012 Crusher Excavation Design
  • CHELOPECH SURFACE EXPANSION CHANGES SAG mill and upgraded flotation 55 52 50 41 37 34 2009 2010 2011 2012 Q1' 2013 after expansion 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. 12Dundee Precious Metals Surface Stockpile Commissioned November 2012 Technical Report Target
  • CHELOPECH MINE: PYRITE PROJECT TO INCREASE GOLD RECOVERIES TO 90% 13Dundee Precious Metals @ 2 mtpy ore mined 400,000 T pyrite concentrate produced (E) Metals Grades Estimated Production Result Gold 6 - 7 g/t 75,000 - 90,000 oz Silver 10 - 15 g/t 130,000 - 190,000 oz Copper 0.5% - 0.7% 4.5 million - 6.0 million pounds Stage 2 Pyrite Project Highlights Cash cost per oz of gold (net of by-product credits) $615 Project capital costs $202M IRR after tax(1) 24% Timeline: concentrator upgrade - POX facility production 2013 - 2017 • Project will economically recover most of the contained gold, silver & copper associated with rejected pyrite minerals • POX process can be used to produce a low mass residue resulting in a metal rich product for sale • Up to 200,000 tpy of pyrite concentrate, containing 28,000 to 30,000 oz of payable gold, will be sold to Xiangguang Copper Co. from 2014 to 2016 (1)Assuming $1,250/oz gold, $25/oz silver and $2.75/lb copper after 2016. Pyrite Project Stages Stage 1 – concentrator upgrade – start production Q4 2013 $23M – necessary environmental permits obtained; no appeals Stage 2 – POX Facility Phase 1 – Start production 2016 $93M Phase 2 – Start production 2017 $87M
  • CHELOPECH MINE: SUCCESSFUL LOW COST EXPLORATION PROGRAM 14Dundee Precious Metals Continue to replace mined Reserves and discover additional Mineral Resources Near-mine • +500Kt high-grade 149 style deposits plus extensions to existing ore zones • Chelopech NE behind Block 19, Block 145-25 Deep Exploration Targets • 2013 – Block 151/150 • 2014 – Block 150 • 2015 – Block 103 Discover New Mineralization Greenfields • +5Mt Cu-rich 151 style deposits • Chelopech NW & E • Expanded regional exploration program 16_270 Central Deeps >4g/tAuEq shell & >2g/tAuEq shell
  • KAPAN MINE ARMENIA 15
  • KAPAN MINE: POTENTIAL TO INCREASE SIZE AND EXTEND LIFE OF MINE 16Dundee Precious Metals Strategy DPM Ownership 100% Location Armenia Acquired August 2006 Mine Type Underground Product Cu & Zn concentrates containing Au & Ag Deposit Type Polymetallic vein deposit (swarms) Open Pit Resource Underway Underground Resource Underway • Define the potential resource for the Shahumyan deposit • Complete feasibility studies based on the new resources • Explore regional license to define additional Mineral Resources • Continue operational improvements & cost reductions
  • KAPAN MINE OPERATING AND FINANCIAL HIGHLIGHTS 17Dundee Precious Metals * Kapan operations were on care and maintenance as of November 2008; operations restarted April 2009. 296 12 29 15 27 1.9 2.9 1.5 3.0 Gold Production (000s ounces) Copper Production (pounds in millions) EBITDA (US$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
  • 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 18Dundee Precious Metals
  • KAPAN MINE: SHAHUMYAN EXPLORATION POTENTAIL 19Dundee Precious Metals Central Shahumyan Good grades/widths from historic exploration Excellent results from both surface and UG exploration Shahumyan North Information required for production and mine planning Old Shahumyan Below 800 level poorly explored – historical producing area of high grade ore Shahumyan South Program designed to prove up resources below 700Rl for mine plan
