CANADA’S INTERMEDIATE GOLD PRODUCER 1 Corporate Presentation January 15, 2015 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, all-in sustaining costs, capital costs, exploration costs; expected throughput, mining and recovery rates; expected future production and mining activities; opportunities to optimize the mine operation; the 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 forwardlooking 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. 2 Notes to Investors Non-IFRS Financial Performance Measures The Company has included non-IFRS measures in this presentation: total cash costs and all-in sustaining costs. 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. The 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 these measure differently. Detour Gold reports total cash costs on a sales basis. Total cash costs per gold ounce include production costs such as mining, processing, refining and site administration, less non-cash share-based compensation and net of silver sales divided by gold ounces sold to arrive at total cash costs per gold ounce sold. Production costs are exclusive of depreciation and depletion. Production costs include the costs associated with providing the royalty in kind ounces. Starting in 2015, the Company will report “all-in sustaining costs”. The Company believes this measure more fully defines the total costs associated with producing gold. The Company calculates all-in sustaining costs per ounce of gold sold as the aggregate of total cash costs (as described above), share-based compensation, corporate general and administrative expense, exploration and evaluation expenses that are sustaining in nature, reclamation cost accretion, sustaining capital and deferred stripping costs. The following items are excluded from all-in sustaining costs: non-sustaining capital expenditures and exploration costs that are expected to materially increase production, financing costs and tax expense. Consequently, this measure is not representative of all of the Company’s cash expenditures. In addition, the Company’s calculation of all-in sustaining costs does not include depletion and depreciation expense. Information Containing Estimates of Mineral Reserves and Resources The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument 43-101 Standards 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., Senior Vice President Technical Services, a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for Mineral Projects”. 3 Unique Investment Opportunity Intermediate Canadian Gold Producer Large-scale, long mine life Largest gold producing mine not controlled by a senior producer Low-risk, safe mining jurisdiction Growing cash flow profile Production growth opportunities Favourable exposure to Canadian Dollar 4 M OZ 15.5 + 21YEAR gold reserve mine life 2014 Highlights Detour Lake Mine 500 450 400 350 300 250 200 150 100 50 0 $1,500 $1,182 $1,300 $930E $1,100 $900 $700 232 457 2013 2014 ■ Gold Production (K oz)457 232 ■ Total Cash Costs (US$/oz sold)1,2 $500 $300 Delivered on production, cost and capex Year-end cash position of ~US$135 M Balance sheet improvements: Flexibility added on short-term debt Debt reduced by US$57 million Successful preliminary results on processing enriched portion of low-grade stockpile Encouraging high-grade drilling results at Lower Detour 1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation. 2. 2014 subject to year-end closing. 5 2014 Operational Performance 140 120 Detour Lake: 2nd Year of Operation $976 100 $941 $941 80 $875E 60 40 20 0 107 117 115 117 Q1’14 Q2’14 Q3’14 Q4’14 ■ Gold Production (K oz) ■ Total Cash Costs (US$/oz sold)1,2 Significant advancements $1,000 Mill $900 Exited 2014 at average throughput rate of 54,310 tpd in December (99% of $800 design capacity) $700 Mine Mining rate improvement to 234,000 tpd for December Drill productivity increased 40% from September to December Block model Positive reconciliation on both tonnes and grade (+4% on ounces) $1,100 1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation. 2. Q4 subject to year-end closing. 