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SEE Business Forum Istanbul, Turkey November 22 - 23, 2012.

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Presentation on theme: "SEE Business Forum Istanbul, Turkey November 22 - 23, 2012."— Presentation transcript:

1 SEE Business Forum Istanbul, Turkey November 22 - 23, 2012

2 2 Dundee Precious Metals Highlights TSX:DPM $1.3B gold producer 2 operating mines in Bulgaria & Armenia Strategic complex concentrate smelter in Namibia 2012 gold production of 132,000 to 145,000 oz Low cash cost/ounce gold produced Growing pipeline of growth opportunities Experienced management team Attractive value proposition Operating assets Development assets Exploration assets Canada Namibia Custom Smelter Deno Gold Chelopech Krumovgrad Avala 51% Dunav 47% Sabina 11%

3 3 Portfolio of Assets TSX:DPM Avala 51% Krumovgrad 100% Chelopech 100% Dunav 47% Kapan 100% Tsumeb Smelter 100% Operating assets Development assets Exploration assets Canada Sabina 10.7%

4 4 Strong Balance Sheet Cash on Hand @ June 30, 2012 (excluding AVZ & DNV) Significant Operating Cash Flow Annualized H1 2012 TSX:DPM Debt @ June 30, 2012 Total Debt:Total Capital = 10% Capital Structure @ October 10, 2012 Share PriceC$9.13 Shares Outstanding125M Fully diluted shares Additional cash on dilution 147M C$66M 52 week high - low$10.72 - $5.82 $115M $83M $110M Gross Revenue by Metals Sold 6% 5% 41% 48% 36% 5% 4% 55% 64% 24% 6% 2011A 2012E 2016E Gold Copper Silver Zinc

5 5 Corporate Strategy TSX:DPM Build DPM into an intermediate, low-cost gold producer: Optimize value of existing operating assets Grow business beyond existing operating assets Sustain low quartile operating cost position Chelopech – production expansion and pyrite recovery project Smelter – complete Project 2012 upgrades & expansion Deno Gold Mine - open pit evaluation and underground extension Maintain a solid financial position Develop Krumovgrad Gold Project Establish deep pipeline of greenfield exploration opportunities Complete acquisitions that offer accretive growth, diversity and gold exposure

6 6 Chelopech Mine Low Cost, Long Life Producer TSX:DPM DPM Ownership100% LocationBulgaria AcquiredSept. 2003 Resources Measured & Indicated (at Oct. 31, 2011) Gold (oz) (4.09 g/t)3,930,000 Copper (lbs) (1.31% Cu)862,840,000 Reserves (@ Jan. 1, 2012) Gold (oz) (3.66 g/t)2,660,000 Copper (lbs) (1.15% Cu)572,600,000 Mine TypeUnderground Deposit Type High sulphidation epithermal deposit Estimated Mine Life @ expanded rate10 + yrs Complete expansion to 2 mtpy Q4 2012 Continue to replace depletion and increase Mineral Resources and Mineral Reserves through exploration Complete feasibility study on the pyrite gold recovery project Strategy

7 7 Namibia Custom Smelter A Unique Strategic Asset TSX:DPM DPM Ownership100% LocationNamibia Acquisition March 2010$50M Capital expenditures to date$57M Project 2012 Costs$75M TechnologyAusmelt ProductCopper blister bars 2011 concentrate throughput180,403 tonnes Expanding smelter capacity240k – 310k tpy Sulphuric acid capture plant FSComplete Build a one of a kind asset to treat DPM and third party complex concentrate Upgrade operation to meet global standards Increase capacity and lower costs Contract other third party sources of complex concentrate to optimize throughput Strategy Tonne (000s) Smelter Capacity 2009 2011 2010 2012E Chelopech con Third party con 2013E: +O 2 H1 2012

8 8 Namibia Custom Smelter Environmental & Production Upgrades TSX:DPM Upgrade InitiativesStatusCosts Emissions control (Project 2012) Fugitive emissions (arsenic)Completion Q4 2012$75M Sulphur emissions (acid plant)Completion Q4 2014$167M Further Production Facility Optimization Initiatives Additional oxygen for Ausmelt furnace All primary smelting in Ausmelt furnace 3 blocks of dust-capturing chambers installed in the new baghouse New vehicle designed to vacuum dust off the ground for disposal New dust disposal site New oxygen plant

9 9 Deno Gold Mine Potential to Increase Size and Life of Mine TSX:DPM DPM Ownership100% LocationArmenia AcquiredAugust 2006 Mine TypeUnderground ProductAu/Cu & Zn concentrate Deposit TypePolymetallic vein deposit (swarms) Open Pit ResourceQ4 2012 Underground ResourceQ2 2013 Strategy Define the potential open pit and underground resource for the Shahumyan deposit Complete open pit and underground studies based on the new resources Explore regional license to define additional Mineral Resources Continue operational improvements & cost reductions

10 10 Krumovgrad Gold Project Low Cost, High Return Project TSX:DPM LocationBulgaria; 100% DPM ownership Proposed Mine TypeOpen Pit; low-sulphidation epithermal Au deposit Gold Recoveries & Grade85%; 3.4 g/t Annual ore production850,000 tpy Annual gold production74,000 ounces Annual silver production35,000 ounces Mine Life9 years Capital Cost to completeUS$127M* Total cash cost per oz AuEq$404* WasteSmall integrated tailings and mine waste facility Recovery processConventional crushing, grinding & flotation Advance project to a 2014 production date – subject to appeals Achieve 74,000 ounces of annual gold production Seek opportunities to further increase recoveries Evaluate other exploration opportunities within existing licenses Strategy Achievements Status 30 year mining concession Definitive Feasibility Study & NI 43-101 Final EIA approval granted Nov. 2011Appeal decision pending Detailed engineering scheduleQ2 2012 – Q4 2013 Estimated construction timeline2013 - 2014 Estimated production timeline2014/2015 * As per NI 43-101 technical report filed on SEDAR January 13, 2012

11 11 Forecast Significant Growth Over Next Three Years Growing Pipeline of Development Opportunities TSX:DPM Gold Production (000 oz) Pyrite Stream Krumovgrad Deno Chelopech Source: Cormark Securities, July 26, 2012

12 12 Partially Owned Exploration Investments Source of Additional Value & Growth TSX:DPM SECURITIESHOLDINGS% HELDVALUE @ Oct. 10, 2012 Sabina Gold & Silver Corp. (TSX: SBB)18.5M10.7%$54M Special Warrants10M 29M Warrants (strike C$1.07)5M10M Total SBB$93M Avala Resources Ltd. (TSX-V: AVZ)110M51.4% $57M Special Rights50M 26M Total AVZ*$83M Dunav Resources Ltd. (TSX-V: DNV)56M47.3%14M Warrants (strike C$0.42)27.5M 0 Total DNV*$14M Total shares and other securities~$190M *AVZ and DNV are consolidated

13 13 Compelling Investment Opportunity Compelling Investment Opportunity TSX:DPM Solid operating assets with overall cost profile Significant cash flow and capital available to fund growth Strong balance sheet Proven Management and Board Attractive Value Proposition Underground at ChelopechNamibia Custom Smelter Entrance to Deno Gold MineKrumovgrad Growing pipeline of development/investment opportunities

14 14 Dundee Precious Metals Dundee Place 1 Adelaide St. East Suite 500 Toronto, ON, M5C 2V9 The Toronto Stock Exchange DPM – Common Shares DPM.WT.A – 2015 Warrants

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