Post on 24-Jun-2015
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CANADA’S INTERMEDIATE
GOLD PRODUCER
Corporate Presentation
November 7, 2014
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Forward Looking Information This presentation contains certain forward-looking information and statements as defined in applicable securities law (referred to herein as
“forward-looking statements”). Forward-looking statements include, but are not limited to, statements with respect to Detour Gold’s future
financial or operating performance; guidance for production, total cash costs, capital costs, exploration costs; expected throughput, mining
and recovery rates; expected future production and mining activities; opportunities to optimize the mine operation; the updated mine plan
and economic analysis of the Detour Lake mine including, but not limited to, the life of mine plan, the waste to ore ratio, processing and
production rates, grades, metallurgical recovery rates, operating and sustaining capital costs, and the projected life of mine, opportunities to
optimize the mine operation; the success and continuation of exploration activities, the future price of gold, reclamation obligations,
government regulations and environmental risks.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance
or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-
looking statements. These risks, uncertainties and other factors include, but are not limited to, assumptions and parameters underlying the
life of mine update not being realized, a decrease in the future gold price, discrepancies between actual and estimated production, changes
in costs (including labour, supplies, fuel and equipment), changes to tax rates; environmental compliance and changes in environmental
legislation and regulation, exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration and
development industry, as well as those risk factors discussed in the section entitled “Description of Business - Risk Factors” in Detour
Gold’s 2013 AIF and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com.
Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to,
assumptions about the following: the availability of financing for exploration and development activities; operating and sustaining capital
costs; the Company’s ability to attract and retain skilled staff; sensitivity to metal prices and other sensitivities; the supply and demand for,
and the level and volatility of the price of, gold; the supply and availability of consumables and services; the exchange rates of the Canadian
dollar to the U.S. dollar; energy and fuel costs; the accuracy of reserve and resource estimates and the assumptions on which the reserve
and resource estimates are based; market competition; ongoing relations with employees and impacted communities and general business
and economic conditions. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking
statements contained herein are made as of the date hereof, or such other date or dates specified in such statements.
All forward-looking statements in this presentation are necessarily based on opinions and estimates made as of the date such statements
are made and are subject to important risk factors and uncertainties, many of which cannot be controlled or predicted. Detour Gold and the
Qualified Persons who authored the associated Technical Report undertake no obligation to update publicly or otherwise revise any
forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be
required by law.
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Notes to Investors
The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument 43-
101Standards of Disclosure for Mineral Projects (“NI 43-101”), as required by Canadian securities regulatory authorities. For United States reporting
purposes, the United States Securities and Exchange Commission (“SEC”) applies different standards in order to classify mineralization as a
reserve. In particular, while the terms “measured,” “indicated” and “inferred” mineral resources are required pursuant to NI 43-101, the SEC does
not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Investors are cautioned not to assume that
any part or all of the mineral deposits in these categories constitute or will ever be converted into reserves. In addition, “inferred” mineral resources
have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that
all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, issuers must not make
any disclosure of results of an economic analysis that includes inferred mineral resources, except in rare cases.
On February 4, 2014, Detour Gold announced an updated life of mine plan for the Detour Lake mine. The NI 43-101 compliant Technical Report for
this update was filed on SEDAR on February 4, 2014. The following QPs participated in this update: BBA Inc., under the direction of André Allaire,
Eng., Acting President and CEO and Patrice Live, Eng., Director Mining; SGS Canada Inc., under the direction of Yann Camus, Eng., Project
Engineer, and Maxime Dupéré, P.Geo., Senior Geologist; and AMEC Environment & Infrastructure, a Division of AMEC Americas Limited, David G.
Ritchie M.Eng., P.Eng, Senior Associate Geotechnical Engineer and Geotechnical Engineering Group Manager.
The scientific and technical content of this presentation has been reviewed, verified and approved by Drew Anwyll, P.Eng.,
Vice President of Operations, a Qualified Person as defined by Canadian Securities Administrators
National Instrument 43-101 “Standards of Disclosure for Mineral Projects”.
Information Containing Estimates of Mineral Reserves and Resources
Non-IFRS Financial Performance Measures The Company has included “Total cash cost per gold ounce sold (TCC)” and “Adjusted net loss” in this presentation which are non-IFRS measures.
The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an
improved ability to evaluate the underlying performance of the Company and its ability to generate operating earnings and cash flow from its mining
operations. Refer to the MD&A of June 30, 2014 or relevant period for reconciliation of these measures.
