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Dundee Precious Metals Investor Presentation November 2013
1. DUNDEE PRECIOUS METALS
BUILDING A PREMIER,
INTERMEDIATE, LOW-COST
GOLD PRODUCER
Proudly celebrating 30 years as a
Toronto Stock Exchange
listed company
DUNDEE CAPITAL MARKETS PRECIOUS METALS ROUND UP
NOVEMBER 1, 2013
AUSTIN, TEXAS
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 forwardlooking statements. Such factors include, among others: the actual results of current exploration activities; actual results of current
reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future
prices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the
completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to
in this news release under and in the Company’s annual information form under the heading "Risk Factors" and other documents filed
from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to
place undue reliance on forward-looking statements.
2
3. INVESTMENT SUMMARY
Solid
Financial Position
High Quality
Assets
with Proven
Operating
Performance and
Further Potential
Pipeline of Value
Adding Organic
Growth
Dundee Precious Metals
Commodity and
Geographic
Diversification
Experienced
Management Team
and Board with
Strong Track
Record
3
4. MAINTAINING A SOLID FINANCIAL
POSITION
$250M
Capital Structure @ October 28, 2013
$150M undrawn revolving credit facility
~$99M in Cash and Short-term
Investments
@ June 30, 2013
$121M
Significant 2012 Operating
Cash Flow
Share Price
C$5.00
Shares Outstanding
139M
Market Capitalization
C$695M
Fully diluted shares
Additional cash on dilution
146M
C$25M
52 week low - high
Cash and Credit
including:
C$3.69 - $9.93
Top Shareholders
Debt
@ June 30, 2013
Total Debt : Total Capital
= 9%
Dundee Precious Metals
25%
Van Eck Associates Corp.
$74.3M
Dundee Corporation
12%
Gross Revenue by Metals Sold
2011A
Gold
Copper
Silver
2012A
2016E
6% 5%
48%
41%
Zinc
4
5. DPM’S ASSETS LOCATED IN
POLITICALLY STABLE REGIONS
Chelopech
Toronto
Krumovgrad
Kapan
Head office
Operating assets
Developing asset
Dundee Precious Metals
Tsumeb
5
6. GOLD COMPOUND ANNUAL GROWTH
RATE OF 14%
Consolidated Gold Production
(oz 000’s)
Consolidated Copper Production
(lbs 000,000)
Gold production has increased 70% over
four years
Copper production has increased 105% over
four years
Dundee Precious Metals
6
7. DECREASING CASH COSTS AND
INCREASING EBITDA
78% reduction in cash cost per ounce of
gold produced over four years1
Consolidated adjusted EBITDA
increased significantly over four years
$118
$32
2008
2009
$125
$45
2010
2011
2012
($40)2
(1)
Net of by-product credits
(2)
Cdn $
Dundee Precious Metals
7
8. DPM: A LOW COST PRODUCER
Cash Cost/Tonne of Ore Processed (1) ($/T)
2013E All-In Sustaining Cash Cost2 (US$/oz)
$1,325 $1,362
$1,212
$1,155 $1,178
Average: $987
$665
$714
$782
DPM Argonaut Alamos
$838
$842
$875
$1,005
$884
Allied Primero Timmins Teranga Centerra Alacer AuRico African Golden Semafo
Nevada
Barrick Star
Source: Scotia Capital (April 2, 2013), DPM 2013 Guidance
Note: All-in Sustaining Cash Cost = Total cash costs (net of by-products) + sustaining capital + proportionate share of corporate G&A
(1)
Dundee Precious Metals (2)
This is a non-GAAP measure. See 2012 Annual Report for further details. See Appendix for reconciliation to cost of sales.
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.
