GROWTH OPTIMIZATION INNOVATION PEOPLE
BMO GLOBAL METALS &
MINING CONFERENCE
February 26 – March 1, 2017
TSX:DPM 2
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, copper and acid, toll rates, metals exposure and stockpile interest rate deductions, 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 (including sustaining capex, non-discretionary capex and discretionary capex), costs and timing of the development of new
deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government
regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance
coverage and timing and possible outcome of pending litigation. Often, but not always, forward looking statements can be identified by the
use of words such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates”, or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward looking statements are based on the opinions and
estimates of management as of the date such statements are made, and they involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future
results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others: the
actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future prices of gold, copper and acid; 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
and smelting industries; delays in obtaining governmental approvals or financing or in the completion of development or construction
activities, fluctuations in metal prices and toll rates, as well as those risk factors discussed or referred to in this presentation 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.
Forward Looking Statements
TSX:DPM 3
An Attractive Investment Opportunity Through
Operational Excellence & Disciplined Growth
1Company Highlights
Optimization of Existing Assets
2
3
4
Near Term Growth
Future Growth Pipeline• Exploration upside potential
• Strong balance sheet with financial flexibility
• Geographic & commodity diversification
• Long established relationships & successful track record in low cost, mining friendly jurisdictions
• Attractive valuation metrics
• Recognized as a leading innovator in the mining industry
• Solid EBITDA growth with growing free cash flow commencing 2017
• Strong reserve and resource base
• Low cost gold production growth of over 60% by 2019 from the Krumovgrad Gold Project, with
first concentrate production expected in Q4 2018
GROWTH OPTIMIZATION INNOVATION PEOPLE
TSX:DPM 4
Avala
Serbia
Tsumeb Smelter
Namibia
Chelopech Mine
Bulgaria
Sabina
Canada
11%
Krumovgrad Gold Project
Bulgaria
Geographic and Commodity Diversification
2016 Asset Diversification 2016 Revenue Diversification
Bulgaria
56% Namibia
38%
Canada
6%Ag 1%
Smelter
31%Gold
47%
Copper
22%
Operating assets
Development asset
Exploration assets
TSX:DPM 5
Strong Growth Profile – 2020 Targets
687747
210-240200
Gold Production
oz/year
266,000
610
736
780-910
760660
520
2013 2014 2015 2016 2017F 2018F 2019F 2020F
Complex
Concentrate
Smelted
t/year
370,000
All-in Sustaining Cost (US$/oz) (1)(3)(7)
153 161 170 147 135-150 160
212
266
2013 2014 2015 2016 2017F 2018F 2019F 2020F
Smelter Production (kt)
Copper Concentrate Throughput (2)
Gold (000s oz)
Payable Gold Production (1)(2)
198
282
370
2013 2014 2015 2016 2017F 2018F 2019F 2020F
196
152
1,2,3,7 See footnotes contained in Appendix on slide 31
335
TSX:DPM 6
Bulgaria… • Credit Rating: Baa2 (Moody’s), BBB- (Fitch), BB+ (S&P)
• Corporate Tax Rate: 10%
• Chelopech Royalty Rate: fixed at 1.5% of gross Cu, Au
and Ag metals contained in the ore during the period
• Krumovgrad Royalty Rate: variable rate applied to gross
value of the Au and Ag metals combined in ore mined.
Rate depends on profitability of the operation –
• @ pretax profit to sales ratio of 10% or less, rate
will be 1.44% of the value of the metals.
• @ pre‐tax profit to sales ratio of 50% or more, rate
will be 4% of the value of the metals.