6 2014 Operational Statistics Q1 Q2 Q3 Q4 2014 4.88 2.89 4.20 4.30 16.28 Waste mined (Mt) 14.29 16.11 14.71 15.39 60.49 Total mined (Mt) 19.17 19.00 18.91 19.69 76.77 2.9 5.6 3.5 3.6 3.7 213,000 209,000 206,000 214,000 210,000 Ore milled (Mt) 4.08 4.42 4.53 4.70 17.73 Mill grade (g/t Au) 0.90 0.91 0.88 0.85 0.88 91 91 90 91 91 45,282 48,569 49,186 51,142 48,563 80 83 81 83 81 Ounces produced (oz) 107,154 117,366 115,344 116,770 456,634 Ounces sold (oz) 84,560 107,206 106,334 124,913 423,013 Ore mined (Mt) Strip ratio (waste:ore) Mining rate (tpd) Recovery (%) Mill throughput (tpd) Mill availability (%) 7 Detour Lake: Starting 3rd Year of Operation 809-17-2014 2015 Guidance Estimated production 475-525 THOUSAND oz gold Estimated costs Total cash costs US$780-850 TCC (1) per oz sold All-in sustaining costs 2015 third year of operation US$1,050-1,150 AISC (1) per oz sold Cost Assumptions Gold price of US$1,200/oz, diesel fuel price of US$0.82 per litre; power cost of US$0.04 per kilowatt hour; and exchange rate of $1.00US:$1.15Cdn. 1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation. 9 2015 Gold Production Forecast 2015 Estimated Production (Koz) High 160 150 140 Low 130 High 120 110 Low 100 Q1 Q2 Q3 Q4 475,000 to 525,000 oz for 2015 Gradual gold production increase from Q1 to Q3 at total cash costs of ~US$900/oz sold1 Higher gold production in Q4 at lower total cash costs of ~US$700/oz sold1 due to access to higher grade ore Work towards bringing Q4 ounces into Q3 1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation. 10 2015 Operating Plan Plan for mill ~54,000 tpd throughput (milling rates of ~2,600 tpoh at 87% availability) Plan for mine 238,000 tpd average mining rate (approx. 87 Mt total mined): Phase I: 222,000 tpd (5 shovels + CAT795 trucks) Phase II: 16,000 tpd for pre-stripping (1 excavator + CAT777 trucks) Build ROM stockpile in Q4 to 1.8 Mt at 0.8 g/t at year-end (~46,000 oz) 11 Guidance mid-point: 19.7 MT ore milled AU 0.86 G/T head grade % 91.5 gold recovery WASTE:ORE 3.5:1 strip ratio 2015 Operating Costs Forecast Breakdown of 2015 Operating Costs Forecast (C$) Mining ($/t mined) Maintenance $2.60 Processing ($/t milled) $9.87 G&A ($/t milled) $3.05 Labour & Contractors 15% Fuel 11% 33% Power Continued benefits from electricity contract are anticipated Implement plan for further reductions of consumables and reliance on contractors 12 Consumables 30% 7% 4% G&A and other ~80% of costs in Cdn$ 2015 All-in Sustaining Costs (AISC) Breakdown of 2015 Sustaining Capital (US$): Forecast (US$) Total Cash Costs (TCC) Sustaining Capital Capitalized Stripping Mine $780-850/oz sold1 $30 M Exploration AISC $13 M $90-100 M Water Management $20-25 M TMA Corporate G&A Other $20 M $34 M $10 M Mill $9 M $2 M $1,050-1,150/oz sold1 ~90% of costs in Cdn$ Overall timing of expenditures weighted in Q2 & Q3 Capitalized stripping costs to be incurred within the first 9 months 1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation. 13 13 2015 Mine Plan Upside Focus on further improvement of mining rates Continued progress is key to higher gold production › 10,000 tpd change in mining rate equals ~10,000 oz change in gold production Strategy Focus on achieving higher drilling & blasting productivity › Shovel fleet ready for increased broken inventory Target of 250,000 tpd for Phase 1 mining rates by year-end › Drive down unit costs 14 2015 Projected Mining Rates (Ktpd) 280 240 10 16 5 16 20 16 30 16 222 222 222 222 Q1 Q2 Q3 Q4 Targets for improvement PHASE II 200 160 120 80 40 0 PHASE I Additional Opportunities Opportunities to increase production and reduce costs: Processing of gold-enriched zone in low-grade stockpile Evaluate the use of a contractor in H2 2015 to mine 3,000 tpd (or ~0.5 Mt) of additional feed without capital injection Installation & testing of pebble extraction system Natural segregation of fines from unloading truck Test #1: avg. grade 0.65 g/t Low-grade stockpile (avg. grade 0.44 g/t) Potential for cost reductions i.e. using pebbles for road or tailings dam construction Incremental mill throughput Mobile feeder 15 2015 Financial Outlook Financial Risk Management Use price protection programs: › Up to 50% of 2015 gold production (forward sales on 80,000 oz @ US$1,229/oz for H1) › Currency collars for US$135 M protecting F/X rate of 1.10 with participation up to 1.19 › Look at opportunistic windows to hedge Cdn F/X and diesel for 2015 Target to