DPM Metals Inc. — Interim / Quarterly Report 2021

May 5, 2021

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at March 31, 2021 and December 31, 2020

(unaudited, in thousands of U.S. dollars)

	March 31,	December 31,
	2021	2020
ASSETS
Current Assets
Cash	175,706	149,532
Accounts receivable	106,423	84,920
Inventories	41,229	43,049
Other current assets_(note 5(c) & 5(d))_	7,654	10,818
	331,012	288,319
Assets held for sale_(note 3)_	31,600	30,713
	362,612	319,032
Non-Current Assets
Investments at fair value_(note 5(a) & 5(b))_	68,111	106,595
Exploration and evaluation assets_(note 4)_	672	-
Mine properties	148,716	155,438
Property, plant & equipment	362,092	364,337
Intangible assets	16,117	16,139
Deferred income tax assets	8,349	9,470
Other long-termassets	4,223	3,849
	608,280	655,828
TOTAL ASSETS	970,892	974,860
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	92,935	72,234
Income tax liabilities	6,428	910
Current portionof long-term liabilities	5,680	5,929
	105,043	79,073
Liabilitiesheldforsale (note 3)	7,864	6,003
	112,907	85,076
Non-Current Liabilities
Rehabilitation provisions	50,097	51,338
Share-based compensation plans	13,169	19,002
Other long-term liabilities	14,242	14,160
	77,508	84,500
TOTAL LIABILITIES	190,415	169,576
EQUITY
Share capital	526,809	525,219
Contributed surplus	6,779	7,078
Retained earnings	239,304	224,701
Accumulated othercomprehensiveincome	1,232	41,671
Equity attributable to common shareholders
of the Company	774,124	798,669
Non-controlling interests	6,353	6,615
TOTAL EQUITY	780,477	805,284
TOTAL LIABILITIES AND EQUITY	970,892	974,860

The accompanying notes are an integral part of the condensed interim consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 1

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, except per share amounts)

	Three months ended	March 31,
	2021	2020
Continuing Operations
Revenue(note 13)	138,030	147,787
Costs and expenses
Cost of sales	85,643	86,924
General and administrative expenses	3,865	1,971
Corporate social responsibility expenses	479	723
Exploration and evaluation expenses	4,630	3,745
Finance cost	1,403	2,219
Otherexpense	6,733	822
	102,753	96,404
Earnings before income taxes	35,277	51,383
Current income tax expense	8,272	5,286
Deferredincome taxexpense	6,291	408
Net earnings from continuing operations	20,714	45,689
Discontinued Operations
Net loss from discontinued operations_(note 3)_	(892)	(3,253)
**Net earnings **	19,822	42,436
Net earnings (loss) attributable to:
Common shareholders of the Company
From continuing operations	20,719	45,701
From discontinued operations	(657)	(2,530)
Non-controllinginterests	(240)	(735)
**Net earnings **	19,822	42,436
Earnings (loss) per share attributable to
common shareholders of the Company
- Basic
From continuing operations	0.11	0.25
From discontinued operations	(0.00)	(0.01)
- Diluted
From continuing operations	0.11	0.25
From discontinued operations	(0.00)	(0.01)

The accompanying notes are an integral part of the condensed interim consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars)

	Three months ended	March 31,
	2021	2020
Net earnings	19,822	42,436
Other comprehensive income (loss) items that may be
reclassified subsequently to profit or loss:
Foreign exchange option contracts designated as
cash flow hedges
Unrealized losses, net of income tax recovery
of $nil (2020 - $nil)	(620)	(4,448)
Deferred cost of hedging, net of income tax recovery
of $nil (2020 - $nil)	(17)	(11,804)
Realized (gains) losses transferred to cost of sales, net of
income tax expense of $nil (2020 - $nil)	(1,223)	53
Commodity swap contracts designated as cash flow hedges
Unrealized losses, net of income tax recovery of $667
(2020 - $nil)	(6,942)	-
Deferred cost of hedging, net of income tax recovery of $40
(2020 - $nil)	(373)	-
Realized losses transferred to revenue, net of income tax
recovery of $104 (2020 - $nil)	933	-
Cost of hedging transferred to revenue, net of income tax
recovery of $1 (2020 - $nil)	13	-
Currency translation adjustments from discontinued operations	(136)	(4,196)
Other comprehensive loss items that will not be
reclassified subsequently to profit or loss:
Unrealized losses on publicly traded securities, net of
income tax recovery of$4,904(2020-$nil)	(32,110)	(24,550)
	(40,475)	(44,945)
Comprehensive loss	(20,653)	(2,509)
Comprehensive income (loss) attributable to:
Common shareholders of the Company
From continuing operations	(19,620)	4,952
From discontinued operations	(757)	(5,794)
Non-controllinginterests	(276)	(1,667)
Comprehensive loss	(20,653)	(2,509)