8
9. CORPORATE VISION AND STRATEGY
Vision
Building DPM into a premier, intermediate, low-cost
gold producer
Exploration
at Kapan
Mine
Strategy
Optimize value of existing operating assets
•
•
Increase mine production and extend LOMs
Upgrade/expand smelter and establish long-term contracts
that provide a stable return
Grow the business beyond existing operating assets
•
•
•
Tsumeb
Smelter,
Namibia
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
Sustain low quartile operating costs
Conceptual
Illustration of
Krumovgrad
Gold Project
Maintain a strong balance sheet with ample liquidity
Dundee Precious Metals
9
10. CHELOPECH OPTIMIZATION:
LOW COST, LONG LIFE PRODUCER
Strategy
Chelopech Mineral Resources and Reserves
(as at December 31, 2012)
• Operating at full capacity
of 2 MT of ore per annum
• Continue to implement
cost/margin
improvements
• Install new pyrite
recovery circuit
• Complete feasibility study
on the pyrite gold
recovery project
Grade
Resources M&I
(at Dec.31, 2012)
Reserves
(at Dec 31, 2012)
Au (oz)
4.0 g/t
3.8M
Cu (lbs)
1.3%
825M
Au (oz)
3.6 g/t
2.5M
Cu (lbs)
1.1% Cu
519M
Estimated Mine Life @ expanded rate
10+ years
• Capitalize on lower cost/
higher recovery staged
flotation reactor
technology
• Perform targeted
exploration to replace
depletion and increase
mineral resources/
reserves
Staged Flotation Reactor at
Chelopech Operations
Dundee Precious Metals
10
11. CHELOPECH OPTIMIZATION:
PYRITE GOLD RECOVERY PROJECT
2013 Catalysts
Complete Stage 1 Concentrator
Upgrade
Stage 2 POX Facility Feasibility
Study
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
Project Stages
Item
Stage 1: Concentrator upgrade
Project Highlights
Capex
$23M
$615
Phase 1 – estimated start production 2017
$93M
Phase 2 – estimated start production 2019
$87M
Estimated capital costs
$202M
NPV (5% discount rate) after tax(1)
Stage 2: POX Facility
Dundee Precious Metals
Cash cost per oz of gold (net of by-product
credits)
$141M
IRR after tax(1)
24%
(1) Assumes the following commodity prices after 2016: $1,250/oz Au, $25/oz Ag,
and $2.75/lb Cu
11
12. KAPAN OPTIMIZATION:
POTENTIAL TO EXPAND AND EXTEND LIFE OF MINE
Strategy
• Producing Cu & Zn
concentrates containing
Au & Ag
• Complete studies to
confirm optimal mine
plan based on new
resource
• Continue operational
improvements and cost
reductions
Kapan Shahumyan Deposit Mineral Resource Estimate1
(as at January 31, 2013)
Tonnes
Mt
Au
g/t
Contained
Au Koz
AuEq g/t
Contained AuEq g/t
Indicated
2.8
2.6
237
5.2
467
Inferred
10.6
2.3
790
4.5
1,543
Classification
Reported at a gold equivalent cut off of 2.24 Au g/t
2014 Catalysts
Internal Study regarding Expanded
Underground Mine
Kapan operations were on care and maintenance as of November 2008; operations restarted April 2009.