Detour Gold reports total cash costs on a sales basis. Total cash costs per gold ounce sold include production costs such as mining, processing,
refining, site administration, costs associated with providing royalty in-kind ounces, and costs for agreements with Aboriginal communities, but are
exclusive of depreciation and depletion, reclamation, non-cash share-based compensation and deferred stripping. Total cash costs are reduced by
silver sales and divided by gold ounces sold to arrive at total cash costs per gold ounce sold. Further details regarding total cash costs per gold
ounce sold and a reconciliation to the nearest IFRS measures are provided in our MD&A accompanying our financial statements filed on
www.sedar.com. Total cash costs plus capex per gold ounce sold includes TCC plus sustaining capital and deferred stripping divided by gold
ounces sold. These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS,
and therefore may not be comparable to other issuers. Other companies may calculate this measure differently.
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Low-risk, safe mining jurisdiction
Large reserve base, long mine life
Annual production of +600,000 oz for
next 10 years
Cash flow growth following ramp-up
completion
Production growth opportunities
Unique Investment Opportunity
15.5 M OZ GOLD in reserves
21 + YEAR mine life
Intermediate Canadian
Gold Producer
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Complete ramp-up of Detour Lake
Reach mill design capacity
Further increase mine output
Improve balance sheet
Increase flexibility of short-term debt
Price protection during ramp-up
Debt reduction
Preserve cash
Start evaluation of ‘next’ production
growth opportunities
2014 Key Focus
On track for year-end
Stronger balance
sheet at year-end
Successful
preliminary results
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$1,214 $1,174
$976 $941 $941
$0
$300
$600
$900
$1,200
$1,500
Q3’132 Q4’13 Q3’14 Q1’14 Q2’14
76 82
107 117 115
0
30
60
90
120
Outlook After First 9 Months Gold Production (‘000 oz)
Q3’132 Q4’13 Q2’14 Q1’14
Total Cash Costs ($/oz sold)1
1. Refer to the section on Non-IFRS Performance Measures on slide 3. Reconciliation of these measures is described in the MD&A for the
third quarter ended September 30, 2014.
2. Commercial production declared on September 1, 2013. TCC reported is for the
month of September 2013.