The accompanying notes are an integral part of the condensed interim consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 3

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS For the three months ended March 31, 2021 and 2020

(unaudited, in thousands of U.S. dollars)

	Three months ended	March 31,
	2021	2020
OPERATING ACTIVITIES
Earnings before income taxes	35,277	51,383
Revenue transferred from deferred revenue	-	(17,901)
Depreciation and amortization	24,178	24,056
Changes in non-cash working capital_(note 9(a))_	(15,277)	(47,222)
Other Items not affecting cash_(note 9(b))_	4,612	5,059
Payments for settlement of derivative contracts	(1,165)	(1,962)
Income taxes paid	(34)	(2,418)
Cash provided from operating activities of
continuing operations	47,591	10,995
Cash used in operating activities of
discontinued operations (note 3)	(415)	(1,570)
INVESTING ACTIVITIES
Purchase of publicly traded securities	(3,930)	-
Expenditures on exploration and evaluation assets	(38)	-
Expenditures on mine properties	(2,915)	(1,159)
Expenditures on property, plant and equipment	(7,719)	(5,943)
Expenditures on intangible assets	(549)	(1,059)
Cash used in investing activities of
continuing operations	(15,151)	(8,161)
Cash used in investing activities of
discontinued operations (note 3)	-	(55)
FINANCING ACTIVITIES
Proceeds from share issuance	1,040	772
Repayments of credit facilities_(note 6(a))_	-	(10,000)
Lease obligations	(1,057)	(923)
Dividend paid_(note 10)_	(5,442)	-
Interest andfinancefees paid	(807)	(779)
Cash used in financing activities of
continuing operations	(6,266)	(10,930)
Cash used in financing activities of
discontinued operations (note 3)	(105)	(88)
Increase (decrease) in cash of continuing operations	26,174	(8,096)
Decreaseincashofdiscontinued operations	(520)	(1,713)
Cash at beginning of period, continuing operations	149,532	21,283
Cashat beginning ofperiod, discontinued operations	582	2,157
Cash at end of period, continuing operations	175,706	13,187
Cash at end ofperiod, discontinued operations	62	444

The accompanying notes are an integral part of the condensed interim consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 4

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY For the three months ended March 31, 2021 and 2020

(unaudited, in thousands of U.S. dollars, except for number of shares)

	Number Amount Number Amount March 31, 2021 March31,2020
Share capital Authorized Unlimited common and preference shares with no par value Issued Fully paid common shares with one vote per share Balance at beginning of period 181,400,125 525,219 180,537,053 522,351 Shares issued on exercise of stock options 580,164 1,040 364,131 772 Transferred from contributed surplus onexercise ofstockoptions 550 391
Balance at end of period 181,980,289 526,809 180,901,184 523,514
Contributed surplus Balance at beginning of period 7,078 9,150 Share-based compensation expense 248 235 Transferred to share capital on exercise of stock options (550) (391) Otherchangesincontributed surplus 3 (3)
Balance at end of period 6,779 8,991
Retained earnings Balance at beginning of period 224,701 45,007 shareholders of the Company 20,062 43,171 Dividend distribution_(note 10)_ (5,459) (3,618) Net earnings attributable to common
Balance at end of period 239,304 84,560
Balance at beginning of period 41,671 10,108 Othercomprehensiveloss (40,439) (44,013) Accumulated other comprehensive income (loss)
Balance at end of period 1,232 (33,905)
of the Company 774,124 583,160 Total equity attributable to common shareholders
Non-controlling interests Balance at beginning of period 6,615 6,278 Net loss attributable to non-controlling interests (240) (735) Other comprehensive loss attributable to (36) (932) 14 3 non-controlling interests Otherchangesin non-controllinginterests
Balance at end of period 6,353 4,614
Total equity at end ofperiod 780,477 587,774

The accompanying notes are an integral part of the condensed interim consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 5

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

1. CORPORATE INFORMATION

Dundee Precious Metals Inc. (“DPM”) is a Canadian based, international gold mining company engaged in the acquisition of mineral properties, exploration, development, mining and processing of precious metals. DPM is a publicly listed company incorporated under the federal laws of Canada. DPM has common shares traded on the Toronto Stock Exchange (“TSX”). The address of DPM’s registered office is 1 Adelaide Street East, Suite 500, P. O. Box 195, Toronto, Ontario, M5C 2V9.