• @ intermediate levels of profitability, the rate will
vary on a sliding scale between 1.44% and 4%
• @ Au $1,250/oz and Ag $23/oz, the rate will be
2.5% of the gross value of Au and Ag metals
contained in the ore produced
• GDP Forecast: +2.8% in 2017 (IMF)
• Overview:
− A member of the European Union (since 2007)
− Mining industry has grown significantly since 1998 and
currently employs ~120,000 Bulgarians in the country
− The 4th largest gold producer and 6th largest
coal producer in Europe
Namibia…• Credit Rating: Baa3 (Moody’s), BBB- (Fitch), NR (S&P)
• Corporate Tax Rate: 0% as Tsumeb has been granted Export
Processing Zone status
• GDP Forecast: +5.3% in 2017 (IMF)
• Overview:
− Ranked as Africa’s 4th most attractive country on Fraser
Institute’s Investment Attractiveness Index (ranked #33
globally) (2015 survey)
− World’s 5th largest producer of uranium and 9th largest
producer of diamonds
− Mining companies in the country include Glencore, Rio Tinto,
Anglo American, Paladin Energy, etc.
Mining Friendly Jurisdictions
TSX:DPM 7
$725
$845 $903 $935 $958
1,326 (5)
Alacer New Gold DPM Argonaut Alamos Primero
Avg. $949/oz
Attractive Valuation Metrics
Below Average 2017F All-In-Sustaining costs (US$/oz) (1,3,6,7,16)
1.1x 1.1x
0.8x 0.8x 0.8x
0.5x
Alamos New Gold DPM Alacer Argonaut Primero
Avg. 0.83x
13.9x
7.2x 7.1x 6.8x
5.0x 3.9x
Alamos DPM New Gold Alacer Argonaut Primero
Avg. 7.3x
EV/2017F EBITDA (Cons. Est.) (6) P / NAV(Cons. Est.) (6)
1,3,5,6,7,16 See footnotes contained in Appendix on slide 31
Chelopech Mine, Bulgaria
OPTIMIZATION OF EXISTING ASSETS
TSX:DPM
CHELOPECH MINE TSUMEB SMELTER
TSX:DPM 9
Highlights:
Chelopech results were in upper end of 2016 original guidance
• Copper production – 38.5 million pounds
• Gold production (incl. gold in pyrite produced) – 165,665 ounces
• Cash cost/ounce gold sold, net of by-product credits, including payable gold in
pyrite concentrate sold - $610
• Adjusted EBITDA – $87 million
SAG Mill
Chelopech – Solid Performer Focused on Optimization
Chelopech Mine Control Room
TSX:DPM 10
1.09
1.31
1.812.03 2.05 2.04
2.21
2010 2011 2012 2013 2014 2015 2016
Ore Mined (Mt)
2006 2015
Ore Mined / Reserves (Mt)
21.5 21.5
14.1
Cash Cost / tonne of ore processed (US$/t) (3)
Total ore
mined to date
Ore Reserve
Continue to optimize by
• Increasing production
− Ramped up production to 2.2 Mtpy –
underground wireless technology to optimize
operating performance
− Successful reserves replacement since 2006
• Reducing costs
• Exploring to extend the LOM & increase
throughput
− Drilling around old cave zones to add
additional resources; regional exploration on
newly acquired licence
− Discovery of new zone 153: high grade Cu
and Au mineralization located near existing
infrastructure
− EXT150_440_06: 84m @ 13.58g/t Au and 2.87%
Cu incl. 46.5m @ 22.09g/t Au and 4.26% Cu
− EXT150_440_02: 16.8m @ 6.60g/t Au and
1.86% Cu incl. 6.7m @ 13.50g/t Au and 3.73%
Cu
Chelopech – Optimization Through Innovation
3 See footnotes contained in Appendix on slide 31
2006
56 55
46
40 4037
33
2010 2011 2012 2013 2014 2015 20162010 2011 2013 20142012 2015 2016
TSX:DPM 11
Mineral Resources Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%)
Chelopech
M&I
Inferred
14.2
2.8
1.533
0.82
329
51
3.37
2.48
1.06
0.82
Krumovgrad
Inferred (upper) 0.3 0.013 1.31
Timok (12)
Indicated
Inferred
67.42
4.3
2.48
0.2
1.14
1.0
Tulare (13)
Inferred 547 3.8 2,800 0.22 0.23