  • KAPAN MINE: REGIONAL EXPLORATION OPPORTUNITIES 20Dundee Precious Metals SHAHUMYAN CENTRALNI KNOWN PROSPECT • Regional target generation continued • Highlighted several strong conductive units for follow-up investigation • Identified several strong conductors in poorly explored areas • Several conductors are spatially related to alteration and known copper occurrences Exploration License – 350 km2
  • TSUMEB SMELTER NAMIBIA 21
  • TSUMEB SMELTER: A UNIQUE STRATEGIC ASSET 22Dundee Precious Metals Strategy • Pursue third party complex concentrate producers to secure favourable rates under long-term contracts • Continue to treat Chelopech complex concentrate • Environmental Upgrades  Upgrade dust emissions capture  SO2 gas emissions capture • Increase capacity and lower costs Chelopech con Third party con 185,000 – 200,000 Tonnes(000s) 2009 20112010 2013E2012 DPM Ownership 100% Location Namibia Acquisition March 2010 $50M Technology Ausmelt Product Copper blister bars 2012 concentrate throughput 159,356 tonnes Expanding smelter capacity >300,000 tpy Sulphuric acid capture plant Q3 2014
  • TSUMEB SMELTER: ENVIRONMENTAL PROTECTION & UPGRADES 23Dundee Precious Metals Upgrade Initiatives Status Costs Emissions Control Fugitive emissions and dust capture upgrades & handling Commissioning Complete $99M Sulphur emissions capture (acid plant) Completion Q3 2014 ~$204M Electric Arc holding furnace Completion early 2015 ~$66M Further Production Facility Optimization Initiatives Additional oxygen for Ausmelt furnace Commissioning Q3 2013 3 blocks of dust-capturing chambers installed in the new baghouse New vehicle designed to vacuum dust off the ground for disposal New dust disposal site New oxygen plant
  • KRUMOVGRAD GOLD PROJECT BULGARIA 24
  • KRUMOVGRAD GOLD PROJECT: LOW COST, HIGH RETURN 25Dundee Precious Metals Strategy • Advance project to a 2016 production date • Achieve 74,000 ounces of annual gold production • Seek opportunities to further increase recoveries • Evaluate other exploration opportunities within existing licenses Location Bulgaria; 100% DPM ownership Proposed Mine Type Open Pit; low-sulphidation epithermal Au deposit Gold Recoveries & Grade 85%; 3.4 g/t Annual ore production 850,000 tpy Annual gold production 74,000 ounces Mine Life 9 years Capital Cost to complete US$127M* Total cash cost per oz AuEq $404* Waste Small integrated tailings and mine waste facility Recovery process Conventional crushing, grinding & flotation * As per NI 43-101 technical report filed on SEDAR January 13, 2012 Visible Gold in Krumovgrad Sample
  • STATUS AND GOING FORWARD 26Dundee 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
  • DPM EXPLORATION ASSETS 27Dundee Precious Metals Exploration assets Avala 53% Dunav 46% Avala Resources (TSX.V:AVZ) - Serbia • In 2012 DNV completed 43,809m drilling. Resource definition drilling indicates:  Kiseljak Mineral Resource initial estimate 300MT grading 0.27% Cu & 0.26 g/t Au for 1.8 Blbs Cu and 2.5 Moz Au  Bakrenjaca Au-Ag base metal epithermal system, drilling intersected 11m @ 5.13 g/t Au, 346 g/t Ag and 1.19% Cu Dunav Resources (TSX.V:DNV) - Serbia Sabina Gold & Silver Corp. (TSX:SBB) - Northern Canada CanadaSabina 11% • In 2012 AVZ completed 172,528m drilling. Resource definition drilling indicates:  Bigar Hill Initial Inferred Resource of 26.4 MT @ 1.6 g/t Au for 1.4Moz  Korkan initial Inferred Resource of 20.1 MT @ 1.5 g/t Au for 1.0 Moz  Kraku Pester initial Inferred Resource of 2.2 MT @ 1.0 g/t Au for 0.07 Moz • In 2012 SBB completed 68,861m drilling at Back River. Resource definition drilling indicates a M&I Resource of 24.2 MT grading 6.0 g/t for 4.7 Moz Au and Inferred Resources of 7.7 MT grading 7.8 g/t for 1.9 Moz Au • Back River PEA indicates a project with an average annual production of 300,000 oz Au over 12 years and total LOM capital of $838M • Back River prefeasibility study expected Q3 2013