Q3’14
On track to meet production and total cash cost guidance for 2014
› 450,000-480,000 oz at total cash costs of US$900-975/oz sold1
Mill operation significantly de-risked: confident in exiting year at
throughput rates of 55,000 tpd
Capital on budget
Target of US$60 M in total debt repayments
Yr to date: 339,865 oz
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Q3 2014 Financial Results
Key Financial Statistics
(US$ M, unless noted) Q3’14
Revenues $136.2
Production costs $100.6
Depreciation & depletion $37.3
Loss from mine operations $1.7
Cash provided by operations $47.8
Net loss/Adjusted net loss1 $0.8 / $16.5
Net loss & Adjusted net loss per share1 $0.00 / $0.10
Cash & short-term investments $138.8
1. Refer to the section on Non-IFRS Financial Performance Measures on slide 3 of this presentation.
Price protection during ramp-up
At September 30, 2014: 55,000 oz of gold hedged at an average price
of US$1,291/oz for gold sales from October to December 2014
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Q3 2014 Operating Results
0
1
2
3
4
5
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14
1.0
0.8
0.2
0.0
0.4
0.6
To
nn
es
Mille
d (
Mt)
Q3’13 Q4’13 Q1’13 Q3’14
1’14
Q2’14
85 92 91 91
Mill production
Hea
d G
rad
e (
g/t
Au
) Recovery %
0.88 G/T GOLD head grade 4.53 MILLION
tonnes milled 90 % GOLD recovery
Q3’14 Performance:
Gold production of 115,344 ounces
4.5 Mt of ore processed: 75% direct
feed and 25% ROM stockpiles
Head grade of 0.88 g/t, consistent with
model projections
Recovery rates at 90%
Dilution averaged 6.7%
90
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Q3 2014 Operating Results - Mine
Q3’14 Performance:
Total of 18.9 Mt mined (206,000 tpd)
4.2 Mt ore mined; strip ratio 3.5
Shortfall in mining rates due to:
› Low drilling productivity and delays in
explosive loading impacting shovel
utilization
› Lower than planned shovel availability
(81% versus 85% target)
Stockpiles = 0.9 Mt @ 0.73 g/t at Q3-end
Southwall pushback and old infrastructure
removal completed
Q1-Q3’14:
16.5 Mt of overburden/till removal
(+95% of 2014 program)
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Q4 2014 Focus - Mine
Focus #1 improve mining rates:
Improving training and QA/QC to
increase drilling productivity and
efficiencies
Improving delivery and loading of
explosives
Increasing support in the areas of
planning and maintenance for the
mining fleet
De-stacking benches to the south &
east to expose larger mine faces
Result is larger in-pit blasted
inventory, improved shovel allocation
and productivity = more tonnes
mined per day
2014: total tonnage expected to
range between 75 Mt and 77 Mt
(versus target of 82 Mt)
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Q3 2014 Operating Results - Mill
Q3’14 Performance:
Throughput rates averaging 49,186 tpd
Availability at 81%, impacted mainly by
unplanned replacement of SAG pulp lifter
in early July
Plant stabilizing with modifications to 410
conveyor in mid-August:
› Average of 57,020 tpd with 91%
availability over 55 days (up to mid-
October planned shutdown)
Recovery rates as planned, gravity
recovery at 21%
Th
rou
gh
pu
t (K
tpd
)
0
10
20
30
40
50
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14
Availability % 1
Q3’13 Q4’13 Q1’14 Q3’14 Q2’14
Mill productivity
81 83 80 66 78
1. Availability = capital utilization.
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Q4 2014 Focus - Mill
Focus #1 improve availability:
Final major planned shutdown took place
in mid-October:
› Primary crusher bowl and mantle
change
› SAG and ball mills liner change
› Pre-leach thickener inspection and
by-pass system installation and test
Aiming for high 80s by year-end
Exit 2014 at design rate of 55,000 tpd
Q4’14: Move to final phase of
maintenance improvement plan –
mobile maintenance
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Q3 2014 Operating Results - Costs
Q3’14 YTD’14
Gold oz sold 106,334 298,100
TCC/oz sold1 US$941 US$951
1. Refer to the section on Non-IFRS Financial Performance Measures on slide 3 of this presentation. Reconciliation of these measures is
described in the MD&A for the corresponding period.
Unit Costs Q3’14 YTD’14
Mining (C$/t mined) $2.98 $2.88
Processing (C$/t milled) $9.70 $10.67
G&A (C$/t milled) $3.25 $3.46
Q3 Progress:
Higher mining costs due to
› shortfall in total tonnes mined
Lower milling costs due to
› Lower electricity charges
Outlook:
Downward trend expected with
throughput and production increases
and increased efficiencies
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Detour Lake Open Pit
Q4’14: Working towards a step-up
phase to improve mining rates
September 17, 2014
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2014 Capital Expenditures
(US$ M) Q3’14 YTD’14
Tailings facility (TMA) $ 16.5 $ 27.9
Mill 4.5 7.4
Mine 11.8 39.3
Other 2.9 5.6
Sustaining expenditures1 $ 35.7 $ 80.1
Deferred stripping $ 5.6 $ 20.7
1. $22.3 M incurred in 2013 and includes payment of C$2.5 M to NAC.
Initial budget holding
Majority of TMA construction activities
completed
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CN detox operational and
2nd oxygen plant ready in
January 2015
Current Status
Near-term Opportunities (2-5 yrs)
1 Increase throughput to 61,000 tpd for 2017 Starts in 2014 with installation of 1 cyanide (CN)
detox tank and 1 additional oxygen plant
2 Block A Project Bring to pre-feasibility study for reserve definition
In progress
3 Pebble Circuit Removal Pebbles appear to be barren
Pebble extractor
prototype being
designed
4 Low-grade material (not in reserves) Segregation of fines
Heap leach
Positive test results for
both
5 Increase exploration activities
On 630 km2 prospective property Planning in progress
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Near-term Opportunities (2-5 yrs)
Segregation of fines:
Positive results from first 200,000
tonnes test
› Grade of 0.65 g/t (approx. 45%
higher than avg. grade of SP)
› Processed at 68,000 tpd
Pebble Circuit Removal:
Test results show high variability in
gold content of the pebbles but a
large portion is barren
Initiated design of an ON/OFF
pebble extractor
Low-grade stockpile (avg. grade 0.44 g/t)
Natural segregation of fines
from unloading truck
Mobile feeder
To stacker
unit
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Ramp-up completion by year-end
Guidance and details for 2015 to be disclosed in January
› 2015 mine plan selection to be based on the improvement made in
mining rates for remainder of 2014
› Upside for 2015 mine plan seen with processing of the ‘fines’ from low-
grade stockpile and commissioning of the pebble extractor prototype
Review of next 5 years and LOM plan with the main objective of
reducing sustaining capital.