As at March 31, 2021, DPM’s condensed interim consolidated financial statements include DPM and its subsidiary companies (collectively, the “Company”).

Continuing operations:

DPM’s principal subsidiaries include:

• 100% of Dundee Precious Metals Chelopech EAD (“Chelopech”), which owns and operates a gold, copper and silver mine located east of Sofia, Bulgaria;

• 100% of Dundee Precious Metals Krumovgrad EAD (“Ada Tepe”), which owns and operates a gold mine located in south eastern Bulgaria, near the town of Krumovgrad; and

• 92% of Dundee Precious Metals Tsumeb (Proprietary) Limited (“Tsumeb”), which owns and operates a custom smelter located in Tsumeb, Namibia.

DPM holds interests, directly or indirectly, in a number of exploration properties located in Serbia, Canada, Bulgaria and Ecuador including:

• 100% of Avala Resources Ltd., which is focused on the exploration and development of the Timok gold project in Serbia;

• 8.9% of Sabina Gold and Silver Corp. (“Sabina”), which is focused on the development of the Back River project in southwestern Nunavut, Canada; and

• 23.5% of INV Metals Inc. (“INV”), which is focused on the exploration and development of the Loma Larga gold property located in Ecuador.

Discontinued operations (note 3) :

DPM also owns:

• 73.7% of MineRP Holdings (Proprietary) Limited, an independent mining software vendor with operations in Canada, South Africa, Australia and Chile, through MineRP Holdings Inc. (“MineRP”).

2. BASIS OF PREPARATION

These condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board, including International Accounting Standard 34, Interim Financial Reporting . These condensed interim consolidated financial statements do not include all of the information required for full financial statements and should be read in conjunction with the Company’s annual consolidated financial statements for the year ended December 31, 2020, which have been prepared in accordance with IFRS.

The accounting policies applied in these condensed interim consolidated financial statements are consistent with those applied in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2020 .

These condensed interim consolidated financial statements were approved by the Board of Directors on May 5, 2021.

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NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

3. ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

On December 22, 2020, the Company and other shareholders of MineRP collectively entered into a definitive agreement with Epiroc Canada Holding Inc., a subsidiary of Epiroc Rock Drills AB (“Epiroc”) for the sale of MineRP (the “MineRP Disposition”). Under the MineRP Disposition, the consideration for DPM’s equity interest in MineRP and the repayment of DPM shareholder loans consists of (i) approximately $41.0 million in cash, subject to a working capital adjustment following closing and (ii) potential additional proceeds in the form of an earn-out conditional on the achievement of certain revenue targets by MineRP in 2021 and 2022. The cash proceeds are net of approximately $5.1 million held in escrow on closing to secure against any post closing adjustments related to working capital and any potential breaches in representations and warranties for a period up to 2 years. The MineRP Disposition closed on May 3, 2021.

As a result of the MineRP Disposition, the assets and liabilities of MineRP have been presented as held for sale in the condensed interim consolidated statement of financial position as at March 31, 2021 and December 31, 2020, and the operating results and cash flows of MineRP have been presented as discontinued operations in the condensed interim consolidated statements of earnings (loss) and cash flows for the three months ended March 31, 2021 and 2020. As a consequence, certain comparative figures in the condensed interim consolidated statements of earnings (loss) and cash flows have been reclassified to conform with current period presentation.

The following table summarizes the assets and liabilities of MineRP which have been aggregated and presented as held for sale as at March 31, 2021 and December 31, 2020:

presented as held for sale as at March 31, 2021 and December 31,	2020:
	March 31,	December 31,
	2021	2020
Cash	62	582
Accounts receivable	3,421	1,524
Property, plant & equipment	1,142	1,265
Intangible assets	26,758	27,153
Other long-termassets	217	189
Total assets held for sale	31,600	30,713
Accounts payable and accrued liabilities	5,976	4,038
Current portion of long-term liabilities	302	303
Deferred income tax liabilities	950	950
Other long-term liabilities	**636 **	712
Total liabilities held for sale	7,864	6,003
Non-controlling interests of net assets held for sale	6,247	6,504

DUNDEE PRECIOUS METALS INC. | 7

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

The following table summarizes the operating results of MineRP which have been aggregated and presented as discontinued operations for the three months ended March 31, 2021 and 2020:

	Three months ended	March 31,
	2021	2020
Revenue	3,888	3,917
Costs and expenses
Cost of sales	2,949	3,647
General and administrative expenses	1,753	1,534
Otherexpense	89	2,053
	4,791	7,234
Loss before income taxes	(903)	(3,317)
Deferred income tax recovery	(11)	(64)
Net loss from discontinued operations	(892)	(3,253)

4. EXPLORATION AND EVALUATION ASSETS

In February 2021, the Company announced the results of a pre-feasibility study (“PFS”) for its Timok gold project in Serbia. Based on the results of the PFS, the Board of Directors approved proceeding with a feasibility study (“FS”). As a result, $0.7 million costs related to the FS for the Timok gold project were capitalized to exploration and evaluation assets in the condensed interim consolidated statements of financial position as at March 31, 2021.

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NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

5. FINANCIAL INSTRUMENTS

Set out below is a comparison, by category, of the carrying amounts of the Company’s financial instruments that are recognized in the condensed interim consolidated statements of financial position:

Financial instrument classification	Carrying Amount
	March 31,December 31, 2021 2020
Financial assets Cash Amortized cost Accounts receivable on provisionally priced sales Fair value through profit or loss Other accounts receivable Amortized cost Restricted cash Amortized cost Sabina special warrants_(a) Fair value through profit or loss Publicly traded securities(b) Fair value through other comprehensive income Commodity swap contracts(c) Derivatives for cash flow and fair value hedges Foreign exchange option contracts(d)_ Derivatives for cash flow hedges	175,706149,532 67,29052,957 39,13331,963 2,0942,111 6,72912,128 61,38294,467 1,717104 4,5046,364
Financial liabilities Accounts payable and accrued liabilities Amortized cost Commodity swap contracts_(c)_ Derivatives for cash flow and fair value hedges	82,32566,465 10,6105,769

The carrying values of all the financial assets and liabilities measured at amortized cost approximate their fair values as at March 31, 2021 and December 31, 2020.

(a) Sabina special warrants

During the three months ended March 31, 2021, the Company purchased an additional 512,820 common shares of Sabina at an average price of $1.56 (Cdn$1.95) per share. As at March 31, 2021, DPM held: (i) 31,050,566 common shares of Sabina and (ii) 5,000,000 Series B special warrants, which will be automatically exercised upon a positive production decision with respect to the Back River project or upon the occurrence of certain other events. Each of the special warrants is exercisable into one common share until 2044.

For the three months ended March 31, 2021, the Company recognized unrealized losses on the Sabina special warrants of $5.4 million (2020 – $2.9 million) in other expense in the condensed interim consolidated statements of earnings (loss).

(b) Publicly traded securities

Publicly traded securities include a portfolio of equity investments in publicly traded mining and exploration companies, comprised primarily of Sabina, INV and Velocity Minerals Ltd.

During the three months ended March 31, 2021, the Company increased its equity interest in INV from 19.4% to 23.5% for an additional cost of $3.1 million.

DUNDEE PRECIOUS METALS INC. | 9

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

For the three months ended March 31, 2021, the Company recognized unrealized losses on these publicly traded securities of $37.0 million (2020 – $24.6 million) in other comprehensive income (loss) that will not be reclassified subsequently to profit or loss.

(c) Commodity swap contracts

The Company enters into cash settled commodity swap contracts from time to time to swap future contracted monthly average metal prices for fixed metal prices to eliminate or substantially reduce the metal price exposure associated with the time lag between the provisional and final determination of concentrate sales (“QP Hedges”).

As at March 31, 2021, the Company’s outstanding QP Hedges, all of which mature within five months from the reporting date, are summarized in the table below:

		Weighed average fixed price
Commodity hedged	Volume hedged	of QP Hedges
Payable gold	31,290 ounces	$1,761.67/ounce
Payable copper	10,394,783 pounds	$3.66/pound

The Company also enters into cash settled commodity swap contracts from time to time to swap future contracted monthly average prices for fixed metal prices to reduce its future metal price exposure in respect of its projected production (“Production Hedges”).

As at March 31, 2021, the Company had outstanding commodity swap contracts in place in respect of its projected copper production as summarized in the table below:

Year of projected	Volume of copper hedged	Average fixed price
production	(pounds)	($/pound)
Balance of 2021	23,135,961	3.68

The Company designates the spot component of commodity swap contracts in respect of Production Hedges as cash flow hedges and the spot component of commodity swap contracts in respect of QP Hedges as fair value hedges.