  • DPM VALUE PROPOSITION: TRADING AT A SIGNIFICANT DISCOUNT TO OUR PEERS 28Dundee Precious Metals 2013 Market Capitalization (FD) $650M Debt $80.5M Corporate Cash (1) ($125M) Strategic Investments ($50M) Enterprise Value $555M 2017 @ $1,600 Au; $3.50 Cu Chelopech $230M Kapan (excluding open pit) $22 Krumovgrad $65 NCS $75 G & A ($35) Average EBITDA $357(2) EV/EBITDA 1.6x Estimated Capital expenditure to 2017 $640 - $750M Estimated Cash Flow to 2017 $1.35B (1) At Mar. 31, 2013; AVZ and DNV are assumed at $0; Fully Diluted; includes cash on dilution (2) Assumes avg LOM EBITDA for Chelopech, Kapan (assuming Kapan can be extended & operated at current rates), Krumovgrad and estimate for NCS at 310,000 tpa
  • COMPELLING INVESTMENT OPPORTUNITY 29Dundee Precious Metals Solid operating assets with overall cost profile Growing pipeline of development/investment opportunities Significant cash flow and capital available to fund growth Strong balance sheet Proven Management and Board Attractive Value Proposition Underground at Chelopech Namibia Custom SmelterEntrance to Kapan Mine Krumovgrad
  • dundeeprecious.com One Adelaide Street East Suite 500 Toronto, Ontario M5C 2V9 T: 416 365-5191 Investor Relations T: 416 365-2851 ssrubiski@dundeeprecious.com TSX: DPM – Common Shares DPM.WT.A – 2015 Warrants Proudly celebrating 30 years as a Toronto Stock Exchange listed company
  • 31 APPENDICIES
  • DUNDEE PRECIOUS METALS MANAGEMENT TEAM 32Dundee 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
  • ANALYST COVERAGE 33Dundee Precious Metals BMO John Hayes CIBC World Markets Leon Esterhuizen Cormark Securities Mike Kozak Dundee Securities Josh Wolfson GMP Securities George Albino Paradigm Capital Don MacLean RBC Capital Markets Sam Crittenden Scotia Capital Leily Omoumi Stifel, Nicolaus & Co. Michael Scoon
  • 2013 GUIDANCE 34Dundee Precious Metals Metals Contained in Concentrate Produced Chelopech Kapan Total Gold (ounces) 125,000 – 143,000 25,000 – 30,000 150,000 – 173,000 Copper (million pounds) 43.0 – 46.0 2.5 – 3.0 45.5 – 49.0 Zinc (million pounds) - 12.0 – 14.5 12.0 – 14.5 Silver (ounces) 182,000 – 195,000 438,000 – 528,000 620,000 – 723,000 Sustaining Capital expenditures $14 - $17 million $8 - $12 million $22 - $29 million Total growth capital expenditures $210 - $240 million Construction of acid plant at Tsumeb Pyrite Project at Chelopech Krumovgrad development and construction work Kapan Gold exploration and/or development work Mine output at Chelopech (tonnes of ore) 1.9 – 2.05 million Mine out put at Kapan (tonnes of ore) 550,000 – 600,000 Concentrate smelted at Tsumeb (tonnes) 185,000 – 200,000 Sustaining capital expenditures at Tsumeb $13 - $16 million
  • Q1 2013 SUMMARY 35Dundee Precious Metals Q1 2013 Q1 2012 Adjusted Net Earnings $6.6 million $31.3 million Adjusted basic EPS $0.05 $0.25 Gross profit (loss) Chelopech $36.4 million $52.4 million Kapan ($1.4 million) $1.8 million Tsumeb Smelter ($10.7 million) ($5.8 million) Total Gross profit $24.3 million $48.4 million Chelopech Production Gold (ounces) 39,313 35,582 Copper (lbs) 12,048,521 11,620,465 Silver (ounces) 61,058 59,050 Cash cost/T ore processed (incl. royalties) $41.16 $46.80 Cash cost/T ore processed (excl. royalties) $36.55 $41.97 Kapan Production Gold (ounces) 5,159 6,328 Copper (lbs) 553,731 613,397 Zinc (lbs) 3,358,133 4,443,184 Silver (ounces) 94,346 128,476 Cash cost/T ore processed (incl. royalties) $75.83 $75.18 Cash cost/T ore processed (excl. royalties) $72.36 $66.29
