PDAC CONFERENCE March 4-7, 2018 DPM AN INNOVATIVE, GROWING GOLD PRODUCER

Transcription

1 PDAC CONFERENCE March 4-7, 2018 DPM AN INNOVATIVE, GROWING GOLD PRODUCER Krumovgrad Gold Project December 2017

2 Forward Looking Statements Certain statements and other information included in this presentation and our other disclosure documents constitute forward looking information or forward looking statements within the meaning of applicable securities legislation, which we refer to collectively hereinafter as forward looking statements. Our forward looking statements include, but are not limited to, statements with respect to the estimated capital costs, operating costs and other project economics with respect to Krumovgrad; timing of development, permitting, construction, commissioning activities and commencement of production in respect of Krumovgrad; timing of further optimization work at Tsumeb and potential benefits of the rotary furnace installation; price of gold, copper, silver and acid; toll rates; metals exposure and stockpile interest deductions; the estimation of Mineral Reserves and Mineral Resources and the realization of such mineral estimates; timing and amount of estimated future production and output, life of mine, costs of production, cash costs and other cost measures, capital expenditures and timing of the development of new deposits; results of economic studies; success of exploration activities; success of permitting activities; permitting time lines; currency fluctuations; requirements for additional capital; government regulation of mining and smelting operations; success of permitting activities; environmental risks; reclamation expenses; potential or anticipated outcome of title disputes or claims; and timing and possible outcome of pending litigation. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward looking terminology such as plans, expects, or does not expect, is expected, budget, scheduled, estimates, forecasts, outlook, intends, anticipates, or does not anticipate, or believes, or variations of such words and phrases or that 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. In addition to factors already discussed in this presentation, such factors include, among others: the uncertainties with respect to actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations and economic studies; changes in project parameters as plans continue to be refined; 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; uncertainties inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the Company s activities; fluctuations in metal and acid prices, toll rates and foreign exchange rates; unanticipated title disputes; claims or litigation; limitation on insurance coverage; cyber attacks; failure to realize projected financial results from MineRP; risks related to operating a technology business reliant on the ownership, protection and ongoing development of key intellectual properties; as well as those risk factors discussed or referred to in any other documents (including without limitation the Company s most recent AIF) filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available on SEDAR at 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. Unless required by securities laws, the Company undertakes no obligation to update forward looking statements if circumstances or management s estimates or opinion should change. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. 2

3 Investment Highlights Strong Asset Base, Near Term Growth & Deeply Undervalued Operating in mining friendly jurisdictions Strong resource and reserve base High quality, low cost, flagship asset Near term, low cost growth in gold production Growing exploration pipeline Strong balance sheet Strong management team Deeply undervalued 3

4 Company Overview 2017 Quick Glance Production & Financial Metrics Metals contained in concentrate produced Gold Copper 197,684 oz 35.8 Mlbs AISC/oz Au (1,2) $729 Adjusted EBITDA $92 M + Krumovgrad starting in Q ,700 oz/yr Low cost production with 50% growth starting in Q Share Capital (@ February 28, 2018) Share Price / 52 week low-high (C$ per share) $3.06 / $ $3.38 Shares Outstanding Current 178,492,566 Market Capitalization Current $427 M Deeply undervalued P/NAV 0.70x Liquidity Position (@ December 31, 2017) Cash Investment portfolio (@ Feb. 21, 2018) (21) Undrawn RCF Debt $28.8 M $40 M $252 M $23 M Strong liquidity position Top Five Shareholders (@ February 28, 2018) Dundee Corporation 20.38% GMT Capital Corporation 11.15% EBRD 9.9% Kopernik Global Advisors 3.46% USAA Asset Mgmt. 3.18% 1, 2, 21 See footnotes contained in Appendix on slide 38 4 Long term shareholders