The fair value gain or loss on commodity swap contracts is calculated based on the corresponding London Metal Exchange forward copper prices and New York Commodity Exchange forward gold and silver prices, as applicable. As at March 31, 2021, the net fair value loss on all outstanding commodity swap contracts was $8.9 million (December 31, 2020 – $5.7 million), of which $1.7 million (December 31, 2020 – $0.1 million) was included in other current assets and $10.6 million (December 31, 2020 – $5.8 million) in accounts payable and accrued liabilities.

The Company recognized net gains of $1.4 million (2020 – net losses of $1.0 million) for the three months ended March 31, 2021 in revenue on these commodity swap contracts.

For the three months ended March 31, 2021, the Company recognized unrealized losses of $6.7 million (2020 - $nil) in other comprehensive income (loss) on the spot component of the outstanding commodity swap contracts in respect of Production Hedges. The Company also recognized unrealized losses of $0.4 million (2020 – $nil) on the forward point component of the outstanding commodity swap contracts in respect of Production Hedges in other comprehensive income (loss) as a deferred cost of hedging.

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NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

(d) Foreign exchange option contracts

The Company enters into foreign exchange option contracts from time to time to reduce the foreign exchange exposure associated with projected operating expenses and capital expenditures denominated in foreign currencies.

Foreign exchange option contracts are entered to provide price protection below a specified “floor” rate and participation up to a specified “ceiling” rate. The option contracts entered are comprised of a series of call options and put options (which when combined create a price “collar”) that are structured so as to provide for a zero upfront cash cost.

As at March 31, 2021, the Company had outstanding foreign exchange option contracts in respect of a portion of its projected South African Rand (“ZAR”) denominated operating expenses as summarized in the table below:

		Call options sold	Put options purchased
Year of projected	Amount hedged	Weighted average	Weighted average
operating expenses	in ZAR(i)	ceiling rate US$/ZAR	floor rate US$/ZAR
Balance of 2021	1,135,400,000	18.52	15.67

(i) The Namibian dollar is pegged to the ZAR on a 1:1 basis.

The Company designates the intrinsic value of option contracts as cash flow hedges. The time value component of foreign exchange option contracts is treated as a separate cost of hedging.

The fair value gain or loss on these outstanding contracts was calculated based on foreign exchange forward rates quoted in the market. As at March 31, 2021, the net fair value gain on all outstanding foreign exchange option contracts was $4.5 million (December 31, 2020 – $6.4 million), which was included in other current assets.

For the three months ended March 31, 2021, the Company recognized unrealized losses of $1.8 million (2020 – $4.4 million) in other comprehensive income (loss) on the spot component of the outstanding foreign exchange option contracts. The Company also recognized realized gains of $1.2 million (2020 – realized losses of $0.1 million) for the three months ended March 31, 2021 in cost of sales on the spot component of settled contracts.

For the three months ended March 31, 2021, the Company recognized unrealized losses of $0.02 million (2020 – $11.8 million) on the time value component of the outstanding foreign exchange option contracts in other comprehensive income (loss) as a deferred cost of hedging.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

• Level 1: based on quoted (unadjusted) prices in active markets for identical assets or liabilities;  Level 2: based on inputs which have a significant effect on fair value that are observable, either directly or indirectly from market data; and

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NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

• Level 3: based on inputs which have a significant effect on fair value that are not observable from market data.

The following table illustrates the classification of the Company’s financial instruments within the fair value hierarchy as at March 31, 2021 and December 31, 2020:

			As at March	31, 2021
	Level 1	Level 2	Level 3	Total
Financial assets
Accounts receivable on provisionally
priced sales	-	67,290	-	67,290
Sabina special warrants	-	-	6,729	6,729
Publicly traded securities	61,382	-	-	61,382
Commodity swap contracts	-	1,717	-	1,717
Foreign exchange option contracts	-	4,504	-	4,504
Financial liabilities
Commodityswapcontracts	-	10,610	-	10,610
			As at December	31, 2020
	Level 1	Level 2	Level 3	Total
Financial assets
Accounts receivable on provisionally
priced sales	-	52,957	-	52,957
Sabina special warrants	-	-	12,128	12,128
Publicly traded securities	94,467	-	-	94,467
Commodity swap contracts	-	104	-	104
Foreign exchange option contracts	-	6,364	-	6,364
Financial liabilities
Commodity swap contracts	-	5,769	-	5,769

During the three months ended March 31, 2021 and the year ended December 31, 2020, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into or out of Level 3 fair value measurements.

