BUILDING A PREMIER, INTERMEDIATE, LOW-COST GOLD PRODUCER

Transcription

1 DUNDEE PRECIOUS METALS BUILDING A PREMIER, INTERMEDIATE, LOW-COST GOLD PRODUCER Proudly celebrating 30 years as a Toronto Stock Exchange listed company INVESTOR PRESENTATION DECEMBER 2013

2 FORWARD-LOOKING STATEMENTS 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 and other metals, 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, 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 forwardlooking 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; 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, fluctuations in metal prices, 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 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. 2

3 INVESTMENT SUMMARY Solid Financial Position High Quality Assets with Further Potential Commodity and Geographic Diversification Pipeline of Organic Growth Opportunities Experienced Management Team and Board with Strong Track Record 3

4 COMMITTED TO MAINTAINING A SOLID FINANCIAL POSITION $200M Cash and Credit including: $150M undrawn revolving credit facility ~$50M in Cash and Short-term September 30, 2013 $85M Year-to-Date Annualized 2013 Operating Cash Flow Capital December 2, 2013 Share Price Shares Outstanding Market Capitalization Fully diluted shares Additional cash on dilution C$ M C$385M 146M C$25M 52 week low - high C$ $9.18 Top Shareholders Dundee Corporation 25% Van Eck Associates Corp. 12% $73.9M September 30, 2013 Total Debt : Total Capital = 9% Gross Revenue by Metals Sold Gold Copper Silver Zinc 2011A 6% 5% 48% 41% 2012A 4

5 DPM S ASSETS LOCATED IN POLITICALLY STABLE REGIONS Toronto Chelopech Krumovgrad Kapan Head office Operating assets Developing asset Tsumeb 5

6 GOLD COMPOUND ANNUAL GROWTH RATE OF 14% Consolidated Gold Production (oz 000 s) Consolidated Copper Production (lbs 000,000) Gold production has increased 70% over four years Copper production has increased 105% over four years 6

7 DECREASING CASH COSTS AND INCREASING EBITDA 78% reduction in cash cost per ounce of gold produced over four years 1 Consolidated adjusted EBITDA increased significantly over four years $118 $125 $32 $ ($40) 2 (1) Net of by-product credits (2) Cdn $ 7

8 DPM: A LOW COST PRODUCER Cash Cost/Tonne of Ore Processed (1) ($/T) $665 $714 $ E All-In Sustaining Cash Cost 2 (US$/oz) $1,325 $1,155 $1,178 $1,212 Average: $987 $1,005 $838 $842 $875 $884 $1,362 DPM Argonaut Alamos Allied Nevada Primero Timmins Teranga Centerra Alacer AuRico African Barrick Source: Scotia Capital (April 2, 2013), DPM 2013 Guidance Note: All-in Sustaining Cash Cost = Total cash costs (net of by-products) + sustaining capital + proportionate share of corporate G&A Golden Star Semafo (1) This is a non-gaap measure. See 2012 Annual Report for further details. See Appendix for reconciliation to cost of sales. (2) All-in cost is comprised of cash delivered cost which includes mine cash costs, TC s, RC s and freight; net of by product credits, sustaining capital; and G&A costs (allocated based on revenue of operation). All-in costs exclude Avala and Dunav and growth capital expenditures. 8

9 CORPORATE VISION AND STRATEGY Vision A precious metals focused mining company that grows through responsibly developing great assets and people Strategy Optimize value of existing operating assets Increase mine production and extend LOMs Upgrade/expand smelter and establish long-term contracts that provide a stable return Grow the business beyond existing operating assets Develop Krumovgrad Gold Project Establish deep pipeline of greenfield exploration opportunities Complete acquisitions that offer accretive growth, diversity and gold exposure, while maintaining a conservative capital structure Sustain low quartile operating costs Maintain a strong balance sheet with ample liquidity Exploration at Kapan Mine Tsumeb Smelter, Namibia Conceptual Illustration of Krumovgrad Gold Project 9