Total Mineral Resources
Indicated
Inferred
81.62
554
4.013
4.833
329
2,800
Mineral Reserves Million Tonnes Au (Moz) Cu (Mlbs) Au (g/t) Cu (%)
Chelopech
Proven
Probable
11.88
9.64
1.167
1.020
266
178
3.06
3.29
1.02
0.84
Krumovgrad
Proven
Probable2.6
3.6
0.449
0.357
6.83
3.00
Total Mineral Reserves 27.72 2.993 444
Strong Resources and Reserve Base
12,13 See footnotes contained in Appendix on slide 31
TSX:DPM 12
Drilling commenced at SE Breccia pipe zone
Hole 555-01 Southeast Breccia Pipe • First of 7 UG holes commenced in September 2016
• Confirms HSE system is open to southeast beneath the
Chelopech Thrust Fault
Brevene Exploration License• Granted on September 1, 2016
• Comprehensive work program approved by MOE
Chelopech – Brownfields Exploration
Plan view of level 440 showing ore-body outlines as per current grade
control model, Si envelopes and level development. An initial interpretation
of Zone 153 is presented.
New High Grade Zone 153
Plan view of current drilling position and location of Zone 153,
outlined in red box in above figure
TSX:DPM 13
3.0
18.5
6.89.7
2011 2014 2015 2016
26
63
140130
44
19
2011 2012 2013 2014 2015 20162012
2013
(2.5) (7)
Highlights:
• Total 2016 concentrate smelted – 200,272 tonnes
• Acid production – 191,630 tonnes
• Cash cost/t complex con smelted, net of by-product credits – $440
• Adjusted EBITDA – $9.7 million
Tsumeb Smelter Operating Results
Total Capital Expenditures (US$M) Smelter Adjusted EBITDA (US$M) (11)
11 See footnotes contained in Appendix on slide 31
TSX:DPM 14
(4) (4) (4)(4)(4)
198 196 200
300-370
120
180
159152
370
312
341
420
479
394
418
440400-485
395
345
320
2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F
Recent Achievements
• Major post purchase optimization and
environmental upgrade capital
completed
• Acid plant now capturing all of the
converter and furnace SO2 offgasses
Building on that success
• Completed Expansion Feasibility
Study to 370,000tpa in Q4 2016
• Sourcing additional concentrate
tonnage for 2018 and beyond
• Completing Environmental Impact
Assessment for submission in Q1
2017
• Exploring partnership options for
expansion funding
210-
240
265-
300
Third Party
con supplied
to smelter
(‘000s t)
Chelopech
concentrate
supplied to
smelter
(‘000s t)
Cash cost per
tonne of
concentrate smelted
(net of by product
credits)
Anticipated
future capacity
Tsumeb Smelter – Optimizing Performance
2,3,14 See footnotes contained in Appendix on slide 31
2 2 2 2
(3,14)
TSX:DPM 15
Outlook for Complex Concentrates
Mines In Operation Annual Tonnage As (%)
Chelopech 80,000 – 100,000 5.5%
South America(6) 120,000 – 180,000 4.0% - 8.0%
Blend 30,000 – 50,000 5.5% - 7.0%
Total Complex 230,000-330,000
Other Pyrite/Cu
Con/Antimony30,000 – 70,000 4.0% - 5.0%
Total Concentrate 260,000 – 400,000
Not in Operation Annual Tonnage As (%)
Copper and Pyrite
Concentrates450,000 5.0% – 10.0%
Chelopech Mine, Bulgaria
NEAR TERM GROWTH
TSX:DPM
KRUMOVGRAD GOLD PROJECT
TSX:DPM 17
Krumovgrad Business Outlook (9)
Project
Economics
Remain Robust
with a
25% After-Tax
IRR
Production and Operating Costs
Annual gold production 85,700 oz
Annual silver production 38,700 oz
First concentrate production Q4 2018
LOM 8 years
Total Annual Operating Costs / t ore processed
Mining costs
Processing costs
Tailings treatment & IMWF costs
General & administration
Royalty
$45.41
$15.03
$19.39
$1.88
$5.33
$3.78
Capital Costs
