INVESTOR PRESENTATION January 23, 2018

Transcription

1 INVESTOR PRESENTATION January 23, 2018

2 Forward Looking Statements This presentation contains forward looking statements that involve a number of risks and uncertainties. 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; the 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; the 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; environmental risks; reclamation expenses; potential or anticipated outcome of title disputes or claims; 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, 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. Such factors include, among others: the uncertainties with respect to the 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 successfully integrate MineRP s business; failure to realize projected synergies and financial results from MineRP business; risks relating 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 the Company s MD&A under the heading Risks and Uncertainties and under the heading Cautionary Note Regarding Forward Looking Statements which include further details on material assumptions used to develop such forward looking statements and material risk factors that could cause actual results to differ materially from forward looking statements, and 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 opinions 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 Quick Glance Production & Financial Metrics Metals contained in concentrate produced Gold (2017) Copper (2017) 197,700 oz 35.8 Mlbs + Krumovgrad starting in Q ,700 oz/yr AISC/oz Au (1,2) (2016) $747 Adjusted EBITDA (2016) $73 M Strong production with 50% growth starting in 2018 Share Capital (@ January 18, 2018) Share Price / 52 week low-high (C$ per share) $3.22 / $ $3.70 Shares Outstanding Current 178,460,565 Market Capitalization Current $462 M Deeply undervalued P/NAV 0.74x Liquidity Position (@ September 30, 2017) Cash Investment portfolio (incl. Jan. 18, 2018) Undrawn RCF Debt $22.0 M $53 M $275 M nil Strong liquidity position Top Five Shareholders (@ January 18, 2018) Dundee Corporation 20.4% GMT Capital Corporation 11.4% EBRD 9.9% Kopernik Global Advisors 3.5% USAA Asset Mgmt. 3.2% 1, 2 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 Khalkos JV Val D or, Quebec Corporate Head Office Toronto, Canada Timok Gold Project Serbia Exploration JV Armenia Krumovgrad Gold Project Bulgaria Operating assets Development asset Late stage exploration assets Early stage exploration assets Tsumeb Smelter Namibia Chelopech Tsumeb Krumovgrad Timok Sabina Gold & Silver Location: Chelopech, Bulgaria Ownership: 100% 2017 Production: 197,700 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 19 See footnotes contained in Appendix on slide 38 Location: Southern Bulgaria Ownership: 100% Stage: Construction Production: 103,000 oz (yrs 1-5) Mine life: 8 years Operation: Open pit Commissioning: Q Location: Serbia Ownership: 100% Stage: Advanced exploration Resource: 1.72 Moz Location: Nunavut, Canada Ownership: 10% Stage: Permitting Production: 240,000 Au (yrs 1-8) (19) Operation: Open pit/underground DPM s equity stake: $53 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: fixed at 1.5% of gross Cu, Au and Ag metals Krumovgrad Royalty Rate: sliding scale between 1% and 4% of gross value of the Au and Ag metals GDP Forecast: +2.8% in 2017 (IMF) Mining industry forms 5% of the GDP (2016) Namibia Overview: Political party stability World s 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 Mining companies in the country include Glencore, Rio Tinto, Anglo American, Paladin Energy, etc. Corporate Tax Rate: 0% as Tsumeb has been granted Export Processing Zone status GDP Forecast: +5.3% in 2017 (IMF) 6 Mining industry forms 11.5% of the GDP (Jan. 2017) Serbia Overview: EU candidate since 2012 Industry produces primarily copper, iron and steel 3 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)

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: 197,700 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 Ore Mined (Mt) Cash Cost / tonne of ore processed (US$/t) (6) F 9 mos 2017 Strong EBITDA despite lower metal prices Adjusted EBITDA (US$M) (7) Gold price trend Copper price trend (AuEq) Continuing to expand LOM by replacing reserves Total ore mined since 2006 (Mt) Ore Reserve (Mt) mos , 7 See footnotes contained in Appendix on slide