10 CHELOPECH OPTIMIZATION: LOW COST, LONG LIFE PRODUCER Strategy Install new pyrite recovery circuit Q Capitalize on lower cost/ higher recovery staged flotation reactor technology Perform targeted exploration to replace depletion and increase mineral resources/ reserves Asset Overview DPM Ownership 100% Location Bulgaria Mine Type Underground Deposit Type High sulphidation epithermal deposit Product Copper concentrate containing gold and silver Estimated life of mine 10 + years Continue to implement cost/margin improvements Estimated Pyrite Recoveries 400,000 T pyrite concentrate produced (E) Metals Potential Grades Est. Incremental Production Result Au 6-7 g/t 75,000-90,000 oz Staged Flotation Reactor at Chelopech Operations Ag g/t 130, ,000 oz Cu 0.5% - 0.7% 4.5M - 6.0M lbs 10

11 KAPAN OPTIMIZATION: POTENTIAL TO EXPAND AND EXTEND LIFE OF MINE Strategy Rebuild development inventory and return to normal sustainable operating levels Q Internal conceptual study on expanded underground mine based on new Mineral Resource Estimate Q Continue operational improvements and cost reductions Asset Overview DPM Ownership 100% Location Mine Type Deposit Type Product Indicated Mineral Resource Armenia Underground Polymetallic vein deposit (swarms) Copper and zinc concentrates containing gold and silver Underground Mineral Resource Estimate million tonnes at an average gold grade of 5.2 g/t AuEq, containing approximately 237,000 ounces of gold and 467,000 ounces of AuEq. Inferred Mineral Resource Inferred Mineral Resource of 10.6 million tonnes at an average gold grade of 4.5 g/t AuEq, containing approximately 790,000 ounces of gold and 1,543,000 ounces of AuEq. Kapan Mine office Kapan operations were on care and maintenance as of November 2008; operations restarted April For more information please see the technical report titled NI Technical Report, Shahumyan Project, Kapan, Republic of Armenia dated July 29, 2013, filed on SEDAR 11

12 TSUMEB SMELTER: A UNIQUE STRATEGIC ASSET Limited Global Smelting Capacity for Complex Concentrate One of the few smelters with ability to treat complex concentrate Upgrades designed to meet internationally accepted environmental standards and expand capacity to process additional 3rd party complex concentrate Lower per tonne operating costs and more favourable smelting terms are expected to generate significantly higher margins Horne Smelter Operated by Xstrata Capacity: 825Kt of concentrate (total) Note: Complex concentrate capacity limited with little to no 3rd party capacity San Luis de Potosi Smelter Shut down in 2012 La Oroya Smelter(1) Operated by Doe Run Note: Currently closed Kosaka Smelter Shut down in Q Tsumeb Smelter Operated by Capacity: 240Kt-320Kt of complex concentrate Operating Smelters Closed Smelters Other smelters that process various amounts of complex concentrates 12

13 Complex Con Smelter Capacity (000 s) TSUMEB SMELTER HAS POTENTIAL TO POSITIVELY IMPACT EARNINGS Asset Overview DPM Ownership 100% Location Technology Product Namibia Ausmelt Copper blister bars 2012 Concentrate Throughput 159,356 tonnes Emissions & dust capture upgrades $106M Sulphuric acid capture plant - Q Electric holding furnace - Q $240M $70M+ Tsumeb Smelter 13

14 TSUMEB SMELTER SULPHURIC ACID PLANT FURTHER UPGRADES TO MEET INTERNATIONAL ENVIRONMENTAL STANDARDS Outotec contracted for construction at estimated cost of US$240M Acid Storage 10,000 tonnes To produce 230,000 to 280,000 tonnes of sulphuric acid Rossings Rio Tinto contracted to purchase 225,000 tpy for 5 years Groundbreaking ceremony September 5, 2013 Commercial production expected in Q Effluent Treatment Gas Conditioning S0 2 Converter to Sulpuric Acid 14

15 KRUMOVGRAD GOLD PROJECT: LOW CASH COST OPERATION Strategy Secure final local approvals required to proceed with ordering long lead items/construction Update/finalize mine plan Seek opportunities to increase recoveries through use of SFR technology Complete detailed engineering that optimizes value of project Evaluate other exploration opportunities within existing licenses and establish targeted drill program Krumovgrad Gold Project Highlights Proposed Mine Type Open Pit Gold Recoveries 85% Grade 3.4 g/t Annual Ore Tonnage Production 850,000 tpy Annual Au Production 74,000 ounces Mine Life 9 years Capital Costs to Complete US~$127M 1 Total Cash Cost Per Oz Au Eq $404 Conceptual Illustration of Krumovgrad Gold Project Future Catalysts Start Construction 2015 Start Production Based on Jan DFS; Estimated recoveries, capital & operating costs in process of being updated. 15