Construction capital to complete
Direct Costs
Indirect Costs
Contingency P50 (7.5% of direct + indirect costs)
$178.2 million
$117.1 million
$48.7 million
$12.4 million
Sustaining Capital $6.2 million
Closure and Rehabilitation Costs $6.0 million
Total cash cost per oz AuEq $403
Average Annual EBITDA (11) $66 million
9,11 See footnotes contained in Appendix on slide 31
TSX:DPM 18
Milestone Actual / Expected Completion (2)
Completion of the Detailed Project Execution Plan Q1 2016 (complete)
Complete Detailed Engineering Q1 2016 (complete)
Updated Capital Cost Estimate and Baseline Project Schedule Q1 2016 (complete)
Land Re-designation and Purchase Q1/2 2016 (both complete)
Approval of Technical Packages Q2 2016 (complete)
Construction Permit RECEIVED AUGUST 9, 2016
Mobilize Earthworks Contractor to Site and Commence Earthworks Q4 2016
Commence Main Civil/Mechanical/Electrical Construction Q3 2017
Commissioning and Start Up Q3 2018
First Concentrate Production Q4 2018
Krumovgrad 2016-2018 Project Milestones
2 See footnotes contained in Appendix on slide 31
TSX:DPM 19
Top of the hill
Temporary access road
Equipment arriving at site Temporary access road
Krumovgrad Site Photos
Temporary access road
TSX:DPM 20
Krumovgrad Process Plant
Temporary access road
Crushing (0100)
Coarse ore
Storage (0100)
and Pebble
Crushing (0200)
Flotation (0300)
Conc Thickening
and Filtration
(0400)
Grinding (0200)
Tailings Thickening
Plant (1400) and HV
Area (0900/1050)
TSX:DPM 21
Temporary access road
Krumovgrad Mine Plan Summary
TSX:DPM 22
Temporary access road
Kupel North Drill Program
Krumovgrad – Brownfields Exploration
Chelopech Mine, Bulgaria
Chelopech Mine, Bulgaria
FUTURE GROWTH PIPELINE
TSX:DPM
SERBIAN EXPLORATION
TSX:DPM 24
Temporary access road
Timok, Serbia – Brownfields Exploration
Chelopech Mine, BulgariaChelopech Mine, Bulgaria
Chelopech Mine, Bulgaria
Near Resource Drill Programs
• 3000m drill program to find additional near-surface
resources in proximity to existing resources at
Bigar Hill and Korkan
• Near resource drilling at the Timok gold project
identified potential for additional mineralization 1km
NW of Bigar Hill and 1.5km SW of Korkan:
• KWDD016 - intersected 105m @ 1.21 g/t Au
from surface and including 51m @ 2.00 g/t Au
from 17m down the hole
• 60m SW of KWDD016 – two drill holes:
35m @ 1.29 g/t Au from 12m down the hole &
23m @ 1.29 g/t Au from 8m down the hole
• 50m SE of KWDD016 – a single hole:
93m @ 1.16 g/t Au from surface
• Almost all core is completely oxidized
• Dundee Sustainable Technologies
• Chlorination of ore after oxidation and acid
leaching increased Au recovery to 84%
Korkan Resource
Target Area 2
Target Area 1
Target Area 3
Bigar Hill Resource
KorkanWest
TSX:DPM 25TSX:DP
M
Chelopech Mine, BulgariaChelopech Mine, Bulgaria
Chelopech Mine, Bulgaria
Korkan North
Bigar South
Umka license
Bigar Istok
Coka Rakita
Umka “porphyry”
Bkgrd: Au in soils
IP & resistivity surveys (lines)
Infill soil surveys (points)
5km
Timok & Umka – Greenfields Exploration
IP, Soil Geochemistry and Trenching
• Soil survey sampling
• IP & resistivity geophysics
• Coka Rakita (Au-porphyry target) – trench program
completed; drill targeting underway to expand target
volume
• RATR043: 8m @ 2.61g/t Au, inc. 2m @ 4.53g/t Au
• RATR045: 10m @ 1.14g/t Au
• Umka license under evaluation, infill soils collected on
western sediment units and along monzonite contact.
