Investor Presentation July 2013

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Investor Presentation July 2013

  1. 1. JULY 2013 DUNDEE PRECIOUS METALS BUILDING A PREMIER, INTERMEDIATE, LOW-COST GOLD PRODUCER Proudly celebrating 30 years as a Toronto Stock Exchange listed company
  2. 2. 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.
  3. 3. Dundee Precious Metals Strong Financial Position Commodity and Geographic Diversification High Quality Assets with Proven Operating Performance and Further Potential Experienced Management Team and Board with Strong Track Record Pipeline of Value Adding Organic Growth INVESTMENT SUMMARY 3
  4. 4. MAINTAINING A SOLID FINANCIAL POSITION 4Dundee Precious Metals Share Price C$4.31 Shares Outstanding 139M Market Capitalization $600M Fully diluted shares Additional cash on dilution 146M C$25M 52 week low - high $3.69 - $9.93 Gross Revenue by Metals Sold 2011A 2012A 2016EGold Copper Silver Zinc Dundee Corporation 25% Equinox Partners <10% $285M Cash and Credit including: $36M from early warrant exercise $150M undrawn revolving credit facility ~$100M in Cash @ Mar. 31, 2013 $121M Significant 2012 Operating Cash Flow $80.5M Debt @ Mar. 31, 2013 Total Debt : Total Capital = 10% 48% 41% 6% 5% Capital Structure @ July 2, 2013 Top Shareholders
  5. 5. DPM’S ASSETS LOCATED IN POLITICALLY STABLE REGIONS 5Dundee Precious Metals Head office Operating assets Developing asset
  6. 6. GOLD COMPOUND ANNUAL GROWTH RATE OF 14% 6Dundee Precious Metals Consolidated Gold Production (oz 000’s) Consolidated Copper Production (lbs 000,000) Copper production has increased 105% over four yearsGold production has increased 70% over four years
  7. 7. DECREASING CASH COSTS AND INCREASING EBITDA 7Dundee Precious Metals Reduced cash cost per ounce of gold produced 78% over four years1 Consolidated Adjusted EBITDA increased 412% over four years2 ($40) $32 $45 $118 $125 2008 2009 2010 2011 2012 (1) Net of by-product credits (2) Cdn $
  8. 8. 8 Source: Scotia Capital (April 2, 2013), DPM 2013 Guidance Note: All-in Sustaining Cash Cost = Total cash costs (net of by-products) + sustaining capital + corporate G&A DPM: 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 $1,362 DPM Argonaut Alamos Allied Nevada Primero Timmins Teranga Centerra Alacer AuRico African Barrick Golden Star Semafo 2013E All-In Sustaining Cash Cost (US$/oz) Average: $987
  9. 9. CORPORATE VISION AND STRATEGY 9Dundee Precious Metals Building DPM into a premier, intermediate, low-cost gold producer Optimize value of existing operating assets Grow the business beyond existing operating assets Sustain low quartile operating costs 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 • Increase mine production and extend LOMs • Upgrade/expand smelter and establish long-term contracts that provide a stable return • Develop Krumovgrad gold project • Establish deep pipeline of greenfield exploration opportunities • Complete acquisitions that offer accretive growth, diversity and gold exposure, while maintaining a conservative capital structure Maintain a strong balance sheet with ample liquidity Strategy Vision
  10. 10. CHELOPECH MINE: LOW COST, LONG LIFE PRODUCER 10Dundee Precious Metals Chelopech Optimization Grade Ounces Resources M&I (at Dec.31, 2012) Au (oz) 4.0 g/t 3.8M Cu (lbs) 1.3% 825M Reserves (at Dec 31, 2012) Au (oz) 3.6 g/t 2.5M Cu (lbs) 1.1% Cu 519M Estimated Mine Life @ expanded rate 10+ years Continue to implement cost/margin improvements Operating at full capacity of two million tonnes of ore per annum Capitalize on lower cost / higher recovery staged flotation reactor technology Perform targeted exploration to replace depletion and increase mineral resources / reserves Install new pyrite concentrate flotation circuit Complete feasibility study on the pyrite gold treatment project Staged Flotation Reactor at Chelopech Operations