5 DPM s Global Portfolio of Assets Sabina Gold & Silver Corp. Nunavut, Canada Chelopech Mine Bulgaria Malartic JV Quebec, Canada Corporate Head Office Toronto, Canada Timok Gold Project Serbia Krumovgrad Gold Project Bulgaria Operating assets Development asset Late stage exploration assets Early stage exploration assets Tsumeb Smelter Namibia Chelopech Tsumeb Krumovgrad Location: Chelopech, Bulgaria Ownership: 100% 2017 Production: 197,684 oz Au; 35.8 Mlbs Cu Mine Life: 9 years Operation: Underground Location: Tsumeb, Namibia Ownership: 100% 2017 Concentrate Smelted: 219,000 tonnes Operation: Specialty smelter Location: Southern Bulgaria Ownership: 100% Stage: Construction Production: 103,000 oz (yrs 1-5 avg) Mine life: 8 years Operation: Open pit Commissioning: Q Timok Sabina Gold & Silver 18 See footnotes contained in Appendix on slide 38 Location: Serbia Ownership: 100% Stage: Advanced exploration Resource: 1.72 Moz Location: Nunavut, Canada Ownership: 10% Stage: Pre-construction Production: 240,000 Au (yrs 1-8) (18) Operation: Open pit/underground DPM s equity stake: $40 M

6 Operating in Mining Friendly Jurisdictions Bulgaria Overview: Uninterrupted operations since 2003 Member of the EU since th largest gold producer in Europe Stable regulatory environment & government Corporate Tax Rate: 10% Chelopech Royalty Rate: 1.5% of gross Cu, Au and Ag Krumovgrad Royalty Rate: sliding scale between 1% and 4% of gross value GDP Forecast: +2.8% in 2017 (IMF) Mining industry forms 5% of the GDP (2016) Namibia Overview: Political party stability 5 th largest producer of uranium and 9 th largest producer of diamonds Ranked in top 10 as Africa s most attractive countries over last 5 years according to the Fraser Institute Glencore, Rio Tinto, Anglo American, Paladin Energy, etc. Corporate Tax Rate: 0% (Export Processing Zone status) GDP Forecast: +5.3% in 2017 (IMF) Mining industry forms 11.5% of the GDP (Jan. 2017) Serbia Overview: EU candidate since rd largest copper producer in Europe Industry benefits from high level government support Corporate Tax Rate: 15% GDP Forecast: +3.0% in 2017 (IMF) Mining industry forms 2% of the GDP (2013) 6

7 Strong Mineral Resource and Reserve Base TOTAL MINERAL RESERVES (3,5,A) Total Gold Ounces TOTAL MINERAL RESOURCES (4,5,A) Exclusive of Reserves As of December 31, 2016 As of December 31, 2016 Total Gold Ounces 2.8 Moz 4.0 Moz 0.8 Moz 3.1 Moz 3.8 Moz 1.7 Moz 2.0 Moz Krumovgrad Chelopech Timok Chelopech 1.4 Moz 0.01 Moz 0.14 Moz Tulare Krumovgrad Chelopech Proven and probable Measured & Indicated Inferred Total Copper Total Copper 2.8 Bnlbs 398 Mlbs 2.8 Bnlbs Chelopech 301 Mlbs 37 Mlbs Tulare Chelopech Proven and Probable Measured & Indicated Inferred 3, 4, 5, A. See footnotes contained in Appendix on slides 38 & 39 7

8 HIGH QUALITY, LOW COST, FLAGSHIP ASSET Chelopech Location: Chelopech, Bulgaria Ownership: 100% 2017 Production: 197,684 oz Au; 35.8 Mlbs Cu Mine Life: 9 years Operation: Underground 8

9 Chelopech Continually Improving Growing throughput in recent years with opportunity to optimize further Continuing to optimize through innovation 2018E slightly higher due to FX Ore Mined (Mt) Cash Cost / tonne of ore processed (US$/t) (6) E E Stronger EBITDA due to grades & metal prices Exploration successful in replacing reserves Adjusted EBITDA (US$M) (7) Gold price trend Copper price trend (AuEq) , 7, 9 See footnotes contained in Appendix on slide Total ore mined since 2006 (Mt) Ore Reserve (Mt)

10 Chelopech Highlights Record gold production in 2017 Guidance for another strong year in 2018 Focused on mine and process plant optimization Metals contained in concentrate produced (8) Payable gold in concentrate sold (000s oz) (8) Gold (000s oz) Copper (Mlbs) E E All in sustaining cost (US$/oz gold sold) , 9 See footnotes contained in Appendix on slide E 10