• Technical Review in October 2016 – generating drill
targets for 2017
TSX:DPM 26
Chelopech Mine, Bulgaria
Strong Balance SheetAvailable Liquidity
(As at December 31, 2016)
Revolving CreditFacility
Cash and CashEquivalents
Available Liquidity
$275M$20M $295M
• Actions taken in 2016 that increased financial flexibility:
• Amended $275M RCF to align with Krumovgrad project schedule
• Sale of Kapan - $25M + working capital adjustment of $5M and 2% NSR
• Equity offering – Net proceeds of $41.3M
• Prepaid forward gold sales - $50M or ~9% of forecast 2019 & 2020 Au
production
• Strategic equity investment by EBRD – Gross proceeds of $33.2M
• Increased Cu and Au hedge positions
• Cu – Hedged 92% and 53% of 2017 and 2018 payable production at an
average price of $2.40 and $2.62 per pound, respectively
• Au – Hedged 31% of 2017 payable gold production using collars with an
average floor/cap of $1,200/$1,497
15
15 See footnotes contained in Appendix on slide 31
TSX:DPM 27
Chelopech • Continue to
optimize
performance
• 153 ore body
definition drilling
• Incorporate 153
into mine plan
Krumovgrad • Construction • Q4 first
concentrate
production
• Q1 commercial
production
• Commercial
production
Smelter • Expansion
engineering
• Expansion build • Ramp up to
operate at
expanded
capacity
• Production at
expanded
capacity
2017 2018 2019 2020
Key Milestones
Chelopech Mine, Bulgaria
THANK YOU
TSX:DPM
Corporate Head Office:
One Adelaide Street East, Suite 500
Toronto, Ontario, M5C 2V9
T: 416 365-5191
Investor Relations
T: 416 365-2549
TSX:DPM
www.dundeeprecious.com
Chelopech Mine, Bulgaria
APPENDICES
TSX:DPM
TSX:DPM 30
APPENDIX CONTENTSAppendix Contents
Footnotes and Disclaimers……………………………………. 31
Market Cap., Major Shareholders, Analyst Coverage……… 32
2017 Full Year Guidance……………………………………… 33
Hedge Positions at September 30, 2016….………………… 34
Exploration – Partially Owned Exploration Assets………… 35
Chelopech Mine: Cash Cost/tonne of Ore Reconciliation… 36
Tsumeb Smelter: Cash Cost/tonne of Concentrate Smelted 37
All In Sustaining Cost Per Ounce of Gold Calculation…… 38
TSX:DPM 31
Footnotes and Disclaimers1. Includes payable gold in pyrite concentrate sold and related costs, when applicable
2. Forecast/guidance information is subject to a number of risks. 2017F is based on guidance issued February 15, 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 2
3. A non-GAAP measure. Refer to the “non-GAAP Financial Measures” section of the Full Year 2016 MD&A for reconciliations to IFRS
4. Data Source “Yahoo Finance”
5. Refers to Primero 2017 guidance which is not yet released, using revised 2016 AISC
6. Source: Capital IQ Feb 15, 2017 and RBC
7. 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 2018.