Q1 2014
Kapan Mine office
1. For more information please see the technical report titled “NI 43-101 Technical Report, Shahumyan Project, Kapan, Republic of Armenia” dated July 29, 2013, filed on SEDAR
Dundee Precious Metals
12
13. TSUMEB SMELTER:
A UNIQUE STRATEGIC ASSET
Limited Global Smelting Capacity for Complex Concentrate
• 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
Dundee Precious Metals
Horne Smelter
Operated by Xstrata
Capacity: 825Kt of concentrate (total)
Note: Complex concentrate capacity limited
with little to no 3rd party capacity
San Luis de Potosi Smelter
Shut down in 2012
La Oroya Smelter(1)
Operated by Doe Run
Note: Currently closed
Kosaka Smelter
Shut down in Q1 2008
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
13
15. TSUMEB SMELTER – SULPHURIC ACID PLANT
FURTHER UPGRADES TO MEET INTERNATIONAL
ENVIRONMENTAL STANDARDS
Acid Storage
10,000 tonnes
• Outotec contracted for
construction at estimated cost
of ~US$240M
• To produce 230,000 to
280,000 tonnes of sulphuric
acid
• Rossings Rio Tinto contracted
to purchase 225,000 tpy for 5
years
• Groundbreaking ceremony
September 5, 2013
• Commercial production
expected in Q4 2014
Dundee Precious Metals
Effluent
Treatment
Gas
Conditioning
S02 Converter
to Sulpuric
Acid
15
16. KRUMOVGRAD GOLD PROJECT:
LOW CASH COST OPERATION
Krumovgrad Gold Project Highlights1
Strategy
• Secure final local
approvals required
prior to proceeding with
ordering long lead
items/construction
• Update/finalize mine
plan
• Seek opportunities to
increase recoveries
through use of SFR
technology
Future Catalysts
Start Construction 2015
Proposed Mine Type
Gold Recoveries
Grade
Annual Ore Tonnage Production
Annual Au Production
Mine Life
Capital Costs to Complete
Total Cash Cost Per Oz Au Eq
Open Pit
85%
Start Production
2016
3.4 g/t
850,000 tpy
74,000 ounces
9 years
US~$127M
$404
• Complete detailed
engineering that
optimizes value of
project
• Evaluate other
exploration
opportunities within
existing licenses and
establish targeted drill
program
Dundee Precious Metals
1Based
Conceptual
Illustration of
Krumovgrad
Gold Project
on Jan. 2012 DFS; Estimated recoveries, capital & operating costs in process of being updated.
16
17. DPM BROWNFIELDS EXPLORATION
STRATEGY: CHELOPECH & SVETA PETKA
NW
Petrovden Porphyry
Target
Results to date:
PTDD019
369m @0.17% Cu, 0.16g/t Au
(incl 64m @0.30 %Cu. 0.25g/t
Au from 687m)
Stockwork Veins
Intrusive(s)
371
270m @0.23% Cu, 0.23g/t Au
(incl 103m @0.30 %Cu. 0.23g/t
Au from 773m)
Stockwork Veins
Intrusive(s)
Dundee Precious Metals
PTDD001
708m @0.079% Cu, 0.068g/t
Au (incl 53m @0.11 %Cu.
0.117g/t Au from 82m)
PTDD002
479m @ 0.077%Cu, 0.093g/t
Au (incl 70m @ 0.11%Cu,
0.102g/t Au from 423m)
17
18. DPM BROWNFIELDS EXPLORATION
STRATEGY: KAPAN
Kapan Near Mine
Drilling Targets
Golden
Triangle
Target
Drill program tests:
• conceptual targets at
Golden Triangle and
Shahumyan East
• high grade down-plunge
Vein Targets on known
mineralisation
V64 Target
Schedule:
V37 Target
• Approx. 4,000m diamond
drilling on 6 targets to be
completed be end of
2013
Shahumyan
East Target
• Structural studies
ongoing
• Continuous interpretation
of current drilling to
improve remaining
targets
Dundee Precious Metals
V50 Target