10 Chelopech Highlights Record gold production in 2017 Q4 and FY Metals contained in concentrate produced (8) Gold (000s oz) Copper (Mlbs) Q4 and FY Payable gold in concentrate sold (000s oz) (8) Q Q Q Q Q3 and 9 mos Cash cost/oz of gold sold (US$) Net of by-product credits (6, 8) Including payable gold in pyrite concentrate sold mos = Q Q Q Q mos = See footnotes contained in Appendix on slide Q Q Q Guidance 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 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 ~18,000 m drill program proposed for to infill existing holes at SEBP zone Additional drilling planned for Sharlo Dere, Krasta, and Vozdol targets 12

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 (2) cash flow generating business Total Capital Expenditures (US$M) Growth Capital Sustaining Capital Focused on stable operations at current throughput Option to expand to 370k tpa in the future 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 product credits) $400-$ (6) Potential future capacity sust: growth: nil mos 2017 Major investment phase complete 2017 Guidance F 2019F 2020F 2021F Major investment phase complete , 9 See footnotes contained in Appendix on slide 38 14

15 Tsumeb Smelter Highlights Continuing optimization and stability of facility Stable performance in Q4 and 2017 Focused on improving availability of oxygen plant 200 Complex Concentrate Smelted ( 000s t) 219 Planned shutdown Q Q Q Q Transitioning to free cash flow Adjusted EBITDA (US$M) (7) mos = $8.7 M 6 mos = $5.5 M 3.2 (5.0) 2016 Q Q Q See footnotes contained in Appendix on slide Chelopech Mine, Bulgaria Sustaining Capital (US$M) (6) mos = $6.7 M 6 mos = $4 M Q Q Q Guidance

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 Krumovgrad is at the key inflection point on the value curve 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 25% After-Tax IRR * Construction capital NPV (5%) (@ Dec. 31, 2017) $162 - $168 million $296 million (adjusted for capital spent) US$1,250/oz Au 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 Commence main civil/mechanical/electrical construction Q Commissioning and start up Q First concentrate production Q Construction capital spent December 31, 2017) $79 million Percent complete December 31, 2017) 51% Earthworks Progress Krumovgrad - Before Earthworks in the process plant area First piece of steel erected onsite Oct 25 Krumovgrad Project Facility 18

19 Krumovgrad Exploration Surnak Exploration Target Surnak prospect SURNAK SURNAK EXPLORATION TARGET (1) 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 (2) 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 19

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

21 Serbia Advanced Exploration Timok Gold Project 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 Reviewing potential for oxides within previous resource Potential to significantly increase mineable resource and improve economics Drilling also continues at Korkan West where a new oxide discovery was made in late 2016 (discovery hole 1.21 g/t from surface) Drilling of limestone hosted targets also planned for

22 Serbia Exploration Timok Gold Project: Korkan West Discovery 44 KORKAN 43 Timok Gold Project (1) 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 KORKAN WEST DISCOVERY KO Zone BIGAR HILL Near resource target drilled Nov KW016: 105m at 1.21 g/t gold from surface Mineralization found over 600m from KW24 to the KO Holes Almost all reported intervals are oxide Hosted by sandstones and conglomerates same as Bigar Hill and Korkan High resolution IP survey completed Drilling resumed at the end of Sept to expand zone east and west along strike 11,500 m drilling in 2018 and metallurgical test work in Q

23 Additional Upside Potential Through Equity Interests Sabina Gold and Silver Corp. Back River Project, Nunavut DPM Ownership 10% (19) 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 Value of DPM stake Jan. 18, 2018 = ~$53M (incl. warrants) Success at Umwelt Vault Zone and Llama extension provides upside potential to mine life Khalkos Exploration Malartic Property, Quebec Joint Venture 35km 2 of prospective Abitibi geology located 25 km west of Val d Or Expenditure of $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 Q 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 Tsumeb Stable production Transition to free cash flow Further optimize EIA approval Commercial agreements Decision on expansion Commence construction Start ramp-up to operate at expanded capacity Production at expanded capacity Krumovgrad Construction 50% complete Construction completion and commissioning (Q3) First concentrate production (Q4) Ramp-up (Q1) Commercial production Timok Drilling of Korkan West and other targets Korkan West resource estimate Metallurgical work Scoping study Prefeasibility study 25