end 2015 with minimum US$100 M of cash at US$1,200/oz 16 (US$) Change Gold price $50/oz Impact on cash position ~$25 M F/X rate $0.01 ~$4 M Diesel price 10% ~$4 M Future Catalysts Expected in H2 2015: Commissioning of the pebble extractor prototype Results from winter drilling program at Lower Detour Review LOM plan with the main objective of optimizing operation Focus on ‘Quality’ Ounces 17 ADDITIONAL information Analyst Coverage Shareholder Information Corporate Responsibility Debt Repayment Schedule Exploration Focus: Lower Detour Management & Directors Contact Information 18 Analyst Coverage (20) 19 Initiating Research 07.06.11 Firm Analyst Target Price at January 13, 2015 $13.50 Haywood Kerry Smith 07.07.09 Paradigm Don Blyth/Don MacLean $14.50 07.08.07 Raymond James Phil Russo $15.00 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 $15.00 08.11.06 BMO NB Brian Quast $12.00 09.06.17 Laurentian Eric Lemieux (left firm) 10.05.19 CIBC World Markets Cosmos Chiu $13.00 10.07.22 Credit Suisse Anita Soni $10.00 13.04.16 Scotiabank Trevor Turnbull $17.00 13.08.14 Desjardins Michael Parkin $13.25 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 $10.00 14.06.17 Dundee Capital Markets Joseph Fazzini $ 9.75 14.09.03 Morgan Stanley Brad Humphrey $11.90 Average target C$13.46 Under review Shareholder Information Share Structure(03/31/2014) (December 31, 2014) Share Structure Top Shareholders Top Shareholders 157.9 M 10.1 M 14% >80% 13.0 M 181.0 M Issued & outstanding Share options INSTITUTIONS TOTAL Convertible notes 1 FULLY DILUTED US$135.0 MILLION cash position2 1. Conversion price for the Notes is US$38.50. 2. Estimated approximate cash and short-term investments at December 31, 2014. 20 Paulson & Co. C$1.8 BILLION market cap Corporate Responsibility Responsible mining is more than a commitment - It’s what we do every day Our commitments to 21 LABOUR community benefits are 18% being realized and will grow as the mine matures MAINTENANCE Steady state operations allows us to report on our operational, environmental, and social impacts. Our first CSR update has been published and is available on our website Our Life Saving Rules help raise the visibility of safety to ensure everyone on our site goes home safely Debt Repayment Schedule 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% Monthly Quarterly Semi-annually n/a n/a $38.50 Principal Principal + Interest At December 31, 2014 Payable Conversion Price Payment schedule Principal Interest Total (US$ M) 2015 - $24.9 - $27.5 $52.4 2016 $30 $31.5 - $27.5 $89.0 2017 - $35.0 $500 $27.5 $562.5 Thereafter - $7.2 - $30 $98.6 $500 Total $96.3 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. 22 $7.2 $711.1 Exploration Focus: Lower Detour 630 km2 Block A Resource Detour Lake OP Mine Lower Detour Area 23 Exploration Focus: Lower Detour Lower Detour Area: 3,000 m of drilling planned for winter 2015 Lower Detour area approx. 6-7 km south of mill 2015 exploration program: Test depth extension of high-grade intersections in Zone 58N Mineralization in altered feldspar porphyry intrusive containing quartz and/or quartz/tourmaline veins Note: Refer to press release June 2, 2014. 24 Management & Directors Management Paul Martin President and CEO Pierre Beaudoin COO James Mavor CFO Julie Galloway Sr VP General Counsel & Corporate Secretary VP Mineral Resource Management Laurie Gaborit Director Investor Relations Alberto Heredia Controller Jim Robertson VP Environment & Sustainability Rachel Pineault VP HR & Aboriginal Affairs Drew Anwyll Sr VP Technical Services Jean-Francois Metail Bill Snelling Director Corporate Systems & Controls Rickardo Welyhorsky Director Mineral Processing Charles Hennessey Mine General Manager Andrew Croal Director Technical Services Derek Teevan Sr VP Corporate & Aboriginal Affairs Directors 25 Lisa Colnett Peter Crossgrove Louis Dionne Robert E. Doyle André Falzon Ingrid Hibbard Michael Kenyon Paul Martin Alex G. Morrison Jonathan Rubenstein Graham Wozniak Contact Information Paul Martin Laurie Gaborit President and Chief Executive Officer Email: [email protected] Phone: 416.304.0800 Director Investor Relations Email: [email protected] Phone: 416.304.0581 www.detourgold.com 26
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