DUNDEE CORPORATION | Confidential – Not For Distribution Dundee Corporation Q2 2020 Conference Call 2019 August14, 2020 0
DUNDEE CORPORATION | Confidential – Not For Distribution
Dundee Corporation
Q2 2020
Conference Call
2019August14, 2020
0
DUNDEE CORPORATION | Confidential – Not For Distribution
Legal Disclosures
The content of this document is for informational purposes only, and is not being delivered to you in the context of an offering of any securities
described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it
tailored to the needs or circumstances of any investor. Information contained on this document is not, and under no circumstances is it to be
construed as, an offering memorandum, prospectus, advertisement or public offering of the securities described herein. No securities commission
or similar regulatory authority has reviewed this document or has in any way passed upon the merits of the securities described herein and any
representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable, however, we
cannot guarantee that it is accurate or complete or current at all times. The information provided is subject to change without notice and
Dundee will not be held liable for inaccuracies in the information presented.
Certain information set forth in this document contains forward-looking statements. The risk factors impacting these forward-looking statements
are statements that are predictive in nature, depend upon or refer to future events or conditions. By their nature, forward-looking statements are
subject to numerous risks and uncertainties, some of which are beyond the Corporation’s control. Readers are cautioned that the assumptions
used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as
such, undue reliance should not be placed on forward-looking statements. The Corporation’s actual results, performance or achievement could
differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any
of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will
derive from them. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.
The contents of this document are protected by applicable copyright laws. No permission is granted to copy, distribute, modify, post, or frame
any text, graphics, design or logos. DUNDEE CORPORATIONR is a trademark owned by Dundee Corporation, used under license. Unauthorized
use or exploitation of such marks and names is strictly prohibited.
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DUNDEE CORPORATION | Confidential – Not For Distribution
Dundee Corporation
2
Jonathan GoodmanChairman and
Chief Executive Officer
TODAY’S PRESENTERS
Robert Sellars
Executive Vice President and
Chief Financial Officer
DUNDEE CORPORATION | Confidential – Not For Distribution
Q2 2020 Review
Maintained steady-state operations in face of COVID-19
Sale of DPM shares provides immediate cash and improves
liquidity
Substantial Issuer Bid for Series 2 Preferred Shares
– Provides holders with liquidity, helps continued
streamlining of corporate structure
Strategic pivot to junior mining is taking hold
Well-positioned to benefit from global metals rally
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SIGNIFICANT STRATEGIC PROGRESS AND MOMENTUM IN OUR BUSINESS
DUNDEE CORPORATION | Confidential – Not For Distribution
Sale of Dundee Precious Metals Shares
Monetized substantial DPM position early in Q2
Immediate gross proceeds of $151.8M
Full warrant exercise to add gross proceeds of $95.6M
Potential aggregate gross proceeds of ~$247M
Helped accelerate re-rating of DPM shares and shareholder base
diversification
If all warrants are exercised, Dundee will own less than 1% of
outstanding DPM shares
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STRATEGIC DISPOSITION OF PORTION OF DPM HOLDING
DUNDEE CORPORATION | Confidential – Not For Distribution
Series 2 Preferred Shares SIB
Subsequent to Q2 announced SIB to cancel up to $44M of Series 2
Preferred Shares
Offer being made by way of a “modified Dutch auction”
Price range of not less than $16.00 and not more than $18.50
Upon expiry of the offer, Corporation determines lowest purchase
price based on all valid tenders
Shareholders who tender will be eligible to receive a portion of the
cash dividend for quarter ended Sept. 30, 2020
Offer expires on August 27, 2020 at 5 p.m. ET
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SUBSTANTIAL ISSUER BID FOR SIGNIFICANT PORTION OF SERIES 2