V17 Target
Proposed hole
Completed hole
V11 Target
18
19. DPM BROWNFIELDS EXPLORATION
STRATEGY: KRUMOVGRAD
Geophysical Surveys
Khan Krum – Iran Tepe –
Kesebir
Krumovgrad
Schedule:
Ground Magnetics - 200m Lines
Committed
Contingent
Dundee Precious Metals
Target generation finalized by
Q1 2014
Drilling to commence on private
land in late Q1 2014
•
Possible electrical geophysics
follow up for targeting
•
KESEBIR
Geophysics completed by end
of 2013
•
KHAN KRUM
•
•
IRAN TEPE
Second phase drilling
depending on land use
permitting
•
All other licenses reviewed and
considered low-moderate
priority
19
20. DPM GREENFIELDS EXPLORATION
STRATEGY: GENERATIVE PIPELINE
Bulgaria
• 3 Exploration Licences granted, another 5 under application, totalling 265km2
• Experienced team of geoscientists credited with the discovery of Ada Tepe
Armenia
• Systematic regional exploration around Kapan has resumed after a 5 year hiatus
• Regional targets being drilled in 2013: Norashenik and Arajadzor
Project Generation
• Generate new early stage opportunities through joint ventures, partnerships or acquisitions
• Global scope with emphasis on lower-risk jurisdictions
• Gold focused; minimum size: 1 million ounces at more than 1g Au/t
Avala
Dunav
Tethyan Belt runs
from Central Asia to
Eastern Europe
Dundee Precious Metals
20
21. DPM EXPLORATION PORTFOLIO:
PARTIALLY-OWNED ENTITIES
Avala Resources Ltd. (TSX-V: AVZ)
• Released updated Resource Estimate in October
2013
• Metallurgical testing underway
• Upcoming preliminary economic assessment
Dunav Resources Ltd. (TSX-V: DNV)
• NI 43-101 Inferred Resources include (using a
0.25% CuEq cut-off) :
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
Equity Portfolio Overview as at
October 28, 2013
Securities
Shares
(m)
% Held
Value
(C$M)
Sabina Gold & Silver
Special Warrants
Warrants (strike at C$1.07)
Total
23.6
5
5
2.5
12.1%
22.2
22.2
Avala Resources
Special Warrants
Warrants (strike at C$0.30)
Total
135
50
25
53%
10.8
10.8
Dunav Resources
Warrants (strike at C$0.50)
Total
56
23
46%
4.2
4.2
Total shares & securities
~37.2
• Discovers a Gold-Copper Porphyry System on its
Degrmen Project:
DGRDD011 Intersects 153m @ 0.56g/t
Au, 0.16% Cu (from 55m) and 195.5m @
0.43g/t Au, 0.13% Cu (from 216m)
Dundee Precious Metals
21
23. DPM FUTURE CATALYSTS
Chelopech
Pyrite Stage 1
Construction
Complete
Chelopech
Pyrite Stage 2
Feasibility
Study
Tsumeb Acid
Plant
Commissioning
Krumovgrad
Construction
Begins
Krumovgrad
Begins
Production
2013
2014
2015
2016
Tsumeb Ramps
Up to 100%
Capacity
Internal Study
regarding
Expanded Kapan
Underground
Mine
Krumovgrad
Capital Cost
and Mine Plan
Update
Chelopech Mine
Dundee Precious Metals
23
24. COMPELLING INVESTMENT
OPPORTUNITY
Solid
Financial Position
High Quality
Assets
with Proven
Operating
Performance and
Further Potential
Pipeline of Value
Adding Organic
Growth
Dundee Precious Metals
Commodity and
Geographic
Diversification
Experienced
Management Team
and Board with
Strong Track
Record
24
25. DUNDEE PRECIOUS METALS
MANAGEMENT TEAM
Jonathan Goodman
Executive Chairman
Rick Howes
President & Chief Executive Officer
David Rae
Senior Vice President,
Operations
Adrian Goldstone
Paul Proulx
Michael Dorfman
Hume Kyle
Richard Gosse
Lori Beak