8. Chelopech figures as per 2016 public filings; AISC includes gold production in pyrites
9. Krumovgrad figures as per latest NI 43-101
10. Tsumeb figures as per 2016 public filings
11. 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
12. NI 43-101 Technical Report dated May 1, 2014
13. Dunav press release dated June 23, 2014
14. Based on ZAR exchange rate of 14.0
15. Includes EBRD investments of $33.2 million
16. Midpoint of 2017 Company guidance
Without limitation to the foregoing, the following outlines certain specific forward looking statements contained in this presentation and provides certain material assumptions used to develop such forward looking statements and material risk factors that
could cause actual results to differ materially from the forward looking statements (which are provided without limitation to the additional general risk factors discussed herein and in the Full Year 2016 MD&A). Sustaining CAPEX, Non-Discretionary
CAPEX and Discretionary CAPEX: assumes foreign exchange rates remain at or around current levels, and all capital projects proceed as planned and at a cost that is consistent with the budget established for each project. Subject to a number of risks,
the more significant of which are: technical challenges; delays related to securing necessary approvals, equipment deliveries, equipment performance, and the speed with which work is performed; availability of qualified labour; and changes in project
parameters, timing and decision to proceed with projects and/or any components there of and estimated costs, including foreign exchange impacts. Gold and Copper Production: projected levels of metal production assumes grades and recoveries are
consistent with current estimates of Mineral Resources and Mineral Reserves and DPM’s current expectations and construction of Krumovgrad project and decision to proceed with projects and/or any components there of; and ore mined/milled is
consistent with planned levels. Subject to a number of risks, the more significant of which are: lower than anticipated ore grades, recovery rates and ore mined/milled. Smelted Concentrate: assumes no significant disruption in equipment availability or
concentrate supply. Subject to a number of risks, the more significant of which are: unanticipated operational issues; timing and decision to proceed with expansion projects, including the holding furnace, and/or any components there of; and any further
expansion components including a holding furnace; lower than anticipated equipment availability; disruptions to or changes in the supply of concentrate; and toll rates lower than anticipated.
Technical Information related to slide 20 – Krumovgrad Project Economics
The Mineral Resource and Mineral Reserve estimates 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 43-101 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 43-101. The NI 43-101 technical report (the “Krumovgrad Technical Report”) entitled “NI 43-101 Technical
Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” dated March 21, 2014, in respect of the study for the construction and operation of its Krumovgrad gold project disclosed herein, was filed March 31, 2014 on SEDAR at www.sedar.com. Simon
Meik, Processing, 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 43-101 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.
All-in sustaining costs: assumes metals contained in concentrate produced and cash cost per tonne of ore processed are each in line with planned levels; copper and silver prices remain at or around planned levels; concentrate deliveries are consistent
with DPM’s planned levels; general and administrative expenses and sustaining capital expenditures are consistent with current expectations. Subject to a number of risks, the more significant of which are: lower than anticipated metals contained in
concentrate produced, concentrate deliveries and metal prices; a higher than anticipated cash cost per tonne of ore processed; and higher than anticipated sustaining capital expenditures and general and administrative expenses.
Cash cost per tonne of complex concentrate smelted, net of by-product credits: assumes complex concentrate smelted is at planned levels; acid prices are at or around current levels; acid production and operating expenses are at planned levels; and
foreign exchange rates remain at or around current levels. Subject to a number of risks, the more significant of which are: complex concentrate smelted and acid production are lower than anticipated; acid prices are lower than anticipated; strengthening of
the ZAR relative to the U.S. dollar; and higher than anticipated operating and transportation costs due to a variety of factors, including higher than anticipated inflation, labour and other operating costs.