16 DPM BROWNFIELDS EXPLORATION STRATEGY: CHELOPECH & SVETA PETKA NW Petrovden Porphyry Target Stockwork Veins Intrusive(s) Stockwork Veins Intrusive(s) Results to date: PTDD019 Cu, 0.16g/t Au (incl %Cu. 0.25g/t Au from 687m) 371 Cu, 0.23g/t Au (incl %Cu. 0.23g/t Au from 773m) PTDD001 Cu, 0.068g/t Au (incl %Cu g/t Au from 82m) PTDD %Cu, 0.093g/t Au (incl 0.11%Cu, 0.102g/t Au from 423m) 16

17 DPM BROWNFIELDS EXPLORATION STRATEGY: KAPAN Kapan Near Mine Drilling Targets Drill program tests: Conceptual targets at Golden Triangle and Shahumyan East High grade down-plunge Vein Targets on known mineralization Strategy Approx. 4,000m diamond drilling on 6 targets to be completed by end of 2013 Structural studies ongoing Continuous interpretation of current drilling to improve remaining targets Golden Triangle Target Proposed hole Completed hole V37 Target V64 Target V50 Target Shahumyan East Target V17 Target V11 Target 17

18 DPM BROWNFIELDS EXPLORATION STRATEGY: KRUMOVGRAD Krumovgrad Geophysical Surveys Khan Krum Iran Tepe Kesebir KHAN KRUM KESEBIR IRAN TEPE Strategy Geophysics completed by end of 2013 Finalize target generation Possible electrical geophysics follow up for targeting Second phase drilling depending on land use permitting Ground Magnetics - 200m Lines Committed Contingent 18

19 DPM GREENFIELDS EXPLORATION STRATEGY: GENERATIVE PIPELINE Bulgaria 3 Exploration Licences granted, another 5 under application, totalling 265km2 Experienced team of geoscientists credited with the discovery of Ada Tepe Armenia Systematic regional exploration around Kapan has resumed after a 5 year hiatus Regional targets being drilled in 2013: Norashenik and Arajadzor Project Generation Generate new early stage opportunities through joint ventures, partnerships or acquisitions Global scope with emphasis on lower-risk jurisdictions Gold focused; minimum size: 1 million ounces at more than 1g Au/t Avala Dunav Tethyan Belt runs from Central Asia to Eastern Europe 19

20 DPM EXPLORATION PORTFOLIO: PARTIALLY-OWNED ENTITIES Avala Resources Ltd. (TSX-V: AVZ) Released updated Resource Estimate in October 2013 Metallurgical testwork has confirmed that a gold-rich pyrite concentrate suitable for sale to smelters can be produced using conventional mineral unit processing Upcoming preliminary economic assessment Dunav Resources Ltd. (TSX-V: DNV) NI Inferred Resources include (using a 0.25% CuEq cut-off) : Kiseljak Mineral Resource initial estimate 300 MT grading 0.27% Cu & 0.26 g/t Au for 1.8 Blbs Cu and 2.5 Moz Au Securities Equity Portfolio Overview as at December 2, 2013 Sabina Gold & Silver Special Warrants Warrants (strike at C$1.07) Total Avala Resources Special Warrants Warrants (strike at C$0.30) Total Dunav Resources Warrants (strike at C$0.50) Total Shares (m) % Held Value (C$M) 12.1% % % Total shares & securities 24.7 Discovers a Gold-Copper Porphyry System on its Degrmen Project: DGRDD011 Intersects 0.56g/t Au, 0.16% Cu (from 55m) and 0.43g/t Au, 0.13% Cu (from 216m) 20

21 DPM FUTURE CATALYSTS Chelopech Pyrite Recovery Circut Complete Tsumeb Ramps Up to 100% Capacity Tsumeb Acid Plant Commissioned Krumovgrad Construction Begins Krumovgrad Begins Production 2013 Krumovgrad Capital Cost and Mine Plan Update Internal Conceptual Study on Expanded Kapan Underground Mine Completed Chelopech Mine 21