  11. 11. Dundee Precious Metals 400,000 T pyrite concentrate produced (E) Metals Potential Grades Est. Incremental Production Result Au 6-7 g/t 75,000 - 90,000 oz Ag 10 - 15 g/t 130,000 - 190,000 oz Cu 0.5% - 0.7% 4.5M - 6.0M lbs Cash cost per oz of gold (net of by-product credits) $615 Estimated capital costs $202M NPV (5% discount rate) after tax(1) $141M IRR after tax(1) 24% Item Capex Stage 1: Concentrator upgrade $23M Stage 2: POX Facility Phase 1 - start production 2017 $93M Phase 2 - start production 2019 $87M (1) Assumes the following commodity prices after 2016: $1,250/oz Au, $25/oz Ag, and $2.75/lb Cu Project HighlightsProject Stages CHELOPECH MINE: PYRITE PROJECT TO INCREASE RECOVERIES TO 90% 2013 Catalysts Complete Stage 1 Concentrator Upgrade Q4 2013 Stage 2 POX Facility Feasibility Study Q3 2013 11
  12. 12. Dundee Precious Metals 12Dundee Precious Metals Kapan Optimization Complete final portion of drilling of Shahumyan deposit to support resource and potential expanded operation Complete studies to confirm optimal mine plan based on new resource Explore regional license to define additional Mineral Resources Continue operational improvements and cost reductions Product Cu & Zn concentrates containing Au & Ag Deposit Type Polymetallic vein deposit (swarms) Open Pit Resource Underway Underground Resource Underway KAPAN MINE: POTENTIAL TO INCREASE SIZE AND EXTEND LIFE OF MINE 2012 Metals Production Grades 22,000 oz Au 1.56 g/t 2.5M lbs Cu 0.25% 15.4M lbs Zn 1.67% 450,000 oz Ag 32.20 g/t Kapan Mine office 2013 Catalysts Updated NI 43-101 Resource Estimate Q3 2013 * Kapan operations were on care and maintenance as of November 2008; operations restarted April 2009.
  13. 13. Dundee Precious Metals • One of the few smelters with ability to process complex concentrate • Upgrades designed to meet internationally accepted environmental standards and expand capacity to process additional 3rd party concentrate • Lower per tonne operating costs and more favourable smelting terms are expected to generate significantly higher margins Horne Smelter Operated by Xstrata Capacity: 825Kt of concentrate (total) Note: Complex concentrate capacity limited with little to no 3rd party capacity Tsumeb Smelter Operated by Dundee Precious Metals Capacity: 240Kt-320Kt of complex concentrate Operating Smelters Closed Smelters Other smelters that process various amounts of complex concentrates La Oroya Smelter(1) Operated by Doe Run Kosaka Smelter Shut down in Q1 2008San Luis de Potosi Smelter Shut down in 2012 Note: Currently closed Limited Global Smelting Capacity for Complex Concentrate TSUMEB SMELTER: A UNIQUE STRATEGIC ASSET 13
  14. 14. Dundee Precious Metals DPM Ownership 100% Location Namibia Technology Ausmelt Product Copper blister bars 2012 concentrate throughput 159,356 tonnes Emissions & dust capture upgrades $99M Sulphuric acid capture plant (Q3 2014) $204M Electric holding furnace (Q1 2016) ~$70M+ Asset Overview TSUMEB SMELTER HAS POTENTIAL TO POSITIVELY IMPACT EARNINGSComplexConSmelterCapacity(000’s) 14
  15. 15. KRUMOVGRAD GOLD PROJECT: LOW CASH COST OPERATION 15Dundee Precious Metals Proposed Mine Type Open Pit Gold Recoveries 85% Grade 3.4 g/t Annual ore tonnage production 850,000 tpy Annual Au production 74,000 ounces Mine Life 9 years Capital Costs to complete US$127M Total cash cost per oz Au Eq $404 Conceptual Illustration of Krumovgrad Gold Project Secure final local approvals required prior to proceeding with ordering long lead items / construction Seek opportunities to increase recoveries through use of SFR technology Update / finalize mine plan Complete detailed engineering that optimizes value of project Evaluate other exploration opportunities within existing licenses and establish targeted drill program Based on Jan. 2012 DFS; Estimated recoveries, capital & operating costs in process of being updated. Future Catalysts Start Construction 2015 Start Production 2016