DUNDEE CORPORATION | Confidential – Not For Distribution
Junior Mining Strategy
Strong performance across the junior mining portfolio
Well-positioned for leverage to rising metals prices
Dundee Goodman Merchant Partners active in deal-flow
Involved in 6 mandates during Q2 (advisory and
financing)
Beginning of a sustained rally in metals prices
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PERFORMING WELL IN MIDST OF METALS RALLY
DUNDEE CORPORATION | Confidential – Not For Distribution
Ongoing Capital Allocation Strategy
Cash position at head office at end of Q2 2020 of ~$140M
DPM share sale has potential to generate additional ~$96M cash
SIB for Series 2 Preferred Shares will help lower expenses and G&A
Two important strategic steps to streamline capital structure
Enhanced ability to fund strategic focus on junior mining sector in
midst of strong metals rally
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DPM SALE AND SIB IMPROVING OVERALL FINANCIAL POSITON
DUNDEE CORPORATION | Confidential – Not For Distribution
Questions & Answers
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Question and Answer Session
Q2 2020Financial Review
DUNDEE CORPORATION | Confidential – Not For Distribution
Financial Review
COMPONENTS OF EARNINGS (LOSS)
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(in millions, except for per share amounts) 2020 Q2 2019 Q2 YTD 2020 YTD 2019
Portfolio transactions
Income (loss) from investments 92.6$ 5.4$ 34.6$ 33.5$
Loss from equity accounted investments (4.1) (3.0) (5.2) (3.3)
88.5 2.4 29.4 30.2
Operations
Operating subsidiaries (22.0) (5.3) (145.2) (7.3)
Head office (13.8) (1.5) (16.5) (3.8)
Income taxes (3.8) (4.0) (5.4) (11.4)
(39.6) (10.8) (167.1) (22.5)
Net (loss) earnings – Continuing operations 48.9$ (8.4)$ (137.7)$ 7.7$
Discontinued operations
Dundee 360 Real Estate Corporation's brokerage division - (0.1) - (1.3)
Net (loss) earnings – Discontinued operations -$ (0.1)$ -$ (1.3)$
Net (loss) earnings for the period 48.9$ (8.5)$ (137.7)$ 6.4$
Attributable to owners of Dundee Corporation 52.3$ (7.9)$ (114.1)$ 7.0$
Continuing operations 52.3 (7.8) (114.1) 8.3
Discontinued operations - (0.1) - (1.3)
Basic (loss) earnings per share 0.49$ (0.12)$ (1.14)$ 0.05$
Continuing operations 0.49 (0.12) (1.14) 0.07
Discontinued operations - - - (0.02)
DUNDEE CORPORATION | Confidential – Not For Distribution
Financial Review
OPERATING SUBSIDIARIES
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(in millions) 2020 Q2 2019 Q2 YTD 2020 YTD 2019
Goodman & Company, Investment Counsel Inc. (0.7)$ (0.3)$ (1.6)$ (0.7)$
United Hydrocarbon International Corp. (17.0) 3.0 (134.5) 9.0
Dundee Sustainable Technologies Inc. - (0.8) (1.2) (1.7)
Blue Goose Capital Corp. (3.3) (3.8) (6.0) (7.9)
AgriMarine Holdings Inc. (0.8) (1.0) (1.7) (2.6)
Dundee 360 Real Estate Corporation (0.2) (2.4) (0.2) (3.1)
Dundee Energy Limited - - - (0.2)
Eurogas International Inc. - - - (0.1)
(22.0)$ (5.3)$ (145.2)$ (7.3)$
DUNDEE CORPORATION | Confidential – Not For Distribution
Financial Review
HEAD OFFICE SUMMARY
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(in millions) 2020 Q2 2019 Q2 YTD 2020 YTD 2019
Revenues 1.0$ 1.2$ 2.0$ 2.1$
General and administrative expenses
General (7.1) (4.6) (10.4) (8.8)
Stock based compensation 1.7 (0.1) 1.4 (0.8)
Interest expense (0.1) (1.2) (0.3) (2.8)
(Loss) earnings before the following: (4.5) (4.7) (7.3) (10.3)
Depreciation (0.1) (0.2) (0.3) (0.4)
Remeasurement of financial instrument (9.1) 3.7 (9.1) 9.1
Foreign exchange (0.1) (0.3) 0.2 (2.2)
Net loss (13.8)$ (1.5)$ (16.5)$ (3.8)$
DUNDEE CORPORATION | Confidential – Not For Distribution
Q2 2020Closing Summary
DUNDEE CORPORATION | Confidential – Not For Distribution
Closing Summary
Employee safety top priority; business continuity plan remains in place
DPM warrant exercise could generate significant future sum
SIB expected to conclude later this month
Advancing monetization opportunities at Blue Goose and TauRx
Optimization of capital structure ongoing
Lowering interest expense, significantly improved cash position
Well positioned to continue pursuing junior mining strategy
Q2 2020 REVIEW AND OUTLOOK
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DUNDEE CORPORATION | Confidential – Not For Distribution
Questions & Answers
DUNDEE CORPORATION | Confidential – Not For Distribution
For More Information
2019
John Vincic
Investor and Media Relations for
Dundee Corporation
Vincic Advisors
T: 647.402.6375