BUILDING A PREMIER, LOW-COST GOLD PRODUCER

CASE STUDY – REAL TIME PRODUCTION INFORMATION IN MINING 3D Experience Forum – November 12-13, 2014 – Las Vegas, NV

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”

Old way

Paper reporting at end of shift

Supervisor interaction 1-2 /shift

Limited knowledge of shift delays

Slow response time to process interruptions

Reactive Maintenance

Small picture view

Poor coordination

Poor use of resources

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

New Way

Real time display of information

Supervisor dispatched to critical shift problems

Delays identified in real time

Problems identified immediately

Real time equipment health monitoring

See activities in whole mine in real time

Coordination through CCR with big picture

Resources utilized to optimize shift results

Real time equipment and materials tracking

TSX:DPM 4

EXAMPLE FOR THE MINE “CLOSING THE LOOP”

MiningPlanning & Scheduling

MaintenancePlanning & Scheduling

Supply chain / LogisticsPlanning & Scheduling

Feedback InformationP

lann

ing

Info

rmat

ion

Mining Execution Business ProcessesDrilling Loading Transportation Crushing Conveying

Support & Maintenance Processes

Real time Process Monitoring and Control

Mining Operations Management System

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)

MiningPlanning & Scheduling

MaintenancePlanning & Scheduling

Supply chain / LogisticsPlanning & Scheduling

Feedback InformationP

lann

ing

Info

rmat

ion

Mining Execution Business ProcessesDrilling Loading Transportation Crushing Conveying

Support & Maintenance Processes

Real time Process Monitoring and Control

Mining Operations Management System

TSX:DPM 7

THE MANAGEMENT OPERATING MODEL

Analyze and improve

Work Management

Plan Work Schedule Work Execute 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/RemoveAsset

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 PlansFe

edba

ck lo

opLife 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 MANAGEMENT

UG

ope

ratio

nsC

ontr

ol ro

om7+

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 Chelopech underground operations

TSX:DPM 11

ENABLING TECHNOLOGIES

Mobile Equipment

Industrial Controller

s

VoIP Clients

Cameras

Tablet

Wireless tags

Access Point

Access Point

Site LAN Network

TSX:DPM 12

COMMUNICATIONS – WIRELESS ETHERNET

Access point

Wi-Fi phone

TSX:DPM 13

Ethernet switch

WLAN Client Antenna

Onboard PC

Dashboard

Display

Chair

Middle

Front Rear

ECM

PRODUCTION EQUIPMENT: ONBOARD TECHNOLOGY

VCM module

CAN bus

J1939

• 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 provides• 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

Corporate Head Office:One Adelaide Street East, Suite 500

Toronto, Ontario M5C 2V9T: 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