BUILDING

A PREMIER,

LOW-COST

GOLD

PRODUCER

CASE STUDY ON REAL TIME PRODUCTIONCMIC National Mining Innovation Forum, 30 October 2014

TSX:DPM 2

DPM’S GLOBAL PORTFOLIO OF ASSETS

Krumovgrad 100%

Chelopech 100%

Kapan 100%Sabina 12%

Avala 50%

Tsumeb Smelter 100%

Operating assets

Development assets

Exploration assets

Chelopech Mine, Bulgaria

• Ownership: 100%

• Stage: Producing

• Mine Life: 12 + years

• 2013 Production: 137 koz Au; 46 Mlbs Cu

Kapan Mine, Armenia

• Ownership: 100%

• Stage: Producing

• Mine Life: 10 + years

• 2013 Production: 24 koz Au; 2.3 Mlbs Cu

Tsumeb Smelter, Namibia

• Ownership: 100%

• Technology: Ausmelt

• 2013 Concentrate Smelted: 152,457 tonnes

Krumovgrad Project, Bulgaria

• Ownership: 100%

• Stage: Feasibility

• Mine Life: 8 years

• Production: H2 2017

• Avg. Production: 85.7 koz Au/yr

TSX:DPM 3

“TAKING THE LID OFF”

New WayOld way

� Paper reporting at end of shift

� Real time display of information

� Supervisor interaction 1-2 /shift

� Supervisor dispatched to critical shift problems

� Limited knowledge of shift delays

� Delays identified in real time

� Slow response time to process interruptions

� Problems identified immediately

� Reactive Maintenance � Real time equipment health monitoring

� Small picture view � See activities in whole mine in real time

� Coordination through CCR with big picture

� Poor coordination

� Resources utilized to optimize shift results

� Poor use of resources

� Lost time locating equipment/materials etc. from shift to shift

� Real time equipment and materials tracking

TSX:DPM 4

EXAMPLE FOR THE MINE “CLOSING THE LOOP”

� Feedback against the plan in real time

TSX:DPM 5

APPLICATION LAYERS

Mobile EquipmentGateway

UG Crusher&ConveyorsOther UG Fixed Plant Process Control

Mining Execution Management(CMCS)

Technical Services(Design Planning, Survey, MRM, etc.)

Maintenance Management(CMMS)

Materials Mgt /Inbound Logistics

Collision avoidance

Access Control/ Time & Attendance

Operations Information Management(Reporting, Performance Management, Analysis)

Central Blasting

Mobile Equipment(Unit Automation)

Personnel Tracking

Asset Tracking

Fuel & Lubricant Dispensing

BusinessIntelligence

Operations Control / Asset Management

ProductionControl

EquipmentIntelligence

Business Planning Systems (ERP)

Min

ing

Ope

ratio

nsM

anag

emen

t

TelecommunicationInfrastructure

Enterprise Resource Planning (ERP)

Wireless Communication Network

Mobile Personal Communication Devices

Wired Communication Devices

Mobile Personal Communication Devices

In place Partially in place Not in place

TSX:DPM 6

THE CONCEPT OF SHORT INTERVAL CONTROL

• The concept of Short Interval Control (SIC):

• Real-time production information to provide a Central Monitoring and Control Room with the real-time status of all tasks in the mine.

• Supports the key front-line management to achieve the maximum results for the shift.

• Applied in the manufacturing industry for a long time now

• Providing a feedback loop against the expected production at short-term intervals –decisions can be taken to minimize deviation from the expected outcome

• Updating interval:• depends on: method of updating,

information availability • with real time information: can be

updated as it happens • Set at a minimum of every two to

four hours in the shift or when an event interrupting the process occurs (the personnel provides updated information either over phone, radio or tablet)

TSX:DPM 7

THE MANAGEMENT OPERATING MODEL

Analyze and improve

Work Management

Plan WorkSchedule

WorkExecute Work

Asset

Performance

Measure

Work

Performance

Measure

Asset

Performance

Measure

Costs

Analyse and

Improve

Measure

Social

Process

Performance

Central monitoring and control

Integrated Planning

Labour,

Materials &

Equipment

Set Asset

Performance

Targets

Set

Production

Plan

Set Service

Strategy

Set Budget

Approve

Work/Cost

CommitmentsAcquire/

Replace/

Modify/Remove

Asset

Set

Sustainability

Expectations

Set Operating

Master

Schedule

Set sustainability expectations

Integrated planning

Work Management

TSX:DPM 8

PLANNING CYCLE

• Front Line Execution Driven by Fully Integrated Mine PlansF

eedb

ack

loop

Life of Mine Plan (LOM Plan)