  • COPPER HEDGE POSITION 36Dundee Precious Metals Year of projected payable copper production Volume Hedged (lbs) * Average fixed price ($/lb) 2013 5,019,920 $3.94 2014 7,195,880 $3.73 Total 12,215,800 $3.81 • As at March 31, 2013, the Company had outstanding derivative contracts to mitigate a portion of its price exposure related to its by-products. These are summarized below:
  • CHELOPECH MINE BULGARIA 37
  • CHELOPECH MINE: UPDATED MINERAL RESERVES AND RESOURCES 38Dundee Precious Metals Chelopech Mineral Reserves – December 31, 2012 Category Tonnes (M) Gold Copper Silver Grade (g/t) Ounces (M) Grade (%) Pounds (M) Grade (g/t) Ounces (M) Proven 12.3 3.4 1.4 1.3 340 9.3 3.7 Probable 9.3 3.8 1.1 0.9 180 5.7 1.7 Total 21.6 3.6 2.5 1.1 519 7.7 5.4 Chelopech Mineral Resources – December 31, 2012 Category Tonnes (M) Gold Copper Silver Grade (g/t) Ounces (M) Grade (%) Pounds (M) Grade (g/t) Ounces (M) Measured 15.1 4.0 2.0 1.5 490 10.3 5.0 Indicated 14.0 4.0 1.8 1.1 336 8.5 3.8 M&I 29.1 4.0 3.8 1.3 825 9.4 8.8 Inferred 9.3 2.9 0.9 0.9 182 10.6 3.2 1. The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals. 2. All Mineral Resources and Mineral Reserves Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM. 3. Chelopech Mineral Reserves are based on a gold equivalent cut-off of 4 g/t (Au g/t + 2.06xCu%) and a cut-off of USD 10 profit/tonne using NSR analysis, as of December 31, 2012. This information has been prepared by Gordon Fellows who is a QP as defined in NI 43-101 and not independent of the Company. 4. Chelopech Mineral Resources are based on a gold equivalent cut-off 3 g/t (Au g/t + 2.06xCu%) and a greater than USD 0 profit/tonne test using NSR analysis, as of December 31, 2012. This information has been prepared by Petya Kuzmanova and reviewed and approved by Julian Barnes. Julian Barnes is a QP as defined in NI 43-101 and not independent of the Company. 5. Mineral Reserves and Mineral Resources for Chelopech are based on long term metals prices of USD 1,250/oz Au, USD 2.75/lb Cu, USD 25/oz Ag. 6. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Mineral Reserves.
  • CHELOPECH MINE: EXPLORATION RESULTS Q1 2013 39Dundee Precious Metals Significant intercepts (cut-off grade 3g/tAuEq) Hole ID Northing (mRL) Easting (mRL) Dip Az From (m) To (m) Interval (m) Grades Cu (%) Au (g/t) EXT19_260_13 29786 6042 -28.1 018.7 121.5 148.5 27.0 0.68 3.60 EXT19_260_14 29785 6042 -42.1 019.1 145.5 162.0 16.5 1.42 3.47 EXT19W_320_23 29778 5846 -25.9 43.7 25.5 49.5 24.0 1.06 3.90 129.0 138.0 9.0 0.93 2.36 EXT19W_320_24 29778 5846 -43.8 42.6 28.5 64.5 36.0 1.21 3.65 EXT19W_320_25 29777 5843 -8.8 336.2 120.0 153.0 33.0 0.26 4.51 EXT151_165_04 29305 5463 -60.6 134.2 40.5 54.0 13.5 0.71 2.67 G103_225_03 29178 5706 -58.4 346.4 85.5 126.0 40.5 0.79 2.07 1) Significant intercepts are located within the Chelopech Mine Concession and proximal to the mine workings. 2) Gold Equivalent calculation is based on the following formula: (Au g/t + 2.05xCu%). 3) Minimum downhole width reported is 1.5 metres with a maximum internal dilution of 4.5 metres. 4) True widths are approximately 90% of the intersection width. 5) Drill holes with prefix G indicate grade control drilling which is performed using BQ diamond drill core. All other holes are drilled with NQ diamond core. 6) Coordinates are in mine-grid. 7) No factors of material effect have hindered the accuracy and reliability of the data presented above. 8) No upper cuts applied. 9) For detailed information on drilling, sampling and analytical methodologies refer to the NI 43-101 “Preliminary Economic Assessment Report for the Chelopech Pyrite Recovery Project” (the “PEA Technical Report”) filed on SEDAR at www.sedar.com on September 10, 2012.