22 PLANNED CAPITAL EXPENDITURES AND POTENTIAL EBITDA Near term growth Capex 1 supports significant increase in EBITDA 2 Potential EBITDA 2014E 2015E 2016E 2017E Sustaining Capex Non-discretionary Capex Discrectionary Capex 1. Capex represents mid-point of range 2. Potential EBITDA is based on current metals prices Tsumeb Acid Plant Chelopech Pyrite Recovery Circuit Krumovgrad Gold Project Kapan Underground Mine Expansion Tsumeb Electric Holding Furnace 22

23 TARGETED PRODUCTION GROWTH Gold (oz) Copper (M/lbs) 155% 19% Smelter Complex Concentrate Production (tonnes) 101% 2017F based on completion of identified investment opportunities and estimated production levels. 23

24 EBITDA GROWTH POTENTIAL Capital investments expected to deliver additional value - Implied current share price / 2017F EBITDA ~ 1.5-2x Adjusted EBITDA ($mm) At Current Prices - Nov 13, % Incremental EBITDA $235mm - $265m 2017F based on completion of identified investment opportunities, current and LT metal prices and tolling rates in line with most recent contract. 24

25 DPM BECOMING A THREE REVENUE STREAM COMPANY Adjusted EBITDA by revenue stream 2012A 2017E Based on current metals prices, excludes G&A and Exploration 25

26 COMPELLING INVESTMENT OPPORTUNITY Solid Financial Position High Quality Assets with Further Potential Commodity and Geographic Diversification Pipeline of Organic Growth Opportunites Experienced Management Team and Board with Strong Track Record 26

27 DUNDEE PRECIOUS METALS MANAGEMENT TEAM Jonathan Goodman Executive Chairman Rick Howes President & Chief Executive Officer David Rae Senior Vice President, Operations Adrian Goldstone Executive Vice President, Sustainable Business Development Paul Proulx Senior Vice President, Corporate Services Michael Dorfman Senior Vice President, Corporate Development Hume Kyle Executive Vice President & Chief Financial Officer Richard Gosse Senior Vice President, Exploration Lori Beak Senior Vice President, Investor & Regulatory Affairs & Corporate Secretary Simon Meik Vice President, Processing Hans Nolte Vice President & General Manager, Tsumeb Smelter Colin McAnuff Treasurer Hratch Jabrayan Vice President & General Manager, Kapan Mine Nikolay Hristov Vice President & General Manager, Chelopech Mine Iliya Garkov Vice President & General Manager, Krumovgrad Gold Project Reuben Mills Vice President, Safety & Asset Risk Management Jeremy Cooper Vice President, Commercial Affairs 27

28 Proudly celebrating 30 years as a Toronto Stock Exchange listed company One Adelaide Street East Suite 500 Toronto, Ontario M5C 2V9 T: Investor Relations T: ssrubiski@dundeeprecious.com TSX: DPM Common Shares DPM.WT.A 2015 Warrants dundeeprecious.com

29 APPENDICES 29

30 ANALYST COVERAGE BMO CIBC World Markets Cormark Securities Dundee Securities GMP Securities Paradigm Capital RBC Capital Markets Scotia Capital John Hayes Leon Esterhuizen Mike Kozak Josh Wolfson Oliver Turner Don MacLean Sam Crittenden Leily Omoumi 30

31 KEY SENSITIVITIES - 5% CHANGE Item EBITDA ($ mm) Commodity Prices 16.0 Mine production 12.5 FX 7.2 Mine costs 6.5 Smelter production 4.0 Smelter Toll rate 3.5 Smelter costs 3.8 (1) Based on current prices, and estimated 2013 concentrate deliveries and concentrate smelted 31

32 2013 GUIDANCE Metals Contained in Concentrate Produced Chelopech Kapan Total Gold (ounces) 125, ,000 23,000 25, , ,000 Copper (million pounds) Zinc (million pounds) Silver (ounces) 210, , , , , ,000 Sustaining Capital expenditures $14 - $17 million $8 - $12 million $22 - $29 million Total growth capital expenditures Construction of acid plant at Tsumeb $210 - $240 million Phase I Pyrite Project at Chelopech Krumovgrad development and construction work Kapan Gold exploration and/or development work Mine output at Chelopech (tonnes of ore) million Mine out put at Kapan (tonnes of ore) 450, ,000 Concentrate smelted at Tsumeb (tonnes) 155, ,000 Sustaining capital expenditures at Tsumeb $13 - $16 million 32