The following table reconciles Level 3 fair value measurements from January 1, 2020 to March 31, 2021:

Balance as at January 1, 2020	6,488
Unrealized gains included in net earnings	5,640
Balance as at December 31, 2020	12,128
Unrealizedlossesincludedin net earnings	(5,399)
Balance as at March 31, 2021	6,729

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NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

6. DEBT

(a) DPM Revolving Credit Facility (“RCF”)

DPM has a committed RCF of $150.0 million with a consortium of banks. In February 2021, the Company extended the RCF’s maturity date from February 2023 to February 2024. The Company’s borrowing spread above LIBOR is 2.5%, and can range between 2.5% and 3.5% depending upon the Company’s funded net debt to adjusted earnings before interest, taxes, depreciation and amortization (“Debt Leverage Ratio”), as defined in the RCF agreement. The RCF is secured by pledges of the Company’s investments in Ada Tepe, Chelopech and Tsumeb and by guarantees from each of these subsidiaries.

The RCF contains financial covenants that require DPM to maintain: (i) a Debt Leverage Ratio below 3.75:1, (ii) a current ratio (including the addition of any unutilized credit within tranche B to current assets) of greater than 1.5:1, and (iii) a minimum net worth of $500.0 million plus (minus) 50% of ongoing annual net earnings (loss).

As at March 31, 2021 and December 31, 2020, DPM was in compliance with all financial covenants and $nil was drawn under the RCF.

(b) Tsumeb overdraft facility

Tusmeb has a Namibian $100.0 million ($6.8 million) demand overdraft facility. This facility is guaranteed by DPM and bears interest at a rate equal to the Namibian Prime Lending Rate minus 0.5%. As at March 31, 2021 and December 31, 2020, $nil was drawn from this facility.

(c) Other credit agreements and guarantees

In February 2021, Chelopech and Ada Tepe increased its multi-purpose credit facility from $16.0 million to $21.0 million. This credit facility matures on November 30, 2022 and is guaranteed by DPM. As at March 31, 2021, $14.1 million (December 31, 2020 – $6.1 million) had been utilized in the form of letters of credit and letters of guarantee, primarily in respect of concession contracts with the Bulgarian Ministry of Energy.

Chelopech and Ada Tepe also have a Euro 21.0 million ($24.6 million) credit facility to support mine closure and rehabilitation obligations. This credit facility matures on November 30, 2022 and is guaranteed by DPM. As at March 31, 2021, $24.6 million (December 31, 2020 – $25.8 million) had been utilized against this credit facility in the form of letters of guarantee, which were posted with the Bulgarian Ministry of Energy.

In February 2021, Ada Tepe increased its multi-purpose credit facility from $5.3 million to $10.3 million. This credit facility matures on November 30, 2022 and is guaranteed by DPM. As at March 31, 2021, $0.2 million (December 31, 2020 – $0.2 million) had been utilized against this multi-purpose revolving facility in the form of letters of credit and letters of guarantee.

Advances under these facilities bear interest at a rate equal to the one month U.S. Dollar LIBOR plus 2.5%. The letters of credit and guarantee bear a fee of 0.6% based on the amounts issued.

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NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

7. SHARE-BASED COMPENSATION PLANS

The following is a summary of the new grants under the Company’s share-based compensation plans in April 2021:

April 2021:
	Number of unitsgranted	Fair valuegranted
Restricted Share Units	674,592	4,129
Performance Share Units	225,723	1,383
Deferred Share Units	46,506	287
DPM Stock Options	452,428	1,092

For the three months ended March 31, 2021, mark-to-market adjustments related to the change in DPM’s share price resulted in a decrease in share-based compensation of $2.9 million (2020 – $4.9 million).

8. RELATED PARTY TRANSACTIONS

Key management remuneration

The Company’s related parties include its key management. Key management includes directors (executive and non-executive), the Chief Executive Officer (“CEO”) and the Executive Vice Presidents reporting directly to the CEO.