11 Chelopech Next Phase of Optimization Underway Phase Change in mining method 0.5 mtpy 1.0 mtpy Phase Underground crushing and conveying; Taking the lid off the mine 1.0 mtpy 2.0 mtpy Phase Digital transformation Dynamic mine planning - Intelligent use of data - Digital collaboration - Smart centre - Automating mining process Key benefits: Recovery improvement in 2017 Deep understanding of Reserve base Optimization of material & asset flow Improved anticipation of failures Increase automation Real time monitoring of performance vs. plan 11

12 Chelopech Near Mine Exploration Drilling demonstrates excellent potential for hosting additional resources: New zone of breccia pipes, the favourable host rock for ore, is found over 1500 m & is open to the east Large areas remain between drilled sections Similar geology, alteration and style of mineralization to that of the Central and Western orebodies Opens up whole new area 10,000 m drill program proposed for 2018 to infill existing holes at SEBP zone 5,000 m of drilling planned for Krasta target in

13 TRANSITIONING TO FREE CASH FLOW Tsumeb Location: Tsumeb, Namibia Ownership: 100% 2017 concentrate smelted: 219,000 tonnes Operation: Specialty smelter 13

14 Tsumeb Increased Stability with Growth Potential Secured processing outlet for Chelopech Growing tolling business to build stand alone cash flow generating business (2) Focused on stable operations at current throughput Option to expand to 370k tpa in the future Will evaluate strategic partnership alternatives Total Capital Expenditures (US$M) Growth Capital Sustaining Capital Chelopech concentrate supplied to smelter (000s) Production ( 000s tonnes) Third Party con supplied to smelter (000s) Cash cost/t of con smelted (net of by (6) product credits) $440-$ Potential future capacity E Major investment phase complete E 2019F 2020F 2021F 2022F Major investment phase complete , 9 See footnotes contained in Appendix on slide 38 14

15 Tsumeb Smelter Highlights Stable performance in 2017 Continuing optimization of facility Focused on improving availability of oxygen plant and unit cost reductions Complex Concentrate Smelted ( 000s t) E 9 Generated free cash flow in 2017 Adjusted EBITDA (US$M) (7) Sustaining Capital (US$M) (6) E 9 6, 7, 9 See footnotes contained in Appendix on slide 38 15

16 NEAR TERM, LOW COST GROWTH Krumovgrad Location: Southern Bulgaria Ownership: 100% Stage: Construction Production: 103,000 oz (yrs 1-5 avg) Mine life: 8 years Operation: Open pit Commissioning: Q

17 Krumovgrad Robust Economics High grade low strip ratio open pit gold mine Operating synergies with Chelopech Fully funded with near term production in Q Production and Operating Costs Annual tons processed Gold grade Strip ratio Annual gold production Year 1 to 5 average Annual silver production (10, B) 775,000 t 4.04 g/t 2.6:1 waste:ore (t:t) 85,700 oz 103,020 oz 38,700 oz Total cash cost per oz AuEq $403 Average Annual EBITDA (7) $66 million Year 1 to 5 average $85 million Project Economics Robust with a 28% After-Tax IRR * Construction capital NPV (5%) (@ Dec. 31, 2017) $162 - $168 million $296 million (adjusted for capital US$1,250/oz Au Based on midpoint of updated construction capital First concentrate production Q LOM 8 years 7, 10, B See footnotes contained in Appendix on slides 38 & 39 17

18 Krumovgrad Project Progress Milestone Actual/Expected Completion Construction permit RECEIVED AUGUST 9, 2016 Mobilize earthworks contractor to site and commence earthworks Q Commenced main civil/mechanical/electrical construction Q Commissioning and start up Q First concentrate production Q Construction capital spent Dec 31, 2017) / remainder to be spent in 2018 $79 million / $83-$89 million Percent complete (@ Dec 31, 2017) 51% Project Progress Krumovgrad site Dec Mill in foreground, flotation in background Feb Krumovgrad Project Facility 18