33 Q SUMMARY Q Q Adjusted Net Earnings $10.1 million $18.7 million Adjusted basic EPS $0.07 $0.15 Gross profit (loss) Chelopech $28.5 million $38.2 million Kapan $4.3 million $2.0 million Tsumeb Smelter ($3.6 million) $1.1 million Total Gross profit $29.2 million $41.3 million Chelopech Production Gold (ounces) 28,081 28,296 Copper (lbs) 10,508,642 11,144,786 Silver (ounces) 48,953 60,847 Cash cost/t ore processed (incl. royalties) $38.41 $43.24 Cash cost/t ore processed (excl. royalties) $35.77 $39.01 Kapan Production Gold (ounces) 4,217 5,548 Copper (lbs) 341, ,640 Zinc (lbs) 2,418,775 4,714,540 Silver (ounces) 78, ,925 Cash cost/t ore processed (incl. royalties) $89.58 $70.31 Cash cost/t ore processed (excl. royalties) $79.60 $

34 HEDGE POSITION AS AT SEPTEMBER 30, 2013 Commodity Hedged Volume Hedged Average fixed price Payable copper 7,138,560 lbs $3.26/lbs Payable zinc 947,987 lbs $0.84/lbs Payable gold 21,710 oz $1,336.22/oz Payable silver 25,290 oz $20.83/oz Year of projected payable copper production Volume Hedged (lbs) Average fixed price ($/lb) ,038, ,672, Total 28,710, Year of projected payable gold production Volume Hedged (oz) Average fixed price ($/oz) ,000 1, ,000 1, Total 60,000 1,

35 CHELOPECH MINE: UPDATED MINERAL RESERVES AND RESOURCES Category Tonnes (M) Chelopech Mineral Reserves December 31, 2012 Grade (g/t) Gold Copper Silver Ounces Grade Pounds Grade (M) (%) (M) (g/t) Ounces (M) Proven Probable Total Category Tonnes (M) Chelopech Mineral Resources December 31, 2012 Grade (g/t) Gold Copper Silver Ounces (M) Grade (%) Pounds (M) Grade (g/t) Ounces (M) Measured Indicated M&I Inferred The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals. 2. All Mineral Resources and Mineral Reserves Estimates have been determined and reported in accordance with NI and the classification adopted by the CIM. 3. Chelopech Mineral Reserves are based on a gold equivalent cut-off of 4 g/t (Au g/t xCu%) and a cut-off of USD 10 profit/tonne using NSR analysis, as of December 31, This information has been prepared by Gordon Fellows who is a QP as defined in NI and not independent of the Company. 4. Chelopech Mineral Resources are based on a gold equivalent cut-off 3 g/t (Au g/t xCu%) and a greater than USD 0 profit/tonne test using NSR analysis, as of December 31, This information has been prepared by Petya Kuzmanova and reviewed and approved by Julian Barnes. Julian Barnes is a QP as defined in NI and not independent of the Company. 5. Mineral Reserves and Mineral Resources for Chelopech are based on long term metals prices of USD 1,250/oz Au, USD 2.75/lb Cu, USD 25/oz Ag. 6. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Mineral Reserves. 35

36 CHELOPECH MINE: EXPLORATION RESULTS Q Significant intercepts (cut-off grade 3g/tAuEq) Hole ID Northing (mrl) Easting (mrl) Dip Az From (m) To (m) Interval (m) Cu (%) Grades Au (g/t) EXT19E_290_ EXT19E_290_ EXT19E_290_ EXT19E_290_ EXT19E_290_ EXT19E_290_ EXT151_225_ EXT151_225_ EXT151_225_ EXT151_400_ EXT151_400_ EXT151_400_ G103_225_ Significant intercepts are located within the Chelopech Mine Concession and proximal to the mine workings. 2. Gold Equivalent calculation is based on the following formula: (Au g/t xCu%). 3. Minimum downhole width reported is 1.5 metres with a maximum internal dilution of 4.5 metres. 4. True widths are approximately 90% of the intersection width. 5. Drill holes with prefix G indicate grade control drilling which is performed using BQ diamond drill core. All other holes are drilled with NQ diamond core. 6. Coordinates are in mine-grid. 7. No factors of material effect have hindered the accuracy and reliability of the data presented above. 8. No upper cuts applied. 9. For detailed information on drilling, sampling and analytical methodologies refer to the NI Preliminary Economic Assessment Report for the Chelopech Pyrite Recovery Project (the PEA Technical Report ) filed on SEDAR at on September 10,