TSX:DPM 32
Market Cap, Major Shareholders and Analyst Coverage
Share Price (C$ per share) $3.58
Shares Outstanding – Current 178,440,698
Market Capitalization – Current C$639 M
52 week low – high (C$ per share) $1.10 – $4.14
Share Capital @ February 22, 2017 Analyst Coverage
Firm Analyst
BMO **In transition**
CIBC Capital Markets Jeff Killeen
Dundee Capital Partners Josh Wolfson
GMP Securities Oliver Turner
Paradigm Capital Don MacLean
Raymond James **In transition**
RBC Capital Markets Sam Crittenden
Scotia Capital Trevor TurnbullDundee Corporation 20.39%
GMT Capital 11.17%
EBRD 9.99%
Van Eck Associates 7.12%
Kopernik Global Investors 3.49%
Major Shareholders
TSX:DPM 33
2017 Full Year GuidanceUS millions, unless otherwise indicated Chelopech Tsumeb Consolidated (5)
Ore mined/milled (‘000s tonnes) 2,040-2,200 - 2,040-2,200
Complex concentrate smelted (‘000s tonnes) - 210-240 210-240
Metals contained in copper and zinc concentrates produced (1)(2)
Gold (‘000s ounces) 157-174 - 157-174
Copper (million pounds) 33.7-37.0 - 33.7-37.0
Payable metals in concentrate sold (2)
Gold (‘000s) 135-150 - 135-150
Copper (million pounds) 32.0-35.0 - 32.0-35.0
Cash cost per tonne of ore processed ($) (3)(4) 32-36 - 32-36
Cash cost per ounce of gold sold, net of by-product credits ($) (3)(4)(5) 670-810 - 670-810
All-in sustaining cost per ounce of gold ($) (3)(4)(5) - - 840-965
Cash cost per tonne of complex concentrate smelted, net of by-product credits ($) (3)(4) - 400-485 400-485
General & administrative expenses (3)(6) - - 18-22
Exploration expenses (3) - - 7-9
Sustaining capital expenditures (3) 13-15 12-17 25-32
1) Includes gold in pyrite concentrate produced of 42,000 to 47,000 ounces and payable gold in pyrite concentrate sold of 27,000 to 30,000 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. The assumed copper price reflects the impact of 92% of 2017 payable copper
production being hedged at $2.40 per pound.
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 Q4 2016 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 range between $640 and $790 in 2017. All-in sustaining cost per ounce of gold, excluding payable
gold in pyrite concentrate sold and related costs, is expected to range between $850 and $985 in 2017.
6) Excludes mark-to-market adjustments on share-based compensation.
TSX:DPM 34
Hedge Position at December 2016
Year of projected payable copper production Volume Hedged (lbs) % Hedged Average fixed price ($/lb)
2017 32,542,387 92% $2.40
2018 19,166,966 53% $2.62
QP Commodity Hedged Volume Hedged % Hedged Average fixed price
Payable gold 33,460 oz 100% $1,209.02/oz
Payable copper 8,476,764 lbs 100% $2.38/lb
Payable silver 34,875 oz 100% $17.05/oz
Year of projected operating
expensesForeign currency hedged
Amount hedged in
foreign currency% Hedged
Average exchange rate
Foreign currency/US$
2017Euro
ZAR
10,800,000
720,000,000
20%
56%
1.1287
13.8699
Year of projected payable gold production Volume Hedged (oz) Average ceiling
price ($/oz)Floor Price ($/oz)
2017 45,000 1,497 1,200
TSX:DPM 35
Sabina Gold & Silver Corp. (TSX:SBB), Nunavut
• Assets include:
•High Grade Back River Gold Project:
• September 2015 updated feasibility study*:
o Mill throughput of 3,000 tpd
o Avg. annual gold production of 198,100 oz
@ $US534/oz cash cost
o LOM 11.8 years
o Pre-production capital C$415M;
Sustaining capital C$185M; Closure
capital C$64M
o Post-tax IRR of 24.2% and NPV of
C$480.3M
•Hackett River payable silver royalty from