The remuneration of the key management of the Company recognized in the condensed interim consolidated statements of earnings (loss) for the three months ended March 31, 2021 and 2020 was as follows:

	Three months ended	March 31,
	2021	2020
Salaries, management bonuses and director fees	842	906
Other benefits	62	66
Share-based compensation	(1,777)	(1,073)
Total remuneration	(873)	(101)

9. SUPPLEMENTARY CASH FLOW INFORMATION

(a) Changes in non-cash working capital

(a) Changes in non-cash working capital
	Three months ended	March 31,
	2021	2020
Increase in accounts receivable and other assets	(17,823)	(39,715)
Decrease in inventories	2,280	5,405
Increase (decrease) in accounts payable and accrued liabilities	1,428	(11,360)
Decreaseinother liabilities	(1,162)	(1,552)
	(15,277)	(47,222)

DUNDEE PRECIOUS METALS INC. | 14

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

(b) Other items not affecting cash

(b) Other items not affecting cash
	Three months ended	March 31,
	2021	2020
Net finance cost	1,311	2,177
Share-based compensation expense	248	235
Net losses on Sabina special warrants	5,399	2,955
Net (gains) losses on commodity swap contracts	(1,343)	775
Net (gains) losses on foreign exchange option contracts	(1,223)	53
Other,net	220	(1,136)
	4,612	5,059

10. DIVIDEND

On February 11, 2021, the Company declared a quarterly dividend of $0.03 (2020 – $0.02) per common share payable on April 15, 2021 to shareholders of record on March 31, 2021 resulting in dividend distributions of $5.5 million (2020 – $3.6 million) recognized against its retained earnings in the condensed interim consolidated statements of changes in shareholders’ equity for the three months ended March 31, 2021. As at March 31, 2021, the Company recognized a dividend payable of $5.5 million (December 31, 2020 – $5.4 million) in accounts payable and accrued liabilities in the condensed interim consolidated statements of financial position. For the three months ended March 31, 2021, the Company also paid $5.4 million (2020 – $nil) of dividends which was included in cash used in financing activities in the condensed interim consolidated statements of cash flows.

On May 5, 2021, the Company declared a dividend of $0.03 per common share payable on July 15, 2021 to shareholders of record on June 30, 2021.

11. COMMITMENTS AND OTHER CONTINGENCIES

(a) Commitments

The Company had the following minimum contractual commitments as at March 31, 2021:

	up to 1year	1 -5 years	Total
Capital commitments	9,093	-	9,093
Purchase commitments	18,637	16,919	35,556
Total commitments	27,730	16,919	44,649

As at March 31, 2021, Tsumeb had approximately $91.7 million (December 31, 2020 – $76.9 million) of recoverable third party in-process secondary materials, which it is obligated to process and return, generally in the form of blister, to IXM S.A. (“IXM”) pursuant to a tolling agreement (the “Tolling Agreement”). As at March 31, 2021, the value of excess secondary materials, as defined in the Tolling Agreement, was approximately $58.4 million (December 31, 2020 – $45.4 million). Under the Tolling Agreement, the Company was obliged to eliminate excess secondary materials by April 30, 2021.

In April 2021, the Company and IXM agreed to amend the existing Tolling Agreement to provide for, among other things: i) targeted declining excess secondary material balances, above which excess secondary material would be required to be purchased by the Company; ii) the elimination of all excess secondary material by December 31, 2022; iii) an increase in the defined level of normal secondary material; and iv) an extension of the Tolling Agreement by three years to December 31, 2026.

DUNDEE PRECIOUS METALS INC. | 15

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

(b) Contingencies

The Company is involved in legal proceedings, from time to time, arising in the ordinary course of its business. It is not expected that any material liability will arise from current legal proceedings or have a material adverse effect on the Company’s future business, operations or financial condition.

12. FINANCIAL RISK MANAGEMENT IN RESPONSE TO CORONAVIRUS (“COVID-19”)

In March 2020, the World Health Organization classified the COVID-19 epidemic as a worldwide pandemic and governments across the globe undertook extensive measures to combat the spread of this virus. To date, as a result of the proactive actions being taken within the regions in which we operate and by personnel at each of our sites, the Company has not experienced any material disruptions to its operations as a result of COVID-19. The Company’s Chelopech and Ada Tepe mines in Bulgaria continue to operate at full capacity and have not experienced any disruptions to their operations.

In April 2020, the Tsumeb smelter in Namibia curtailed its operations by shutting down ancillary plants for 30 days in response to a government directive to the natural resources industry aimed at limiting staffing levels. Full operations resumed in May 2020 with ongoing management of the number of employees and contractors working at site and continued observance of the COVID-19 controls that have been established across all sites. During the three months ended March 31, 2021, Tsumeb’s maintenance shutdown, which was originally planned for 30 days, was extended to 45 days in part as a result of COVID-19 related safety protocols, travel restrictions and the use of remote commissioning support.