Executive Vice President,
Sustainable
Business Development
Senior Vice President,
Corporate Services
Senior Vice President,
Corporate Development
Executive Vice
President &
Chief Financial Officer
Senior Vice
President,
Exploration
Senior Vice President,
Investor &
Regulatory Affairs &
Corporate Secretary
Simon Meik
Hans Nolte
Vice President, Processing
Vice President & General
Manager, Tsumeb Smelter
Colin McAnuff
Treasurer
Hratch Jabrayan
Vice President & General
Manager,
Kapan Mine
Iliya Garkov
Vice President & General
Manager, Krumovgrad
Gold Project
Nikolay Hristov
Vice President & General
Manager,
Chelopech Mine
Reuben Mills
Vice President, Safety &
Asset Risk Management
Jeremy Cooper
Vice President,
Commercial Affairs
Dundee Precious Metals
25
26. Proudly celebrating 30 years as
a Toronto Stock Exchange listed
company
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
dundeeprecious.com
28. ANALYST COVERAGE
BMO
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
Dundee Precious Metals
John Hayes
Leily Omoumi
28
29. 2013 GUIDANCE
Metals Contained in Concentrate Produced
Chelopech
Kapan
Total
125,000 – 143,000
23,000 – 25,000
148,000 – 168,000
43.0 – 46.0
2.3 – 2.5
45.3 – 48.5
-
14.5 – 15.0
14.5 – 15.0
210,000 – 230,000
Gold (ounces)
420,000 – 435,000
630,000 – 665,000
$14 - $17 million
$8 - $12 million
$22 - $29 million
Copper (million pounds)
Zinc (million pounds)
Silver (ounces)
Sustaining Capital expenditures
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)
Mine out put at Kapan (tonnes of ore)
470,000 – 500,000
Concentrate smelted at Tsumeb (tonnes)
172,000 – 178,000
Sustaining capital expenditures at Tsumeb
Dundee Precious Metals
1.9 – 2.05 million
$13 - $16 million
29
31. HEDGE POSITION
•
As at June 30, 2013, the Company had outstanding derivative contracts to mitigate a portion of its price exposure.
These are summarized below:
Commodity Hedged
Volume Hedged (lbs) *
Average fixed price
Payable gold
545 ounces
$1,425.96/ounce
Payable silver
7,435 ounces
$23.12/ounce
Year of projected payable
copper production
Volume Hedged (lbs) *
Average fixed price ($/lb)
2013
$3.94
2014
7,195,880
$3.73
Total
Dundee Precious Metals
3.346,613
10,524,493
$3.79
31
32. CHELOPECH MINE:
UPDATED MINERAL RESERVES AND RESOURCES
Chelopech Mineral Reserves – December 31, 2012
Gold
Tonnes
(M)
Grade
(g/t)
Ounces
(M)
Grade
(%)
Proven
12.3
3.4
1.4
1.3
Probable
9.3
3.8
1.1
Total
21.6
3.6
2.5
Copper
Pounds
(M)
Category
Silver
Grade
(g/t)
Ounces (M)
340
9.3
3.7
0.9
180
5.7
1.7
1.1
519
7.7
5.4
Chelopech Mineral Resources – December 31, 2012
Gold
Category
Measured
Silver
Pounds
(M)
Grade
(g/t)
Ounces (M)
15.1
4.0
2.0
1.5
490
10.3
5.0
14.0
4.0
1.8
1.1
336
8.5
3.8
29.1
4.0
3.8
1.3
825
9.4
8.8
Inferred
5.
6.
Grade
(%)
M&I
4.
Grade (g/t)
Ounces
(M)
Indicated
1.
2.
3.
Tonnes
(M)
Copper
9.3
2.9
0.9
0.9
182
10.6
3.2
The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals.
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.
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.
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.
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.
Measured and Indicated Mineral Resources are inclusive of Proven and Probable Mineral Reserves.