  • CHELOPECH MINE: CASH COST RECONCILIATION 40Dundee Precious Metals US$ thousands, unless otherwise indicated Q1 2013 Q1 2012 Cost of Sales: 31,991 21,703 Less amortization & other (7,948) (4,611) Plus other charges, including freight 23,832 18,350 Less by-product credits(1) (41,434) (41,806) Cash cost of sales after by-product credits 6,441 (6,364) Gold oz (payable metal) 34,732 29,809 Cash cost of sales/oz gold (net of by-product credits) $ 185 $ (213) 1. Includes realized gains on copper derivative contracts of $0.6 million in the first quarter of 2013 compared to $2.4 million in the corresponding prior year period. 2. For other periods please refer to past MD&As available on the corporate web site.
  • CHELOPECH MINE: CASH COST PER TONNE OF ORE RECONCILIATION 41Dundee Precious Metals $ thousands, unless otherwise indicated For the quarter ended March 31, 2013 Chelopech Ore processed (mt) 513,360 Metals contained in concentrate produced: Gold (ounces) 39,313 Copper (pounds) 12,048,521 Cost of sales 31,991 Add/(deduct): Depreciation, amortization & other non-cash costs (7,948) Change in concentrate inventory (2,911) Total cash cost of production before by-product credits 21,132 Silver by-product credits (1,840) Total cash cost of production after by-product credits 19,292 Cash cost per tonne ore processed ($) 41.16 Cash cost per pound copper produced ($)(1) 0.65 Cash cost per ounce gold produced ($)(1) 292 1. Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue. 2. For other periods please refer to past MD&As available on the corporate web site.
  • KAPAN MINE ARMENIA 42
  • KAPAN MINE: MINERAL RESOURCE ESTIMATE 43Dundee Precious Metals Cut off (AuEq - g/t) Tonnage (Mt) Gold Equiv. (g/t) Copper (%) Gold (g/t) Silver (g/t) Zinc (%) 0.50 335.8 1.19 0.11 0.48 8.39 0.41 0.75 226.5 1.47 0.13 0.61 10.32 0.49 1.00 147.1 1.80 0.15 0.79 12.62 0.57 1.25 98.3 2.14 0.17 0.99 14.99 0.65 1.50 69.8 2.45 0.18 1.19 17.00 0.72 1.75 49.2 2.80 0.19 1.43 19.14 0.78 2.00 36.3 3.13 0.19 1.68 20.87 0.83 Shahumyan Deposit – September 2008 Inferred Mineral Resource – Ordinary Kriging Estimate 10mE x 10mN x 10mRL Block Size – 5m Capped Input Composite Data AuEq US$ price assumptions: Cu $2.50/lb, Au $850/oz, Ag $16/oz and Zn $1.00/lb
  • KAPAN MINE: EXPLORATION RESULTS Q1 2013 44Dundee Precious Metals Surface significant intercepts (SHDDR holes, cut-off grade 0.5 g/t AuEq) and underground significant intercepts (E holes, cut-off grade 1.0g/t AuEq) Hole ID Northing (mRL) Easting (mRL) RL Dip Azi From (m) To (m) Interval (m) & AuEQ Au (g/t) Ag (g/t) Cu (%) Zn (%) E712DE014 4343208 8623975 713 -23.1 358.4 79.0 81.0 2m @ 20.17 11.55 358.5 0.06 2.47 E712DE028 4343208 8623974 712 -54.9 352.2 367.0 369.0 2m @ 13.09 8.72 69.5 1.79 0.07 E712DW007 4343184 8623803 713 -20.0 6.9 423.0 425.2 2.2m @ 17.74 8.20 184.6 2.45 3.33 E712DW009 4343184 8623803 712 -40.7 6.2 48.0 54.0 6m @ 11.71 3.72 54.4 2.18 6.05 SHDDR0516 4344044 8623467 975 -59.8 2.7 49.0 54.0 5m @ 3.68 2.30 22.2 0.04 1.58 SHDDR0517 4343950 8623467 963 -59.4 1.5 48.0 59.0 11m @ 2.49 0.96 34.8 0.30 0.64 SHDDR0517 4343950 8623467 963 -59.4 1.5 76.0 94.5 18.5m @ 1.93 0.36 17.5 0.36 1.14 SHRCR0111 4343334 8623777 904 -60.6 0.6 54.0 63.0 9m @ 3.56 1.36 22.0 0.31 2.29 SHRCR0115 4343370 8623867 895 -60.5 0.4 69.0 82.0 13m @ 5.93 5.59 9.3 0.01 0.24 SHRCR0117 4343245 8623880 882 -60.4 1.1 20.0 35.0 15m @ 2.43 0.91 21.8 0.15 1.51 SHDDR0539 4343234 8623596 906 -60.3 1.4 134.0 150.0 16m @ 2.72 1.03 25.8 0.25 1.40 SHDDR0539 4343234 8623596 906 -60.3 1.4 269.0 283.0 14m @ 4.42 2.45 49.5 0.26 1.01 1) In situ gold equivalent (AuEq) grade based on the following long-term metal prices: $1,250 per ounce for gold, $25 per ounce for silver, $3.00 per pound for copper and $1.00 per pound for zinc. 2) Holes with the prefix SHDDR and SHRCR are surface HQ diamond and RC open pit drilling, respectively, while E holes are underground BQ drilling. 