  16. 16. Dundee Precious Metals • NI-43-101 resources include:  Bigar Hill initial Inferred Resource of 26.4 MT @ 1.6 g/t Au for 1.4Moz  Korkan initial Inferred Resource of 20.1 MT @ 1.5 g/t Au for 1.0 Moz  Kraku Pester initial Indicated resource of 6.3 MT @ 1.3 g/t Au for 0.27 Mozs and Inferred Resource of 2.2 MT @ 1.0 g/t Au for 0.07 Moz • Total Inferred Resource of 48.7 MT @ 1.5 g/t Au for 2.5 Moz • NI-43-101 inferred resources include:  Kiseljak Mineral Resource initial estimate 300 MT grading 0.27% Cu & 0.26 g/t Au for 1.8 Blbs Cu and 2.5 Moz Au • Bakrenjaca Au-Ag base metal epithermal system, drilling intersected 11m @ 5.13 g/t Au, 346 g/t Ag and 1.19% Cu DPM EXPLORATION UPDATE: PARTIALLY-OWNED ENTITIES Securities Shares (m) % Held Value (C$M) Avala Resources Special Warrants Warrants (strike at C$0.30) Total 135.0 50.0 25.0 53% 8.1 - - 8.1 Dunav Resources Warrants (strike at C$0.42) Total 56.0 27.5 46% 6.2 - 6.2 Total shares & securities ~ 14.3 Avala Resources Ltd. (TSX-V: AVZ) Equity Portfolio Overview as at July 2, 2013 Dunav Resources Ltd. (TSX-V: DNZ) 16
  17. 17. DPM VALUE PROPOSITION: TRADING AT A SIGNIFICANT DISCOUNT TO OUR PEERS 17Dundee Precious Metals as at July 2, 2013 Market Capitalization (FD) $630M Debt $80.5M Corporate Cash (1) ($140M) Strategic Investments ($31M) Enterprise Value $540M 2017 @ $1,400 Au; $3.20 Cu Chelopech $220M Kapan (excluding open pit expansion) $23 Krumovgrad $42 Tsumeb Smelter $100 G & A ($35) Average EBITDA $350(2) EV/EBITDA 1.5x Estimated Capital expenditure to 2017 $640 - $750M Estimated Cash Flow to 2017(3) $1.0B (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 (3) Based on $1,400 Au and $3.20 Cu.
  18. 18. Dundee Precious Metals Strong Financial Position Commodity and Geographic Diversification High Quality Assets with Proven Operating Performance and Further Potential Experienced Management Team and Board with Strong Track Record Pipeline of Value Adding Organic Growth COMPELLING INVESTMENT OPPORTUNITY 18
  19. 19. DUNDEE PRECIOUS METALS MANAGEMENT TEAM 19Dundee 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 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
  20. 20. 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
  21. 21. 21 APPENDICIES
  22. 22. ANALYST COVERAGE 22Dundee Precious Metals BMO John Hayes CIBC World Markets Leon Esterhuizen Cormark Securities Mike Kozak Dundee Securities Josh Wolfson GMP Securities Oliver Turner Paradigm Capital Don MacLean RBC Capital Markets Sam Crittenden Scotia Capital Leily Omoumi Stifel, Nicolaus & Co. Michael Scoon
  23. 23. 2013 GUIDANCE 23Dundee 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
  24. 24. Q1 2013 SUMMARY 24Dundee 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 $66.29
  25. 25. COPPER HEDGE POSITION 25Dundee Precious Metals Year of projected payable copper production Volume Hedged (lbs) * Average fixed price ($/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:
  26. 26. CHELOPECH MINE: UPDATED MINERAL RESERVES AND RESOURCES 26Dundee 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.
  27. 27. CHELOPECH MINE: EXPLORATION RESULTS Q1 2013 27Dundee 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.
  28. 28. CHELOPECH MINE: CASH COST RECONCILIATION 28Dundee Precious Metals US$ thousands, unless otherwise indicated Q1 2013 Actual Year 2012 Actual Year 2011 Actual Year 2010 Actual Year 2009 Actual Year 2008 Actual Cost of Sales: 31,991 98,298 88,838 $72,707 74,499 67,245 Less amortization & other (7,948) (19,542) (15,499) (14,425) (14,242) (11,966) Plus other charges, including freight 23,832 86,228 65,125 41,234 38,317 26,006 Less by-product credits (41,434) (163,940) (147,812) (87,320) (64,198) (59,376) Cash cost of sales after by-product credits 6,441 1,044 (9,348) 12,196 34,376 21,909 Gold oz (payable metal) 34,732 116,644 83,796 58,065 93,081 70,878 Cash cost of sales/oz gold, (net of by-product credits) $1851 $92 $(112)3 $2104 $3695 $3096 5Based on US$2.34/lb copper 6 Based on US$3.16/lb copper4 Based on US$3.42/lb copper 3 Based on US$4.27/lb copper2 Based on US$3.95/lb copper 1 Based on US$3.64/lb copper