Future Catalysts
Focus on ‘Quality’ Ounces
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ADDITIONAL information Analyst Coverage
Shareholder Information
Corporate Responsibility
Debt Repayment Schedule
Near-term Opportunities: Exploration
Exploration Focus: Lower Detour
LOM Summary
LOM Gold Production/Cost Profile
LOM Operating Costs & Capex
Management & Directors
Contact Information
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Initiating
Research Firm Analyst Target Price at
November 5, 2014
07.06.11 Haywood Kerry Smith $13.50
07.07.09 Paradigm Don Blyth/Don MacLean $14.50
07.08.07 Raymond James Phil Russo $18.00
07.11.26 National Bank Steve Parsons $12.00
07.12.20 Macquarie Mike Siperco $18.00
08.01.14 Canaccord Rahul Paul $11.00
08.07.14 TD Dan Earle $15.00
08.09.04 RBC Dan Rollins $13.00
08.11.06 BMO NB Brian Quast $12.00
09.06.17 Laurentian Eric Lemieux (left firm) Under review
10.05.19 CIBC World Markets Cosmos Chiu $15.00
10.07.22 Credit Suisse Anita Soni $10.00
13.04.16 Scotiabank Trevor Turnbull $17.00
13.08.14 Desjardins Michael Parkin $13.50
13.11.12 Beacon Securities Michael Curran $12.50
13.12.09 GMP Securities Ian Parkinson $13.50
14.02.06 Cormark Securities Richard Gray/Tyron Breytenbach $18.75
14.04.22 Goldman Sachs Andrew Quail $11.50
14.06.17 Dundee Capital Markets Joseph Fazzini $9.50
14.09.03 Morgan Stanley Brad Humphrey $15.50
Average target C$13.88
Analyst Coverage (20)
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Shareholder Information
Paulson & Co.
>80% INSTITUTIONS TOTAL 10.4 M Share options
13.0 M Convertible notes 1
181.2 M FULLY DILUTED
157.8 M Issued & outstanding
Share Structure (03/31/2014) Top Shareholders
1. Conversion price for the Notes is US$38.50.
2. Cash and short-term investments at September 30, 2014.
14%
C$1.1 BILLION market cap US$138.8 MILLION
cash position2
Share Structure (September 30, 2014) Top Shareholders
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Focus on health and safety of our employees, the well-being of
our community and the protection of the natural environment
Hiring in the region, giving priority to local Aboriginal communities:
694 full-time employees*
92% of workforce from region
24% are Aboriginals
Scholarship and job training
Supporting local communities
Business opportunities
Corporate philanthropy
Participation in municipal development
Northern
Ontario
41%
Cochrane
21%
Cochrane
Area
30% Rest of
Ontario
5%
3% Other
Corporate Responsibility
WORKFORCE ORIGIN
* At September 30, 2014. Excludes corporate office at 34 full-time employees.
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Debt Repayment Schedule
At September 30, 2014 Revolving Credit
Facility (1) CAT Finance Lease Convertible Notes
Face Value US$30 M (1) US$150 M US$500 M
Maturity March 2016 Jan 2017-Dec 2018 (2) November 30, 2017
Interest Rate LIBOR + 3% LIBOR + 4% 5.5%
Payable Monthly Quarterly Semi-annually
Conversion Price n/a n/a $38.50
Payment schedule Principal Principal + Interest Principal Interest Total
(US$ M)
2014 (remaining) - $0.0 - $13.8 $13.8
2015 - $34.7 - $27.5 $62.2
2016 $30 $32.7 - $27.5 $90.2
2017 - $35.8 $500 $27.5 $563.3
Thereafter - $7.2 - - $7.2
Total $30 $110.4 $500 $96.3 $736.7
1. The Revolving Credit Facility provides for borrowings of up to C$90 M and is subject to a completion test prior to May 31, 2015.