3) Significant intercepts for surface holes are located within the Central and Southern Zones while underground drilling is located within the Central Zone of the Shahumyan Deposit. 4) True widths are approximately 90% of the intersection width. 5) Minimum width reported is 2 metres and a maximum internal dilution of 4 metres. 6) All survey coordinates are transformed to AUSPOS. 7) No factors of material effect have hindered the accuracy and reliability of the data presented above. 8) No upper cuts have been applied.
  • KAPAN MINE: CASH COST RECONCILIATION 45Dundee Precious Metals 1. Includes realized gains on copper derivative contracts of $nil million in the first quarter of 2013 compared to realized gains of $0.2 million in the corresponding prior year period. 2. For other periods please refer to past MD&As available on the corporate web site. US$ thousands, unless otherwise indicated Q1 2013 Q1 2012 Cost of Sales: 9,502 9,957 Less amortization & other (1,617) (2,007) Plus other charges, including freight 1,672 2,097 Less by-product credits(1) (5,780) (7,460) Cash cost of sales after by-product credits 3,777 2,587 Gold oz (payable metal) 3,541 3,776 Cash cost of sales/oz gold (net of by-product credits) 1,067 685
  • KAPAN MINE: CASH COST PER TONNE OF ORE RECONCILIATION 46Dundee Precious Metals $ thousands, unless otherwise indicated For the quarter ended March 31, 2013 Kapan Ore processed (mt) 119,663 Metals contained in concentrate produced: Gold (ounces) 5,159 Copper (pounds) 553,731 Zinc (pounds) 3,358,133 Cost of sales 9,502 Add/(deduct): Depreciation, amortization & other non-cash costs (1,617) Change in concentrate inventory 1,189 Total cash cost of production before by-product credits 9,074 Silver by-product credits (2,832) Total cash cost of production after by-product credits 6,242 Cash cost per tonne ore processed ($) 75.83 Cash cost per pound copper produced ($)(1) 1.66 Cash cost per ounce gold produced ($)(1) 747 Cash cost per pound zinc produced ($)(1) 0.44 1. Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue. 2. For other periods please refer to past MD&As available on the corporate web site.
  • KRUMOVGRAD GOLD PROJECT BULGARIA 47
  • KRUMOVGRAD GOLD PROJECT 48Dundee Precious Metals
  • KRUMOVGRAD GOLD PROJECT 49Dundee 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.
  • PARTIALLY OWNED EXPLORATION INVESTMENTS: SOURCE OF ADDITIONAL VALUE AND GROWTH 50Dundee Precious Metals SECURITIES HOLDINGS % HELD VALUE @ May 30, 2013 Sabina Gold & Silver Corp. (TSX: SBB) 18.5M 11% $25M Special Warrants 10M 12M Warrants (strike C$1.07) 5M 1.5M Total SBB $38.5M Avala Resources Ltd. (TSX-V: AVZ) 135M 53% $13.5M Special Rights 50M 3M Warrants (strike C$0.30) 25M 0 Total AVZ* $16.5M Dunav Resources Ltd. (TSX-V: DNV) 56M 46% $6.5M Warrants (strike C$0.42) 27.5M 0 Total DNV* $6.5M Total shares and other securities ~$61.5M *AVZ and DNV are consolidated
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