5 Year Business Plan (24 Months Detailed)

1 Year Detailplan (exec. Plan)

18 Month Forecast

3 Month schedule

Yearly Refresh

Monthly Refresh

Weekly Refresh 7+21 daysschedule

Front Line Planning and Scheduling

TSX:DPM 9

WORK MANAGEMENTU

G o

pera

tions

Con

trol

roo

m7+

21 S

ched

ule

TSX:DPM 10

CHELOPECH MINE: WORLD CLASS ASSET

Creating Competitive Advantage Through Innovation• “Taking the lid off the mine” - Real time

data available from Chelopechunderground operations

TSX:DPM 11

ENABLING TECHNOLOGIES

TSX:DPM 12

COMMUNICATIONS – WIRELESS ETHERNET

Access point

Wi-Fi phone

TSX:DPM 13

PRODUCTION EQUIPMENT: ONBOARD TECHNOLOGY

VCM module

CAN bus

J1939

switchEthernet switch

ClientWLAN Client

Antenna

PCOnboard PC

Dashboard

Display

Chair

Middle

Front Rear

ECMECM

• The technology is built into the equipment

• Reliable components • Connecting devices is easy• Can be retrofitted

TSX:DPM 14

MAKING THE CHANGE

• “Big Brother is Watching”.

• Creating the win-win.– What’s in it for me?– What is my future?

• Keeping the technology working.

• Redefining roles and accountabilities.

• Redefining the way work is planned scheduled and executed.

Strategy, Goals, Plans, Structures, Systems

TraditionsHabitsAttitudeCulture

WINDS

CURRENTS

� It comes down to Leadership

TSX:DPM 15

A NEW WAY OF WORKING ROLES AND ACCOUNTABILITIES

Operation

Departments

Processes

Activities

Tasks

“Integration”- Assigns work to Departments- Monitors Progress

“Problem Solving”- Department Manager- Monitors Progress- Provides Coaching

“Hands On”- Manager on the Shift- Setting limits of discretion

Crew inputs the “How”- Must collect and

schedule many details

Superintendent

Captain

Supervisor

Worker (Operator, Fitter)

Incr

easi

ng le

vel o

f Det

ail

TSX:DPM 16

BENEFITS

• Central Control Room – integrated infrastructure pro vides• A single point of access into a wide variety of systems• Serves as a platform for status checks and intervention if required

• Enables short interval control• Schedule, assign, monitor tasks allocated to a piece

of equipment and crew to be completed in a shift

• Improve access to information• Enabling remote management of business processes• Simplified access to information in the event of a problem

• Exception management• Know of and solve impending problems before they affect production• Delays can be identified and corrected at an early stage, thus reducing the

potential for lost production

TSX:DPM 17

BENEFITS

• Improve efficiency – productive utilization of resources, being personnel, equipment, workplaces

• Data and information integrity• Provides one version of the truth• Rather discuss solution to problem than arguing about the accuracy of the data

• Performance Management• Enables root cause analysis and• Cross-functional KPI reporting on business processes (cost, quality,

dependability and reliability)

• Quantifiable benefits: Estimated to be 10-30% improvement

TSX:DPM 18

BENEFITS

500,000

1,000,000

1,500,000

2,000,000

2009 2010 2011 2012 2013

Ore mined (tons)

30

40

50

60

2009 2010 2011 2012 2013

Cash cost per ton of ore processed (USD)

75

80

85

2010 2011 2012 2013

Availability (%)

LoadersDevelopment drillsProduction drills

05

10152025303540455055

2010 2011 2012 2013

Utilization (%)

LoadersDevelopment drillsProduction drills

TSX:DPM 19

TOGETHER WITH OUR PARTNERS

• Geovia/Dessault systems

• Sandvik Mining

• AeroScout

• Cisco

• MicroSense

• KPMG

TSX:DPM

APPENDICESCorporate Head Office:

One Adelaide Street East, Suite 500Toronto, Ontario M5C 2V9

T: 416 365-5191

Investor RelationsT: 416 365-2549

jreid@dundeeprecious.com

TSX:DPM – Common Shares

DPM.WT.A – 2015 Warrants

www.dundeeprecious.com

Thank You