19 Krumovgrad Exploration Surnak Exploration Target (22, 23) Surnak prospect SURNAK SURNAK EXPLORATION TARGET Exploration target potential of 80,000 to 160,000 oz Au contained within 1.8 to 2.4 Mt grading 1.5 to 2 g/t Au SKALAK SYNAP KUKLITSA ADA TEPE Proven and Probable Reserves Au: 806 Koz at 4.05 g/t Ag: 443 Koz at 2.2g/t KUPEL KUPEL NORTH Discovery Hole KPDD009 8m at ppm Au & 4.95 ppm Ag Surnak is one of six registered Commercial Discoveries within the mine concession Located 3 km west of Ada Tepe Sediment-hosted low sulphidation epithermal gold veins like Ada Tepe Last explored by DPM in : gaps in the drill grid need infill drilling and mineralization not closed off 6,000 m diamond drill program to test extension at Surnak as well as targets at Kupel, Kupel North, and Synap Additional 1,600 m drilling on regional licences 22, 23 See footnotes contained in Appendix on slides 38 & 39 19

20 FUTURE GROWTH PIPELINE ADVANCED EXPLORATION Timok Location: Serbia Ownership: 100% Stage: Advanced exploration Resource: 1.72 million ounces (19) Chelopech Mine, Bulgaria 19. See footnotes contained in Appendix on slide 38 20

21 Serbia Advanced Exploration Timok Gold Project Indicated Mineral Resource for Korkan (19) 0.33 Moz 1.55 g/t Contained within 6.71 MT Indicated Mineral Resource for Bigar Hill (19) 1.16 Moz 1.57 g/t contained within MT Indicated Mineral Resource for Pester (19) 0.23 Moz 1.40 g/t contained within 5.06 MT Total Indicated Mineral Resources 1.72 Moz 1.54 g/t contained within 34.7 MT Inferred Mineral Resources 0.02 Moz 1.4 g/t contained within 0.4 MT Previously assumed sulphide resource Potential for oxides within previous resource Potential to increase mineable resource and improve economics 19. See footnotes contained in Appendix on slide 38 21

22 Serbia Exploration (23) Timok Gold Project: Korkan West Discovery 44 KORKAN 43 Timok Gold Project Indicated Mineral Resources 1.72 Moz Au at 1.54 g/t Inferred Mineral Resources 0.02 Moz Au at 1.4 g/t KW Zone KWDD KORKAN WEST DISCOVERY KO Zone BIGAR HILL Near resource target drilled Nov KW016: 105m at 1.21 g/t gold from surface Two phases of drilling at KW during 2017 totalling 41 holes for 6,770 m Gold mineralization found over a strike length of 220 m Almost all reported intervals are oxide 11,500 m drilling planned for 2018 and leachability test work in Q If successful proceed to updated resource and scoping study See footnotes contained in Appendix on slide 38

23 Additional Upside Potential Through Equity Interests Sabina Gold and Silver Corp. Back River Project, Nunavut DPM Ownership 10.2% (18) Value of DPM stake Feb. 28, 2018 = ~$40M (incl. warrants) M&I resource 5.3M oz Au Inferred resource 1.85M oz Au Targeting Au production Q Production of ~240k oz Au/year (yrs 1 through 8) Receipt of final project certificate in Q Success at Umwelt Vault Zone and Llama extension provides upside potential to mine life Proceeding with pre-construction activities for 2018 Malartic Property, Quebec Joint Venture 35km 2 of prospective Abitibi geology located 25 km west of Val-d Or $2.5 M within first 3 yrs to earn 51% with option to increase to 71% following an additional $3.5 M expenditure in the following 3 yrs Detailed geophysical and geochemical surveys have defined VMS, intrusion-related and shear zone hosted Au mineralization targets Drilling planned for ,500-2,000 m 18. See footnotes contained in Appendix on slide 38 23