  29. 29. CHELOPECH MINE: CASH COST PER TONNE OF ORE RECONCILIATION 29Dundee Precious Metals 1. Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue. 2. For other periods please refer to past MD&As available on the corporate web site. US$ thousands, unless otherwise indicated For the periods indicated Q1 2013 Year 2012 Actual Year 2011 Actual Year 2010 Actual Year 2009 Actual Year 2008 Actual Ore processed (mt) 513,360 1,819,687 1,353,733 1,000,781 980,928 900,563 Cost of sales 31,991 98,298 $ 88,838 $ 72,707 75,647 67,423 Add (deduct): Depreciation, amortization & other non-cash costs (7,948) (19,542) (15,499) (14,425) (15,390) (11,966) Change in concentrate inventory (2,911) 4,535 862 (2,018) (419) (178) Total cash cost of production 21,132 83,291 $ 74,201 $ 56,264 59,838 55,279 Cash cost per tonne of ore processed, including royalties $41.16 $ 45.77 $ 54.81 $ 56.22 $ 61.00 $ 61.38 Cash cost per tonne of ore processed, excluding royalties $36.55 $ 41.16 $ 49.99 $ 51.54 $ 55.23 $ 57.87
  30. 30. KAPAN MINE: MINERAL RESOURCE ESTIMATE 30Dundee 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
  31. 31. KAPAN MINE: EXPLORATION RESULTS Q1 2013 31Dundee 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 $1.00 per pound for zinc. 2) Holes with the prefix SHDDR and SHRCR are surface HQ diamond and RC open pit drilling, respectively, while E holes are underground BQ drilling. 3) Significant intercepts for surface holes are located within the Central and Southern Zones while underground drilling is located within the Central Zone of the Shahumyan Deposit. 4) True widths are approximately 90% of the intersection width. 5) Minimum width reported is 2 metres and a maximum internal dilution of 4 metres. 6) All survey coordinates are transformed to AUSPOS. 7) No factors of material effect have hindered the accuracy and reliability of the data presented above. 8) No upper cuts have been applied.
  32. 32. KAPAN MINE: CASH COST RECONCILIATION 32Dundee Precious Metals US$ thousands, unless otherwise indicated Q1 2013 Actual Year 2012 Actual Year 2011 Actual Year 2010 Actual Year 2009 Actual Year 2008 Actual Cost of Sales: 9,502 50,547 47,276 33,637 21,072 36,319 Less amortization & other (1,617) (9,989) (9,140) (7,056) (6,996) (5,400) Plus other charges, including freight 1,672 6,218 11,893 8,912 5,142 4,976 Less by-product credits (5,780) (32,075) (47,588) (28,562) (13,591) (13,520) Cash cost of sales after by-product credits 3,777 14,701 3,028 6,931 5,627 22,375 Gold oz (payable metal) 3,541 18,204 26,230 22,287 11,233 11,388 Cash cost of sales/oz gold, (net of by-product credits) $1,0671 $8082 $1153 $3114 $5015 $1,9656 5Based on US$2.34/lb copper 6 Based on US$3.16/lb copper4 Based on US$3.42/lb copper 3 Based on US$4.27/lb copper2 Based on US$3.95/lb copper 1 Based on US$3.64/lb copper
  33. 33. KAPAN MINE: CASH COST PER TONNE OF ORE RECONCILIATION 33Dundee Precious Metals 1. Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue. 2. For other periods please refer to past MD&As available on the corporate web site. US$ thousands, unless otherwise indicated For the periods indicated Q1 2013 Year 2012 Actual Year 2011 Actual Year 2010 Actual Year 2009 Actual Year 2008 Actual Ore processed (mt) 119,663 509,419 581,852 428,865 218,235 269,033 Cost of sales 9,502 50,547 $ 47,276 $ 33,637 $ 21,197 $ 36,319 Add (deduct): Depreciation, amortization & other non-cash costs (1,617) (10,883) (9,140) (7,056) (4,047) (3,668) Care and maintenance costs - - - - (3,074) (1,732) Change in concentrate inventory 1,189 (718) 416 3,572 1,696 (1,485) Total cash cost of production 9,074 38,946 $ 38,552 $ 30,153 $ 15,772 $ 29,434 Cash cost per tonne of ore processed (royalties not applicable in 2009) $75.83 $ 76.45 $ 66.26 $ 70.31 $ 72.27 $ 109.40 Cash cost per tonne of ore processed, excluding royalties $72.36 $ 69.10 $ 62.57 $ 66.33 $ 72.27 $ 109.40
  34. 34. KRUMOVGRAD GOLD PROJECT 34Dundee Precious Metals
  35. 35. KRUMOVGRAD GOLD PROJECT 35Dundee 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.
  36. 36. 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

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