Glencore Zinc:
22.5% of first 190M oz Ag, 12.5% thereafter
*Calculated using US$1,150/oz Au price
Partially Owned Exploration /Development Assets
• Canadian-based, precious metals
company with assets in Nunavut
• DPM holds 11.8%
TSX:DPM 36
Chelopech Mine: Cash Cost/tonne of Ore Reconciliation
US$ thousands, unless otherwise
indicated
For the periods indicatedYear 2016
Actual
Year 2015
Actual
Year 2014
Actual
Year 2013
Actual
Year 2012
Actual
Year 2011
Actual
Year 2010
Actual
Ore processed (mt) 2,212,340 2,052,138 2,076,112 2,032,002 1,819,687 1,353,733 1,000,781
Cost of sales 108,180 112,634 116,146 120,480 98,298 88,838 72,707
Add (deduct):
Depreciation, amortization & other
non-cash costs (37,201) (36,382) (34,006) (32,905) (19,542) (15,499) (14,425)
Change in concentrate inventory 1963 (26) 688 (6,135) 4,535 862 (2018)
Total cash cost of production 1 72,942 76,226 82,828 81,440 83,291 74,201 56,264
Cash cost per tonne of ore
processed, including royalties 32.97 37.14 $39.90 $40.08 $45.77 $54.81 56.22
Cash cost per tonne of ore
processed, excluding royalties 30.15 34.08 $36.38 $36.26 $41.16 $49.99 51.34
1. Before silver by-product credits.
TSX:DPM 37
Tsumeb Smelter: Cash cost/tonne of Concentrate Smelted 1
US$ thousands, unless otherwise
indicated
For the periods indicatedYear 2016
Actual
Year 2015
Actual
Year 2014
Actual
Year 2013
Actual
Year 2012
Actual
Year 2011
Actual
Year 2010
Actual
Concentrate smelted (mt) 200,272 196,107 198,346 152,547 159,356 180,403 119,557
Cost of sales 149,833 113,479 102,676 87,584 78,796 70,589 44,436
Add (deduct):
Depreciation, amortization &
other non-cash costs (41,181) (26,444) (23,650) (13,158) (9,745) (7,407) (6,012)
Realized losses (gains) on
forward foreign exchange
contracts (3,866) (639) - - - - -
Total cash cost before by-product
credits 104,786 86,396 79,026 74,426 69,051 63,182 38,424
By-product credits (16,621) (4,369) (873) (1,292) (2,000) (1,607) (1,102)
Total cash cost after by-product
credits 88,165 82,027 78,153 73,134 67,051 61,575 37,322
Cash cost per tonne of
concentrate smelted, net of by-
product credits $440 $418 $394 $479 $420 $341 $312
1. Net of by-product credits
TSX:DPM 38
All In Sustaining Cost Per Ounce of Gold Calculation
US$ thousands, unless otherwise indicated
For the periods indicatedYear 2016
Actual (3)
Year 2015
Actual (1,2)
Year 2014
Actual (1,2)
Year 2013
Actual (1,2)
Cash cost of sales, net of by-product credits (4) 85,034 84,254 75,837 50,434
Accretion expenses 358 1,435 1,867 1,874
General and administrative expenses 9,423 12,213 18,871 19,419
Cash outlays for sustaining capital 9,191 18,112 21,761 21,727
All-in sustaining costs 104,006 116,014 118,336 93,454
Payable gold in concentrate sold (ounces) (4) 139,324 168,755 160,734 153,274
All-in sustaining cost per ounce of gold $747 $687 $736 $610
1. Represents the cash cost of sales, net of by-product credits, accretion expenses and cash sustaining capital expenditures that are specific to Chelopech and Kapan.
2. Represents an allocated portion of DPM’s general and administrative expenses, including share-based remuneration and excluding depreciation and expenses related to Avala,
Dunav and Krumovgrad, based on Chelopech and Kapan’s proportion of total revenue, excluding revenue related to pyrite concentrate.
3. From continuing operations, excludes Kapan which was sold in April 2016
4. Includes payable metals in pyrite concentrate sold and related costs