24 SUMMARY GROWTH OPTIMIZATION INNOVATION 24

25 Key Value Generating Catalysts Chelopech Record gold production Digital transformation 15,000 m regional drilling 30,000 m resource drilling Digital transformation Digital transformation Tsumeb Stable production Transition to free cash flow Further optimize EIA approval Commercial agreements for expansion Decision on expansion Commence expansion construction Krumovgrad Construction 50% complete Construction completion and commissioning (Q3) First concentrate production (Q4) 6,000 m drilling on satellite deposits Ramp-up (Q1) Commercial production Timok Drilling of Korkan West targets 11,500 m Korkan West drilling Resource update Leachability tests Scoping study 25 PEA or Prefeasibility study

26 DPM Outlook A Growing Low Cost Producer Gold Equivalent Production (000s oz) (15) (based on metals contained in concentrate produced) 254 Au Cu Ag AuEq Production Growing to >350,000 oz at $600/oz (9) 2018F (9, 20) 2018F + Krumovgrad (years 1 to 5) All-in Sustaining Cost (US$/oz) (15) Krumovgrad gold production commences Q (1, 17) (15) 607 Annual EBITDA Less: Sustaining Capex From Operating Assets Total ~$102M US$8M Tsumeb (FYE Dec 31, 2017) Total ~$183M ~ US$81M ~ US$8M Krumovgrad (20) (years 1 to 5) Tsumeb (FYE Dec 31, 2017) (9) F 2018F + Krumovgrad (9, 20) (years 1 to 5) 1, 9, 15, 17, 20, See footnotes contained in Appendix on slide US$95M Chelopech (FYE Dec 31, 2017) US$95M 2017 With Krumovgrad Chelopech (FYE Dec 31, 2017)

27 $979 $1,793 $2,784 $2,573 $2,430 $2,358 $2,147 $1,620 $1,482 $4,792 $4,692 $5,198 Deeply Undervalued Investment Opportunity Undervalued on Mineral Reserves and Production EV/Reserves ($/oz) 12 EV/2018E Gold Production ($/oz) $485 $378 $198 $156 $154 $153 $153 $139 $111 $85 $37 Klondex Roxgold TMAC Resolute Premier Guyana Alacer DPM Argonaut Teranga Asanko and Cash Flow 42.0x EV/2018E AdjCF 12 Alacer TMAC Premier DPM Roxgold Guyana Resolute Argonaut DPM + Klondex Teranga Asanko Krum (13) with AISC in lowest quartile 2018E All In Sustaining Costs (US$/oz) 6,12 1,174 1, x x x 7.7x 7.7x 7.6x 7.2x 5.9x 5.2x 5.1x 3.1x Premier Alacer TMAC Resolute Klondex Asanko Argonaut Teranga DPM Guyana Roxgold DPM + Krum 6, 11,12, 13 See footnotes contained in Appendix on slide 38 (12)(13) 27 DPM + Krum (11)(13) DPM Guyana Klondex Resolute Roxgold Teranga Alacer TMAC Argonaut Premier Asanko (11)

28 Deeply Undervalued Investment Opportunity With a strong balance sheet and undervalued on P/NAV 28% 27% 25% Leverage Ratio 12 Debt to Capital 1.00x 2018E P/NAV 12 14% 12% 0.85x 0.79x 0.78x 0.78x 0.74x 0.70x 0.63x 0.61x 0.53x 7% 4% 3% 2% 1% Asanko Roxgold Alacer Guyana Premier Klondex DPM Resolute Teranga Argonaut Roxgold Argonaut Guyana Klondex Teranga Premier DPM Alacer Asanko Resolute Historical concerns have been addressed: Stability in operating jurisdictions Tsumeb capital program complete & transitioning to FCF Krumovgrad permitting & near term growth Balance sheet deleveraged DPM valuation 12 See footnotes contained in Appendix on slide 38 28

29 Investment Highlights Strong Asset Base, Near Term Growth & Deeply Undervalued Operating in mining friendly jurisdictions Strong resource and reserve base High quality, low cost, flagship asset Near term, low cost growth in gold production Growing exploration pipeline Strong balance sheet Strong management team Deeply undervalued 29

30 THANK YOU Corporate Head Office: One Adelaide Street East, Suite 500 Toronto, Ontario, M5C 2V9 T: Investor Relations T:

31 APPENDICES 31

32 Business Strategy 32

33 Strong Mineral Resource and Reserve Base Mineral Reserves (4,14,A,B) Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%) Chelopech Proven Probable Krumovgrad Proven (Upper Zone) Proven (Wall) Probable (Upper Zone) Probable (Wall) Mineral Resources (4,14,A,B) Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%) Chelopech M&I Inferred Krumovgrad Inferred (Upper Zone) Timok Indicated Inferred Tulare Inferred (Kiseljak) Inferred (Yellow Creek) Total Mineral Resources Measured & Indicated Inferred Total P&P Mineral Reserves , 14,A,B See footnotes contained in Appendix on slides 38 & , ,

34 2018 Guidance US millions, unless otherwise indicated Chelopech Tsumeb Consolidated (5) Ore mined/milled ( 000s tonnes) 2,100-2,200-2,100-2,200 Complex concentrate smelted ( 000s tonnes) Metals contained in concentrates produced (1)(2) Gold ( 000s ounces) Copper (million pounds) Payable metals in concentrate sold (1) Gold ( 000s) Copper (million pounds) Cash cost per tonne of ore processed ($) (3)(4) All-in sustaining cost per ounce of gold ($) (3)(4)(5) Cash cost per tonne of complex concentrate smelted, net of by-product credits ($) (3)(4) General & administrative expenses (3)(6) Exploration expenses (3) Sustaining capital expenditures (3)(4) ) Gold produced includes gold in pyrite concentrate produced of 47,000 to 55,000 ounces and payable gold sold includes payable gold in pyrite concentrate sold of 30,000 to 35,000 ounces. 2) Metals contained in concentrate produced are prior to deductions associated with smelter terms. 3) Based on foreign exchange rates and, where applicable, metal prices that approximate current rates and prices after reflecting existing 2018 copper and ZAR hedges. In particular, 56% of 2018 payable copper production has been hedged at a fixed price of $2.62 per pound and 28% of ZAR denominated operating expenses have been hedged at a fixed rate of ) Cash cost per tonne of ore processed, all-in sustaining cost per ounce of gold and cash cost per tonne of complex concentrate smelted, net of by-product credits, and sustaining capital expenditures have no standardized meaning under GAAP. Refer to the Non-GAAP Financial Measures section of the MD&A for reconciliations to IFRS. 5) Includes the treatment charges, transportation and other selling costs related to the sale of pyrite concentrate, and payable gold in pyrite concentrate sold. Cash cost per ounce of gold sold, net of by-product credits, excluding payable gold in pyrite concentrate sold and related costs, is expected to be between $550 and $600 in All-in sustaining cost per ounce of gold, excluding payable gold in pyrite concentrate sold and related costs, is expected to be between $630 and $855 in ) Excludes mark-to-market adjustments on share-based compensation and MineRPs general and administrative expenses. 34

35 Hedge Position at December 31, 2017 QP Hedges Year Volume Hedged % Hedged Average fixed price Payable gold ,865 oz 100% $1,284.29/oz Payable copper ,014,125 lbs 100% $3.09/lb Payable silver ,805 oz 100% $17.00/oz Production Hedges - Swaps Year Volume Hedged (lbs) % Hedged Average fixed price ($/lb) Payable copper ,166,966 53% $2.62 Production Hedges - Options Year Volume Hedged % Hedged Avg Ceiling Price Floor Price Payable copper ,698,611 lbs 37% $3.32/lb $2.80/lb Production Hedges - Prepaid Forward Gold Sale Year Volume Hedged (oz) % Hedged Avg Forward Price Payable Gold Payable Gold ,013 27,969 9% 11% $1,390 $1,425 Operating Cost FX Hedges Year Foreign Currency Amount Hedged % Hedged Average exchange rate ZAR ,681,917 28% Capital Expenditure FX Hedges Year Foreign Currency Amount Hedged % Hedged Average exchange rate (Foreign currency/us$) Euro ,045, %