Dundee Precious Metals
32
33. CHELOPECH MINE:
EXPLORATION RESULTS Q2 2013
Significant intercepts (cut-off grade 3g/tAuEq)
Grades
Hole ID
Northing
(mRL)
Easting
(mRL)
Dip
Az
From
(m)
To (m)
Interval
(m)
Cu (%)
Au (g/t)
EXT19_260_17
29786
6043
-10.0
031.7
109.5
148.5
39.0
0.69
3.19
EXT19_260_18
29785
6042
-35.8
030.9
163.5
186.0
22.5
0.65
8.03
EXT19_290_03
29778
6042
-18.5
017.1
132.0
144.0
12.0
0.53
4.16
EXT151_165_12
29305
5459
-39.5
211.8
21.0
40.5
19.50
0.98
3.32
EXT151_165_11
29305
5460
-16.0
211.6
27.0
39.0
12.0
1.39
2.84
EXT151_165_14
29306
5459
-23.7
231.5
28.5
45.0
16.5
0.43
2.71
EXT151_225_01
29186
5611
-18.0
132.5
10.5
34.5
24.0
0.68
3.14
EXT151_225_02
29186
5611
-39.7
132.1
10.5
64.5
54.0
0.83
2.52
EXT151_225_03
29185
5610
-21.5
154.2
6.0
28.5
22.5
1.56
5.21
G103_225_16
29175
5710
-26.9
87.8
16.5
64.7
48.2
0.98
2.24
1.
2.
3.
4.
5.
6.
7.
8.
9.
Dundee Precious Metals
Significant intercepts are located within the Chelopech Mine Concession and proximal to the mine workings.
Gold Equivalent calculation is based on the following formula: (Au g/t + 2.06xCu%).
Minimum downhole width reported is 1.5 metres with a maximum internal dilution of 4.5 metres.
True widths are approximately 90% of the intersection width.
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.
Coordinates are in mine-grid.
No factors of material effect have hindered the accuracy and reliability of the data presented above.
No upper cuts applied.
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.
33
34. CHELOPECH MINE:
CASH COST RECONCILIATION
Cost of Sales:
Less amortization & other
Plus other charges, including freight
Less by-product credits
Cash cost of sales after by-product
credits
Gold oz (payable metal)
Q2 2013
Actual
Q1 2013
Actual
Year 2012
Actual
Year 2011
Actual
Year 2010
Actual
Year 2009
Actual
Year 2008
Actual
27,381
31,991
98,298
88,838
$72,707
74,499
67,245
(8,264)
(7,948)
(19,542)
(15,499)
(14,425)
(14,242)
(11,966)
21,490
23,832
86,228
65,125
41,234
38,317
26,006
(33,560)
(41,434)
(163,940)
(147,812)
(87,320)
(64,198)
(59,376)
7,047
6,441
1,044
(9,348)
12,196
34,376
21,909
32,392
34,732
116,644
83,796
58,065
93,081
70,878
$2181
US$ thousands,
unless otherwise indicated
$1852
$93
$(112)4
$2105
$3696
$3097
Cash cost of sales/oz gold,
(net of by-product credits)
1Based
on US$3.34/lb copper
2Based
on US$3.64/lb copper
3Based
on US$3.95/lb copper
4
Based on US$4.27/lb copper
5Based
on US$3.42/lb copper
6Based
on US$2.34/lb copper
7
Based on US$3.16/lb copper
Dundee Precious Metals
34
35. CHELOPECH MINE:
CASH COST PER TONNE OF ORE RECONCILIATION
US$ thousands, unless otherwise indicated
For the periods indicated
Q2 2013
Actual
Q1 2013
Actual
Year 2012
Actual
Year 2011
Actual
Year 2010
Actual
Year 2009
Actual
Year 2008
Actual
Ore processed (mt)
501,134
513,360
1,819,687
1,353,733
1,000,781
980,928
900,563
Cost of sales
27,381
31,991
98,298
88,838
$ 72,707
75,647
67,423
Add (deduct):
Depreciation, amortization & other non-cash
costs
(8,264)
(7,948)
(19,542)
(15,499)
(14,425)
(15,390)
(11,966)
1,054
(2,911)
4,535
862
(2,018)
(419)
(178)
$20,171
$21,132
$83,291
$74,201
$56,264
$59,838
$55,279
Cash cost per tonne of ore processed, including
royalties
$40.25
$41.16
$45.77
$54.81
$56.22
$61.00
$61.38
Cash cost per tonne of ore processed, excluding
royalties
$36.24
$36.55
$41.16
$49.99
$51.54
$55.23
$57.87
Change in concentrate inventory
Total cash cost of production
1.
Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue.
Dundee Precious Metals
35
36. KAPAN MINE:
UNDERGROUND MINERAL RESOURCE ESTIMATE
Dundee Precious Metals Kapan Shahumyan Deposit Mineral Resource Estimate as at
January 31, 2013
Reported at a gold equivalent cut-off 2.24 Au g/t
Classification
Indicated
Inferred
•
•
Dundee Precious Metals
Tonnes
Mt
Au
g/t
Contained
Koz
2.8
10.6
2.6
2.3
237
790
Gold
Equiv
g/t
5.2
4.5
Ag
g/t
Cu
%
Zn
%
Pb
%
S
%
Density
50
41
0.4
0.4
2.1
1.7
0.2
0.1
2.4
3.2
2.73
2.73
AuEq was calculated using the formula Au + (Cux1.34) + (Agx0.023) + (Znx0.42) and assumes metal prices of USD 1,250/oz
Au, USD 25/oz Ag, USD 2.75/lb Cu and USD 0.85/lb Zn
The Mineral Resource estimate consists of DPM and historical drilling data. DPM has carried out significant additional surface
diamond drilling and reverse circulation drilling since July 2007, contributing 41% of the data used for the Mineral Resource
estimate
36
37. KAPAN MINE:
EXPLORATION RESULTS Q2 2013
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
(%)
E712DE039
4343207
8623972
712
-46.4
313.8
87.0
90.0
3m @ 19.67
11.11
187.2
1.81
3.37
E712DE040
4343207
8623972
712
-54.8
315.4
87.0
89.0
2m @ 60.32
47.47
343.9
2.65
2.94
E712DE044
4343208
8623974
714
-54.8
302.6
97.0
99.0
2m @ 28.07
19.06
161.0
1.72
5.42
E712DW015
4343183
8623801
714
-50.4
355.6
140.0
143.0
3m @ 7.46
4.59
18.4
1.49
0.07
SHDDR0557
4343577
8623580
916
-60.9
0.9
28.0
35.0
7m @ 6.22
1.54
78.7
0.59
3.89
SHDDR0560
4343572
8623579
916
-72.7
352.4
0.0
6.6
6.6m @ 4.93
2.87
39.3
0.30
1.45
SHDDR0560
4343572
8623579
916
-72.7
352.4
95.0
102.0
7m @ 5.11
1.19
54.2
0.36
4.09
SHDDR0560
4343572
8623579
916
-72.7
352.4
248.0
254.0
6m @ 4.88
1.82
64.5
0.75
1.07
SHDDR0561
4343636
8623531
927
-55.0
7.3
223.0
228.0
5m @ 6.58
3.50
43.2
0.50
2.53
SHDDR0562
4343540
8623470
929
-59.3
355.5
296.0
298.0
2m @ 23.72
17.52
130.4
0.17
6.05
SHDDR0563A
4343634
8623531
927
-63.2
6.8
239.0
244.0
5m @ 7.96
3.22
49.2
1.70
1.75
SHDDR0568
4343560
8623517
923
-62.3
8.1
142.0
157.0
15m @ 6.82
2.57
43.9
0.86
3.57
1.
2.
3.
4.
5.
6.
7.
8.
Dundee Precious Metals
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.
Holes with the prefix SHDDR are surface HQ diamond drilling, while E holes are underground drilling.
Significant intercepts for surface holes are located within the Central and Southern Zones while underground drilling is located within the Central Zone and Southern Zones of the
Shahumyan Deposit.
True widths are approximately 90% of the intersection width.