The Company continues to closely assess and monitor the COVID-19 situation, particularly as governments in various jurisdictions maintain and/or implement new measures to manage a resurgence in the number of cases and the impact on their medical systems and economies. The Company is continuing with a number of measures to mitigate the associated risks, including procedures and contingency plans that were established at each operating location directed at safeguarding employees, managing potential supply chain disruptions, and maintaining production at each of its operations. Management of the situation is being overseen by an experienced cross-functional team that includes members of senior management and leaders at each of the Company’s operations.

The Company has experienced several positive cases within its workforce. These positive cases are being effectively managed with testing, contact tracing and isolation measures and, to date, the vast majority of employees have recovered with the remaining employees isolating offsite in accordance with the Company’s procedures. Given the relatively low number of COVID-19 cases and the management protocols in effect, the impact on the Company’s operations has been minimal.

At present, there do not appear to be any imminent COVID-19 related circumstances that are expected to disrupt the Company’s operations, however, given the highly uncertain and evolving nature of this situation, the Company is not able to reliably estimate the likelihood, timing, duration, severity and scope of this pandemic and the potential impact it could have on the Company’s operating and financial results.

13. OPERATING SEGMENT INFORMATION

Operating segments are components of an entity whose operating results are regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance and for which separate financial information is available.

DUNDEE PRECIOUS METALS INC. | 16

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

The Company has three reportable operating segments – Chelopech and Ada Tepe in Bulgaria and Tsumeb in Namibia. The nature of their operations, products and services are described in note 1 , Corporate Information . These segments are organized predominantly by the products and services provided to customers and geography of the businesses. The Corporate and Other segment includes corporate, exploration and evaluation and other income and cost items that do not pertain directly to an operating segment. There are no significant inter-segment transactions that have not been eliminated on consolidation.

The operating results of MineRP have been presented as a discontinued operation and the assets and liabilities of MineRP have been presented as held for sale as a result of the MineRP Disposition (note 3).

The following table summarizes the relevant information by segment for the three months ended March 31, 2021 and 2020:

		Three months	Three months	ended March 31, 2021	ended March 31, 2021
				Corporate
	Chelopech	Ada Tepe	Tsumeb	& Other	Total
Continuing Operations
Revenue_(a)_	71,705	57,417	8,908	-	138,030
Earnings (loss) before income taxes	36,805	33,343	**(20,456) **	(14,415)	35,277
Capital expenditures	4,292	4,338	9,234	1,167	19,031
			Three months ended March 31,2020
				Corporate
	Chelopech	Ada Tepe	Tsumeb	& Other	Total
Continuing Operations
Revenue_(a)_	63,134	43,029	41,624	-	147,787
Earnings (loss) before income taxes	33,091	19,956	7,321	(8,985)	51,383
Capital expenditures	4,405	1,790	2,414	973	9,582

(a) Revenues from Chelopech and Ada Tepe were generated from the sale of concentrate and Tsumeb’s revenues were generated from processing concentrate and acid sales.

The following table summarizes the Company’s revenue recognized for the three months ended March 31, 2021 and 2020:

	Three months ended	March 31,
	2021	2020
Revenue recognized at a point in time from:
Sale of concentrate	132,081	105,742
Processing concentrate	6,613	34,996
Acid sales	2,295	6,628
Mark-to-market price adjustments
onprovisionally priced sales	(2,959)	421
Total revenue	138,030	147,787

DUNDEE PRECIOUS METALS INC. | 17

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

The following table summarizes the total assets and total liabilities by segment as at March 31, 2021 and December 31, 2020:

December 31, 2020:
				As at March 31, 2021
				Corporate
	Chelopech	Ada Tepe	Tsumeb	& Other Total
Total current assets	137,600	89,888	25,551	77,973 331,012
**Total non-current assets **	174,636	243,483	115,847	74,314 608,280
Assets held for sale				31,60031,600
Total assets	312,236	333,371	141,398	183,887 970,892
Liabilities	62,149	30,149	44,061	46,192 182,551
Liabilities held for sale				7,864 7,864
Total liabilities	62,149	30,149	44,061	54,056 190,415
				As atDecember31,2020
				Corporate
	Chelopech	AdaTepe	Tsumeb	& Other Total
Total current assets	98,584	63,651	46,969	79,115 288,319
Total non-current assets	175,518	256,771	111,750	111,789 655,828
Assetsheldforsale				30,713 30,713
Totalassets	274,102	320,422	158,719	221,617974,860
Liabilities	52,830	27,776	37,660	45,307 163,573
Liabilitiesheldforsale				6,003 6,003
Total liabilities	52,830	27,776	37,660	51,310169,576

DUNDEE PRECIOUS METALS INC. | 18