37 CHELOPECH MINE: CASH COST RECONCILIATION US$ thousands, unless otherwise indicated Q Q Q Year 2012 Year 2011 Year 2010 Year 2009 Year 2008 Cost of Sales: 32,840 27,381 31,991 98,298 88,838 $72,707 74,499 67,245 Less amortization & other (8,160) (8,264) (7,948) (19,542) (15,499) (14,425) (14,242) (11,966) Plus other charges, including freight 24,536 21,490 23,832 86,228 65,125 41,234 38,317 26,006 Less by-product credits (39,031) (33,560) (41,434) (163,940) (147,812) (87,320) (64,198) (59,376) Cash cost of sales after by-product credits 10,185 7,047 6,441 1,044 (9,348) 12,196 34,376 21,909 Gold oz (payable metal) 33,506 32,392 34, ,644 83,796 58,065 93,081 70,878 Cash cost of sales/oz gold, (net of by-product credits) $304 1 $218 2 $185 3 $9 4 $(112) 5 $210 6 $369 7 $ Based on $3.26/lb copper 2. Based on $3.34/lb copper 3. Based on $3.64/lb copper 4. Based on $3.95/lb copper 5. Based on $4.27/lb copper 6. Based on $3.42/lb copper 7. Based on $2.34/lb copper 8. Based on $3.16/lb copper 37

38 CHELOPECH MINE: CASH COST PER TONNE OF ORE RECONCILIATION US$ thousands, unless otherwise indicated For the periods indicated Q Q Q Year 2012 Year 2011 Year 2010 Year 2009 Year 2008 Ore processed (mt) 516, , ,360 1,819,687 1,353,733 1,000, , ,563 Cost of sales 32,840 27,381 31,991 98,298 88,838 $ 72,707 75,647 67,423 Add (deduct): Depreciation, amortization & other non-cash costs (8,160) (8,264) (7,948) (19,542) (15,499) (14,425) (15,390) (11,966) Change in concentrate inventory (4,824) 1,054 (2,911) 4, (2,018) (419) (178) Total cash cost of production $19,856 $20,171 $21,132 $83,291 $74,201 $56,264 $59,838 $55,279 Cash cost per tonne of ore processed, including royalties $38.41 $40.25 $41.16 $45.77 $54.81 $56.22 $61.00 $61.38 Cash cost per tonne of ore processed, excluding royalties $35.77 $36.24 $36.55 $41.16 $49.99 $51.54 $55.23 $ Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue. 38

39 KAPAN MINE: UNDERGROUND MINERAL RESOURCE ESTIMATE Classification Kapan Shahumyan Deposit Mineral Resource Estimate as at January 31, 2013 Reported at a gold equivalent cut-off 2.24 Au g/t Tonnes Mt Au g/t Contained Koz Gold Equiv g/t Ag g/t Cu % Zn % Pb % S % Density Indicated Inferred AuEq was calculated using the formula Au + (Cux1.34) + (Agx0.023) + (Znx0.42) and assumes metal prices of USD 1,250/oz Au, USD 25/oz Ag, USD 2.75/lb Cu and USD 0.85/lb Zn The Mineral Resource estimate consists of DPM and historical drilling data. DPM has carried out significant additional surface diamond drilling and reverse circulation drilling since July 2007, contributing 41% of the data used for the Mineral Resource estimate 39

40 KAPAN MINE: EXPLORATION RESULTS Q Significant intercepts (AuEq cut-off grade of 3.5 g/t) received during the third quarter of 2013: HOLE ID EAST NORTH RL AZ. DIP FROM TO True Width m AuEq g/t Au g/t Best Value Ag g/t Best Value Cu % Best Value Zn % Best Value EIN4S EIN4S EIN9S EIN9S EIN9S EIN9S Significant intercepts are located within the Shahumyan Mine Concession and proximal to the mine workings. 2. Gold Equivalent calculation is based on the formula: Au g/t xAg g/t xCu% xZn%. 3. Minimum downhole width reported is 2 metres with a maximum internal dilution of 2 metres. 4. All holes reported are NQ diamond core. 5. Co-ordinates are in Kapan exploration-grid. 6. No factor of material effect has hindered the accuracy and reliability of the data presented above. 7. No upper cuts applied. 8. For detailed information on drilling, sampling and analytical methodologies refer to NI Technical Report Shahumyan Project Kapan, Republic of Armenia filed on SEDAR at on August 29,