36 Creating a Leading Technology Provider MineRP + = MineRP Holdings Inc. Independent software vendor ("ISV") for the mining industry Industry leading platform Improves productivity in planning and operations by integrating applications Headquartered in South Africa Wireless underground communications technology developed at Chelopech Transaction Overview Strategic Highlights DPM acquired a 78% interest (70% fully diluted) for an investment of ~US$20 million in cash and Terrative assets 22% held by MineRP management DPM has provided MineRP Holdings Inc. with up to US$5 million of additional financing to support working capital and growth initiatives Faster deployment of Terrative to support its growth and value potential outside of DPM Complementary technologies to be sold to existing and future clients across sectors Establishes DPM at the forefront of digital innovation and unlocking the full potential for further operational benefits at existing sites Unique opportunity for DPM shareholders to participate in the growth in value of this exciting business Positions DPM to remain focussed on its core mining operations MineRP management will continue to manage MineRP at arms length 36

37 DPM Summary Chelopech Krumovgrad Subtotal Sabina Equity (Incl. warrants) Tsumeb ~$95 MM EBITDA Less: Sustaining (1) / yr $81 MM first 5 yrs EBITDA Less: Sustaining (2) / yr (~$61 MM LOM) Exploration / mine life extension Consistent track record of reserve replacement Exploration on original license ~US$176 MM EBITDA Less: Sustaining (1)(2) / yr $40 M equity value (as at February 28, 2018) 370 Ktpa potential capacity with Transitioning to FCF positive $8 MM in EBITDA Less: Sustaining (1) significant operating leverage and modest capital Timok 1.7 MM oz resource in Serbia Exploration Oxide potential Other Assets Khalkos JV, Tulare and other Serbian licenses, Armenian JV, Kapan NSR, MineRP (78%) Cash $29M (as at December 31, 2017) Debt $23M (as at December 31, 2017) Market Cap: $427 M Share Price: C$ Based on FYE Dec. 31, 2017 audited annual financial statements. 2 Based on NI technical report entitled Revised NI Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria dated November 7,

38 Footnotes and Disclaimers 1. AISC per ounce of gold represents cost of sales at Chelopech less depreciation, amortization and other non-cash items plus treatment charges, penalties, transportation and other selling costs, sustaining capital expenditures, rehabilitation related to accretion expenses and an allocated portion of the Company s G&A expenses less by-product revenues in respect of copper and silver including realized gains on copper derivative contracts divided by the payable gold in copper and pyrite concentrates sold. Based on metals prices that approximate current rates. 2. Chelopech figures as per 2017 public filings; AISC includes gold production in pyrites 3. Effective dates for Reserves contained in the 2016 Annual Information form dated March 28, 2017 for the year ended December 31, 2016, filed on sedar at and available on our website at 4. Measured and Indicated Mineral Resources are in addition to Mineral Reserves 5. See slide 33 in Appendix for detailed Mineral Reserve and Mineral Resource Estimates 6. A non-gaap measure. Refer to the non-gaap Financial Measures section of the Q MD&A for reconciliations to IFRS 7. Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for impairment charges, unrealized losses/gains on derivative contracts and investments at fair value, minus interest income 8. Includes gold in pyrite concentrate produced 9. Forecast/guidance information is subject to a number of risks. 2018E is based on guidance issued February 15, See Forward Looking Statements on slide Krumovgrad figures as per June 6, 2016 press release. 11. Source DPM Guidance issued February 15, Source RBC Capital Markets, February 12, Au US$1,300/oz, Ag US$17.50/oz, Cu US$3.00/lb; DPM balance sheet as at Dec. 31, 2017; Adjusted cash flow defined as cash flow from operations before sustaining capital expenditures 13. Includes DPM 2018E plus Krumovgrad LOM average as per June 6, 2016 press release using RBC Capital Markets metal prices 14. Contained in the 2016 Annual Information Form dated March 28, 2017, filed on sedar at and available on our website at Based on Au of $1,250/oz, Cu of $2.75/lb, Euro/US$ = Calculated using Au production 17. AISC based on 2018 guidance for concentrate smelted 18. Source: Technical report for the Initial project Feasibility Study on the Back River Gold Property, Nunavut, Canada, Dated October 28, 2015, filed on sedar at Source: Timok Gold Project, Serbia Updated Mineral Resource contained in the 2016 Annual Information Form, Dated March 28, 2017, filed on sedar at Based on NI technical report entitled Revised NI Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria dated November 7, 2017, filed on sedar at Using gold price $1,250/oz 21. Includes 5 million warrants valued at US$5.0M as at December 31, Previous exploration work at the Surnak Prospect, which includes over 10,800 metres of trenching and drilling, has been used to outline an exploration target of 80,000 to 160,000 oz Au contained within 1.8 to 2.4 Mt grading 1.5 to 2 g/t Au. The exploration target potential was derived upon review of historic Mineral Resource estimates at Surnak, in combination with ongoing development of the 3D geologic model at Surnak. The potential ranges of tonnes and grade are conceptual in nature are based on previous drill results that defined the approximate length, thickness, depth and grade of the portion of the historic Mineral Resource estimate. There has been insufficient exploration to define a current Mineral Resource and the company cautions that there is a risk further exploration will not result in the delineation of a current Mineral Resource. 23. For more information regarding the company s current Mineral Resource and Mineral Reserve estimates, please refer to Dundee Precious Metals Annual Mineral Reserve and Mineral Resource Statement as at December 31, 2016 contained in our Annual Information Form, dated March 28, 2017, which is available on our website at and on sedar at 38