Minimum width reported is 2 metres and a maximum internal dilution of 2 metres.
All survey coordinates are transformed to AUSPOS.
No factors of material effect have hindered the accuracy and reliability of the data presented above.
No upper cuts have been applied.
37
38. KAPAN MINE:
CASH COST RECONCILIATION
Cost of Sales:
Less amortization & other
Plus other charges, including freight
Less by-product credits
Cash cost of sales after by-product
credits
Gold oz (payable metal)
Q2 2013
Actual
Q1 2013
Actual
Year 2012
Actual
Year 2011
Actual
Year 2010
Actual
Year 2009
Actual
Year 2008
Actual
13,445
9,502
50,547
47,276
33,637
21,072
36,319
(1,578)
(1,617)
(9,989)
(9,140)
(7,056)
(6,996)
(5,400)
2,874
1,672
6,218
11,893
8,912
5,142
4,976
(8,827)
(5,780)
(32,075)
(47,588)
(28,562)
(13,591)
(13,520)
5,914
3,777
14,701
3,028
6,931
5,627
22,375
5,733
3,541
18,204
26,230
22,287
11,233
11,388
$1,0321
US$ thousands, unless otherwise indicated
$1,0672
$8083
$1154
$3115
$5016
$1,9657
Cash cost of sales/oz gold,
(net of by-product credits)
1Based
on US$3.34/lb copper
2Based
on US$3.64/lb copper
3Based
on US$3.95/lb copper
4
Based on US$4.27/lb copper
5Based
on US$3.42/lb copper
6Based
on US$2.34/lb copper
7
Based on US$3.16/lb copper
Dundee Precious Metals
38
39. KAPAN MINE:
CASH COST PER TONNE OF ORE RECONCILIATION
US$ thousands, unless otherwise indicated
For the periods indicated
Q2 2013
Actual
Q1 2013
Actual
Year 2012
Actual
Year 2011
Actual
Year 2010
Actual
Year 2009
Actual
Year 2008
Actual
Ore processed (mt)
162,648
119,663
509,419
581,852
428,865
218,235
269,033
13,445
9,502
50,547
47,276
33,637
21,197
36,319
(1,578)
(1,617)
(10,883)
(9,140)
(7,056)
(4,047)
(3,668)
-
-
-
-
-
(3,074)
(1,732)
(892)
1,189
(718)
416
3,572
1,696
(1,485)
$10,975
$9,074
$38,946
$38,552
$30,153
$15,772
$29,434
Cash cost per tonne of ore processed
(royalties not applicable in 2009)
$67.48
$75.83
$76.45
$66.26
$70.31
$72.27
$109.40
Cash cost per tonne of ore processed,
excluding royalties
$60.61
$72.36
$69.10
$62.57
$66.33
$72.27
$109.40
Cost of sales
Add (deduct):
Depreciation, amortization & other non-cash
costs
Care and maintenance costs
Change in concentrate inventory
Total cash cost of production
1.
Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue.
Dundee Precious Metals
39
41. KRUMOVGRAD GOLD PROJECT
Krumovgrad Mineral Reserves – December 31, 2011
Gold
Silver
Tonnes
(M)
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
Category
Krumovgrad Mineral Resources – December 31, 2011
Gold
Category
Measured
Grade
(g/t)
Ounces (M)
3.30
4.90
0.52
3.00
0.28
4.69
2.50
0.38
2.00
0.24
M&I
7.99
3.50
0.90
2.00
0.51
Inferred
Dundee Precious Metals
Grade (g/t)
Ounces
(M)
Indicated
1.
2.
3.
4.
5.
Tonnes
(M)
Silver
0.40
1.20
0.02
1.00
0.01
Rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals.
All Mineral Resource Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM.
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.
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.
Measured and Indicated Mineral Resources are inclusive of Proven and Probable Reserves.
41
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T: 416 365-5191
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T: 416 365-2851
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