2. Includes multiple leases with maturities of 5 yrs from lease date.
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Priority Target: Lower Detour area
Lower Detour area approx. 6-7 km south of mill
Structural complexity: number of shear zones sub-parallel
and splaying from LDDZ
Several gold mineralization styles encountered
2014 exploration program results:
Mineralization extends for 450 metres
High-grade gold intercepts in altered feldspar porphyry
intrusive containing quartz and/or quartz/tourmaline veins
Results suggest that grade and continuity may improve at
depth
Near-term Opportunities: Exploration
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Lower Detour Area
15.5 M oz in Reserves
630 km2
Exploration Focus: Lower Detour
2.0 M oz in
Block A Resource
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Lower Detour Area: 14,874 m of drilling completed in 2014
A B C
A’ B’ C’
Exploration Focus: Lower Detour
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LOM Plan1 02/2014
Update
Proven & Probable Reserves (M oz)2 15.5
Gold grade (g/t) 1.02
Strip ratio (waste:ore) 3.5
Estimated gold recovery (%) 92
Mine life (years) 21.7
Annual gold production (oz) 660,000
Total cash costs (TCC) (C$/oz sold)3 $723
Sustaining capital (C$ billion) $1.14
TCC3+ capex (C$/oz sold) $848
LOM Summary
Main objective: Optimize first 5 years
1. As per NI 43-101 compliant Technical Report dated February 4, 2014.
2. Estimated using a gold price of US$1,000/oz. Includes stockpiles as of December 31, 2013.
3. Refer to the section on Non-IFRS Performance Measures on slide 3. Capex = sustaining capital expenditures + deferred stripping.
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TCC1
(C$/oz sold)
800
700
600
500
400
300
200
100
0
Gold Production
(‘000 oz)
LOM Gold Production/Cost Profile
900
850
800
750
700
650
600
550
500
598,000 oz
C$759/oz
0.96 g/t
596,000 oz
C$762/oz
0.91 g/t
659,000 oz
C$778/oz
1.00 g/t
765,000 oz
C$639/oz
1.16 g/t
1. Refer to the section on Non-IFRS Financial Performance Measures on
slide 3 of this presentation.
2014 Guidance
450,000-480,000 oz
US$900-975/oz sold1
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LOM Operating Costs1 C$/t milled C$/t mined C$/oz sold 2
Mining costs 11.55 2.56 392
Processing costs 7.82 266
G&A 2.44 83
Total cash operating costs 21.81 741
Other adjustments 3 (18)
Total cash costs 723
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LOM Operating Costs & Capex
1. As per NI 43-101 compliant Technical Report dated February 4, 2014.
2. Refer to the section on Non-IFRS Financial Performance Measures on slide 3 of this presentation.
3. Other adjustments include costs for deferred stripping, agreements with Aboriginal communities, refining charges and
are net of silver by-product credits.
Capex1 (C$ M) 5 yrs: 2014 -2018 LOM
Mining 168 535
Process Plant 71 126
TMA 203 454
G&A 14 28
Total 456 1,143
Deferred Stripping 225 614
Mine Closure 70
Higher capital in first
5 years:
Ramp-up to 38 trucks
Complete plant de-
bottlenecking exercise
Prepare TMA foundation
for 2nd and 3rd cell
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Michael Kenyon Executive Chairman
Paul Martin President and CEO
Pierre Beaudoin COO
James Mavor CFO
Julie Galloway Sr VP General Counsel &
Corporate Secretary
Derek Teevan Sr VP Corporate &
Aboriginal Affairs
Drew Anwyll VP Operations
Pat Donovan VP Corporate Development
Jean-Francois Metail VP Reserves and Resources
Rachel Pineault VP HR & Aboriginal Affairs
James Robertson VP Environment &
Sustainability
Charles Hennessey General Manager Operations
Andrew Croal Director Technical Services
Laurie Gaborit Director Investor Relations
Alberto Heredia Controller
Bill Snelling Director Corporate Systems & Controls
Rickardo Welyhorsky Director Mineral Processing
Peter Crossgrove
Lisa Colnett
Louis Dionne
Robert E. Doyle
Alex G. Morrison
Jonathan Rubenstein
Graham Wozniak
André Falzon
Ingrid Hibbard
Michael Kenyon
Paul Martin
Management & Directors
Management
Directors
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Laurie Gaborit Director Investor Relations
Email: lgaborit@detourgold.com
Phone: 416.304.0581
Paul Martin President and Chief Executive Officer
Email: pmartin@detourgold.com
Phone: 416.304.0800
www.detourgold.com
Contact Information