39 Footnotes and Disclaimers Cont d Qualified Person Disclosure A. The Mineral Resource and Mineral Reserve estimates for Chelopech and other scientific and technical information which supports this presentation was prepared by Petya Kuzmanova, MIMMM, CSci, Senior Resource Geologist, of the Company, under the guidance of CSA Global (UK) Ltd. ( CSA ), in accordance with Canadian regulatory requirements set out in National Instrument Standards of Disclosure for Mineral Projects, and were reviewed and approved by, as relates to Mineral Resources, Malcolm Titley, BSc, MAIG, Principal Consultant of CSA, Ross Overall, Senior Corporate Resource Geologist, of the Company, and as relates to Mineral Reserves, Karl van Olden, BSc (Eng), GDE, MBA, FAusIMM, Mining Manager of CSA. Malcolm Titley, Ross Overall and Karl van Olden are Qualified Persons ( QP ), as defined under NI and are independent of the company, with the exception of Mr. Overall who is not independent of the company. Ross Overall, Senior Corporate Resource Geologist, of the company, who is a QP, as defined under NI , has reviewed and approved the contents of this presentation. B. The Mineral Resource and Mineral Reserve estimates for the Krumovgrad project and other scientific and technical information which supports this presentation was prepared by CSA Global (UK) Ltd. ( CSA ), in accordance with Canadian regulatory requirements set out in National Instrument Standards of Disclosure for Mineral Projects, and were reviewed and approved by, as relates to Mineral Resources, Galen White, BSc (Hons) FAusIMM FGS, Director and Principal Consultant of CSA, and Julian Bennett, BSc ARSM FIMMM CEng, as relates to Mineral Reserves. Both Galen White and Julian Bennett are independent Qualified Persons ( QP ), as defined under NI The NI technical report (the Krumovgrad Technical Report ) entitled Revised NI Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria dated November 7, 2017, in respect of the study for the construction and operation of its Krumovgrad gold project disclosed herein, was filed November 7, 2017 on SEDAR at Simon Meik, former Corporate Director Processing of the Company, and Edgar Urbaez, formerly Corporate Director, Technical Services, both of DPM, who are QPs and not independent of the Company, have reviewed and approved the contents of this presentation. The Mineral Resource and Mineral Reserve estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect the potential development of such Mineral Resources. See the Krumovgrad Technical Report for more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing Mineral Resource estimates. Cautionary note to U.S. Investors concerning estimates of Mineral Resources. These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. The terms mineral resource, measured mineral resource, indicated mineral resource and inferred mineral resource are defined in NI and recognized by Canadian securities laws but are not defined terms under the U.S. Securities and Exchange Commission ( SEC ) Guide 7 ( SEC Guide 7 ) or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever by upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Accordingly, these mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder, including SEC Guide 7. 39