41 KAPAN MINE: CASH COST RECONCILIATION US$ thousands, unless otherwise indicated Q Q Q Year 2012 Year 2011 Year 2010 Year 2009 Year 2008 Cost of Sales: 9,672 13,445 9,502 50,547 47,276 33,637 21,072 36,319 Less amortization & other (1,364) (1,578) (1,617) (9,989) (9,140) (7,056) (6,996) (5,400) Plus other charges, including freight 2,307 2,874 1,672 6,218 11,893 8,912 5,142 4,976 Less by-product credits (6,721) (8,827) (5,780) (32,075) (47,588) (28,562) (13,591) (13,520) Cash cost of sales after byproduct credits 3,894 5,914 3,777 14,701 3,028 6,931 5,627 22,375 Gold oz (payable metal) Cash cost of sales/oz gold, (net of by-product credits) 6,500 5,733 3,541 18,204 26,230 22,287 11,233 11,388 $599 1 $1,032 2 $1,067 3 $808 4 $115 5 $311 6 $501 7 $1, Based on $3.26/lb copper 2. Based on $3.34/lb copper 3. Based on $3.64/lb copper 4. Based on $3.95/lb copper 5. Based on $4.27/lb copper 6. Based on $3.42/lb copper 7. Based on $2.34/lb copper 8. Based on $3.16/lb copper 41

42 KAPAN MINE: CASH COST PER TONNE OF ORE RECONCILIATION US$ thousands, unless otherwise indicated For the periods indicated Q Q Q Year 2012 Year 2011 Year 2010 Year 2009 Year 2008 Ore processed (mt) 70, , , , , , , ,033 Cost of sales 9,672 13,445 9,502 50,547 47,276 33,637 21,197 36,319 Add (deduct): Depreciation, amortization & other noncash costs (1,364) (1,578) (1,617) (10,883) (9,140) (7,056) (4,047) (3,668) Care and maintenance costs (3,074) (1,732) Change in concentrate inventory (1,964) (892) 1,189 (718) 416 3,572 1,696 (1,485) Total cash cost of production $6,344 $10,975 $9,074 $38,946 $38,552 $30,153 $15,772 $29,434 Cash cost per tonne of ore processed (royalties not applicable in 2009) $89.58 $67.48 $75.83 $76.45 $66.26 $70.31 $72.27 $ Cash cost per tonne of ore processed, excluding royalties $79.60 $60.61 $72.36 $69.10 $62.57 $66.33 $72.27 $ Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue. 42

43 KRUMOVGRAD GOLD PROJECT 43

44 KRUMOVGRAD GOLD PROJECT Category Krumovgrad Mineral Reserves December 31, 2011 Tonnes (M) Grade (g/t) Gold Ounces (M) Grade (g/t) Silver Ounces (M) Proven Probable Total Category Krumovgrad Mineral Resources December 31, 2011 Tonnes (M) Grade (g/t) Gold Ounces (M) Grade (g/t) Silver Ounces (M) Measured Indicated M&I Inferred Rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals. 2. All Mineral Resource Estimates have been determined and reported in accordance with NI and the classification adopted by the CIM. 3. Krumovgrad Mineral Reserves and Resources are based on the Krumovgrad 2012 Technical Report using a variable economic cut-off grade and 0.5 g/t Au respectively. 4. All Mineral Reserves and Resources are based on long term metals prices of $1,250 Au, $3/lb Cu, $25/oz Ag and $1/lb Zn. 5. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Reserves. 44

45 Proudly celebrating 30 years as a Toronto Stock Exchange listed company One Adelaide Street East Suite 500 Toronto, Ontario M5C 2V9 T: Investor Relations T: ssrubiski@dundeeprecious.com TSX: DPM common shares DPM.WT.A 2015 Warrants dundeeprecious.com