26 DPM Outlook A Growing Low Cost Producer Gold Equivalent Production (000s oz) (16) (based on metals contained in concentrate produced) 254 Au Cu Ag % AuEq Production by 2020 >350,000 oz at $575/oz F 2019F 2020F Krumovgrad gold production commences Q All-in Sustaining Cost (US$/oz) (1, 18) (15) 23% F 2018F 2019F 2020F , 9, 15, 16, 18 See footnotes contained in Appendix on slide 38 26

27 $2,611 $1,743 $4,875 $3,685 $3,092 $2,957 $2,882 $2,115 $1,940 $1,551 $947 $17,380 Deeply Undervalued Investment Opportunity Undervalued on Mineral Reserves and Production $916 EV/Reserves ($/oz) 12 EV/2017E Gold Production ($/oz) (17) $670 $454 $173 $169 $168 $165 $158 $82 $36 Argonaut Klondex Roxgold Resolute Guyana Alacer DPM Premier Terenga Asanko and Cash Flow EV/2017E AdjCF 12 TMAC Alacer Guyana Premier Roxgold Resolute DPM Argonaut Klondex DPM + Teranga Krum (13) with AISC in lowest quartile 2017E All In Sustaining Costs (US$/oz) 6,12 Asanko 35.7x $715-$785 $781 $821 $858 $965 $989 $990 $1,006 $1,028 $1, x $610-$ x 10.9x 9.9x 8.3x 7.8x 7.5x 5.6x 5.6x 5.6x 3.1x Teranga Premier TMAC Guyana Klondex Alacer Resolute Roxgold Asanko Argonaut DPM DPM + (12)(13) Krum DPM+Krum DPM11 Alacer Guyana Roxgold Argonaut Klondex Asanko Resolute Terenga Premier (11)(13) 6, 11, 12, 13, 17 See footnotes contained in Appendix on slide 38 27

28 Deeply Undervalued Investment Opportunity With a strong balance sheet and undervalued on P/NAV 26% 27% 25% Leverage Ratio 12 Debt to Capital 21% 1.09x 0.95x 0.89x 0.83x P/NAV x 0.77x 0.74x 13% 12% 0.63x 0.59x 0.59x 8% 3% 0% 0% Asanko Roxgold Alacer Terenga Guyana Premier Klondex Resolute Argonaut DPM Roxgold Argonaut Klondex Guyana Premier Terenga DPM Alacer Resolute Asanko 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 DPM Summary Chelopech ~$57 MM ACF (1)(3) / yr Exploration / mine life extension Consistent track record of reserve replacement Krumovgrad $79 MM first 5 yrs ACF (2)(3) / yr (~$59 MM LOM) Exploration on original license Subtotal Sabina Equity (Incl. warrants) ~US$136 MM ACF (1)(2)(3) / yr $53 M equity value (as at January 18, 2018) Tsumeb Timok Transitioning to FCF positive Generated $3.9 M in ACF over 12 months (ending Sept. 30, 2017) 1.7 MM oz resource in Serbia 370 Ktpa potential capacity with significant operating leverage and modest capital Exploration Oxide potential Other Exploration / Assets Khalkos JV, Tulare and other Serbian licenses, Armenian JV, Kapan NSR Debt Nil (as at September 30) Market Cap: $462 M Share Price: C$ Based on NI technical reports for Chelopech. Commodity prices of Au $1,250/oz and Cu $2.75/lb. 2 Based on NI technical reports for Krumovgrad. Using Au $1,250/oz 3 Adjusted cash flow defined as cash flow from operations less sustaining capital expenditures 32

33 Business Strategy 33

34 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 & , ,

35 2017 Full Year Results and Guidance US millions, unless otherwise indicated Chelopech Tsumeb Consolidated (5) Actual Ore mined/milled ( 000s tonnes) 2,040-2,200-2,040-2,200 2,218.7 Complex concentrate smelted ( 000s tonnes) Metals contained in concentrates produced (1)(2) Gold ( 000s ounces) Copper (million pounds) Payable metals in concentrate sold (2) Gold ( 000s) Copper (million pounds) Cash cost per tonne of ore processed ($) (3)(4) NA Cash cost per ounce of gold sold, net of by-product credits ($) (3)(4)(5) NA All-in sustaining cost per ounce of gold ($) (3)(4)(5) NA Cash cost per tonne of complex concentrate smelted, net of by-product credits ($) (3)(4) NA General & administrative expenses (3)(6) NA Exploration expenses (3) NA Sustaining capital expenditures (3) NA Growth capital expenditures (3) NA 1) Gold produced includes gold in pyrite concentrate produced of 56,400 ounces and payable gold sold includes payable gold in pyrite concentrate sold of 35,700 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. The assumed copper price reflects the impact of 92% of 2017 payable copper production being hedged at $2.40 per pound. The assumed Euro and ZAR exchange rates reflect the impact of forward foreign exchange contracts. 4) Cash cost per tonne of ore processed, cash cost per ounce of gold sold, net of by-product credits, all-in sustaining cost per ounce of gold and cash cost per tonne of complex concentrate smelted, net of by-product credits, have no standardized meaning under GAAP. Refer to the Non-GAAP Financial Measures section of Q 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 byproduct 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 $715 and $785 in ) Excludes mark-to-market adjustments on share-based compensation. 35

36 Hedge Position at September 30, 2017 QP Hedges Year Volume Hedged % Hedged Average fixed price Payable gold ,880 oz 100% $1,290.62/oz Payable copper ,659,669 lbs 100% $2.98/lb Payable silver ,180 oz 100% $17.13/oz Production Hedges - Swaps Year Volume Hedged (lbs) % Hedged Average fixed price ($/lb) Payable Copper Balance of ,135,597 79% $2.40 Payable Copper ,166,966 56% $2.62 Production Hedges - Options Year Volume Hedged % Hedged Avg Ceiling Price Floor Price Payable gold ,250 oz 27% $1,497/oz $1,200/oz 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% $1,358 $1,368 Operating Cost FX Hedges Year Foreign Currency Amount Hedged % Hedged Average exchange rate Euro ZAR Balance of 2017 Balance of ,700, ,000,000 19% 43% (Euro/US$) (US$/ZAR) ZAR ,681,917 29% Capital Expenditure FX Hedges Year Foreign Currency Amount Hedged % Hedged Average exchange rate (Foreign currency/us$) Euro Euro Balance of ,967,000 56,045, % 77%

37 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 37

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. The assumed copper prices reflect the impact of 92% of payable copper hedged at $2.40/lb in 2017 and 53% of payable copper hedged at $2.62/lb in Chelopech figures as per 2016 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, Measured and Indicated Mineral Resources are in addition to Mineral Reserves 5. See slide 34 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 income tax plus depreciation and amortization, finance costs, 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. 2017F is based on guidance issued in February 2017 and 2018 to 2020 forecast data is based on the completion of several growth projects within currently contemplated time frames. See Forward Looking Statements on slide Krumovgrad figures as per the NI technical report entitled Revised NI Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria dated November 7, Source DPM Guidance midpoint, issued July 27, Source RBC Capital Markets, January 18, 2018; DPM balance sheet as at Sept 30, 2017; Adjusted cash flow defined as cash flow from operations before sustaining capital expenditures 13. Includes DPM 2017E 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, Based on Au of $1,250/oz, Cu of $2.75/lb, Euro/US$ = 1.09 and US$/ZAR = Gold equivalent ounces include copper pounds and silver ounces produced and converted to a gold equivalent based on the ratio of the market or forecast prices for the commodities for each period. 17. Calculated using Au production 18. AISC based on 265,000 tonnes/year of concentrate smelted 19. Source: Technical report for the Initial project Feasibility Study on the Back River Gold Property, Nunavut, Canada, Dated October 28, Source: Timok Gold Project, Serbia Preliminary Economic Assessment and Updated Mineral Resource, Dated May 1, 2014 Slide 19 Krumovgrad Exploration 1 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. 2 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 Slide 22 Serbia Exploration Korkan West discovery 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 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. 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. 39